Xponential Fitness's first quarter results fell short of Wall Street’s expectations, with revenue and non-GAAP earnings both missing consensus estimates. Management attributed the underperformance to lower digital traffic, which was impacted by significant changes in advertising platforms like Meta and Google. CEO Michael Nuzzo noted that these digital shifts reduced the company's ability to generate new member leads, while ongoing brand divestitures also played a role. On the positive side, Nuzzo pointed to improving member retention, stating, “March marked our best member retention month since Q1 2024,” and highlighted the company’s focus on new studio openings and operational upgrades.
Is now the time to buy XPOF? Find out in our full research report (it’s free for active Edge members).
Xponential Fitness (XPOF) Q1 CY2026 Highlights:
- Revenue: $60.71 million vs analyst estimates of $64.01 million (21% year-on-year decline, 5.1% miss)
- Adjusted EPS: -$0.04 vs analyst estimates of $0.13 (significant miss)
- Adjusted EBITDA: $20.41 million vs analyst estimates of $25.1 million (33.6% margin, 18.7% miss)
- EBITDA guidance for the full year is $105 million at the midpoint, in line with analyst expectations
- Operating Margin: 21.5%, up from 12.6% in the same quarter last year
- Market Capitalization: $213.6 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Xponential Fitness’s Q1 Earnings Call
-
John Heinbockel (Guggenheim Partners) asked about Club Pilates member retention and when comps might return to flat. CEO Michael Nuzzo emphasized strong member loyalty and said improved digital lead flow is key to better comps.
-
Richard Magnuson (B. Riley Securities) pressed for updates on CRM tools targeting specific audiences. Nuzzo highlighted automated email campaigns showing early conversions and a focus on tailoring outreach by brand and cohort.
-
Chris O’Cull (Stifel) inquired about the timeline for resolving Meta and Google marketing issues and future marketing spend. Nuzzo expects meaningful progress in the coming quarters and said ROI will determine the pace of additional investment.
-
Chris O’Cull (Stifel) also asked about Club Pilates franchisee consolidation. Nuzzo noted stronger ties with larger franchisees, which help with growth and operational consistency, but said a mix of large and small partners remains healthy.
-
Daren Sesikan (UBS, for Arpine Kocharyan) questioned the drivers behind negative same-store sales versus prior expectations. Nuzzo cited new member acquisition shortfalls as the primary factor, with pricing changes playing a smaller role.
Catalysts in Upcoming Quarters
In the next few quarters, the StockStory team will be watching (1) the impact of AI-driven website and marketing upgrades on new member acquisition, (2) the effectiveness of pricing adjustments and reduced legacy discounting on studio-level profitability, and (3) the pace and success of studio refresh initiatives across brands. Execution on franchisee support efforts and CRM-driven conversion improvements will also be important indicators of progress.
Xponential Fitness currently trades at $5.32, down from $6.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
