Reporting Q1 2022 earnings, Xponential Fitness grew revenue 73%, delivering three consecutive quarters of impressive growth.
Seizing the moment, hyper-expansion is in the forecast.
The omnichannel fitness operator—owner of 10 studio concepts, from HIIT to dance—touted strong sales and increased traffic amid continued franchise expansion.
By the numbers:
- Revenue hit $50.4M in Q1’21, a 73% increase compared to the year prior.
- North America system-wide sales jumped 70%, with studio traffic gaining 17% versus the same period of 2021.
- Its quarterly run rate hit $477K in March, matching its pre-pandemic peaks.
- It opened 99 studios and sold 260 franchises, totaling 2,229 and 4,684, respectively.
Inside the Call
As the world gets back to working out, Xponential is well-positioned.
On the call, CEO Anthony Geisler explained the company’s favorable situation:
“Our differentiated portfolio of complementary brands and modalities, together with the many benefits we experience from our scale and shared services platform, contributed to our financial and operational performance in the quarter.”
As we’ve covered in-depth, Xponential’s success hasn’t been overnight. Instead, it has been assembling a long-game approach it accelerated through the pandemic.
- In March, XPOF announced XPASS, a multi-studio membership granting access to all of its studios for a monthly fee.
- In April, it launched XPLUS, a collective digital platform for its portfolio, replacing its “GO” service.
- Around the same time, it inked a deal with lululemon, supplying content from AKT, Pure Barre, Rumble, and YogaSix for the MIRROR fitness screen.
- In May, it signed a multi-brand, master franchise agreement for Mexico, its 14th country.
Punchline: As other operators continue to navigate sluggish reopenings, Xponential sees an open lane for owning boutique fitness worldwide, projecting 33% YoY growth in revenue and 81% in new studio openings this year.