Xponential Fitness, Inc. (XPOF): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into Xponential Fitness, Inc. as we close out 2025, wanting to know if this sprawling franchisor-now streamlined after divesting CycleBar and Rumble-is finally hitting its stride. Honestly, the numbers tell a complex story: they've got 3,066 studios globally, a Franchise Marketing Fund growing at 13%, and a North America Average Unit Volume (AUV) hitting $668,000 in Q3, but management is already focused on offsetting a 1% same-store sales decline. I've mapped out the Product, Place, Promotion, and Price below, cutting through the noise to show you exactly how their $29.99 digital offering and physical footprint are positioned to deliver on that growth promise.

Xponential Fitness, Inc. (XPOF) - Marketing Mix: Product

You're looking at the core offering of Xponential Fitness, Inc. (XPOF) as of late 2025, which has seen significant streamlining. The product element is centered on a curated portfolio of boutique fitness experiences, moving away from a broader collection to focus on proven profitability drivers.

The company's product portfolio is now anchored by five core fitness and wellness brands, a reduction from a peak of 11 brands at the end of 2023. This strategic rationalization was completed in the latter half of 2025 with the divestitures of CycleBar and Rumble to Extraordinary Brands, LLC in July 2025, and the subsequent sale of Lindora to Next Health Management Group around October 2025.

The remaining, focused product offering spans several distinct modalities:

• Club Pilates, which remains the largest Pilates brand in the United States.
• Pure Barre, the largest Barre brand in the United States.
• YogaSix, the largest franchised yoga brand in the United States.
• StretchLab, offering one-on-one and group stretching services.
• BFT, a functional training and strength-based program.

The digital product, Xponential+ (XPLUS), provides on-demand and live classes, supporting the in-studio experience. While specific XPLUS revenue isn't broken out in the latest reports, overall system-wide sales grew 10% year-over-year to $432.2 million in Q3 2025, driven primarily by growth from net new studio openings. Total members reached 796,000, up 7% year-over-year as of September 30, 2025.

Physical goods, such as merchandise and equipment, are also part of the product mix, though their contribution has recently declined. The company is preparing for an outsourced retail strategy implementation with FitCo starting in Q4 2025 to optimize non-core operations. Here's a look at the key Q3 2025 product-related financial metrics:

The decline in equipment revenue to $7.5 million in Q3 2025 was directly tied to a 41% drop in global installation volume compared to the prior year period. The company finished Q3 2025 with 3,066 global open studios, having added 78 gross new studios during the quarter.

Xponential Fitness, Inc. (XPOF) - Marketing Mix: Place

The Place strategy for Xponential Fitness, Inc. centers on a capital-light, global franchisor model designed for rapid, localized market penetration. Distribution is achieved almost entirely through franchisee-owned and operated physical retail locations.

As of the third quarter of 2025, Xponential Fitness, Inc. operated a global network of 3,066 studios worldwide. This network represents an 8% year-over-year increase in physical locations. The company's physical footprint is established across 49 U.S. states and extends its reach into 31 additional countries via master franchise and international expansion agreements. The distribution strategy relies on the physical presence of these community-focused retail locations.

The expansion pace remained active in Q3 2025, with the company opening 78 gross new studios globally. This opening pace consisted of 57 new studios in North America and 21 internationally. During the same quarter, there were 32 global studio closures, representing about 1% of the total open system. For the full fiscal year 2025, the guidance for global net new studio openings (net of closures) is projected to be in the range of 170 to 190, with an expected closure rate of approximately 5% of the global system for the year.

The franchise growth pipeline, representing future distribution points, included over 5,318 licenses awarded globally as of Q3 2025. However, management noted that approximately 40% of these global licenses were over 12 months behind their applicable development schedules, indicating a near-term focus on accelerating the activation of this pipeline.

The physical studios are typically small-footprint, community-focused retail locations, allowing for flexible site selection within various commercial real estate environments. The distribution of the core portfolio as of Q3 2025 is detailed below:

International expansion is a key component of the Place strategy, often executed through master franchise agreements. For example, Club Pilates recently signed a master franchise deal to open 20 studios in Bangkok, marking its 22nd market worldwide. This approach helps Xponential Fitness, Inc. establish a physical presence in new geographies efficiently.

