Xponential Fitness Q3 revenue falls on lower franchise fees, fewer equipment installations
XPOF•Xponential Fitness said Q3 revenue fell 21% year over year, mainly on lower franchise revenue, while merchandise sales and equipment revenue also declined. It maintained its 2026 revenue outlook at $250 million-$260 million but lowered its outlook for adjusted EBITDA and new studio openings.
1. Revenue and earnings
Xponential Fitness said Q3 revenue fell 21% year over year, mainly due to lower franchise revenue. Merchandise revenue fell sharply as the company shifted from an in-house wholesale model to an outsourced retail model, while equipment revenue declined with fewer global installations reflecting fewer studio openings. Q3 franchise revenue was $43.41 million, net income was $4.91 million and operating income was $19.54 million.
2. 2026 outlook
The company narrowed its 2026 adjusted EBITDA outlook to $91 million-$94 million from $91 million-$97 million and now expects 124-130 net new studio openings, down from prior guidance of about 150. It maintained its revenue outlook at $250 million-$260 million.
