Xponential is pressing pause.
Growing pains. In Q1 2025, the company posted a 4% YoY revenue decline. Despite systemwide sales growing 18% in North America, adjusted EBITDA dropped 9% as closures rose and franchise sales stalled.
Rebuild. CEO Mark King called 2025 a “stabilization year,” shifting from pushing license sales to long-term growth. Getting hands-on, XPOF deployed 40 new staffers to support struggling franchisees and improve studio-level ops.
Core workout. While brands like StretchLab and CycleBar face headwinds, Club Pilates remains resilient, accounting for over half of studio openings and most new license interest. YogaSix and Pure Barre also showed momentum.
Reality check. XPOF is cleaning up its franchise network, forcing inactive license holders to open, sell, or exit. International markets like Spain, Japan, and Portugal offer growth, but the strategy now emphasizes operational health over speed.
Punchline: After years of planting flags, Xponential is trading velocity for viability, focusing on keeping doors open and members engaged.
