Xponential Fitness Q3 Revenue Tops Estimate; Raises FY22 Guidance

Xponential Fitness Inc XPOF reported third-quarter FY22 sales growth of 56% year-on-year to $63.76 million, beating the consensus of $55.34 million.
Total revenue increased largely due to increasing equipment installations and royalties generated from strong North American system-wide sales.
North America same-store sales grew 17%.
Operating expenses rose 68% Y/Y to $74.2 million.
Adjusted EBITDA was $20 million versus $6.8 million in Q3 FY21.
Net loss attributable to the company widened to $(7.1) million from $(4.1) million in Q3 FY21.
It reported an adjusted EPS of $0.13, missing the analyst consensus of $0.14.
Net cash provided by operating activities for nine months totaled $37.5 million.
Xponential held $30.9 million in cash and equivalents as of September 30, 2022.
Outlook: Xponential raised its FY22 revenue outlook from $211 million - $221 million to $235 million - $240 million versus the consensus of $223.82 million.
The company also raised FY22 Adjusted EBITDA guidance from $68.0 million - $72.0 million to $70 million - $74 million.
Xponential Fitness has partnered with Aktiv Solutions to integrate a series of exercise equipment experiences explicitly tailored for amenities located within hotels and resorts, corporate campuses, and high-end multi-family housing properties and universities.
Also Read: Hilton Joins Forces With Peloton To Feature Bikes Across Its Entire US Hotel Portfolio
Price Action: XPOF shares closed higher by 10.44% at $19.89 on Thursday.

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