Latest
issue
GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window I've already subscribed!
Technogym
Technogym
Technogym
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
FITNESS, HEALTH, WELLNESS

Latest news

Xponential posts Q2 2023 profit results – reveals growth strategies

Xponential Fitness made US$18.4m profit in Q2 2023.
International growth is a major focus – the company has 2,000 sites sold globally, in addition to 1,000 obligated via master franchisors.
Studio visits grew 32 per cent year-on-year, reaching a total of 12.9m. The average franchisee has bought 2.6 licences, with 1.3 studios currently open.
The financial statement shows a US$31.1m consideration in relation to the acquisition of Rumble.

Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.

Profit was US$18.4m and year-on-year revenues grew by 30 per cent in Q2 to US$77.3m, while adjusted EBITDA was US$25.3m – an increase of 43 per cent when compared to the US$17.6m achieved in 2022.

CEO, Anthony Geisler, said: “I'm proud to share yet another consistent quarter of results that continue to highlight the strength of our business and the health of our franchisees.

“Xponential franchisees now operate nearly 2,900 studios globally, with over 5,800 licences sold across our 10 leading fitness brands. We have franchise, master franchise, and international expansion agreements in 19 countries outside of North America” he said.

Total members across North America saw growth of 29 per cent year-on-year to a total of 697,000 at the end of the second quarter, with over 90 per cent of customers making active payments.

Geisler highlighted growth in studio visits of 32 per cent year-on-year, reaching a total of 12.9m in Q2 and driving record North American system-wide sales of 341m – a 37 per cent increase on 2022.

“Q2 North American average unit volumes (AUV) of 561,000 were up 17 per cent from 480,000 in Q2 of 2022, our 12th straight quarter of AUV growth.,” said Geisler. “We continue to believe that AUV growth is the most direct measure of our franchise systems’ health.”

More mature studios also performed well, increasing sales by 16 per cent. “Now we’re further removed from COVID-impacted time periods, we believe this metric has begun to normalise,” he said.

Xponential is also growing repeat franchise sales, with 30 per cent being sold to existing franchisees in the quarter: “We sold 234 licences globally in Q2 2023, bringing total sold licences to 5,872,” reported Geisler. “Our average franchisee has bought 2.6 licences, with 1.3 studios currently open.

“We’re always pleased when an existing franchisee purchases additional licences, as it reinforces their satisfaction with our model and the success of their businesses,” he said. “Over 56 per cent of our studios have owners who have purchased multiple Xponential licences.”

The global rollout is where the company sees much of its growth potential: “We recently announced the signing of a master franchise agreement in France for our Club Pilates brand, which represents our 19th country outside of North America,” said Geisler, “Xponential is currently targeting 50 countries and 500 different master franchise agreement opportunities, which provides significant white space for future growth.”

The company has a pipeline of around 2,000 licences sold or ‘contractually obligated’ globally in addition to 1,000 master franchise agreement obligations.

Geisler said Xponential intends to cease holding and trading ‘company-owned transition studios’ – sites that have been handed back by franchisees or others that have not been sold on following acquisitions: “Going forward, we will no longer take on company-owned transition studios,” said Geisler, explaining that they “create headwinds when optimising margins.”

“We’re currently operating 38 company-owned sites and have nine corporate LA Fitness studios under our Club Pilates and StretchLab brands – we plan to continue operating these nine in order to prove the LA Fitness non-traditional studio concept, but we plan to refranchise the 38 studios down to zero and we'll no longer take on any more,” he said. What will happen to these sites in future was not explained.

Looking forward Geisler said the company is positive about the second half of 2023, saying: “We remain on track to achieve adjusted EBITDA margins in the 35 per cent to 39 per cent range by year-end and adjusted EBITDA margins of 40 per cent in 2024.

The financial statement shows that US$31.1m consideration was recorded in relation to the acquisition of Rumble.

At the end of June the company was holding around US$40.2m of cash (and cash equivalents) and US$265.9m in long-term debt.

Net cash provided by operating activities in the three months ended 30 June was US$30.6m.

