XPOF - Xponential Fitness: A Growth Story Unliked By Investors
2024-02-19 10:27:35 ET
Summary
- Xponential Fitness is a fitness company with a franchise model and multiple brands, offering a variety of services to franchisees.
- The company has over 3,000 franchised studios worldwide, with unique aspects and a focus on local boutique fitness experiences.
- Revenues have been growing at a decent rate, margins are improving, and cash flow generation is increasing, indicating strong financial performance.
- Sentiment around the stock is weak so the bottom might not be there but current risk-reward ratio looks favorable.
Business Overview
Xponential Fitness ( XPOF ) is a fitness company that has a franchise model and holds an umbrella of several brands such as Club Pilates, CycleBar, StretchLab, Pure Barre, YogaSix, AKT, and STRIDE (which is soon to be span off as a separate company). The company's franchise model includes more than 3,000 studios owned and operated by franchisees while the company offers consulting to franchise owners in matters such as real estate, business management, marketing, branding, contracting, legal matters, financing and other aspects of owning a business for a fee. In addition, the company provides with an online platform where members can sign up and use a variety of services offered by the company and its franchised locations. Furthermore, the company offers extensive training support for its franchise owners many of which own multiple locations....
Xponential Fitness: A Growth Story Unliked By Investors