Xponential Fitness continued expanding its boutique fitness network during the second quarter of 2026, opening 67 gross new studios and selling 53 franchise licenses despite weaker same-store sales and lower overall revenue.
North America system-wide sales totaled $437.3 million and were flat year-over-year. North America same-store sales declined 6.8%, compared with 2.4% growth a year earlier, while quarterly run-rate average unit volume declined to $659,000 from $686,000.
Total Q2 revenue fell 13% to $66 million. Franchise revenue declined 3% to $44 million, primarily because of lower same-store sales and brand divestitures completed during 2025.
Equipment revenue declined 26% to $7.1 million as fewer global equipment installations reflected lower studio openings and franchise license sales. Merchandise revenue dropped 90% to $0.5 million following Xponential’s transition from an in-house wholesale model to an outsourced retail model and challenges associated with that transition.
Adjusted EBITDA declined to $21.9 million from $28.1 million, while the company reported a net loss of $4.8 million compared with net income of $1.3 million a year earlier. SG&A increased 33% to $32 million, primarily due to higher legal expenses.
Xponential ended June with approximately $25 million of cash, cash equivalents and restricted cash and $522.4 million of long-term debt. Net cash used in operating activities totaled $25.7 million during Q2.
The company revised its full-year 2026 outlook and now expects approximately 150 net new studio openings. North America system-wide sales are expected between $1.70 billion and $1.75 billion, while revenue is expected between $250 million and $260 million and Adjusted EBITDA between $91 million and $97 million.
KEY QUOTES:
“While our second quarter results were below expectations, we continued to make progress against the priorities we believe are most important to strengthening Xponential for the long term, including continued studio growth, both domestically and internationally, enhanced digital capabilities, and elevated franchisee studio support.”
“These efforts, led by a strong management team working collaboratively across brands and functions, are laser focused on driving long term, sustainable growth and success for our franchisees.”
Mike Nuzzo, Chief Executive Officer Of Xponential Fitness
