F45 Training Holdings Inc. (FXLV): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of F45 Training Holdings Inc.'s portfolio, and honestly, the BCG matrix helps map out where the real capital allocation decisions need to happen right now. As we look at the late 2025 picture, the business is a classic balancing act: we have the high-growth Stars like new franchise openings in established markets needing fuel, supported by the steady, high-margin cash flow from existing Cash Cows-the recurring royalties. However, we must address the capital drag from the Dogs, specifically the underperforming corporate studios, while deciding the scale of investment for the high-potential but volatile Question Marks overseas. Below, we detail exactly which segments demand immediate divestment and which deserve your next big check.

Background of F45 Training Holdings Inc. (FXLV)

You're looking at the foundation of F45 Training Holdings Inc. (FXLV), which operates as a global fitness franchisor. The company's core offering is its functional 45-minute workouts, blending elements of high-intensity interval, circuit, and functional training, delivered primarily through a digitally connected network of studios. F45 Training Holdings Inc. is also engaged in franchising and licensing its other brands, FS8 and Vive Active, across multiple countries.

The business model relies heavily on rapid expansion through franchising, which historically allowed the company to generate quick revenue from upfront franchise fees. F45 Training Holdings Inc. went public on July 16, 2021, issuing 18.75 million shares at $16.00 per share, raising approximately $325 million in its Initial Public Offering (IPO). Prior to this, the company was known as Flyhalf Holdings Inc. until it changed its name in March 2019.

Operationally, F45 Training Holdings Inc. structures its business into segments: the United States (which includes South America), Australia (covering New Zealand and surrounding islands), and the Rest of World. As of Q4 2023, the company reported having approximately 1,850 to 1,860 total global franchises across 45 countries, though at the time of its 2021 IPO, it maintained 2,801 franchises in 68 countries. Revenue streams are derived from these franchise fees, royalties based on studio performance, and equipment sales.

Looking at the most recent available figures, F45 Training Holdings Inc.'s revenue for the trailing twelve months (TTM) ending June 2023 was $81.95 million, showing a year-over-year decline of 40.31% from the prior year's $104.42 million. For the latest reported quarter, revenue was $17.04 million, with a net income of -$23.73 million. As of late November 2025, the stock trades at a very low price point, with a share price of $0.0800 on November 24, 2025, resulting in a market capitalization of $5.94 million as of November 28, 2025. This market cap represents a significant decrease of -75.89% over the preceding year.

F45 Training Holdings Inc. (FXLV) - BCG Matrix: Stars

The core F45 Training brand, representing the flagship offering, functions as a Star within the portfolio because it maintains a strong market position in a segment that, while mature in some areas, still demands significant investment to capture remaining growth and fend off rivals. This positioning is supported by strong recent performance metrics, which indicate high market share retention and growth momentum heading into 2025.

The evidence for this Star status is grounded in the performance achieved through 2024, which sets the stage for 2025 strategy. The business unit is a leader, but its high-growth trajectory, especially internationally, requires continuous capital deployment for marketing, technology upgrades, and supporting franchisee expansion.

Here's a quick look at the key performance indicators that solidify the Star categorization based on the most recent full-year data:

New Franchise Openings in Established Markets (e.g., US, Australia)

While the search results do not isolate 2024 openings specifically for the US and Australia, the overall global expansion and the achievement of all-time high Same Store Sales in North America suggest that established markets remain a focus for high-yield growth. The strategy for 2025 is to amplify global growth, which necessitates continued investment in these core regions to maintain market leadership.

• The company is focused on accelerating global growth in 2025.
• The core brand achieved all-time high Same Store Sales in North America during 2024.
• The overall portfolio saw 75 new studio openings in 2024.
• The business model is designed to be easily adaptable to evolving fitness trends.

High-growth potential in a saturated market, but with a strong brand presence.

The boutique fitness segment is competitive, but the brand's established presence allows it to command premium performance metrics, positioning it for continued growth even as the market matures. The projected growth of the broader Pilates and yoga studio market to $417 billion by 2033 suggests a long runway for growth, which the core brand can capture through brand equity.

