Xponential Fitness, the global franchisor of boutique fitness brands, which is forecasting 550 new studio openings this year and a 31 percent increase in adjusted Ebitda, reported a 15 percent increase in operating income to $2.95 million for the period ended Dec. 31. The net loss was $9.1 million as total revenues increased by 27 percent to $90.2 million from $71.3 million. Adjusted net income slipped by 38 percent to $4.2 million.
The group generated double-digit sales growth from all three segments of its business. Franchise revenues were 22 percent higher at $39.1 million; equipment revenues rose by 42 percent to $16.4 million; and merchandise revenues climbed 27 percent higher to $10.1 million.
For the full year, Xponential posted a 42 percent increase in adjusted Ebitda to $105.3 million and a 65 percent rise in adjusted net income to $15.7 million. FY23 revenues rose by 30 percent to $318.7 million, with all three segments recording double-digit sales increases, led by a 30 percent jump in equipment sales to $56.5 million, followed by 26 percent growth in merchandise sales to $34.1 million and a 25 percent lift in franchise revenues to $143.6 million. Over the year, the Irvine, California, company sold 805 franchise licenses, opened 557 new studios, and entered seven countries to bring its penetration outside the U.S. to 23 nations.
