Reports on Xponential Fitness Q1 earnings.

Global boutique fitness franchisor Xponential Fitness reported strong financial results for Q1 of 2023, with revenue increasing $20 million compared to the same quarter last year.

For Q1 of 2023, which ended March 31, 2023, total revenue for Xponential increased $20.3 million, or 40%, to $70.7 million, up from $50.4 million in the prior year period. This increase included a corresponding North America same store sales increase of 20%.

Net loss totaled $15.0 million compared to a loss of $15.2 million in the prior year period.

Anthony Geisler, founder and CEO of Xponential Fitness, referred to it as another strong quarter for the boutique fitness operator, calling the growth in Xponential’s North American AUVs and same-store sales during the quarter ‘compelling.’

“The results speak to the strength of our brands, the quality of our franchisees and the support they are receiving,” Geisler said in a statement. “We are seeing momentum continue through the first part of the second quarter. With this growth, we are raising our annual guidance expectations.”

The majority of Xponential’s boutique fitness brands have been recently ranked on Entrepreneur Magazine’s New & Emerging Franchises list, the Fastest-Growing Franchises list and the Top Global Franchises List.

XPlus & other successful partnerships

The boutique fitness franchisor reports that at the end of the first quarter, it had over 140,000 subscribers on its on-demand platform Xponential+, many of whom also hold in-studio memberships.

“XPlus is also a key driver of our B2B partnerships,” remarked Sarah Luna, Xponential Fitness president. “Recently, we announced the launch of XPlus on LG Electronics Smart TVs, which will provide on-demand access to Xponential’s family of brands to millions of LG Smart TV owners in over 250 countries.”

The fitness company’s partnership with Aktiv Solutions is also “progressing well,” according to Luna.

“Aktiv is leveraging our world-class digital content for our XPlus platform in one-of-a-kind immersive exercise experiences tailored specifically for amenities located within leading hotels and resorts, corporate campuses, universities and high-end multifamily housing properties,” Luna said. “We’ve installed about 90 active bases so far and expect that these will all be activated at the end of June.”