Mike Nuzzo outlined Xponential’s next chapter after the boutique fitness franchisor trimmed its portfolio to five brands. He’s placing a particular emphasis on improving BFT and StretchLab
Xponential Fitness is moving forward with a leaner portfolio and a focus on operational improvement.
The boutique fitness franchisor reported third-quarter revenue of $78.8 million, down 2% from a year ago. System-wide sales rose 10% to $432.2 million, and adjusted EBITDA increased 9% to $33.5 million.
Xponential posted a net loss of $6.7 million, narrowing from a year earlier, and ended the quarter with 3,066 studios and 796,000 members, both up year-over-year.
For 2025, Xponential reaffirmed its revenue and adjusted EBITDA guidance while updating its system-wide sales outlook. The fitness franchisor expects $300 million to $310 million in revenue and $1.73 billion to $1.75 billion in system-wide sales. Net new studio openings are projected between 170 and 190, down roughly 37% from 2024.
The results mark the company’s first earnings call since divesting from Lindora, the medical weight-loss and wellness brand sold to Next Health in September. The move completed Xponential’s retreat to its boutique fitness origins following earlier offloading of Rumble and CycleBar to Extraordinary Brands, its 2024 sales of Row House and Stride Fitness and the sunsetting of AKT, its dance-based cardio fitness brand. Five core concepts remain in its portfolio: Club Pilates, Pure Barre, YogaSix, BFT and StretchLab.
Layoffs were also confirmed in October as part of CEO Mike Nuzzo’s broader effort to streamline operations.
“Over my first 90 days, I’ve gained a much clearer picture of our strengths and opportunities ahead,” Nuzzo said. “This time has only reinforced my confidence in both the power of our brands and the commitment of our franchisees. That said, it is clear that there is significant potential for improvement across our operations, and I’m excited to work with the team to unlock and realize that value for all stakeholders.
Club Pilates, Xponential’s boutique fitness darling and enjoying a Pilates boom, continues to drive performance with more than 1,200 studios in North America and over 150 internationally. The brand is launching a national marketing campaign in the fourth quarter across connected TV, podcasts and YouTube, with a pricing study underway that Nuzzo said will serve as a framework for Xponential’s other concepts.
Pure Barre also remains one of Xponential’s steadier brands. Nuzzo added that YogaSix, a complementary studio concept to Pure Barre, also has a “healthy owner-operator franchisee structure” and continues to generate impressive, sustained organic growth.
“They both also exhibit strong retention driven by an almost obsessive member base, which we love, of course,” he said.
Xponential’s assisted stretching concept, StretchLab, remains under pressure following Medicare Advantage coverage reductions, which scaled back on stretch services as a covered benefit and impacted member flow. Xponential said it is also working to diversify StretchLab’s membership base and is testing new operational models to reduce labor demands.
“We have to drive an expanded membership mix,” Nuzzo said. “As we looked at the current membership base, I think there’s a lot of opportunity to drive younger members across more athletic pursuits, new partnerships.”
BFT is also another focus of attention for 2026 and beyond, with Nuzzo noting that the Australian-born fitness concept has a “compelling offering in the high-intensity interval training space.”
“Currently, we have a cross-functional team focused on refining our go-to-market approach in the U.S. to drive better individual studio economics, member awareness and market density,” he said.
