Xponential Fitness Reports Mixed Q3 2025 Results Amid Portfolio Streamlining
Krissy Vann | Host, All Things Fitness and Wellness
Xponential Fitness reported mixed results for the third quarter of 2025 as the boutique fitness franchisor continues to streamline operations and refocus on its core portfolio.
The Irvine, California-based company posted revenue of 78.8 million dollars, a 2 percent decrease from the same period last year. System-wide sales increased 10 percent to 432.2 million dollars, while adjusted EBITDA rose 9 percent to 33.5 million dollars. Xponential reported a net loss of 6.7 million dollars, narrowing from 18.1 million dollars a year earlier. Average unit volume reached 668,000 dollars, up 2 percent year-over-year, and total membership climbed 7 percent to 796,000 members across 3,066 studios.
“Over my first 90 days, I’ve gained a much clearer picture of our strengths and opportunities ahead,” said Mike Nuzzo, CEO of Xponential Fitness. “This time has only reinforced my confidence in both the power of our brands and the commitment of our franchisees. That said, it is clear that there is significant potential for improvement across our operations, and I’m excited to work with the team to unlock and realize that value for all stakeholders.”
The company reaffirmed its 2025 revenue and adjusted EBITDA guidance while revising its system-wide sales outlook. Full-year revenue is expected to range between 300 million and 310 million dollars, with system-wide sales projected between 1.73 billion and 1.75 billion dollars. Net new studio openings are forecast between 170 and 190, representing a decline of about 37 percent from 2024.
The quarter marked Xponential’s first earnings report since divesting from Lindora, its medical weight-loss and wellness brand sold to Next Health in September. The transaction followed earlier sales of Rumble and CycleBar to Extraordinary Brands in 2024, as well as the exits of Row House, Stride Fitness, and the AKT dance-based cardio brand.
Five core concepts remain in the company’s portfolio: Club Pilates, Pure Barre, YogaSix, BFT, and StretchLab.
Club Pilates continues to be the strongest performer, with more than 1,200 studios in North America and over 150 internationally. The brand will launch a national marketing campaign in the fourth quarter across connected TV, podcasts, and YouTube, supported by a pricing study that Nuzzo said will guide future strategies for other brands. Pure Barre remains one of Xponential’s more stable performers, while YogaSix continues to expand with what Nuzzo described as a “healthy owner-operator franchisee structure” and steady organic growth.
StretchLab, the company’s assisted stretching concept, has faced headwinds after Medicare Advantage programs scaled back coverage of stretch services, reducing member flow. The company said it is testing new operational models to improve efficiency and broaden the brand’s membership base.
As of September 30, 2025, Xponential reported 41.5 million dollars in cash and equivalents, with 376.4 million dollars in total long-term debt. Net cash provided by operating activities totaled 17.6 million dollars for the first nine months of the year.
Xponential’s third-quarter results highlight both ongoing growth within its core boutique fitness brands and the challenges of navigating an evolving wellness market. The company continues to focus on operational improvement, franchisee support, and portfolio simplification as it positions itself for sustainable performance in 2026 and beyond.
Credit Xponential Fitness - Stretch Lab