Xponential Fitness 2023 full-year outlook

New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year 2022;

North America system-wide sales in the range of $1.385 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022; this compares to previous guidance of $1.370 billion to $1.380 billion;Revenue in the range of $295.0 million to $305.0 million, or an increase of 22% at the midpoint as compared to full year 2022; this compares to previous guidance of $290.0 million to $300.0 million; and

Adjusted EBITDA in the range of $102.5 million to $106.5 million, or an increase of 41% at the midpoint as compared to full year 2022; this compares to previous guidance of $102.0 million to $106.0 million.Additional key assumptions for full year 2023 include:

Related news

Xponential Fitness enters France with signing of master franchise deal for Club Pilates

17 Jul 2023
Xponential Fitness has signed a master franchise agreement in France for its Club Pilates brand. ...

Xponential fights back from damning Fuzzy Panda report

03 Jul 2023
Xponential Fitness shares are recovering following a fightback by the directors after the publication of ...

Lululemon and Xponential renew and expand digital studio partnership

12 Jun 2023
Xponential Fitness is expanding the selection of digital workouts it provides to Lululemon Studio, increasing ...
Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.
PTS,HAF,FIT,IND,PTS,PHR
2023/THUMB351632_57281_630565.jpg
Latest News
Planet Fitness has become the subject of a hate campaign by certain groups of consumers ...
Latest News
Recovery, social wellness and longevity were talking points at PerformX recently, tipped by many speakers ...
Latest News
Industry experts are gathering in Cologne for today's European Health & Fitness Forum (EHFF), followed ...
Latest News
Jason Worthy has been appointed group CEO of Myzone to lead the 'next stage of ...
Latest News
John Kersh has announced he is leaving boutique franchisor, Xponential Fitness, after eight years with ...
Latest News
Oxygen Consulting is about to launch its first UK Padel Report, which investigates this fast-growing ...
Latest News
Global publishing outfit, Leisure Media, has announced details of its new annual conference for decision-makers ...
Latest News
Portugese footballer, Cristiano Ronaldo, has launched a health and wellness app that harmonises advice on ...
HCM promotional features
Sponsored
The partnership between PureGym and Belfast-based supplier BLK BOX is transforming the gym floor
HCM promotional features
Sponsored
The New Keiser M3i Studio Bike brings ride data to life to engage and delight members
HCM promotional features
Sponsored
Nuffield Health has worked with ServiceSport UK for more than ten years, ensuring the equipment in its clubs is commercially optimised
HCM promotional features
Sponsored
D2F had updated its brand styling to keep pace with business growth. MD, John Lofting and operations director, Matt Aynsley, explain the rationale
HCM promotional features
Sponsored
Francesca Cooper-Boden says health assessment services can boost health club retention
HCM promotional features
Sponsored
GymNation is pioneering the future of fitness with software specialist Perfect Gym providing a scalable tech platform to power and sustain its growth
HCM promotional features
Sponsored
Operators, prepare to revolutionise the way members connect with personal trainers in your club, with the ground-breaking Brawn platform.
HCM promotional features
Sponsored
University of Sheffield Sport has opened the doors of its flagship Goodwin Sports Centre following a major refurbishment
HCM promotional features
Sponsored
Epassi, a provider of workplace wellness benefits, is creating a fitter and more productive workforce, one membership at a time 
HCM promotional features
HCM magazine
Imposter syndrome about a promotion taught the CEO of SATS that behaving authentically is the most important part of leadership. He talks to Kath Hudson
HCM magazine
New research has found BMI to be a highly inaccurate measure of childhood obesity, leading current thinking and policy based on it into question
HCM magazine
HCM People