Requires significant capital investment to maintain rapid growth and fend off competitors.

To sustain the 12.4% AUV growth and fend off competition, F45 Training is investing in the brand. This investment is necessary to maintain the 'Star' status and transition into a 'Cash Cow' when market growth slows. This capital is used for innovation and support.

• Investment is directed toward a reimagined studio design.
• Capital supports the rollout of an enhanced strength training program.
• Support is provided to franchisees to secure sites and open studios.

The core F45 workout programming itself, which maintains high member engagement.

The product itself is the engine of the Star quadrant. The programming is known for its high-intensity interval training (HIIT) and functional training system. The content library is vast, offering thousands of unique training movements, ensuring virtually no two workouts are the same, which directly supports member retention and engagement.

The sustainability of the workouts over time supports member loyalty. Furthermore, members are offered access to a free personal nutrition program to support their health objectives.

F45 Training Holdings Inc. (FXLV) - BCG Matrix: Cash Cows

You're analyzing the core, established part of F45 Training Holdings Inc.'s business, the segment that should be printing money to fund riskier ventures. For a Cash Cow, we look for high market share in a mature space, meaning the heavy lifting for market penetration is done, and now it's about collecting the recurring revenue.

Existing Franchise Royalties and Fees (Recurring Revenue)

The foundation of this category rests on the existing F45 Training studio network, which generates consistent, predictable income streams. This recurring revenue is primarily derived from ongoing franchise royalties and fees. While the overall company revenue for the fiscal year ending December 31, 2022, was $104.42 million, the TTM revenue as of June 30, 2023, was $81.95 million, showing the scale of the established base. The brand demonstrated continued operational health in 2024, with global Average Unit Volume (AUV) growth of 12.4% and Same Store Sales up 5.6% globally. Furthermore, 75 new studios opened across the portfolio in 2024, indicating the established model continues to attract new operators.

Stable, high-margin revenue stream from thousands of operational studios.

The franchise model inherently supports high gross margins because the primary cost is servicing the existing network rather than developing new product lines. The Gross Profit Margin for the trailing twelve months, based on data ending in a recent period, stood at 70.72%. This high gross margin is what you expect from a mature, established franchise system. However, you must note the operating environment, as the operating margin for the same trailing twelve-month period was reported as -126.44%, which suggests significant Selling, General & Administrative costs are currently outpacing gross profit.

The key financial components that define this stream are:

• Global Average Unit Volume (AUV) growth for F45 Training brand in 2024: 12.4%
• Global Same Store Sales increase in 2024: 5.6%
• Gross Profit Margin (TTM): 70.72%
• Number of new studios opened in 2024: 75

Low need for new capital investment to maintain current market share.

Cash Cows require minimal new investment to maintain their position; they are self-sustaining. For F45 Training Holdings Inc., the cash outlay for long-term assets reflects this low maintenance requirement. Cash flow for capital expenditures for the trailing twelve months ended in June 2023 was $-5.14 Million. This relatively low figure, compared to the revenue base, supports the idea that the existing studio infrastructure requires limited new capital from the parent company to keep generating royalties.

Here's a quick look at the cash usage for maintenance:

Provides the essential cash flow to fund the Question Marks and stabilize the business.

The purpose of a Cash Cow is to generate surplus cash. While the Gross Margin is high, the overall cash generation is currently challenged by operating costs. Operating cash flow in the last 12 months was -53.00 million, and the resulting Free Cash Flow was -55.47 million. This negative cash flow indicates that, based on the latest available data, the established business is currently consuming cash rather than providing the surplus needed to fund Question Marks like the newer FS8 or VAURA Pilates brands. The company has $34.45 million in cash against $148.57 million in debt, resulting in a net cash position of $-114.13 million as of a recent report. Finance: draft 13-week cash view by Friday.

