Xponential Fitness Cuts Guidance, Shares Drop Sharply

Xponential Fitness shares dropped sharply after the company cut its full-year revenue and EBITDA guidance, citing recent divestitures—including CycleBar and Rumble—and increased investments in future growth initiatives. For Q2 2025, Xponential reported adjusted earnings per share of $0.26, beating analyst expectations, but revenue was flat year-over-year at $76.21 million, slightly below estimates. The revised full-year revenue forecast now stands at $300–$310 million, with adjusted EBITDA guidance also reduced, both below previous projections. While profitability and operating margins improved, there was a noticeable slowdown in revenue growth and new studio openings, reflecting mounting expansion challenges. Management is shifting focus to core brands, franchisee support, and digital engagement, but continues to highlight regulatory and profitability risks. Analysts remain generally positive, but recent results signal significant headwinds for the company.