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International boutique franchisor, Xponential Fitness has posted a net loss of US$98.7 million for the full year - leading to a significant drop in its share value.

The group, whose brands include Club Pilates, StretchLab, Pure Barre, CycleBar, Body Fit Training (BFT), Rumble Boxing and YogaSix, had recorded a profit of US$37.5 million in 2023.

It has attributed the 2024 losses to factors including a US$8.4 million decrease in financial transaction fees; a US$27.4 million increase in acquisition and transaction expenses - which includes non-cash contingent consideration primarily related to the Rumble acquisition - and a US$25.7 million increase in litigation expenses.

It's been a volatile year for the world’s largest boutique franchise company. After announcing all time membership highs in April 2024, founder and Chief Executive, Anthony Geisler, was forced to resign because of a legal challenge by the United States Attorney’s Office for the Central District of California.

This matter remains unresolved.

The company also lost a number of other key executives, including John Kersh and Sarah Luna.

Former Taco Bell Chief Executive, Mark King was brought in last June to revitalise the management team.

Commenting on the challenges the group faces, King stated “we've made significant progress over the course of my first two full quarters as CEO.

"I've also gained a deeper understanding of both the opportunities and challenges at Xponential.

“It's clear from some of the issues we've found and are addressing that there's a lot to do," he said. "That said, I have full confidence in the new team we’ve assembled; they all have experience executing on exactly what Xponential must do to sustainably grow.”

Last year 400 franchise licenses were sold and 464 new studios were opened.

Australian founded BFT launched two locations in the United Kingdom and has recently agreed a master franchisor for Scandinavia.

In September last year, Viva Leisure made a strategic investment in Boutique Fitness Studios (BFS), the master franchisee of Xponential Fitness-owned brands Club Pilates, Rumble Boxing, StretchLab and CycleBar in Australia and New Zealand.

Image: Group exercise at BFT.

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3rd October 2024 - Boutique Fitness Studios approaches launch of 50th outlet

1st October 2024 - StretchLab joins AUSactive as group business member

11th September 2024 - Viva Leisure announces Boutique Fitness Studios investment to drive growth of Xponential Fitness brands in Australia and New Zealand

18th June 2024 - BFT announces master franchise agreement for Scandinavia

14th June 2024 - BFT secures APAC Franchise of the Year award at Beyond Activ Summit

21st February 2024 - Hapana and Ezypay return as BFT annual conference sponsors

8th January 2024 - Xponential Fitness looks at Japan expansion with master franchise agreement for Pure Barre and YogaSix

8th December 2023 - Weight Loss Clinics acquired as Xponential Fitness business model questioned

8th July 2023 - Xponential Fitness responds to critical report

3rd May 2023 - 2023 Entrepreneur lists sees Xponential Fitness make a strong showing

26th April 2023 - Xponential Fitness agrees StretchLab Master Franchise Agreement for Japan

3rd April 2023 - Xponential Fitness reports 58% increase in revenue for 2022

6th December 2022 - Xponential Fitness announces Japanese master franchise agreement for Rumble and AKT brands

11th November 2022 - Xponential Fitness and Aktiv Solutions launch immersive training experiences for hotels and resorts

21st October 2022 - Xponential Fitness secures Master Franchise deal in Kuwait for its fitness brands

16th September 2022 - Princess Cruises and Xponential Fitness sign Exclusive License Agreement

2nd August 2022 - Xponential Fitness signs master franchise agreement for CycleBar to operate in Japan

29th April 2022 - Xponential Fitness recognised for franchise ‘deal of the year’ with acquisitions of Rumble and BFT

19th January 2022 - Xponential Fitness appoints Glofox to support international expansion

4th December 2021 - Australian master franchisee to launch Xponential Fitness brands in New Zealand

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