10-Q · May 8, 2026
Xponential Fitness, Inc. reported disappointing Q1 2026 results, with revenue declining to $60.7 million, missing expectations of $63.9 million, and an EPS of -$0.04, falling short of the estimated $0.12. The company…
Earnings analysis · 10-Q
XPOF earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Q2 2026 revenue of $65.968 million improved 8.1% sequentially and exceeded consensus by 2.2%, but remained 13.2% below Q2 2025 and diluted EPS of $0.02 missed the $0.13 estimate by $0.11. The filing provides no new…
Read full summary
Q2 2026 revenue of $65.968 million improved 8.1% sequentially and exceeded consensus by 2.2%, but remained 13.2% below Q2 2025 and diluted EPS of $0.02 missed the $0.13 estimate by $0.11. The filing provides no new quantitative guidance in the supplied MD&A excerpt. Key concerns are $522.4 million of variable-rate debt, $5.2 million of annual interest-expense sensitivity to a 1% rate change, persistent ineffective disclosure controls as of June 30, 2026, and the ongoing strategic-alternatives review.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
What stood out
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Revenue Rebounded Sequentially
Q2 2026 revenue was $65.968 million, up approximately 8.1% from $61 million in Q1 2026 but down approximately 13.2% from $76 million in Q2 2025. Revenue exceeded the $64.546 million consensus estimate by approximately 2.2%.
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EPS Missed Consensus
Reported diluted EPS was $0.02 versus the $0.13 consensus estimate, a shortfall of $0.11 per share and an approximately 84.6% negative surprise.
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Variable-Rate Debt Remains High
The company reported that $522.4 million of outstanding Credit Agreement principal, net of exit fee, was subject to variable interest rates as of June 30, 2026.
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Rate Sensitivity Quantified
Management stated that a hypothetical 1% change in interest rates would change annual interest expense by approximately $5.2 million based on the June 30, 2026 debt balance.
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Remediation Progress Continues
Management reported progress on remediation, but its evaluation remained ongoing as of June 30, 2026; disclosure controls and procedures were still not effective because of material weaknesses identified in the 2025 Form 10-K.
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Strategic Review Remains Active
The Board's strategic-alternatives review, first disclosed in the April 7, 2026 Form 8-K, remains ongoing and may include a sale, merger, or other strategic or financial transaction.
What to watch
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Strategic Review May Not Conclude
The company states that its strategic-alternatives review, disclosed on April 7, 2026, may not result in a transaction or may not produce favorable terms. Management warned the process could divert attention from operations and increase volatility in the Class A common stock.
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Material Control Weakness Persists
As of June 30, 2026, disclosure controls and procedures were not effective due to material weaknesses from the 2025 Form 10-K. The cited weakness includes insufficient accounting, financial reporting, and technology personnel and deficiencies in IT general controls.
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Interest-Rate and Debt Exposure
The filing identifies variable-rate debt of $522.4 million and estimates that a 1% increase in interest rates would raise annual interest expense by approximately $5.2 million. Higher rates or additional indebtedness could further pressure earnings and liquidity.
Management's outlook
The provided 10-Q excerpt does not include quantitative revenue or EPS guidance. Prior analysis cited full-year 2026 revenue guidance of $260 million-$270 million, but this filing excerpt does not state whether that outlook was maintained, raised, lowered, or withdrawn.
Earlier filings 4
10-K · March 4, 2026
Xponential’s 2025 10-K positions the company as a scaled, multi-brand franchisor with 2,606 open studios in North America, five core brands and ~78% of 2025 revenue described as recurring. Operational traction (59.2…
10-Q · August 8, 2025
Xponential reported Q2 net revenue of $76,208,000, essentially flat year-over-year (down $695,000 vs $76,903,000). Gross margin expanded to 81.0% and operating income turned positive to $14,823,000 (19.5% operating…
10-Q · May 9, 2025
Xponential reported Q1 revenue of $76,883,000, down $2,810,000 (3.5%) versus Q1 2024, while operating income improved to $9,679,000 (operating margin ~12.6%) from $7,994,000 a year ago. GAAP net loss was $2,659,000 (net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.