Fitness Franchisors See Stock Divergence Despite Revenue Gains

The financial performance of two major fitness franchisors has moved in opposite directions, with one company lowering its annual sales projections and the other seeing its share price drop sharply despite revenue growth.

Xponential Fitness, the parent company of Club Pilates, Pure Barre, and StretchLab, reported second quarter revenue of $66 million. This figure represents a 13 percent decrease from the same period in 2025. North American same-store sales declined by 6.8 percent, while systemwide sales remained flat at $437.3 million. Franchise revenue fell 3 percent year over year to $44 million.

The company revised its financial guidance downward in its second quarter report. The forecast for net studio openings dropped from a range of 150 to 170 to approximately 150. The projection for systemwide sales also decreased from a range of $1.72 billion to $1.8 billion, now sitting between $1.7 billion and $1.75 billion.

Mike Nuzzo, CEO of Xponential Fitness, stated that the company continued to make progress on long term priorities such as studio growth and digital capabilities. He noted that the second quarter results were below expectations. In April, the firm hired Jefferies to evaluate strategic alternatives, including a potential merger or sale.

Recent corporate actions include the appointment of Jennifer Ryu as chief financial officer in October. The board also adopted a limited duration stockholder rights plan to prevent investors from accumulating large positions. The company said the plan encourages acquirers to negotiate with the board before attempting a purchase.

Planet Fitness shares closed at $43.36 on October 8, marking a 13 percent drop from $49.58 on September 10. The stock is down 60 percent from its start of year price of $109.73. For most of 2025, the stock traded between $90 and $112.75.

The decline in Planet Fitness shares occurred despite strong financial results for the second quarter. Total revenue rose 7.1 percent to $365.2 million. Systemwide sales increased by $66.6 million to reach $1.4 billion.