The turnaround at Xponential Fitness is yet to bear fruit, as Q1 revenues drop.

CEO Mike Nuzzo says continuing advances have been made, including key appointments.

“We're operating as a more unified organisation, aligning marketing, operations, technology and brand-building to drive stronger performance and lay the foundation for continued improvement,” he said.

“As we look ahead, our focus is on restoring sustainable organic growth through a more disciplined framework. This includes stabilising top-of-funnel lead generation, improving lead-to-member conversion, and optimising pricing and membership structures over time, all while continuing to support retention through class innovation, studio remodel programmes and clear brand positioning.

“We're confident these actions will strengthen performance and position us well for the quarters ahead.”

The new appointees are Robert Julian as interim chief financial officer; Erik Quade as chief information officer; and Steph So as chief marketing officer.

Total revenue was US$60.7 million, down 21 per cent from the prior-year period.

Franchise revenue was US$41.2 million, down 6 per cent year-on-year, due to a decrease in same-store sales and brand divestitures completed in 2025.

Equipment revenue was $4.4 million, down 61 per cent year-on-year, due to fewer global equipment installations, driven by fewer studio openings and lower franchise licence sales.

Merchandise revenue, franchise marketing fund revenue and other service revenue were also down, while marketing expenses increased.

Selling, general and administrative expenses were reduced thanks to lower legal and personnel-related costs.

The 2026 outlook stayed the same: new studio openings of between 150 and 170; revenue in the range of US$260 million and US$270 million (a 16 per cent decrease at the midpoint); and adjusted EBITDA in the range of US$100 million to US$110 million (a 6 per cent decrease at the midpoint).

The stock fell after the announcement. There was concern over same-store sales moving from 6 per cent growth last year to negative 6 per cent this year, which suggests existing studios are struggling to grow rather than the company simply slowing expansion. Weak same-store sales can also affect future franchise sales and openings.

On the upside, net losses have narrowed, costs have been reduced and operating margins improved. The company continues to open studios globally and full-year guidance was reaffirmed.

The boutique fitness market is increasingly competitive. Xponential’s top performer is Club Pilates, but this is facing competition from many other ambitious reformer Pilates operators on fast rollouts, including Jetset Pilates, Pilates Addiction and Solidcore.

The company recently announced it was investigating other ways of boosting shareholder returns, including a sale.