Shares of Xponential Fitness Inc. (XPOF) were seen in upward trajectory today in Pre-market after announcing the results of the Financial Statements of their Third Quarter. XPOF shares went up by 15.51% to reach $22.56, which is their highest after the decline which started in July. In the previous trading session the stocks were closed at $18.92.
XPOF announced a partnership with Fitness International LLC:
On 4rth November, 2021 Xponential Fitness Inc. (XPOF) announced that they are partnering with Fitness International LLC. The purpose of this partnership is to open various Xponential brands studios, e.g Club Pilates and Pure Barre, at City Sports Club and LA Fitness locations. The agreement says that it will develop atleast 350 franchised location over the course of 5 years in order to add Xponential Brands at more than 500 Fitness International locations.
Effect of Xponential Fitness Inc. (XPOF) partnership with Fitness International LLC:
With this joint venture, Xponential Fitness will expand into the new market segment. This will help them to increase their market and gain new customers through Fitness International 500 locations. This year Xponential Fitness sold 248 franchise licenses and opened 68 new studios.
Financial Standings of Xponential Fitness Inc. 3rd quarter:
- Increase in the revenue which was 60% more than the previous year’s same quarter. It increased $15.3 million making a total of $40.9 million.
- North American system-wide sales increase by 93% from the previous 3rd quarter.
- Adjusted EBITDAof $6.8 million which was $1.5 million as compared to the 3rd quarter of 2020.
- Announced a net loss of $8.9 million as compared to last year $1.9 million.
- Announced adjusted EBITDA of $6.8 million. Last year in the same quarter it was $1.5 million.
Conclusion:
Although Xponential Fitness Inc saw a major decline in the history of its share price. It went down as low as $10.15. But they bounced back and are at $19.53 in the Pre-market. This major development of partnering with Fitness International has a very positive effect on its stock. As it’s a long-term project of 5 years, its positive effect on the stock of Xponential Fitness Inc. would be seen over the course of this time.
