Steady Growth Pushes Xponential Fitness Over $1B in Sales

Xponential Fitness

Xponential Fitness is expanding internationally, but still gaining ground stateside.

Boutique Boom

Reporting Q4 and full-year ’22 earnings, the boutique studio franchisor beat analysts’ expectations, bolstered by strong North American revenue.

By the numbers: 

  • Q4 revenue gained 44% YoY to $71.3M, notching $294.1M in North American systemwide sales.
  • FY22 revenue grew 58% to $245M, with year-end North American systemwide sales hitting $1.03B.
  • Annual net income was $2.9M, compared to a net loss of $51.4M in FY21.

Xponential also achieved significant milestones. In addition to eclipsing $1B in North American systemwide sales for the first time, the company celebrated 600K members and, after opening 511 new studios—approximately one every 17 hours—rolled over 2,600 total locations.

Join the club. An asset-light franchise model, Xponential is balancing its new and existing business well.

In North America, its mature studio cohort performs equally as well as its new franchises — studios over three years old recorded 25% YoY same-store sales growth, while total visits at its North American sites hit 39.3M (a 32% gain).

According to CEO Anthony Geisler, Xponential’s success with both growth and retention is a factor of becoming inseparable from consumers’ daily lives:

“It’s this sense of community that makes our studio membership so sticky, and why the thought of giving up one studio membership equates with also giving up a community and a lifestyle. People are just not willing to make that trade-off.”

With a digital platform XPLUS (now accessible on all LG televisions) and its collective studio passport XPASS linking its 10 concepts across strength, cycling, and more — the community only stands to grow.

Looking ahead: In the pipeline, XPOF has 2K North American and 1K worldwide franchises under obligation, with 540–560 opening in 2023. On track to achieve its target EBITDA margin of 40% by 2024, it may be able to sustain hypergrowth mode while avoiding the fate of its rival, F45.

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