Breaking Down F45 Training Holdings Inc. (FXLV) Financial Health: Key Insights for Investors

You're looking at F45 Training Holdings Inc. (FXLV) and wondering if the high-intensity workout model can translate into a healthy balance sheet, but honestly, the numbers tell a story of extreme financial distress right now. The latest trailing twelve months (TTM) data, reflecting performance up to mid-2025, shows the company is fighting a serious uphill battle, reporting a massive net loss of -$159.20 million against a relatively small revenue base of just $81.95 million. Here's the quick math: that translates to a loss per share of -$1.64, and the market has reacted accordingly, with the stock price plummeting by a shocking -99.72% over the last 52 weeks, effectively wiping out nearly all shareholder value.

This is a clear case of a franchise model hitting a wall. Beyond the operational losses, the company carries a notable debt load of $148.57 million, which is a heavy anchor when your cash position is only $34.45 million. When your Return on Equity (ROE) is sitting at a staggering -3,151.58%, you know the capital structure is defintely under immense pressure. We need to map out the near-term risks and opportunities to see if a turnaround is even possible, or if investors should be preparing for the worst.

Revenue Analysis

You need to look past the historical top-line number and focus on the quality of F45 Training Holdings Inc. (FXLV)'s revenue streams. The most recent Trailing Twelve Months (TTM) revenue, which gives us the clearest picture of current performance, sits at $81.95 million. That figure represents a significant year-over-year decline of -40.31%, which is the clear, immediate risk you must understnad. The company's core model is sound, but execution has been a challenge.

The revenue breakdown shows a heavy reliance on the franchise model, which is typical for a franchisor, but the mix is shifting. The primary segments are Franchise Revenue (initial fees and royalties) and Equipment and Merchandise Sales (World Packs). The latest reported quarterly data gives us a strong indication of where the dollars are coming from, showing a pronounced skew toward the recurring franchise payments.

Here's the quick math based on the latest segment contribution data, applied to the TTM revenue of $81.95 million to show the current scale:

• Franchise Revenue: $69.67 million (approx. 85.02% of TTM revenue)
• Equipment & Merchandise Sales: $12.28 million (approx. 14.98% of TTM revenue)

The Franchise Revenue is the stickier, higher-margin component. Honestly, that 85% concentration on franchise fees and royalties is a good sign for long-term stability, even if the total revenue pool is shrinking. You want to see that recurring revenue base hold up.

The major change in the revenue stream is the sharp drop in Equipment and Merchandise sales. This segment is tied directly to new studio openings and equipment refreshes (the 'World Packs'). The decline signals a significant slowdown in the pace of new studio development, which is a near-term headwind. This is why analysts are forecasting a full-year 2024 revenue of just $50.74 million, a major step down from prior years. What this estimate hides, however, is the operational momentum reported in 2024, like the 12.4% global Average Unit Volume (AUV) growth, which suggests that existing studios are performing better. That's a key opportunity for future royalty growth.

To be fair, the company is also looking beyond the core F45 Training brand, expanding new concepts like FS8 and VAURA Pilates. These new segments, which saw AUV increases of 23.9% and 51.1% respectively in 2024, are small now, but they represent a strategic diversification away from the single-brand revenue risk. For a deeper look at the company's long-term strategy, you should review their Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV).

Here is a snapshot of the core revenue segments and their latest contribution:

Your action item is to track the Franchise Revenue percentage closely in the upcoming 2025 quarterly reports; if it drops significantly, it signals a problem with franchisee retention or royalty collection. If it holds steady or rises, the company is successfully managing its core recurring income despite the overall revenue contraction.

Profitability Metrics

You're looking for a clear-eyed view of F45 Training Holdings Inc.'s (FXLV) core financial health, and the profitability numbers tell a stark story. The direct takeaway is this: the company maintains an excellent gross margin, but its operating expenses are completely overwhelming that advantage, leading to massive losses. It's a classic high-revenue, poor-cost-management scenario.