Dr Jonathan Leary

Founder, Remedy Place
It was as though the whole world woke up at the same time
HCM magazine
Members are telling us they need support with their mental and spiritual health and the industry is starting to see this need. Now’s the time to fast-track our response
HCM magazine
Egym has announced deals designed to position it for growth acceleration, as Kath Hudson reports
Featured supplier news
Featured supplier news: Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs.
Featured supplier news
Featured supplier news: Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn.
Company profiles
Company profile: Les Mills UK
For over 50 years Les Mills has been leading the way in fitness to inspire ...
Company profiles
Company profile: Balanced Body®
Balanced Body is the global leader in Pilates equipment and education. Founded over 47 years ...
Supplier Showcase
Supplier showcase - Jon Williams
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Greenwich Leisure Limited press release: ‘Better’ managers get a ‘taste’ for volunteering
The management team from ‘Better’ leisure centres in the Lewisham area is looking for local projects that need a helping hand.
Featured press releases
KeepMe press release: Gymnation appoints Keepme CEO Ian Mullane to board of directors
The fastest growing gym chain based out of the GCC has appointed Keepme’s CEO, Ian Mullane to its board of directors.
Directory
Cryotherapy
Art of Cryo: Cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
salt therapy products
Saltability: salt therapy products
Spa software
SpaBooker: Spa software
Snowroom
TechnoAlpin SpA: Snowroom
Lockers
Fitlockers: Lockers
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
11-14 Apr 2024
Exhibition Centre , Cologne, Germany
Diary dates
22-24 Apr 2024
Galgorm Resort, York,
Diary dates
10-12 May 2024
China Import & Export Fair Complex, Guangzhou, China
Diary dates
23-24 May 2024
Large Hall of the Chamber of Commerce (Erbprinzenpalais), Wiesbaden, Germany
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
01-04 Oct 2024
REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates

Latest news

Xponential posts Q2 2023 profit results – reveals growth strategies

Xponential Fitness made US$18.4m profit in Q2 2023.
International growth is a major focus – the company has 2,000 sites sold globally, in addition to 1,000 obligated via master franchisors.
Studio visits grew 32 per cent year-on-year, reaching a total of 12.9m. The average franchisee has bought 2.6 licences, with 1.3 studios currently open.
The financial statement shows a US$31.1m consideration in relation to the acquisition of Rumble.

Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.

Profit was US$18.4m and year-on-year revenues grew by 30 per cent in Q2 to US$77.3m, while adjusted EBITDA was US$25.3m – an increase of 43 per cent when compared to the US$17.6m achieved in 2022.

CEO, Anthony Geisler, said: “I'm proud to share yet another consistent quarter of results that continue to highlight the strength of our business and the health of our franchisees.

“Xponential franchisees now operate nearly 2,900 studios globally, with over 5,800 licences sold across our 10 leading fitness brands. We have franchise, master franchise, and international expansion agreements in 19 countries outside of North America” he said.

Total members across North America saw growth of 29 per cent year-on-year to a total of 697,000 at the end of the second quarter, with over 90 per cent of customers making active payments.

Geisler highlighted growth in studio visits of 32 per cent year-on-year, reaching a total of 12.9m in Q2 and driving record North American system-wide sales of 341m – a 37 per cent increase on 2022.

“Q2 North American average unit volumes (AUV) of 561,000 were up 17 per cent from 480,000 in Q2 of 2022, our 12th straight quarter of AUV growth.,” said Geisler. “We continue to believe that AUV growth is the most direct measure of our franchise systems’ health.”

More mature studios also performed well, increasing sales by 16 per cent. “Now we’re further removed from COVID-impacted time periods, we believe this metric has begun to normalise,” he said.

Xponential is also growing repeat franchise sales, with 30 per cent being sold to existing franchisees in the quarter: “We sold 234 licences globally in Q2 2023, bringing total sold licences to 5,872,” reported Geisler. “Our average franchisee has bought 2.6 licences, with 1.3 studios currently open.

“We’re always pleased when an existing franchisee purchases additional licences, as it reinforces their satisfaction with our model and the success of their businesses,” he said. “Over 56 per cent of our studios have owners who have purchased multiple Xponential licences.”

The global rollout is where the company sees much of its growth potential: “We recently announced the signing of a master franchise agreement in France for our Club Pilates brand, which represents our 19th country outside of North America,” said Geisler, “Xponential is currently targeting 50 countries and 500 different master franchise agreement opportunities, which provides significant white space for future growth.”

The company has a pipeline of around 2,000 licences sold or ‘contractually obligated’ globally in addition to 1,000 master franchise agreement obligations.

Geisler said Xponential intends to cease holding and trading ‘company-owned transition studios’ – sites that have been handed back by franchisees or others that have not been sold on following acquisitions: “Going forward, we will no longer take on company-owned transition studios,” said Geisler, explaining that they “create headwinds when optimising margins.”

