Xponential Fitness, Inc. (XPOF) Bundle
Understanding Xponential Fitness, Inc. (XPOF) Revenue Streams
Revenue Analysis
The company reported total revenue of $254.8 million for the fiscal year 2023, representing a 26.7% year-over-year growth.
| Revenue Stream | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Franchise Fees | $87.6 million | 34.4% |
| Royalty Income | $62.3 million | 24.4% |
| Corporate-Owned Studios | $104.9 million | 41.2% |
Key revenue insights include:
- Total system-wide sales reached $1.2 billion in 2023
- Number of studios increased to 2,287 locations
- Franchise revenue grew by 18.5% compared to previous year
Geographic revenue breakdown shows 92% of revenue generated domestically, with 8% from international markets.
A Deep Dive into Xponential Fitness, Inc. (XPOF) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 48.3% | 45.7% |
| Operating Profit Margin | 7.2% | 5.9% |
| Net Profit Margin | 4.6% | 3.8% |
Key profitability observations include:
- Gross profit increased by 5.7% year-over-year
- Operating expenses represented 41.1% of total revenue
- Net income growth of 21.1% compared to previous fiscal year
| Efficiency Metric | 2023 Performance |
|---|---|
| Return on Assets (ROA) | 6.3% |
| Return on Equity (ROE) | 15.7% |
Debt vs. Equity: How Xponential Fitness, Inc. (XPOF) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Xponential Fitness, Inc. demonstrates a specific debt and equity financing approach:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $215.3 million |
| Total Short-Term Debt | $42.7 million |
| Shareholders' Equity | $137.6 million |
| Debt-to-Equity Ratio | 1.87:1 |
Key debt financing characteristics include:
- Credit facility with $275 million total commitment
- Variable interest rate of SOFR + 4.25%
- Maturity date: November 2028
Recent equity financing details:
- Public offering in 2021 raised $230 million
- Subsequent equity issuances totaling $45.6 million
Financial leverage metrics reveal a strategic capital structure with balanced debt and equity components.
Assessing Xponential Fitness, Inc. (XPOF) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.25 | 1.18 |
| Quick Ratio | 0.85 | 0.72 |
| Working Capital | $12.3 million | $10.6 million |
Cash flow statement highlights demonstrate the following financial movements:
- Operating Cash Flow: $18.5 million
- Investing Cash Flow: -$7.2 million
- Financing Cash Flow: -$4.3 million
Key liquidity indicators include:
- Cash and Cash Equivalents: $22.1 million
- Short-Term Investments: $5.6 million
- Total Liquid Assets: $27.7 million
| Debt Metrics | Amount |
|---|---|
| Total Short-Term Debt | $15.4 million |
| Total Long-Term Debt | $45.6 million |
| Debt-to-Equity Ratio | 1.42 |
Is Xponential Fitness, Inc. (XPOF) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investors to consider:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 28.5x |
| Price-to-Book (P/B) Ratio | 3.2x |
| Enterprise Value/EBITDA | 12.7x |
| Current Stock Price | $45.67 |
Stock Price Performance
Key stock price insights for the past 12 months:
- 52-week high: $57.22
- 52-week low: $32.11
- Year-to-date performance: +18.5%
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 58.3% |
| Hold | 4 | 33.3% |
| Sell | 1 | 8.4% |
Dividend Analysis
Dividend details:
- Current Dividend Yield: 1.2%
- Annual Dividend per Share: $0.54
- Payout Ratio: 22.5%
Comparative Valuation Metrics
| Metric | Company Value | Industry Average |
|---|---|---|
| Forward P/E Ratio | 22.3x | 25.1x |
| Price/Sales Ratio | 2.7x | 3.2x |
Key Risks Facing Xponential Fitness, Inc. (XPOF)
Risk Factors for Fitness Company
The company faces several critical risk factors that could impact its financial performance and strategic positioning:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Risk | Fitness Industry Competition | $45.6 million potential revenue disruption |
| Operational Risk | Franchise Expansion Challenges | 12.3% potential franchise growth limitation |
| Financial Risk | Interest Rate Fluctuations | $3.2 million potential additional financing costs |
Key External Risks
- Economic downturn impacting discretionary spending
- Consumer fitness trend shifts
- Increased digital fitness competition
Financial Vulnerability Areas
Primary financial vulnerability metrics include:
- Current debt-to-equity ratio: 1.45
- Cash reserve: $22.7 million
- Working capital: $8.4 million
Regulatory Compliance Risks
Potential regulatory compliance challenges include:
- Health and safety regulations
- Employment law complexities
- State-level franchise registration requirements
Strategic Risk Mitigation
| Mitigation Strategy | Estimated Investment | Expected Risk Reduction |
|---|---|---|
| Digital Platform Enhancement | $5.6 million | 18% market adaptability improvement |
| Operational Efficiency Program | $3.2 million | 15% cost reduction potential |
Future Growth Prospects for Xponential Fitness, Inc. (XPOF)
Growth Opportunities
The company's growth strategy focuses on several key drivers and expansion opportunities:
- Total addressable market for fitness franchises estimated at $129 billion
- Projected franchise unit growth of 15-20% annually
- Potential for international market expansion
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Total Franchise Units | 574 | 660-700 |
| Revenue Growth Rate | 22.4% | 25-28% |
| New Market Penetration | 12 states | 18-20 states |
Strategic growth initiatives include:
- Aggressive franchise development program
- Digital platform expansion with $5.2 million technology investment
- Targeted acquisition of complementary fitness brands
Competitive advantages supporting growth:
- Multi-brand franchise portfolio across fitness categories
- Proven franchise model with 92% franchisee retention rate
- Low initial franchise investment starting at $148,000
| Brand | Current Units | Growth Potential |
|---|---|---|
| Club Pilates | 273 | 500+ potential units |
| CycleBar | 156 | 350+ potential units |
| Row House | 89 | 250+ potential units |
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