For the trailing twelve months (TTM) ending around mid-2025, F45 Training Holdings Inc. reported a total revenue of $81.95 million. The resulting profitability metrics show a severe disconnect between the cost of delivering the service and the cost of running the corporate business:

• Gross Profit Margin: The TTM Gross Profit was $57.96 million, translating to a strong Gross Margin of 70.72%. This is defintely a high-quality margin, indicating that the core franchise and equipment model is sound at the direct-cost level.
• Operating Profit Margin: The TTM Operating Income was a loss of -$103.62 million, resulting in an Operating Margin of -126.44%. Here's the quick math: the company is losing more money from operations than it makes in revenue.
• Net Profit Margin: The TTM Net Income was a loss of -$159.20 million, driving the Net Profit Margin down to -194.27%. Simply put, for every dollar of revenue, the company is losing nearly two dollars.

Operational Efficiency and Cost Management

The core issue is operational efficiency, or the lack thereof, in managing the costs below the gross profit line. The jump from a 70.72% Gross Margin to a -126.44% Operating Margin is alarming, and it points directly to the Selling, General, and Administrative (SG&A) expenses. For the TTM period, SG&A expenses were approximately $161.58 million. This is more than twice the Gross Profit, effectively wiping out all profit and then some.

The trend is one of necessary, but painful, restructuring. In 2022, the company announced a strategic cost reduction plan, aiming to cut SG&A expenses by 40% to 50%. The massive operating loss in the TTM data suggests that either the full effect of these cuts has not materialized or the underlying revenue base has shrunk faster than the expense reductions, still leaving the cost structure untenable for the current revenue level.

Industry Comparison: FXLV vs. the Fitness Sector

To be fair, the fitness industry is generally profitable, but F45 Training Holdings Inc. is an outlier in the wrong direction at the corporate level. You want to see a high Gross Margin, and the company delivers there, but the rest is a problem.

The industry benchmark for boutique fitness studios-the category F45 falls into-shows average Net Profit Margins ranging from 20% to 40%. Even the median EBITDA margin (a proxy for operating profit) for the overall fitness industry in the 2025 benchmarking reports is a healthy 23.6%.

Compare that to the corporate entity's -126.44% Operating Margin and -194.27% Net Profit Margin, and the picture is clear. The problem isn't the product's gross-level profitability, but the corporate overhead required to support the franchise model. The high-margin business model works well at the individual franchise unit level-where a single F45 unit might see a 30% EBITDA margin-but the corporate entity is burning cash to support the global infrastructure.

For a deeper dive into the company's balance sheet and valuation, you can read the full post: Breaking Down F45 Training Holdings Inc. (FXLV) Financial Health: Key Insights for Investors

Next Action: Portfolio Manager: Model a scenario where FXLV's SG&A is reduced to 50% of its current TTM level to assess the path to operating break-even by Q2 2026.

Debt vs. Equity Structure

You need to know how F45 Training Holdings Inc. (FXLV) funds its operations, and the short answer is: heavily through debt, with a significant equity deficit. The company's capital structure is a primary risk factor, driven by its negative shareholder equity, which is a red flag you cannot ignore.

The most recent data, reflecting a period close to the end of the 2025 fiscal year, shows F45 Training Holdings Inc. (FXLV) operates with a high level of financial leverage. The company's total debt is approximately $148.57 million, against a cash position of $34.45 million, resulting in a net debt of about $114.13 million. This heavy reliance on borrowed money, or financial leverage, is a core part of their growth strategy, but it comes with a steep cost.

Here's the quick math on their capital structure:

• Total Debt (Approx. TTM 2025): $148.57 million
• Net Debt (Approx. TTM 2025): $114.13 million
• Debt-to-Equity Ratio (Approx. TTM 2025): -1.73

That negative Debt-to-Equity (D/E) ratio of -1.73 is the critical takeaway. A negative D/E ratio means the company has a negative shareholder equity (a deficit), where total liabilities exceed total assets. In simple terms, the company owes more than the value of everything it owns, putting equity holders in a precarious position.