The current distribution network is concentrated across the company's core brands, which drive the majority of the physical locations:

• Club Pilates studios: 1,369 locations.
• Pure Barre locations: 625 locations.
• StretchLab studios: 527 locations.
• BFT facilities: 331 locations.
• YogaSix locations: 198 locations.

The company is also actively working to improve site selection and leasing processes for franchisees, including partnering with a commercial real estate firm to manage these aspects for its remaining brands.

Xponential Fitness, Inc. (XPOF) - Marketing Mix: Promotion

You're looking at the promotional engine driving Xponential Fitness, Inc. (XPOF) performance as of late 2025. The focus here is on how the company communicates value to drive studio sales and membership, which directly impacts the franchise model.

Franchise Marketing Fund revenue remains a critical component of the promotional infrastructure. For the second quarter of 2025, this revenue stream was reported up 13% year-over-year, showing that the collective spend is growing alongside the network. This fund fuels broader brand awareness efforts.

A major push in the third quarter of 2025 was the national brand campaign for Club Pilates, titled 'Every Body Club Pilates.' This multi-platform media effort was designed to broaden the top-of-funnel reach for the brand. To give you a sense of the investment scale, management noted that the fourth quarter of 2025 is expected to face approximately $5 million in spend related to this specific national campaign.

The company is definitely zeroing in on digital marketing and lead generation. This focus is a direct response to challenges seen in the third quarter, where same-store sales dipped by about ~1% due to reported lead flow and member conversion issues. Improving these digital funnels is key to unlocking better studio-level economics.

The new Chief Executive Officer is prioritizing upgrades across the marketing function and bolstering field operations support. Field support teams were launched with a specific mission: delivering best practices to franchisees to enhance local studio financial performance. This operational support is meant to complement the top-down brand messaging.

Digital platforms like XPASS and XPLUS continue to serve as tools for cross-brand access, allowing members to move between Xponential Fitness, Inc.'s various concepts. This cross-pollination strategy supports overall member retention across the portfolio.

Here's a look at how key financial metrics, which are influenced by these promotional activities, shaped up through the third quarter of 2025:

You can see the franchise revenue growth of 17% in Q3 2025 is strong, directly reflecting the health of the network that the Franchise Marketing Fund supports. Still, same-store sales were slightly negative at -0.8% in Q3, which is why the focus on lead conversion and the Club Pilates national push is so important right now.

The company also reported that for the first nine months of 2025, net cash provided by operating activities was $17.6 million. Finance: draft the Q4 2025 marketing spend vs. lead generation ROI analysis by next Wednesday.

Xponential Fitness, Inc. (XPOF) - Marketing Mix: Price

The pricing strategy for Xponential Fitness, Inc. is fundamentally rooted in a membership-based model, generating recurring revenue from monthly dues that are ultimately set by the individual franchisee. Management is actively pursuing pricing work as a key initiative to help counteract the pressure from a 1% decline in North America same-store sales reported in Q3 2025. Studios open for more than 36 months showed greater stability, maintaining flat (0%) same-store sales for the quarter.

The financial structure shows a clear reliance on the high-margin royalty stream, which demonstrated strong growth even as other revenue sources faced headwinds. Franchise revenue grew 17% year-over-year in Q3 2025, reaching $51.9 million, up from $44.5 million in the prior year period. This growth in recurring franchise revenue is a critical component of the overall pricing and revenue strategy.

Here are some key operating and financial metrics from Q3 2025 that frame the pricing environment:

For the digital offering, Xponential+ subscription pricing provides an accessible entry point, separate from the in-studio memberships. The primary digital offering is structured with a monthly recurring fee, though annual options exist to encourage commitment.

Digital Xponential+ Pricing Options:

• Monthly Subscription: $29.99 billed monthly.
• Annual Subscription: $239.99 (representing a 33% savings).
• Individual Brand Monthly Access: Some brands, like YogaSix and Pure Barre, are listed at $19.99 monthly on the App Store.