Xponential Fitness, the parent company of popular high-end fitness franchises including CycleBar, Pure Barre, Stretch Lab, and Club Pilates was in the hot seat earlier this year.

The company was under investigation by the SEC for allegedly providing false/misleading information to investors, including unit volume metrics and franchise closures.

In May the company announced it was suspending its CEO indefinitely and making him an inactive member of the board. Then in June it announced its new CEO, who was previously the CEO of Taco Bell from 2019 until his recent retirement.

The changes in leadership have given a significant boost to the stock.

XPOF shares are trading +106% higher than May lows.

Does the data support this move – and are we bullish moving forward? Here’s our deep dive.

‘24Q1 Earnings Highlights:

• Margins are improving: Adjusted EBITDA +30% YoY
• Room for market expansion in the US and abroad: targeting 500-600 new studio openings over next 3 years.
• Strategic Acquisitions: In January the company closed its acquisition of Lindora. Lindora is a Weight Loss + Wellness clinic. More importantly, Lindora’s is XPOF’s exposure to a rapidly growing GLP-1 market. Hormone health (also offered by Lindora) is another area of rising interest among consumers.

• Optimizing for high performing brands: XPOF is exploring growth potential for its Club Pilates and Lindora banners. The company estimates room for +800 more Club Pilates and +1,000 more Lindora locations in the US. In contrast, it divested its STRIDE and Row House banners.
• Growing userbase: Total actively paying members and total visits both grew by 18% year over year. Average active members per studio and average studio visits per member also increased, while membership freezes remained low, declining year over year.

LikeFolio data reveals important real-time insights as well...

This section is restricted to LikeFolio Pro Members only.