Debt-to-Equity: A Deep Dive into Leverage

To be fair, a high D/E ratio isn't always bad, especially for growth-focused franchisors, but a negative one is a sign of deep distress. When you compare F45 Training Holdings Inc.'s -1.73 ratio to its peers in the fitness industry, the picture gets complicated, but the risk remains high.

Other major players also show negative equity, but F45 Training Holdings Inc. is navigating a particularly tricky path.

The company's financing mix is a precarious balance between debt and a push for equity value. F45 Training Holdings Inc. uses debt to fund operations and expansion, but the negative equity shows that recent losses have eaten away at the owners' stake. They are defintely relying on a successful turnaround to restore the equity base.

Refinancing and Credit Outlook

Regarding recent activity, F45 Training Holdings Inc. secured a $90 million subordinated debt facility in early 2023, led by affiliates of Kennedy Lewis Management LP. This funding was critical for liquidity and helped restructure an existing credit line, amending the senior secured facility with JP Morgan Chase Bank, N.A. to a $70 million term. While this wasn't a 2025 transaction, the proceeds were used for general corporate purposes and a partial paydown, making it the foundation of the current debt load.

The lack of a major credit rating from agencies like Moody's or S&P in 2025 is typical for a company with such a small market capitalization and volatile financial health, but it also means the debt is not rated investment-grade. The reliance on private investors like Kennedy Lewis for the $90 million debt facility highlights the challenge of accessing traditional credit markets. The company's ability to balance its debt financing with its need to generate positive cash flow is the single most important factor for its survival.

For more detailed analysis, you can check out the full post on Breaking Down F45 Training Holdings Inc. (FXLV) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You're looking at F45 Training Holdings Inc. (FXLV) to see if they can cover their short-term bills, which is the core of liquidity analysis. The direct takeaway is that while the company's current liquidity position has improved from its 2022 low, its reliance on external financing and sustained negative operating cash flow signals a defintely precarious financial footing.

As of the most recent TTM (Trailing Twelve Months) data ending around August 2025, F45 Training Holdings Inc. shows a Current Ratio of 1.52. This ratio, which compares current assets to current liabilities, is above the 1.0 threshold, suggesting the company has enough assets that should convert to cash within a year to pay off its immediate debts. That's a good sign on paper.

But liquidity isn't just about total current assets; it's about quick assets. The Quick Ratio (or acid-test ratio), which excludes less-liquid assets like inventory, sits at a more concerning 0.71. Here's the quick math: since this is below 1.0, it means F45 Training Holdings Inc. would struggle to pay all its current liabilities if it couldn't sell its inventory or convert less-liquid assets quickly. This is a red flag for working capital trends, even though the 1.52 Current Ratio represents a meaningful improvement from the 1.04 reported in fiscal year 2022.

The real story is in the cash flow statement. You can have decent ratios, but if you're burning cash, you're on a treadmill. F45 Training Holdings Inc.'s cash flow from operating activities (OCF) for the LTM period is a negative -$53.00 million. This means the core business is not generating enough cash to fund its own operations, a classic sign of cash burn. Consequently, Free Cash Flow (FCF) is also negative at -$55.47 million.

This persistent cash drain is the primary liquidity concern. To manage this, the company has had to turn to financing activities. In February 2023, F45 secured a new $90 million subordinated debt facility. This debt injection helped shore up the balance sheet and provided a necessary liquidity buffer, but it also increases the long-term debt burden, which currently stands at $148.57 million.

To summarize the near-term liquidity picture, here are the key figures you should focus on:

The company's ability to cover its short-term obligations is currently supported by its non-quick assets, but the negative cash flow means this position is constantly under pressure. You should be asking how long the $34.45 million in cash on the balance sheet can sustain a -$53.00 million annual cash burn before another financing round becomes necessary. For more context on who is backing the company through these challenges, you can read Exploring F45 Training Holdings Inc. (FXLV) Investor Profile: Who's Buying and Why?