“We’re currently operating 38 company-owned sites and have nine corporate LA Fitness studios under our Club Pilates and StretchLab brands – we plan to continue operating these nine in order to prove the LA Fitness non-traditional studio concept, but we plan to refranchise the 38 studios down to zero and we'll no longer take on any more,” he said. What will happen to these sites in future was not explained.

Looking forward Geisler said the company is positive about the second half of 2023, saying: “We remain on track to achieve adjusted EBITDA margins in the 35 per cent to 39 per cent range by year-end and adjusted EBITDA margins of 40 per cent in 2024.

The financial statement shows that US$31.1m consideration was recorded in relation to the acquisition of Rumble.

At the end of June the company was holding around US$40.2m of cash (and cash equivalents) and US$265.9m in long-term debt.

Net cash provided by operating activities in the three months ended 30 June was US$30.6m.

Xponential Fitness 2023 full-year outlook

New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year 2022;

North America system-wide sales in the range of $1.385 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022; this compares to previous guidance of $1.370 billion to $1.380 billion;Revenue in the range of $295.0 million to $305.0 million, or an increase of 22% at the midpoint as compared to full year 2022; this compares to previous guidance of $290.0 million to $300.0 million; and

Adjusted EBITDA in the range of $102.5 million to $106.5 million, or an increase of 41% at the midpoint as compared to full year 2022; this compares to previous guidance of $102.0 million to $106.0 million.Additional key assumptions for full year 2023 include:

Related news

Xponential Fitness enters France with signing of master franchise deal for Club Pilates

17 Jul 2023
Xponential Fitness has signed a master franchise agreement in France for its Club Pilates brand. ...

Xponential fights back from damning Fuzzy Panda report

03 Jul 2023
Xponential Fitness shares are recovering following a fightback by the directors after the publication of ...

Lululemon and Xponential renew and expand digital studio partnership

12 Jun 2023
Xponential Fitness is expanding the selection of digital workouts it provides to Lululemon Studio, increasing ...
Xponential Fitness, has released its global financial results for the year to date, with a confident performance across the board, although share earnings were slightly below analysts' expectations.
PTS,HAF,FIT,IND,PTS,PHR
2023/THUMB351632_57281_630565.jpg

Latest news

Planet Fitness has become the subject of a hate campaign by certain groups of consumers
Recovery, social wellness and longevity were talking points at PerformX recently, tipped by many speakers
Industry experts are gathering in Cologne for today's European Health & Fitness Forum (EHFF), followed
Jason Worthy has been appointed group CEO of Myzone to lead the 'next stage of
John Kersh has announced he is leaving boutique franchisor, Xponential Fitness, after eight years with
Oxygen Consulting is about to launch its first UK Padel Report, which investigates this fast-growing
Elevate
Elevate
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set
Global publishing outfit, Leisure Media, has announced details of its new annual conference for decision-makers
Portugese footballer, Cristiano Ronaldo, has launched a health and wellness app that harmonises advice on
Disturbing new research has found BMI completely fails as an accurate measure of obesity in
A new urban city centre in Gothenburg, Sweden is in development with the aim of
The first annual Private Sector Benchmarking report was released today (27 March). A collaboration between
Egym, has signalled its intention to become a dominant force in the corporate wellness sector
Questex/McLean Events (Spatec/SIBEC)
Questex/McLean Events (Spatec/SIBEC)
Panatta will consolidate its global presence throughout 2024 by attending a host of major industry
With a new master franchisee on board, the rollout of Anytime Fitness in the Middle
Total Fitness has released results for its most recent financial year (to June 23), which
Enjoy building your business because the journey can be as good or better than the
Myzone is now available on smart watches, allowing Android and AppleWatch wearers to record workouts
Egym, which raised €207 million last year in new investment, continues to build its top
Having announced its intention to open 50 low cost gyms in the next three years,
As one of the most energy-intensive industries in the UK, leisure facilities face a critical
The team behind TRIB3 has launched a reformer Pilates studio concept called PILAT3S, which will
Wello Works, a new concept which mixes a wellness centre and a co-working office, has
1 - 20 of 12,300
HCM promotional features
Sponsored
The partnership between PureGym and Belfast-based supplier BLK BOX is transforming the gym floor
HCM promotional features
Sponsored
The New Keiser M3i Studio Bike brings ride data to life to engage and delight members
HCM promotional features
Sponsored
Nuffield Health has worked with ServiceSport UK for more than ten years, ensuring the equipment in its clubs is commercially optimised
HCM promotional features
Sponsored
D2F had updated its brand styling to keep pace with business growth. MD, John Lofting and operations director, Matt Aynsley, explain the rationale
HCM promotional features
Sponsored
Francesca Cooper-Boden says health assessment services can boost health club retention
HCM promotional features
Sponsored
GymNation is pioneering the future of fitness with software specialist Perfect Gym providing a scalable tech platform to power and sustain its growth
HCM promotional features
Sponsored
Operators, prepare to revolutionise the way members connect with personal trainers in your club, with the ground-breaking Brawn platform.
HCM promotional features
Sponsored
University of Sheffield Sport has opened the doors of its flagship Goodwin Sports Centre following a major refurbishment
HCM promotional features
Sponsored
Epassi, a provider of workplace wellness benefits, is creating a fitter and more productive workforce, one membership at a time 
HCM promotional features
HCM magazine
Imposter syndrome about a promotion taught the CEO of SATS that behaving authentically is the most important part of leadership. He talks to Kath Hudson
HCM magazine
New research has found BMI to be a highly inaccurate measure of childhood obesity, leading current thinking and policy based on it into question
HCM magazine
HCM People

