Cash conversion remains disconnected from earnings, highlighted by a $22.2 million free cash flow outflow in 2026Q1 despite the company reporting a net loss of only $725K.
| Cash from Operations | 811K | 28.32M | 11.68M | 32.71M | 52.06M | 14.45M | -728K | 1.55M | 836K |
| Operating CF Margin % | - | 8.99% | 3.65% | 10.29% | 21.41% | 9.32% | -0.68% | 1.2% | 1.41% |
| Operating CF Growth % | 890.77% | 142.51% | -64.3% | -37.17% | 260.28% | 2085.03% | -147.03% | 85.17% | - |
| Net Income | -33.16M | -53.67M | -98.7M | -6.44M | 1.1M | -51.44M | -13.64M | -37.13M | -42.48M |
| Depreciation & Amortization | 11.32M | 12.03M | 17.71M | 16.88M | 15.31M | 10.17M | 7.65M | 6.39M | 3.51M |
| Stock-Based Compensation | 11.61M | 12.91M | 15.47M | 18M | 29.04M | 9.7M | 1.75M | 2.06M | 1.97M |
| Deferred Taxes | -1.73M | 0 | 0 | 0 | 0 | 0 | 2.83M | 2.22M | 888K |
| Other Non-Cash Items | 55.69M | 50.12M | 71.4M | 13.62M | 7.63M | 32.64M | -6.57M | 11.3M | 15.41M |
| Working Capital Changes | -21.65M | 6.93M | 5.79M | -9.34M | -1.03M | 13.38M | 7.25M | 16.72M | 21.53M |
| Change in Receivables | 5.75M | 4.52M | -3.92M | -7.35M | -12.15M | -6.47M | 2.98M | -6.57M | -2.17M |
| Change in Inventory | 5.82M | 7.79M | 5.57M | -3.96M | -4.37M | -768K | -1.39M | -296K | -804K |
| Change in Payables | -8M | -141K | 8.62M | 889K | 469K | -3.01M | 1.71M | 6.53M | 6.43M |
| Cash from Investing | 1.9M | 1.53M | -14.15M | -11.69M | -14.61M | -50.63M | -4.6M | -9.78M | -24.43M |
| Capital Expenditures | -3.18M | -3.58M | -4.71M | -7.43M | -16.13M | -3.64M | -2.89M | -7.51M | -8.48M |
| CapEx % of Revenue | 1.06% | 1.14% | 1.47% | 2.34% | 6.63% | 2.35% | 2.71% | 5.81% | 14.32% |
| Acquisitions | 2M | 0 | -8.5M | -2.73M | 65K | -44.77M | -1.09M | -1.28M | -15.95M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.08M | 5.11M | -936K | -1.53M | 1.45M | -2.23M | -619K | -990K | 1K |
| Cash from Financing | -23.82M | -16.72M | -1.88M | -21.3M | -21.4M | 46.2M | 7.29M | 6.36M | 31.49M |
| Debt Issued (Net) | 108.78M | 115.24M | 15.61M | 180.55M | -603K | -54.7M | 31.34M | 8.91M | 34.31M |
| Equity Issued (Net) | 193K | 193K | 210K | -181.14M | 0 | 146.43M | 0 | 0 | 0 |
| Dividends Paid | -3.9M | -5.69M | -5.77M | -7.09M | -16.25M | -19.59M | -73.2M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -50.38M | 0 | -153.49M | 0 | 0 | 0 |
| Other Financing | -128.89M | -126.46M | -11.93M | -13.61M | -4.55M | -25.93M | 49.16M | -2.55M | -2.82M |
| Net Change in Cash | -21.1M | 13.12M | -4.36M | -276K | 16.05M | 10.02M | 1.96M | -1.87M | 7.89M |
| Free Cash Flow | -3.19M | 24.74M | 6.96M | 23.5M | 35.93M | 9.59M | -3.62M | -5.96M | -7.65M |
| FCF Margin % | -1.07% | 7.86% | 2.17% | 7.39% | 14.77% | 6.19% | -3.39% | -4.61% | -12.9% |
| FCF Growth % | -136.37% | 255.21% | -70.37% | -34.6% | 274.56% | 365.15% | 39.29% | 22.08% | - |
| FCF per Share | -0.09 | 0.71 | 0.22 | 0.59 | 1.42 | 0.40 | -0.16 | -0.26 | -0.33 |
| FCF Conversion (FCF/Net Income) | 0.10x | -0.84x | -0.18x | -8.18x | 42.85x | -0.77x | 0.05x | -0.04x | -0.02x |
| Interest Paid | 21.06M | 0 | 41.29M | 34.79M | 11.63M | 16.14M | 17.04M | 12.86M | 5.56M |
| Taxes Paid | 159K | 0 | 563K | 1.57M | 2.79M | 1.4M | 228K | 174K | 63K |
Franchisee credit health deterioration
According to recent financial disclosures, XPOF's operating cash flow frequently diverges from net income, with the 2026Q1 period showing a net loss of $725K against a $21.7M cash outflow, suggesting that reported earnings fail to capture the underlying cash burn inherent in the current business model.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital volatility are masking the true economic reality of the firm. Investors should monitor whether this disconnect is driven by aggressive revenue recognition or the timing of cash-intensive franchise support activities.
As reported in quarterly filings, XPOF's free cash flow trajectory has been erratic, swinging from a positive $9.8M in 2025Q4 to a significant $22.2M outflow in 2026Q1, which highlights the company's inability to maintain consistent cash generation amidst its current operational and capital structure challenges.
This extreme variability in free cash flow suggests that the company's core operations are highly sensitive to timing differences in equipment sales and franchise fee collections. The inability to sustain positive cash flow during periods of revenue contraction warrants deep skepticism regarding the company's self-funding capabilities.
Based on the provided cash flow statements, working capital changes have become a primary driver of liquidity, with a $23.1M outflow in 2026Q1 following a $26.1M inflow in 2025Q4, indicating that the company's cash position is highly susceptible to the timing of franchisee payments and inventory cycles.
These violent swings in working capital suggest that XPOF may be relying on aggressive credit terms or inventory build-ups to manage its cash position. Such volatility often precedes liquidity stress, as the company appears to be struggling to normalize its cash conversion cycle in a contracting market.
Data from recent SEC filings reveals that stock-based compensation remains a consistent add-back, averaging several million dollars per quarter, which effectively masks the true extent of the company's cash burn and dilutes the quality of the reported operating cash flow figures for shareholders.
While stock-based compensation is a non-cash expense, its consistent use suggests that the company is compensating for its inability to generate sufficient cash to attract and retain talent. Analysts should adjust operating cash flow downward to account for this recurring expense to better understand the true cash-generating capacity of the business.
Quick answers to the most common questions about buying XPOF stock.
Xponential Fitness, Inc. (XPOF) generated $28.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Xponential Fitness, Inc. (XPOF) generated $24.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Xponential Fitness, Inc. (XPOF) spent $3.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Xponential Fitness, Inc. (XPOF) returned $5.7M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.