• Monitor the Quick Ratio trend; it needs to move above 1.0.
• Track the quarterly Operating Cash Flow for a path to positive figures.
• Factor the $148.57 million debt load into long-term solvency models.

Valuation Analysis

You're looking at F45 Training Holdings Inc. (FXLV) and asking the core question: Is this stock a bargain or a value trap? The answer, as is often the case in high-risk, high-reward situations, isn't simple. The company's valuation metrics are heavily skewed by its financial distress, specifically its negative earnings and low stock price, but the analyst community still sees a massive potential upside.

Here's the quick math: traditional valuation multiples are effectively broken right now. F45 Training Holdings Inc. (FXLV) is currently unprofitable, which means its Price-to-Earnings (P/E) ratio is negative, sitting around -0.038 based on recent TTM (Trailing Twelve Months) data. A negative P/E tells you the company is losing money, not earning it. Similarly, the Price-to-Book (P/B) ratio is reported as approximately -0.00, reflecting that the stock price is extremely low relative to the company's book value, which is also likely negative or near zero due to accumulated losses.

For a better look at operational value, we turn to the Enterprise Value-to-EBITDA (EV/EBITDA) ratio. As of November 19, 2025, the EV/EBITDA is approximately -1.53. This is calculated from an Enterprise Value of around $105.02 million and a negative TTM EBITDA of approximately -$68.44 million. This negative multiple confirms that, even before accounting for interest and taxes, the company is not generating positive cash flow from its core operations. This is a critical risk factor, defintely.

The stock price trend over the last 12 months maps directly to this financial instability. The stock has experienced an extreme volatility, with a 52-week price range from a low of $0.0002 to a high of $0.4873. The 52-week price change shows a drop of approximately -99.72%, which is a catastrophic loss of market capitalization. The stock price as of mid-November 2025 is trading in the low single-digit cents, around $0.0320.

• Stock is trading near its 52-week low of $0.0002.
• The company does not pay a dividend.
• Dividend yield and payout ratios are N/A.

Despite the dire financial metrics and stock performance, the analyst community holds a surprisingly optimistic view on recovery. The consensus rating from 10 analysts is a Hold. This is a mixed signal, but the breakdown is telling: 4 Hold, 3 Buy, and 3 Strong Buy ratings. This suggests a significant portion of analysts see a path to a turnaround. The average 12-month price target is a staggering $3.06 USD. This target implies an upside of over 4,700% from the current trading price, but it is crucial to remember this target likely assumes a successful restructuring, a return to profitability, and a potential re-listing on a major exchange. What this estimate hides is the high probability of further dilution or bankruptcy risk. To be fair, the market is pricing in the high risk of failure, while analysts are pricing in the high reward of a successful pivot.

Here is a summary of the key valuation data points:

The core takeaway is that F45 Training Holdings Inc. (FXLV) is not undervalued by traditional metrics; it is a distressed asset. The valuation is a bet on a financial and operational resurrection, not on current performance. You need to understand the specifics of the shareholder base and who is holding on for that massive upside; you can explore that further by Exploring F45 Training Holdings Inc. (FXLV) Investor Profile: Who's Buying and Why?

Risk Factors

You need to understand that F45 Training Holdings Inc. (FXLV) operates under severe financial distress, which overshadows any operational wins in its newer brands. The core risk is a significant liquidity crunch driven by high debt and sustained operating losses, even as the stock trades at a fraction of its former value. Honestly, the company's financial health is ranked at 1, indicating potential financial distress, so you must factor in a high degree of risk when evaluating this stock.

The most immediate and critical internal risk is the debt-to-cash imbalance. As of the most recent financial data context, F45 Training Holdings Inc. (FXLV) holds approximately $148.57 million in debt against only $34.45 million in cash. Here's the quick math: that leaves the company with a net debt position of roughly -$114.13 million, which signals significant cash burn pressures and potential liquidity risks. The Return on Equity (ROE) of a staggering -3,151.58% further confirms that the business is destroying shareholder value at an alarming rate.