Dr Jonathan Leary

Founder, Remedy Place
It was as though the whole world woke up at the same time
HCM magazine
Members are telling us they need support with their mental and spiritual health and the industry is starting to see this need. Now’s the time to fast-track our response
HCM magazine
Egym has announced deals designed to position it for growth acceleration, as Kath Hudson reports
HCM magazine
HCM People

Cristiano Ronaldo

Footballer and entrepreneur
Taking care of your physical and mental health is essential for a fulfilling life
HCM magazine
Basic-Fit – which has been scaling rapidly across Europe –  is considering franchising to ramp up growth further afield
HCM magazine
Will Orr has been talking to HCM about the company’s new strategy for 2024, as Kath Hudson reports
HCM magazine
We’ve had an outstanding year, with record revenues of €77m and €31m in EBITDA in 2023.
HCM magazine
For 2024 our European growth will be focused on Spain and the UK and in 2025, Japan
HCM magazine
Remember when there was mass hostility about London hosting the 2012 Olympics? Huw Edwards, CEO of UK Active, was there. He talks to Kath Hudson about the lessons he learned
HCM magazine
Featured supplier news
Featured supplier news: Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs.
Featured supplier news
Featured supplier news: Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn.
Company profiles
Company profile: Les Mills UK
For over 50 years Les Mills has been leading the way in fitness to inspire ...
Company profiles
Company profile: Balanced Body®
Balanced Body is the global leader in Pilates equipment and education. Founded over 47 years ...
Supplier Showcase
Supplier showcase - Jon Williams
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Greenwich Leisure Limited press release: ‘Better’ managers get a ‘taste’ for volunteering
The management team from ‘Better’ leisure centres in the Lewisham area is looking for local projects that need a helping hand.
Featured press releases
KeepMe press release: Gymnation appoints Keepme CEO Ian Mullane to board of directors
The fastest growing gym chain based out of the GCC has appointed Keepme’s CEO, Ian Mullane to its board of directors.
Directory
Cryotherapy
Art of Cryo: Cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
salt therapy products
Saltability: salt therapy products
Spa software
SpaBooker: Spa software
Snowroom
TechnoAlpin SpA: Snowroom
Lockers
Fitlockers: Lockers
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
11-14 Apr 2024
Exhibition Centre , Cologne, Germany
Diary dates
22-24 Apr 2024
Galgorm Resort, York,
Diary dates
10-12 May 2024
China Import & Export Fair Complex, Guangzhou, China
Diary dates
23-24 May 2024
Large Hall of the Chamber of Commerce (Erbprinzenpalais), Wiesbaden, Germany
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
01-04 Oct 2024
REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Technogym
Technogym
Partner sites