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Xponential Fitness, Inc. Class A has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
Total revenue for the quarter was $80.5 million, a slight increase from $80.4 million in the same quarter the previous year. Franchise revenue saw a rise to $44.5 million from $36.4 million, driven by an increase in same store sales and the number of operating studios.
Equipment revenue increased to $14.7 million from $12.6 million, while merchandise revenue declined to $6.5 million from $8.5 million. Other service revenue decreased significantly to $6.2 million from $16.0 million, primarily due to a lower number of company-owned transition studios.
Operating costs and expenses rose to $86.9 million from $73.0 million, with costs of product revenue increasing to $17.1 million from $12.7 million, reflecting sales promotions and inventory write-downs.
Selling, general, and administrative expenses increased to $46.2 million from $43.9 million, impacted by higher legal expenses and restructuring charges.
Interest expense for the quarter was $11.8 million, up from $10.6 million, due to higher average debt balances.
The company reported a net loss of $18.0 million, compared to a net loss of $5.2 million in the previous year.
Xponential Fitness ended the quarter with 3,178 studios operating globally, an increase from 2,898 studios in the previous year. The company also reported system-wide sales of $431.2 million, up from $356.7 million.
The report includes details on the company's restructuring plan, which involves exiting company-owned transition studios and other cost-reduction measures. The plan is expected to continue into 2025.
The filing also discusses the divestiture of the Stride and Row House brands and the wind down of AKT brand franchise operations.
Xponential Fitness announced the acquisition of Lindora Franchise, LLC, a provider of wellness and metabolic health solutions, completed on January 2, 2024.
The company is facing several legal proceedings and government investigations, including a federal securities class action lawsuit and inquiries from the SEC, USAO, and FTC.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Xponential Fitness Inc. Class A quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.