Gross margin expanded to 85.2% in 2026Q2 while revenue contracted 13.4% year over year to $66.0M and the company posted a net loss of $4.1M, suggesting margin strength has not translated into bottom-line profitability.
Xponential Fitness, Inc. (XPOF) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 271.91M | 314.88M | 320.35M | 317.94M | 243.2M | 155.08M | 106.59M | 129.13M | 59.26M |
| Revenue Growth % | -13.88% | -1.71% | 0.76% | 30.73% | 56.82% | 45.49% | -17.45% | 117.89% | - |
| Cost of Goods Sold | 41.41M | 76.78M | 59.48M | 98.61M | 82.19M | 54.31M | 41.22M | 55.35M | 29.31M |
| COGS % of Revenue | - | 24.38% | 18.57% | 31.02% | 33.79% | 35.02% | 38.67% | 42.87% | 49.46% |
| Gross Profit | 230.5M | 238.1M | 260.87M | 219.32M | 161.01M | 100.77M | 65.37M | 73.78M | 29.95M |
| Gross Margin % | 84.77% | 75.62% | 81.43% | 68.98% | 66.21% | 64.98% | 61.33% | 57.13% | 50.54% |
| Gross Profit Growth % | - | -8.73% | 18.94% | 36.22% | 59.78% | 54.15% | -11.39% | 146.33% | - |
| Operating Expenses | 171.87M | 158.56M | 314.48M | 184.42M | 147.69M | 131.59M | 57.58M | 94.83M | 48.06M |
| OpEx % of Revenue | - | 50.35% | 98.17% | 58% | 60.73% | 84.85% | 54.02% | 73.44% | 81.1% |
| Selling, General & Admin | 138.35M | 158.56M | 176.85M | 148.53M | 115.98M | 87.97M | 60.92M | 80.5M | 44.55M |
| SG&A % of Revenue | - | 50.35% | 55.21% | 46.72% | 47.69% | 56.73% | 57.15% | 62.34% | 75.17% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 137.63M | 35.88M | 31.71M | 43.61M | -3.34M | 14.33M | 3.51M |
| Operating Income | 58.63M | 79.55M | -53.61M | 34.91M | 13.32M | -30.82M | 7.79M | -21.05M | -36.21M |
| Operating Margin % | 21.56% | 25.26% | -16.74% | 10.98% | 5.48% | -19.87% | 7.31% | -16.3% | -61.1% |
| Operating Income Growth % | - | 248.37% | -253.6% | 161.98% | 143.23% | -495.42% | 137.02% | 41.86% | - |
| EBITDA | 66.39M | 91.57M | -35.9M | 51.79M | 28.64M | -20.65M | 15.45M | -14.66M | -32.7M |
| EBITDA Margin % | 24.42% | 29.08% | -11.21% | 16.29% | 11.78% | -13.31% | 14.49% | -11.36% | -55.17% |
| EBITDA Growth % | 569.35% | 355.07% | -169.32% | 80.83% | 238.71% | -233.68% | 205.32% | 55.15% | - |
| D&A (Non-Cash Add-back) | 7.76M | 12.03M | 17.71M | 16.88M | 15.31M | 10.17M | 7.65M | 6.39M | 3.51M |
| EBIT | -7.85M | -3.16M | -52.79M | 53.91M | 29.72M | 2.62M | -776K | -20.88M | -36.15M |
| Net Interest Income | -39.25M | -45.98M | -44.43M | -37.12M | -11.21M | -23.55M | -21.07M | -15.92M | -6.2M |
| Interest Income | 1.42M | 3.21M | 1.82M | 1.61M | 1.8M | 1.16M | 345K | 168K | 56K |
| Interest Expense | 56.55M | 49.19M | 46.25M | 38.73M | 13.02M | 24.71M | 21.41M | 16.09M | 6.25M |
| Other Income/Expense | -104.53M | -131.9M | -45.42M | -40.31M | -11.73M | -19.84M | -21.07M | -15.92M | -6.2M |
| Pretax Income | -45.9M | -52.35M | -99.04M | -5.41M | 1.59M | -50.66M | -13.27M | -36.97M | -42.41M |
| Pretax Margin % | -16.88% | -16.63% | -30.92% | -1.7% | 0.65% | -32.67% | -12.45% | -28.63% | -71.55% |
| Income Tax | 1.15M | 1.32M | -342K | 1.03M | 488K | 783K | 369K | 164K | 73K |
| Effective Tax Rate % | -2.51% | -2.53% | 0.35% | -19.12% | 30.71% | -1.55% | -2.78% | -0.44% | -0.17% |
| Net Income | -30.26M | -33.79M | -64.95M | -4M | 1.22M | -18.83M | -13.64M | -37.13M | -42.48M |
| Net Margin % | -11.13% | -10.73% | -20.27% | -1.26% | 0.5% | -12.14% | -12.8% | -28.76% | -71.68% |
| Net Income Growth % | 37.52% | 47.97% | -1523.32% | -429.3% | 106.45% | -38.04% | 63.27% | 12.58% | - |
| Net Income (Continuing) | -47.05M | -53.67M | -98.7M | -6.44M | 1.1M | -51.44M | -13.64M | -37.13M | -42.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -53.54M | -102.87M | -94.24M | -77.55M | -53.28M | 443.96M | 0 | 0 | 0 |
| EPS (Diluted) | -0.61 | -1.47 | -2.27 | -0.52 | -0.87 | -2.67 | -0.59 | -1.61 | -1.85 |
| EPS Growth % | 27.89% | 35.24% | -336.54% | 40.23% | 67.42% | -352.54% | 63.35% | 12.97% | - |
| EPS (Basic) | - | -1.47 | -2.27 | -0.65 | -0.87 | -2.67 | -0.59 | -1.61 | -1.85 |
| Diluted Shares Outstanding | 49.27M | 34.8M | 32M | 39.7M | 25.3M | 23.9M | 22.99M | 22.99M | 22.99M |
| Basic Shares Outstanding | 42.24M | 34.8M | 32M | 31.74M | 25.3M | 23.9M | 22.99M | 22.99M | 22.99M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying XPOF stock.
