IRVINE, United States — Xponential Fitness, a curator of boutique fitness in the US, has surpassed $35m in revenue following its recent IPO.
The boutique fitness franchisor, which currently boasts more than 1,850 studios across brands including Rumble, Pure Barre, Club Pilates, Row House, AKT and more, announced its second-quarter 2021 financial results, earlier this week. In addition to growing its revenue by 67% (compared to Q2 2020), it also revealed a 179% increase in system-wide sales to $171.6 million.
Speaking about the results, Anthony Geisler, Chief Executive Officer said:
“As is evident from our solid year-over-year revenue growth and the sale of 197 North American franchisee licenses in Q2, our business has rapidly rebounded to pre-pandemic levels and importantly, as of today’s date, is showing no signs of slowing down in the third quarter.”
He continued: “When comparing the end of the second quarter of 2021 to January 31, 2020, even without taking into account our newest brand, Rumble, our business had recovered to 103% of actively paying members, 98% of total visits and a nearly 90% run-rate AUV. Thus far in Q3, this positive trajectory has continued. In July, we recorded our highest-ever monthly system-wide sales, and our August results to date remain solid. So far in August, compared to the end of Q2, we’ve seen an increase in our total memberships and our actively paying members, both overall and at a per studio level.”
Off the back of its latest results, Xponential, which expects to open a further 215 to 235 studios this year, predicts systemwide sales of $690 million to $700 million and revenue in the range of $135.5 to $137.0 million.
The news marks a positive step forward for the company, whose initial public offering in July saw its shares fall as much as 8.4% below their $12 offer price.
The California-based company ended up raising approximately $120 million in the IPO, despite initial plans to raise $200 million. However, ahead of its trading debut Geisler told CNBC that the step marked a huge step forward for the company.
“A lot of people don’t know Xponential, they know our brands like Rumble or Club Pilates or Pure Barre. So this is like a coming-out party for us. And it allows us to do some strategic things with the capital,” he explained.
In particular, further brand acquisitions are on the cards, as well as a continued focus on bolstering its technology in order to grow its digital platform, he revealed.
“Since Xponential Fitness’ founding in 2017, our mission has been to make boutique fitness accessible to everyone. Today, we are the largest boutique fitness franchisor in the United States and have over 1,850 studios operating globally across nine leading boutique fitness brands,” he reiterated in a company statement.
“In July, we reached an important milestone in our history by completing our IPO, which positions us well to continue to successfully execute our mission and differentiated business strategy for years to come. Looking ahead, we are confident in our ability to continue expanding our market share in the large and growing boutique fitness industry as we unlock the incredible power of the Xponential platform.”