Xponential Fitness, Inc. has recently released its 10-K report, which provides a detailed insight into the company's financial performance and operations. Xponential Fitness, Inc. operates as a boutique fitness franchisor, offering a diverse range of fitness services under its brands, including pilates, indoor cycling, barre, stretching, boxing, and yoga. As of December 31, 2024, the company had 2,758 studios open in North America and was committed to opening an additional 1,607 studios under existing franchise agreements. Internationally, the company had 475 open studios and master franchisees were obligated to sell licenses for an additional 1,043 new studios. The company generated revenue outside the United States of $14.0 million in 2024.
Recent developments at Xponential Fitness, Inc. include significant executive team transitions. Mr. Anthony Geisler, the former CEO, was removed from his duties and suspended indefinitely in May 2024. Following this, Ms. Brenda Morris was appointed as the interim Chief Executive Officer, and later in June 2024, Mr. Mark King was appointed as the Chief Executive Officer. Additionally, the company announced the appointment of four seasoned executives to its leadership team in January 2025.
Furthermore, the 10-K report discusses the acquisition of Lindora Franchise, LLC, a wellness brand, for a cash consideration of $8.5 million, along with divestitures of the Stride and Row House brands. The company also announced the wind down of AKT franchise operations and the pausing of offering or selling franchises due to regulatory inquiries and investigations. Xponential Fitness, Inc. initiated a restructuring plan in 2023 to exit company-owned transition studios and reduce costs to achieve long-term margin goals.
The report also highlights factors affecting the company's results of operations, including licensing new qualified franchisees, timing of studio openings, and the impact of regulatory inquiries. The company expects to recognize additional restructuring charges throughout 2025 and estimates annualized savings of approximately $13.5 million to $15.5 million under the restructuring plan.
The market has reacted to these announcements by moving the company's shares -38.4% to a price of $7.46. Check out the company's full 10-K submission here.
