• Xponential Fitness expanded its footprint in 2025, with 201 net new studios, driving system-wide sales to approximately $1.75 billion, mainly through Club Pilates, although the company faced 140 closures (about 4.5% of all studios), which they anticipate will trend lower in the future.

• In the financial quarter, Q4 revenue remained stable at $83 million, while the overall annual revenue decreased by 2%, totaling $314.9 million. The company reported a narrowed net loss for Q4 at $45.6 million and an adjusted EBITDA decline of 26% to $22.9 million. Management expects 2026 revenue to range between $260 million and $270 million, with adjusted EBITDA projected at $100 million to $110 million.

• For 2026, the company will focus on acquiring new members and improving studio performance. This involves investment in performance marketing, digital tools for conversions, a skilled field team of about 35 people, and studio enhancements. They are also enhancing their financial stability through a new $525 million term loan and addressing a proposed $17 million FTC settlement.

• Interested in Xponential Fitness, Inc.? Here are five stocks we like better.

Xponential Fitness (NYSE:XPOF) used its fourth-quarter and full-year 2025 earnings call to outline progress made during the year, acknowledge operational challenges that weighed on organic growth, and frame a 2026 plan centered on improving member acquisition and studio-level performance while continuing to expand its footprint.

CEO Mike Nuzzo highlighted the opening of 201 new studios and praised the franchise network’s momentum, particularly from Club Pilates which reached its 1,414th studio. He emphasized the positive “four-wall economics” and strong sales growth in the first year of operations for these studios.

Key Financial Insights:

CFO John Meloun reported that the company ended Q4 with 3,097 studios worldwide, having opened 78 new locations within the quarter (51 in North America and 27 internationally). Despite these gains, closures also played a significant role, with 140 studios shuttering in 2025, mainly in the StretchLab, BFT, and YogaSix brands. The expectation is for closure rates to stabilize in the coming year.

Sales in North America saw an uptick, with Q4 system-wide sales hitting $447 million, a 5% increase year-over-year, driven by new studio additions. However, same-store sales fell by 4.3% in that quarter.

Total consolidated revenue for Q4 was steady at $83 million, with recurring revenue comprising the majority (76%). It’s important to note that adjustments to marketing strategies have pressured profits, causing Q4 adjusted EBITDA to drop to $22.9 million.

In navigating these challenges, Xponential Fitness is focusing on enhancing its marketing efforts and refining lead management processes to improve member acquisition rates in 2026.

Future Plans:

As they head into 2026, management anticipates global studio openings to range from 150 to 170, alongside a targeted decrease in closure rates to 3-5%. Financially, they project North American system-wide sales between $1.72 billion and $1.8 billion and revenues between $260 million and $270 million.

Moreover, cash reserves have improved to $45.9 million from $32.7 million the previous year, reflecting a solid foundation for these initiatives.

Xponential Fitness exemplifies a dynamic response to market challenges by focusing on strategic growth and operational improvements. For those involved in fitness or considering opening a studio, Xponential’s experiences provide valuable lessons in resilience, adaptability, and member engagement.

Conclusion:

Xponential Fitness is at a pivotal moment in its journey, with significant growth opportunities tempered by operational challenges. For fitness enthusiasts, entrepreneurs, and professionals in the industry, understanding these dynamics can offer insights into the broader market trends and strategies that lead to sustainability in the competitive fitness landscape.