Xponential Fitness, Inc. reported Q2 2026 revenue of $66.0M, down 13%, missing estimates. Adjusted EBITDA fell 22% as same-store sales declined 6.8%. Guidance lowered. (157)
Xponential Fitness, Inc. reported Q2 2026 revenue of $66.0 million, down 13% year-over-year and below the $73.3 million consensus estimate. The decline primarily resulted from lower same-store sales and challenges in merchandise revenue, raising concerns about the company’s growth trajectory amid a tough fitness market.
Key Takeaways
- Revenue fell to $66.0 million, down 13% from Q2 2025, primarily due to a 6.8% decline in same-store sales.
- Adjusted EBITDA dropped 22% year-over-year to $21.9 million with a margin of 33%, down from 37% in the prior year.
- Guidance for full-year revenue now ranges from $250 million to $260 million, down from previous expectations, reflecting ongoing pressure on same-store sales and merchandise revenue.
- Studio Openings remained strong with 67 new studios opened in Q2, bringing the total to 3,165 globally, despite 39 closures concentrated primarily in Stretch Lab and PureBar.
- Strategic Alternatives Review remains ongoing as the company explores options to maximize shareholder value, including potential mergers or sales.
Declining Revenue Signals Tough Quarter
Xponential Fitness faced a challenging second quarter, with revenue dropping to $66.0 million, a $10.2 million decrease from the same period last year. This decline was largely attributed to a 6.8% drop in same-store sales, particularly impacting Club Pilates, which declined by 5%. In addition to the overall revenue decline, merchandise sales fell by $5.1 million due to a transition to an outsourced logistics model which has created operational challenges.
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | $66.0M | -13% | N/A |
| Adjusted EBITDA | $21.9M | -22% | N/A |
| Same-Store Sales | -6.8% | N/A | N/A |
Revised Guidance Reflects Market Pressures
The company revised its full-year guidance downward, now projecting total revenue between $250 million and $260 million. This adjustment stems from disappointing Q2 results and cautious assumptions for same-store sales in the latter half of the year. Management emphasized the need to maintain disciplined financial assumptions until there is a clear positive trend in sales performance.
“We are taking decisive actions to improve same-store sales, strengthen merchandise execution, support our franchisees, maintain cost discipline, and allocate capital prudently while there is still work ahead,” said Robert McCarthy, CEO.
Merchandise Revenue Challenges Persist
Merchandise revenue remains a concern, having decreased due to the new outsourced logistics model. The company only records commission from merchandise sales rather than the full value, which has negatively impacted profitability. Management is currently working to resolve issues with their logistics partner to restore normal operations.
Strategic Alternatives and Future Outlook
The ongoing review of strategic alternatives is a crucial point for Xponential Fitness as it seeks to maximize shareholder value. This could lead to a potential sale or merger, although no further details were provided during the call. Analysts remain focused on how these moves could impact long-term growth prospects for the company as it navigates through a difficult market.
Frequently Asked Questions
Did Xponential Fitness, Inc. beat earnings estimates in Q2 2026?
No, Xponential Fitness reported Q2 2026 revenue of $66.0 million, missing the consensus estimate of $73.3 million.
What is the current adjusted EBITDA margin for Xponential Fitness?
The adjusted EBITDA margin for Q2 2026 was 33%, down from 37% in the same quarter last year.
How many new studios did Xponential Fitness open in Q2 2026?
The company opened 67 new studios in Q2 2026, bringing the total number of global studios to 3,165.
What are the new revenue guidance figures for Xponential Fitness for 2026?
The company has revised its revenue guidance for 2026 to range from $250 million to $260 million, reflecting ongoing sales pressures.
What is the status of the strategic alternatives review for Xponential Fitness?
The strategic alternatives review is ongoing, led by independent directors and supported by Jefferies as a financial advisor, to explore options to maximize shareholder value.
The next quarter will be pivotal for Xponential Fitness as it attempts to stabilize same-store sales and address merchandise revenue challenges, while also navigating through ongoing strategic reviews.
This analysis is based on public earnings call materials and is not investment advice.
