Xponential Fitness, Inc. · NYSE:XPOF
Xponential Fitness — Investor Day (2025)
63 slides from Xponential Fitness's investor day presentation, 2025
Slide 1: One of the Leading Global Franchisors of Boutique Health & Wellness Brands
One of the Leading Global Franchisors of Boutique Health & Wellness Brands
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided solely for the purpose of acquainting the readers with Xponential Fitness, Inc. (the “Company,” “Xponential” or “we”) and its business operations, strategies and financial performance. This presentation and any accompanying
Slide 3: Mark King, Chief Executive Officer
Chief Executive Officer MARK KING 3
Slide 4: Leadership
Mark King John Meloun Leadership CEO CFO Strengthening Leadership to Optimize Operations John Kawaja Tim Weiderhoft PRESIDENT, NORTH AMERICA COO, NORTH AMERICA Andrew Hagopian Kevin Beygi CLO CTO Louise Ocasion Fabienne Lopez CMO CHRO 4 4
Slide 5: Where We Are Going
WHERE WE ARE GOING Become a world-class platform of Integrity Creating a corporate culture VISION premium franchise brands, offering VALUES Excellence MISSION of innovation through curated experiences throughout our Fun! learning and engaging customers’ fitness journeys Connection Become Franchisor
Slide 6: Key Analyst & Investor Day Highlights
Strategic Priorities Key Analyst & Investor Day Highlights Growth Algorithm Core Brands Club Pilates Best in Class International Operator Cash Generation 6
Slide 7: John Kawaja, President, North America
President, North America JOHN KAWAJA 7
Slide 8: One of the leading global franchisors in the $40B+ boutique fitness industry
Our mission is to deliver the talents, assets, and capabilities that franchise brands need to grow successfully. is one of the leading global franchisors in the $40 B+ Our vision is to become a world class platform of premium boutique fitness industry(1). franchise brands, offering curated experienc
Slide 9: Company Highlights
COMPANY HIGHLIGHTS SYSTEM-WIDE Club Pilates 10% SALES 5% $1.7B+ System-Wide Sales (1) BY BRAND (4) StretchLab $318M Revenue (1) Pure Barre 13% 57% $114M Adj. EBITDA (1)(2) YogaSix 15% All Other Brands 850K+ Members (3) 2017 2021 2025 (3) Xponential Fitness IPO on NYSE (XPOF) Total Studios 3,298 Foun
Slide 10: Portfolio Management Approach
Enduring Portfolio Modality Management Approach Scalable Profitable 10
Slide 11: Most established modality in fitness
Most established Highly fragmented Brand modality in fitness marketplace momentum 11
Slide 12: Committed community, leading market share
Committed Leading Strong community market share fundamentals 12
Slide 13: Early innings, wide consumer reach
Early innings Wide consumer Reimagine reach the business model 13
Slide 14: StretchLab
STRETCH i
Slide 15: Clear Market Leader
Clear Market Leader Over 1,200 8x larger than Fastest 500K+ International studios next growing members success competitor 15
Slide 16: Outstanding Franchisee Economics
Outstanding Franchisee Economics $1M+ AUVs Strong Margin Profile 16
Slide 17: Club Pilates Cohorts
Club Pilates Cohorts • As Club Pilates matures, new franchisees benefit from greater Club Pilates Average Monthly Revenues by brand recognition and an established Annual Opening Cohort base of people interested in Pilates $90,000 $80,000 • Every year post-pandemic, cohorts $70,000 have ramped faster
Slide 18: Xponential's Crown Jewel
Xponential’s Crown Jewel 1 ~ 56% of System-Wide Sales High EBITDA Contribution 1. System-Wide Sales based on 2024 Actuals 18
Slide 19: From Building Great Brands to Best-in-Class Operator
From Building Great Brands to Best-in-Class Operator 19
Slide 20: Strong Brands, Strong Community
Marketing Transformation Strong Brands Strong Community 20
Slide 21: Understanding Our Consumer
Driving Sales Growth Through Actionable Consumer Insights Understanding Our Consumer 21
Slide 22: Enhancing the Consumer Path to Purchase & Lifetime Value
Enhancing the Consumer Path to Purchase & Lifetime Value Impactful Member Targeted Continuous Experience Marketing Engagement Delivering Relevant Content Across Key Touchpoints to Keep Brand Top of Mind 22
Slide 23: Expanding Revenue & Brand Value Beyond the Studio
Partnerships Expanding Revenue & Brand Value Beyond the Studio Health Strategic Aggregators and HSA Partnerships 23
Slide 24: Retail Transformation
Retail Transformation Past Strategy Future Strategy Capital Heavy Capital Light Low Margin High Margin 24
Slide 25: 10 Min. Break
10 MIN. BREAK 25
Slide 26: Tim Weiderhoft, COO North America
Chief Operating Officer, TIM North America WEIDERHOFT 26
Slide 27: Franchisee First Mindset
Multi-level Communication Strategy Franchisee First Mindset Field Operations Franchisee Management Support System Franchisees are at the center of all we do Robust Training 27
Slide 28: Franchisee Lifecycle
Franchisee Lifecycle STAGE 1 Selection Process STAGE 2 Studio Buildout and Opening STAGE 3 Ongoing Operations STAGE 4 Renewal, Exit, Resale 28
Slide 29: Internalizing Franchise Sales
Internalizing Franchise Sales Building the necessary infrastructure for smart franchisee growth How We Will Get There What We Will Achieve More attractive returns Robust resale program Higher quality, Comprehensive financing program better capitalized franchisees Reworking our financial performance
Slide 30: Qualified Franchisees
Improved Recruiting Methods Audited and benchmarked franchisee recruitment ads and marketing Created and identified persona of our Qualified Franchisees best franchisees Financial qualification standard Experienced operators 30
Slide 31: Opening Process
Opening Process Site Selection Onboarding Successful Launch 31
Slide 32: Training Process
Training Process Continual New Local Studio Onboarding New GM in Studio Franchisee Marketing Weekly Training Business Training Training Coaching 32
Slide 33: Helping Franchisees Succeed
Helping Franchisees Succeed Support Franchisees Throughout Their Lifecycle Brand Playbooks Operational Support Studio Visits Launch Operating the Continuous Studio Improvement 33
Slide 34: Creating a Positive Feedback Loop
Creating a Positive Xponential Feedback Loop Member Field Operations Where We Will Be Franchisee Franchisee Advisory Council 34
Slide 35: Organizational Improvement & Productivity
Organizational Improvement & Productivity: More Culture Focus Areas With Less Productivity Process New Improvement Technology 35
Slide 36: Franchise Evolution: 4-Wall Profitability and Returns
Franchise Evolution: 4-Wall Profitability Where We Want To Be and Returns What We Are Changing Where We Are 36
Slide 37: John Kawaja, President, North America
President, North America JOHN KAWAJA 37
Slide 38: Large International Opportunity $105B
Creating a Best-in-Class Franchise System Studios Obligated to Studios Open Open Not Yet Open Large International Australia/ 282 247 Opportunity NZ Europe 43 291 $105B Global Health and Fitness Club Industry in 2024(1) Asia 137 346 31 Total Countries with Contracts in Place(2) 1. CMI, “Global Health
Slide 39: International Studios – Top 10 Markets by Development Obligation
0 30 Belgium 8 U.K. 58 7 18 Germany 80 305 Japan 3 3 122 Mexico 20 72 France Spain 32 48 Singapore 24 233 Australia 200 International Studios – Top 10 Markets by Development Obligation # # of Open Studios 49 # Total Master Obligations Not Yet Open New Zealand 47 39
Slide 40: Long-term Impacts of International
Impacts of International Long-term 2024 Future (+5 Years - 2029) 14% of global license sales 25% of global license sales 15% of global open studios 25% of global open studios 4% of revenue 8% of revenue 5% of Adj. EBITDA 10% of Adjusted EBITDA 40
Slide 41: John Meloun, Chief Financial Officer
Chief Financial Officer JOHN MELOUN 41
Slide 42: High Recurring Revenue Model, Predictable Free Cash Flow
High Recurring Revenue Model, Predictable Free Cash Flow High Recurring ~80% ~100% Margin Recurring Royalties, International, Revenue Revenue(1) & Other Revenue Streams Attractive Incremental Leveraging Minimal Fixed SG&A Head Count Growth Margins ~3% of Revenue ~90% Asset-Light Free Cash Flow CapEx
Slide 43: Revenue Overview
Revenue Overview (1) Franchise Recurring Revenue Franchise Revenue 80% Recurring Revenue for Quarter Ended Marketing Fund March 31, 2025 Other Service 12% Franchise Revenue – Franchise territory fees, Revenue Royalty ~7% royalty fees, technology fees, transfer fees and Revenue instructor training 8%
Slide 44: Revenue Drivers
Revenue Drivers Revenue Line Revenue Driver Gross Margin Targets Franchise Revenue Franchise Territory & Transfers (1) $45K to $65K per license 60% Royalties 6% to 8% of system-wide sales 100% Tech Fee $300 to $700 per month per open studio 50% Training 4% of total revenue 90% Equipment Revenue Equi
Slide 45: International: Master Franchisee Agreements Are Highly Profitable
International: Master Franchisee Agreements Are Highly Profitable CASH REVENUE PROFIT CONTRIBUTION Phase 1 Sell master franchise 100% to Xponential territory tights for an Master amortized over 20 years upfront fee Franchise Sale Low Incremental SG&A - Phase 2 Nearly 100% EBITDA Master franchisor se
Slide 46: Royalties Are The Largest Growing Revenue Component
Royalties Are The Largest Growing Revenue Component Percentage of Total Revenue 75% - 80% recurring revenue 4% 3% 4% 4% 5% 5% Training 10% 8% Royalties at 100% margin 13% are the highest growing Tech Fee 7% 8% 10% revenue component 9% Merchandise Revenue 18% 16% 10% Royalties increased ~$20M Franchi
Slide 47: Installed Base Supports Growth - Cohorts
Installed Base Supports Growth - Cohorts North America System-Wide Sales by Cohort ($M) $1,784 • Maturing cohorts over $1,714 time continue to drive $171 $117 system-wide sales $1,399 $249 $250 $106 $200 $197 • Gross new openings $202 $1,034 continue to complement $133 $133 $130 $85 $114 $112 $112 $
Slide 48: Installed Base Supports Growth - Brands
Installed Base Supports Growth - Brands North America System-Wide Sales - by Brand ($M) $1,714 $1,784 • Club Pilates $175 continues to be $178 $1,399 $93 significant growth $90 $264 engine for Xponential $173 $260 $75 $1,034 $202 $228 $234 • Four core brands $142 $54 make up ~90% of $719 $216 $123 s
Slide 49: Run Rate AUV Distribution for Studios 13Mo+ – Xponential
Run Rate AUV Distribution for Studios 13Mo+ – Xponential ($K’s) 307 300 256 224 183 185 162 157 146 130 102 99 56 36 39 9 49 1. As of Q1 2025.
Slide 50: Run Rate AUV Distribution for Studios 13Mo+ – By Brand
Run Rate AUV Distribution for Studios 13Mo+ – By Brand ($K’s) 140 151 134 135 133 124 124 100 90 72 56 50 53 34 33 25 14 12 10 0 1 1 4 3 5 4 3 1 2 0 0 1 32 96 79 24 68 22 22 22 53 45 13 13 9 24 18 3 11 9 6 0 1 1 1 0 0 0 0 1 3 1 1 0 50 1. As of Q1 2025.
Slide 51: Pipeline of Future Openings
Pipeline of Future Openings 1,509 603 All Other Brands 1,027 All Other Brands 957 957 Pure Barre Pure Barre 62 YogaSix 270 YogaSix 197 685 StretchLab 34 Club Pilates 97 StretchLab 286 197 Club Pilates 361 359 North America International Total Opening Obligations Active, Non-Delinquent Opening Obliga
Slide 52: Optimizing Capital Allocation Improves SG&A Leverage
Optimizing Capital Allocation Improves SG&A Leverage Excluding all 1x costs and equity costs, Percentage of Total Revenue 2025 SG&A will be ~30% of revenue Actual Actual Actual Actual Midpoint 2025 realignment of resources to support 2021 2022 2023 2024 2025 franchisee initiatives are cost neutral T
Slide 53: Brand KPI and Profitability - 2024 Actuals
Brand KPI and Profitability - 2024 Actuals (1) North America North America Same Store Sales Adj. EBITDA (2)(3) Brand % of Open Studios System-Wide Sales Run Rate AUV ($K) (%) ($M) ($M) Club Pilates 33% $1,031 $958 12% $102 StretchLab 16% $550 $260 -5% $29 TOTAL Pure Barre 19% $390 $228 3% $21 $160 Y
Slide 54: EBITDA to Free Cash Flow Bridge
EBITDA to Free Cash Flow Bridge ($K’s) (1) ~90% Free Cash Flow Conversions given $140 limited capital expenditures (~$10M/year) $120 $112 ~33% Levered Free Cash Flow $100 $110 Conversion $91 $80 Actual cash generation has been $60 $56 $49 impacted by: $40 $40 $32 $28 • Brand acquisitions – none plan
Slide 55: Consensus-Based Cash Flow
Consensus-Based Cash Flow ($K’s) 2026 and 2027 Levered Free Cash $180 Flow values assume refinance of $160 $149 debt at a rate of 7.5% $140 $123 $120 $112 If XPOF stock price rises above $100 $98 $18, the Company has the option to $73 $80 force convert preferred shares and $60 further improve cash f
Slide 56: Capital Structure: Allocating Capital to Drive Predictable Profitable Growth
Capital Structure: Allocating Capital to Drive Predictable Profitable Growth Organic M&A Debt Share Repurchases Growth Opportunities Paydown / Dividends 56
Slide 57: Capital Structure: Net Debt Deleveraging on Adj. EBITDA Growth
Capital Structure: Net Debt Deleveraging on Adj. EBITDA Growth (1)(2) Based on $160 2.9x Consensus $159 3.00 2.7x 2.7x $150 2.50 $140 $133 $130 1.9x 2.00 $122.5 $120 $116 $110 1.50 $100 $100 0.9x 1.00 $90 $80 0.50 2023 2024 2025 2026 2027 Net Debt / Adj. EBITDA Adj. EBITDA 1. Adj. EBITDA estimate fo
Slide 58: FY 2025 Guidance – As of May 29, 2025
FY 2025 Guidance – As of May 29, 2025 Low Range High Range 2024 % Change vs 2024 ($ in Ms) Guidance Guidance (as Reported) at Midpoint Net New Studio Openings (Global) 160 180 239 -29% System-Wide Sales (North America) $1,935 $1,955 $1,714 13% Revenue $315 $325 $320 0% Adjusted EBITDA (1) $120 $125
Slide 59: Growth Algorithm Targets
Growth Algorithm Targets XPOF Target Net New Studio Openings 10% Growth per year System-Wide Sales Mid to High Single Digits High Single to Low Revenue Double Digit Adjusted EBITDA (1) 10% Growth per year Adjusted EBITDA Margin (1) 40% - 45% Levered Free Cash Flow Conversion (1)(2) 50-60% of Adj. EB
Slide 60: Dynamic, Predictable, Profitable Growth
Dynamic, Predictable, Profitable Growth Strong Revenue, AUV and System-Wide Sales Growth Predictable Studio Openings Increasing Profitability Solid Market Position Cash Flow Positive 60
Slide 61: Appendix
Appendix 61
Slide 62: Reconciliation of GAAP to Non-GAAP Measures: Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Measures: Adjusted EBITDA In $ thousands 2024 2023 2022 2021 Net income (loss) ($98,696) ($6,443) $1,101 ($51,440) Interest expense, net $44,426 $37,122 $11,212 $23,545 Income taxes (benefit) ($342) $1,034 $488 $783 Depreciation and amortization $17,713 $16,883 $15
Slide 63: Reconciliation of GAAP to Non-GAAP Measures: Adjusted Levered Free Cash Flow
Reconciliation of GAAP to Non-GAAP Measures: Adjusted Levered Free Cash Flow In $ thousands 2024 2023 2022 2021 Net income (loss) ($98,696) ($6,443) $1,101 ($51,440) Interest expense, net $44,426 $37,122 $11,212 $23,545 Income taxes (benefit) ($342) $1,034 $488 $783 Depreciation and amortization $17