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Xponential Fitness, Inc. Announces Third Quarter 2026 Financial Results

Xponential Fitness, Inc. (NYSE: XPOF) released its third-quarter 2026 financial results on November 5, 2026, revealing notable headwinds in revenue and same-store sales despite continued studio unit growth.

Here is a breakdown of the company’s Q3 2026 performance, operational updates, and market analysis based on recent financial filings and analyst reports.

Q3 2026 Financial Highlights (Compared to Q3 2025)

  • Total Revenue: $62.3 million (down 21% from $78.8 million in Q3 2025). This missed the consensus analyst estimate of $63 million.
  • Earnings Per Share (EPS): Adjusted net income of $0.04 per basic share, missing the analyst consensus estimate of $0.12 by $0.08. This is a sharp decline from $0.36 per basic share in the prior year’s quarter.
  • Adjusted EBITDA: $24.3 million, down from $33.5 million.
  • Adjusted Net Income: $2.2 million, a steep decline from $19.3 million in Q3 2025.

Operational Performance & System-Wide Sales

  • Same-Store Sales: North America same-store sales decreased by 7.5%, a significant deceleration compared to a minor 0.8% decrease in Q3 2025.
  • System-Wide Sales: North America system-wide sales came in at $424.3 million, a slight drop from $432.2 million.
  • Average Unit Volume (AUV): North America quarterly run-rate AUV dropped to $634,000, compared to $668,000.
  • Studio Count: The company ended the quarter with 3,185 open studios globally, continuing to achieve net unit growth both domestically and internationally.

Updated Full-Year 2026 Guidance

Management revised its full-year 2026 outlook downward across several key metrics:

  • Revenue: Projected between $250.0 million and $260.0 million (representing a 19% decrease at the midpoint compared to 2025).
  • Adjusted EBITDA: Narrowed down to a range of $91.0 million to $94.0 million, lowered from previous guidance of $91.0 million to $97.0 million.
  • New Studio Openings: Revised down to 124 to 130 net new openings, a significant 37% drop at the midpoint compared to prior guidance of approximately 150 openings.

Analysis & Outlook

Xponential Fitness is facing a challenging operational environment in late 2026. The 21% year-over-year revenue drop was largely driven by declines in franchise and equipment revenues alongside ongoing merchandise sales challenges. The 7.5% contraction in same-store sales and lowered AUVs signal near-term pressures on consumer demand within their boutique fitness ecosystems.

Despite missing top-line and bottom-line estimates, the company’s long-term expansion strategy remains active. Management is placing a strategic focus on improving lead conversion and member experiences through new digital and local marketing platforms. Furthermore, Xponential maintains ambitious long-term plans for its strongest brands, aiming to grow Club Pilates to over 2,000 locations within the next five years through strong unit volumes and international expansion.

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