Xponential Fitness, Inc. Q4 FY2025 earnings call

• Mike Nuzzo discussed integration into the business, November franchise convention, 2025 progress like 201 net new studios opened, $1.75 billion system - wide sales, training graduates, debt refinancing, and strategic initiatives. • Focus on 3 core themes: Boutique Fitness segment strength, global franchising platform, and sustained long - term growth. • Addressing growth challenges like marketing missteps, same - store sales pressure, and organizational challenges. • 2026 initiatives: Prioritize investments for new member acquisition and top line growth, including new unit opening pipeline anchored by Club Pilates, driving organic studio revenue performance, improving marketing at national and local levels, enhancing digital and studio platforms, strengthening field operations team, and evolving brands for member engagement. • John Meloun provided financial overview of fourth quarter and full year 2025, including studio openings, closures, license sales, revenue components, operating expenses, adjusted EBITDA, and brand level metrics.

In 2025, system - wide sales were $1.75 billion. Club Pilates had 1,241 studios operating in North America, contributing 65% of total system - wide sales. Pure Barre with 624 studios and StretchLab with 503 studios each contributed approximately 14%. North America run rate average unit volumes in Q4 were $683,000, down 2% from prior year. StretchLab AUV decreased 12% to $483,000, Club Pilates AUV decreased 6% to $966,000, Pure Barre AUV increased 3% to $400,000, YogaSix AUV increased 12% to $525,000. Full year same - store sales across portfolio were up 0.5%, with Club Pilates at 3%, YogaSix at 2%, Pure Barre at 4%, and StretchLab at negative 12%.

• 2026 global net new studio openings expected to be 150 - 170 (20% decrease midpoint from prior year). • Closures expected to be 3% - 5% of global system, with focus to reduce to low single digits. • North America system - wide sales projected $1.72 - $1.8 billion (1% increase midpoint). • Total revenue expected $260 - $270 million (16% decrease midpoint). • Adjusted EBITDA expected $100 - $110 million (6% decrease midpoint), with adjusted EBITDA margin ~40% midpoint. • SG&A expected $108 - $113 million, excluding certain items lower. • Capital expenditure ~$6 - $10 million (3% of revenue midpoint). • Tax rate mid - to high single digit, share count 37.3 million.

Q: Joe Altobello on revenue and same - store sales in quarter, lower average pricing; A: John Meloun explained lower pricing due to new studios ramping and promotions, normalizes in Q1/Q2; Q: Joe Altobello on shift to outsourced retail model and EBITDA improvement; A: John Meloun and Michael Nuzzo said retail model shift leads to high single - digit to low double - digit EBITDA enhancement; Q: Randal Konik on portfolio and Club Pilates unit growth; A: Michael Nuzzo discussed portfolio focus, StretchLab improvement efforts, and Club Pilates unit growth potential domestically and internationally; Q: Arpine Kocharyan on unit growth outlook and same - store growth; A: John Meloun explained closure distribution and guidance conservatism, Michael Nuzzo talked about Club Pilates same - store sales context; Q: Ryan Meyers on Club Pilates same - store sales comp; A: John Meloun and Michael Nuzzo said tough year - over - year comps, but business performing well with unit growth impact; Q: Jeff Van Sinderen on Q4 marketing spend and Club Pilates comp progression; A: John Meloun explained Q4 marketing fund spend and Michael Nuzzo said comp progression to be seen with time; Q: Owen Rickert on field operations team initiative; A: Michael Nuzzo discussed field team's focus on driving sales, helping with presale and studio assessment