Xponential Fitness Suspends CEO, Discloses Investigation


Xponential Fitness is under the microscope. 

The news: The boutique studio franchisor suspended CEO and founder Anthony Geisler amid expanding federal investigations. 

The US Attorney’s Office (USAO) for the Central District of California notified the company of an investigation on May 7. This adds to an ongoing probe by the US Securities and Exchange Commission (SEC). 

XPOF board member Brenda Morris will replace Geisler as interim CEO. The company’s shares were down 30% on the news. 

Highs and lows. Xponential owns 10 brands across fitness and wellness, including Club Pilates, CycleBar, Rumble, StretchLab, Row House, Pure Barre, AKT, YogaSix, BFT, and Lindora

Going public in 2021, the company has grown to 3K+ global studios and more than $1B in annual sales. But, behind the scenes, insiders have raised red flags. 

Last year, Bloomberg reported some franchisees felt they were “deliberately misled” about the strength of XPOF brands while concealing losses suffered by other operators. Around the same time, the SEC launched an investigation into the company. 

Now, as the USAO follows suit and Geisler is forced out, Xponential’s problems are mounting. 

Looking ahead: Details are sparse, and the company plans to cooperate with investigators, but smoke is forming. Best case, they’re cleared of any wrongdoing. Worst case, we have another F45 situation on our hands. Time will tell. 

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