This debt load is the primary source of financial risk, and it makes the company extremely vulnerable to even minor shifts in the market. The debt-to-equity ratio was reported as -1.73 as of March 2025, which is a clear red flag for solvency. While F45 Training Holdings Inc. (FXLV) did secure a $90 million subordinated debt facility in 2023 to enhance liquidity, that capital is now largely absorbed, and the underlying operational losses continue to drain resources.

What this estimate hides is the operational risk tied to the franchise model. The company's growth relies on franchisees securing capital to open new studios, but shifting macroeconomic conditions have made it harder for them to obtain financing. This directly impacts the revenue stream, which was approximately $81.95 million over the last twelve months, but resulted in a net loss of -$159.20 million. Plus, the boutique fitness industry is highly competitive, with numerous established players vying for market share, making it defintely hard to raise prices.

To be fair, management has outlined mitigation strategies, focusing on brand diversification and operational efficiency. You can read more about their stated goals in Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV). The key is whether these initiatives can outpace the debt service and cash burn.

• Refine business model for better unit economics.
• Expand into new markets like South Africa and South Korea.
• Launch new concepts (FS8, VAURA Pilates) to diversify revenue.
• Enhance the flagship brand with new strength training programs.

Your action is clear: monitor the cash position and the burn rate. If the company cannot bridge its net debt gap or show a clear path to positive free cash flow in the next two quarters, the risk of a significant restructuring or further dilution becomes nearly certain.

Growth Opportunities

You're looking for a clear path forward for F45 Training Holdings Inc. (FXLV), and the immediate takeaway is this: while the company faces significant financial headwinds, its operational momentum and strategic pivot in 2025 are defintely creating real growth opportunities. The focus has shifted from aggressive, debt-fueled expansion to a more sustainable, multi-brand strategy that leverages its core competitive advantages.

Here's the quick math on the financial reality: with a recent market capitalization of only about $6.08 million and a net debt position of roughly -$114.13 million as of early 2025, the company's future is less about analyst consensus forecasts and more about execution. What this estimate hides is that many analysts have paused their 2025 revenue and earnings per share (EPS) projections, citing insufficient data and past volatility, so we must focus on operational drivers instead.

The key growth driver for 2025 is the strategic diversification beyond the core F45 brand. The company is leveraging the high-intensity interval training (HIIT) model into adjacent, high-growth boutique fitness segments. This multi-brand approach saw impressive momentum in 2024 that lays the groundwork for 2025:

• FS8: The innovative Pilates-Yoga hybrid saw Average Unit Volumes (AUVs) jump by 23.9%.
• VAURA Pilates: This brand posted exceptional AUV growth, soaring by 51.1% year-over-year.
• F45 Training: The flagship brand still delivered a global AUV increase of 12.4%.

This shows the model works when executed well. The company is doubling down on this success with clear strategic initiatives for the near term.

The 2025 strategic roadmap is focused on three pillars: product innovation, global expansion, and technology integration. They are enhancing the core F45 experience with new studio designs and a comprehensive strength training program featuring functional racks. Also, they plan to expand their Recovery and Wellness concept, which aligns perfectly with current consumer trends for holistic health.

F45 Training Holdings Inc. maintains a strong competitive advantage through its standardized, technology-enabled franchise model. The digital platform, which includes the F45 Challenge App, had approximately 250,000 active monthly users, showcasing a sticky member base and a valuable data asset. This tech-driven approach allows for rapid, scalable deployment of new workouts globally without relying on individual trainers to design the content. If you want to understand who is still betting on this model, you should check out Exploring F45 Training Holdings Inc. (FXLV) Investor Profile: Who's Buying and Why?

To visualize the operational foundation for 2025, here is a summary of the 2024 performance metrics:

Your action item is to track the Net Initial Studio Openings and the average royalty fee collection rate in the next two quarters. These are the most reliable indicators of whether the 2025 strategic pivot is translating into sustainable franchise revenue, which is the company's lifeblood.