Xponential Fitness Cuts 2026 Studio Target as Revenue Falls 21%

Xponential Fitness, Inc. lowered its 2026 target for net new studio openings after third-quarter revenue dropped 21% to $62.261 million, while it also narrowed its adjusted EBITDA outlook.

Revenue for the quarter ended Sept. 30 was $62.261 million, down from $78.824 million a year earlier. Adjusted net income fell to $2.185 million, or 4 cents per basic share, from $19.343 million, or 36 cents per basic share, in the year-earlier quarter.

On a GAAP basis, Xponential had net income of $4.9 million, or 10 cents per basic share, following a net loss of $6.7 million, or 18 cents per basic share, a year earlier. Adjusted EBITDA, a measure of earnings before interest, taxes, depreciation and amortization with specified adjustments, declined 27% to $24.3 million from $33.5 million.

Xponential attributed the revenue decline primarily to lower franchise and merchandise revenue and fewer equipment installations. Franchise revenue was $43.409 million, compared with $51.882 million a year earlier. Merchandise revenue was $383,000, down from $4.802 million following a transition to outsourced logistics.

North America same-store sales declined 7.5%, versus a 0.8% drop a year earlier. System-wide sales in the region totaled $424.3 million, compared with $432.2 million in the same quarter last year. The company’s five boutique wellness brands cover Pilates, barre, stretching, strength training and yoga.

Xponential now expects 124–130 net new studio openings in 2026, down from previous guidance of approximately 150. It narrowed its adjusted EBITDA outlook to $91 million to $94 million from $91 million to $97 million, while keeping its revenue forecast at $250 million to $260 million.

The board’s strategic alternatives review, announced in April, remains active and could include a sale, merger or another strategic or financial transaction. Fund 1 Investments LLC has separately expressed interest in taking Xponential private, a development detailed in coverage of Fund 1’s take-private interest.

At Sept. 30, cash, cash equivalents and restricted cash totaled $27.2 million, while long-term debt was $521.1 million.