Xponential Fitness Cuts 2026 Studio Opening Target
The fitness franchisor reported a 21% third-quarter revenue drop and now expects 124 to 130 net new studio openings this year.
Updated on Nov. 7, 2026 in Health and Wellness
Xponential Fitness reported third-quarter revenue of $62.261 million for the quarter ended Sept. 30, down from $78.824 million a year earlier. The company also lowered its 2026 net new studio opening target to 124 to 130.
Why it matters
The decline was attributed primarily to lower franchise and merchandise revenue and fewer equipment installations, signaling pressure across its boutique wellness brands. The company's ongoing strategic alternatives review, which could include a sale or merger, adds uncertainty to its outlook.
Adjusted EBITDA fell 27% to $24.3 million from $33.5 million, and franchise revenue dropped to $43.409 million from $51.882 million. The company's $521.1 million in long-term debt as of Sept. 30 remains a significant obligation.
The players
Xponential Fitness
A boutique fitness franchisor operating Pilates, barre, stretching, strength training and yoga brands across North America.
The details
Xponential, which operates five boutique wellness brands covering Pilates, barre, stretching, strength training and yoga, reported adjusted net income of $2.185 million, or 4 cents per basic share, and GAAP net income of $4.9 million, or 10 cents per share. The company kept its 2026 revenue forecast at $250 million to $260 million and narrowed its adjusted EBITDA outlook to $91 million to $94 million.
Timeline
April: The board announced a strategic alternatives review, which remains active.
Sept. 30: The third quarter ended, with cash and restricted cash totaling $27.2 million.
2026: The revised net new studio opening target of 124 to 130 applies to the year.
Industry Dynamics
The slowdown in franchise and equipment sales at Xponential mirrors the pressure on boutique fitness franchisors as studio expansion slows across North America. The company's continued strategic review places it among franchisors weighing sales or mergers amid softer unit growth.
Members of Xponential's boutique studios may see fewer new locations opening nearby as the company trims its expansion target. Studio pricing and class offerings are not addressed in the company's reported results.
The takeaway
Xponential's slowing studio growth and pending strategic review show how financial pressure can reshape boutique fitness brands. Readers tracking the sector should watch whether the board's review produces a sale or merger in the coming months.
Further reading
For related coverage, explore more Health and Wellness news in the United States.
