Xponential Fitness Cuts Its Growth Forecast for the Third Time This Year

Xponential Fitness, the franchisor behind Club Pilates, StretchLab, Pure Barre, and YogaSix, reported third-quarter revenue of $62.3 million on Thursday, down 21 percent from a year ago, as North American same-store sales fell 7.5 percent, a sharp reversal from the 0.8 percent dip it posted in the same quarter of 2025. The company also cut its 2026 guidance for new studio openings for the third time this year, down to 124 to 130 net new locations from a prior estimate of roughly 150, about a 37 percent haircut from 2025's pace.

The numbers landed while Xponential's board, advised by Jefferies, is still working through a strategic review that began in April and could end in a sale or merger of the company outright. New CFO Jennifer Ryu, who started in October, inherits a business trying to convince franchisees the slowdown is temporary: CEO Mike Nuzzo told investors the company's "priorities are clear across the organization," pointing to franchisee economics and "disciplined expansion" over the chase for new locations that defined Xponential's earlier growth years.

It's a notable reversal for a company that built its model on stacking boutique fitness brands under one roof and franchising them as fast as real estate would allow. With full-year adjusted EBITDA guidance of $91 million to $94 million, down roughly 17 percent from 2025, the question investors are weighing isn't whether the studios are still popular. It's whether the franchise math still works once growth stops doing the heavy lifting.

Source: Business Wire

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →