Xponential Fitness has posted losses of US$18 million for Q3 2024 – up from US$5.2 million in the prior year period – in spite of increasing sales and revenues.

The company is working to move forward following the resignation of founder Anthony Geisler against the backdrop of an ongoing investigation by the US Attorney's' Office.

CEO, Mark King – who's been in office 100 days – said: “My focus is on fostering a culture at Xponential that is conducive to long-term success. We need to transform into a marketing- and operations-driven organisation that places franchisee success at the centre.”

The company reported revenue of US$80.5 million for Q3, while North America system-wide sales increased by 21 per cent to US$631,000, compared to US$585,000 in Q3 2023.

Net losses were attributed by King to a "decrease in impairment of goodwill and other assets; litigation expenses; acquisition and transaction expense primarily related to the acquisition of Rumble; restructuring and related charges from company-owned transition studios; a non-cash equity-based compensation expense and a loss on brand divestitures and wind-down".

Adjusted EBITDA was US$31.0 million, compared to US$26.5 million in the prior year.

Looking forward to the year-end, King said gross new studio openings are expected to be in the range of 490 to 510 – a decrease of 10 per cent at the midpoint compared to full year 2023 gross new openings. This compares to previous guidance of 500 to 520.

Revenue for 2024 is forecast to be in the range of US$310.0 million - US$320.0 million: a decrease of 1 per cent at the midpoint compared to full year 2023 and unchanged from previous guidance.

Adjusted EBITDA is expected to be in the range of US$120.0 million - US$124.0 million – an increase of 16 per cent at the midpoint compared to full year 2023. This performance would be unchanged from King's previous guidance.

As of 30 September, the company had approximately US$37.8 million of cash and cash equivalents and US$353.8 million in total long-term debt.

This was subject to refinancing in August.

Xponential Fitness is currently offering nine brands for franchising: Club Pilates; CycleBar; StretchLab; AKT; YogaSix; Pure Barre; Rumble; BFT and; Lindora metabolic health solutions.