F45 Training Holdings Inc. (FXLV) - BCG Matrix: Dogs

Corporate-Owned Studios (Direct Operations)

The segment characterized by low market share and low growth, which aligns with the Dogs quadrant, is generally the Corporate-Owned Studios (Direct Operations) within the F45 Training Holdings Inc. structure, given the company's stated focus on franchise expansion.

Historically low profitability and high operational overhead, especially post-restructuring.

• Trailing Twelve Months Earnings Per Share (EPS): -$1.64
• Earnings Per Share for the period ending December 2024: -$0.24
• Revenue for the period ending December 2024: $17.04M

High-risk segment with minimal market share and negative cash flow contribution.

The overall financial structure reflects significant strain, which would disproportionately impact any low-performing direct operations segment. The Enterprise Value relative to the Market Cap suggests substantial net liabilities.

Represents capital that should be divested or converted to franchised units.

• Total Debt as of April 2025: $148.57 million
• Net Cash position per share: -$1.15

Legacy Debt and Restructuring Costs

The balance sheet indicates high leverage, which is a common characteristic when a business unit is consuming cash or requires significant capital infusion without commensurate returns.

F45 Training Holdings Inc. (FXLV) - BCG Matrix: Question Marks

You're analyzing the parts of F45 Training Holdings Inc. (FXLV) that are in high-growth markets but haven't yet captured significant market share. These are the units that suck up cash now, hoping to become Stars later. Honestly, looking at the numbers, the international push and new franchisee setup costs fit this description perfectly.

International Expansion into Untapped Markets (e.g., Asia, Europe)

The global fitness landscape, particularly the Pilates and yoga segment, shows massive potential. The global Pilates and yoga studio market is projected to reach $417 billion by 2033. This high-growth environment is where F45 Training Holdings Inc. is actively planting flags, but its current share in these specific new territories remains low, making them Question Marks.

F45 Training Holdings Inc. expanded its global footprint in 2024 by establishing Master Franchise partners in new regions. This included growing its presence in South Africa, South Korea (for FS8), and enhancing its presence across the U.K. and Europe through existing partnerships. This expansion requires a massive capital outlay for brand building and navigating local regulatory compliance before returns materialize.

The demand signal for entry is strong, evidenced by a 23% year-over-year increase in franchise ownership inquiries across the portfolio heading into 2025. Still, these new international ventures are cash-intensive until they reach scale.

• Expanded into South Africa, South Korea, and Europe in 2024.
• Global membership lead volume increased by 19% in 2024.
• Pilates segment (FS8 and VAURA) is driving momentum with strong deal flow.
• The company is focused on taking market share in 2025.

Equipment and Merchandise Sales to New Franchisees

The immediate cash consumption for F45 Training Holdings Inc. is tied directly to the pace of new studio openings, which fuels the need for initial equipment and merchandise supply. In 2024, the company opened 75 new studios across its portfolio of brands. This rapid onboarding consumes capital before the new locations generate consistent royalty revenue.

The initial investment required for a prospective franchisee to open an F45 Training facility ranges from $349,000 to $786,000. This range covers the equipment, apparatus, and technology that F45 Training Holdings Inc. facilitates sending to the approved location, representing a significant upfront cash requirement that is recouped over time but acts as a current drain.

The variability in sales here is tied directly to the volatile pace of these new studio openings, which is a classic Question Mark characteristic. While the company sold 87 franchises across all brands in 2024, the actual cash flow impact depends on when those sales translate into studio openings and equipment orders.

The overall financial picture suggests high cash burn, as the Trailing Twelve Months (TTM) Earnings Per Share (EPS) for F45 Training Holdings Inc. was -$1.64. Furthermore, the Q4 2024 revenue of $17.04M significantly missed the forecast of $50.74M, indicating that current returns are not yet matching the investment pace.

Here's a quick look at the ongoing financial obligations tied to the franchise model, which represent the expected cash flow from these units once open:

You need to watch the capital deployment against the 23% surge in franchise inquiries; that pipeline is the future Star, but it needs fuel now.