As Xponential continues to shrink its portfolio of fitness concepts, Extraordinary Brands is emerging as a fast-growing franchisor
Xponential Fitness has completed the divestiture of Rumble Boxing and CycleBar, with Extraordinary Brands acquiring the two boutique fitness concepts, the sides announced.
The transaction sees Xponential, which owns fitness brands including Club Pilates and StretchLab, shrink its portfolio from eight brands to six. Xponential CEO Mark King says the deal was made so Xponential can place more focus on its brands that “drive profitability.”
“Divesting CycleBar and Rumble is consistent with what we emphasized during our Investor Day in New York,” King said. “We will focus our time and capital on the brands that drive profitability both today and also in the longer term. We are committed to putting our franchisees first, while enhancing our operations, growth and member experience.”
Houlihan Lokey acted as financial advisor in connection with the transaction. Terms of the deal weren’t disclosed.
Extraordinary Brands, which just last year acquired indoor rowing concept Row House from Xponential, now counts six brands in its fast-growing boutique fitness franchise portfolio, according to its website. The Charlottesville, Virginia-based company also owns Neighborhood Barre, purvelo cycling and personalized group training brand Eat the Frog Fitness.
Katy Richardson, the chief operating officer of Extraordinary Brands and founder of Neighborhood Barre, told Athletech News that the Extraordinary team is focused on supporting CycleBar and Rumble franchisee owners, and providing them with tools to grow.
“This isn’t just a new chapter for these brands,” Richardson told ATN. “This acquisition is an opportunity to build a stronger future together. As a brand founder myself, I know what it takes to scale a single studio into a sustainable system, and that experience shapes our entire approach. Our priority is to refocus on the foundational elements that matter most to franchisees and have been overlooked or undervalued in recent years.”
For Xponential, offloading Rumble and CycleBar marks the latest wave in a continuing trend of consolidation. At its height in 2023, the Irvine, California-based company had 11 boutique fitness and wellness brands under its portfolio.
After divesting from Rumble and CycleBar, Xponential currently has six brands in its portfolio: Body Fit Training (BFT), Club Pilates, Lindora, Pure Barre, StretchLab and YogaSix.
In 2024, the franchisor offloaded both Row House and Stride Fitness, a treadmill-based HIIT concept. Xponential also quietly wound down AKT, a dance-based cardio fitness brand.
While Xponential has faced some turbulent times as of late, including federal investigations, significant executive turnover and competition from emerging franchisors, the company got a big boost earlier this month when the U.S. Securities and Exchange Commission (SEC) announced it had concluded its 18-month probe into the company without recommending action.
Xponential’s stock price has surged since the SEC’s announcement, regaining some of the ground it lost in 2023 when a short-seller report accused the company of inflated performance metrics. Xponential has consistently denied those allegations.
While the SEC has closed its case, the status of other federal investigations into Xponential remains unclear. Xponential has said it intends to cooperate fully with all federal agencies.
King, the former chief executive at Taco Bell who took over as Xponential’s CEO in June of 2024 after the departure of founder Anthony Geisler, announced his plans to retire this past May.
A search for Xponential’s next CEO is underway, the company has said.
Courtney Rehfeldt contributed additional reporting to this story