For fiscal year 2025, Xponential Fitness, Inc. (XPOF) reported total revenue of $314.9M. This represents a 431.3% increase compared to $59.3M in 2018.
Xponential Fitness, Inc. (XPOF) reported a net loss of $33.8M for the fiscal year ending 2025.
Xponential Fitness, Inc. (XPOF) reported an operating income of $79.5M, resulting in an operating profit margin of 25.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Xponential Fitness, Inc. (XPOF) generated $238.1M in gross profit for the year, representing a gross profit margin of 75.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent revenue contraction and losses
Metrics are mathematically derived from official filings.
Revenue Stalls After Prior Peak
Based on reported figures, XPOF's revenue fell 13.4% year over year to $66.0M in 2026Q2, with the decline widening from -1.0% in 2025Q4 to deeper contraction in the most recent quarter, suggesting growth has not yet stabilized.
The sequence of year-over-year declines across the last several quarters points to a structural rather than a one-off slowdown in top-line demand. Because the income statement data does not break revenue into volume, pricing, franchise, or organic versus acquired components, the drivers of this contraction cannot be isolated from these figures alone. Investors should monitor whether subsequent quarters show a return to positive growth or continued compression.
Gross Margin Recovery Masks Top-Line Weakness
As reported in the income statement, XPOF's gross margin expanded from 64.1% in 2024Q2 to 85.2% in 2026Q2, a level that sits above peers such as Bright Horizons at 23.6% and Peloton at 52.6%.
The reported gross margin is unusually high relative to the peer set, which may reflect a revenue mix weighted toward royalty or franchise-style income rather than direct product sales, though the data does not confirm this. Margin expansion while revenue shrinks suggests cost of revenue has been reduced faster than sales have declined. This pattern warrants further investigation into whether the margin gain is sustainable.
Operating Deleverage Despite Cost Cuts
Based on reported figures, XPOF's operating margin swung from a 62.2% loss in 2024Q4 to a positive 14.4% in 2026Q2, while SG&A held near $30M to $49M per quarter, indicating volatile operating leverage.
The operating income trajectory is highly sensitive to quarter-specific items, as the swings in operating margin far exceed the movement in gross profit. SG&A remained elevated relative to revenue in several periods, which limits the translation of gross profit into operating income. The data does not disclose the components of SG&A, so the source of the volatility cannot be attributed with confidence.
Net Losses Persist Beneath Operating Gains
According to reported financial statements, XPOF posted a net loss of $4.1M in 2026Q2 despite positive operating income of $9.5M, and EPS of -$0.10 in the same quarter reflects a persistent gap between operating and bottom-line results.
The recurring disconnect between operating income and net income suggests significant non-operating charges, interest expense, or tax effects, though the supplied data does not itemize these. Stock-based compensation of $2.0M to $5.0M per quarter represents a meaningful recurring expense that dilutes reported earnings quality. Without further breakdown, the drivers of the bottom-line gap remain unclear.
Margin Strength Unlikely to Offset Shrinkage
The strongest challenge to the narrative is that XPOF's reported margin recovery coincides with shrinking revenue and recurring net losses, a combination that may not be durable if top-line decline continues.
A bear case would emphasize that high gross margins cannot compensate indefinitely for falling sales, since fixed overhead and SG&A of roughly $30M per quarter weigh heavily on a smaller revenue base. The quarters with positive net income are sparse within the reported window, and most recent periods show net losses. Investors should weigh whether the reported margin improvement reflects structural change or timing effects in cost recognition.