Why Xponential Fitness (XPOF) Stock Is Trading Up Today

What Happened?

Shares of boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) jumped 9.4% in the afternoon session after Fund 1 Investments disclosed a 9.9% stake in the company and signaled plans to engage with management regarding operational and strategic opportunities.

According to a regulatory Schedule 13D filing, Fund 1 Investments holds 4,170,610 Class A common shares, acquired for an aggregate purchase price of approximately $25.85 million. The investment firm stated that it built the position in the belief that the stock was undervalued. Fund 1 Investments also indicated it intends to evaluate operational improvements and may discuss topics such as board composition, capitalization, and potential business combinations with company leadership.

The shares closed the day at $5.68, up 8.3% from the previous close.

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What Is The Market Telling Us

Xponential Fitness’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 19 days ago when the stock dropped 22.5% on the news that second-quarter profitability badly missed expectations and management cut full-year guidance. Adjusted EPS of just $0.02 came in far below the roughly $0.13 consensus, and the company lowered 2026 revenue and adjusted EBITDA outlooks below Wall Street’s prior framework. Revenue of about $66 million fell 13% year over year. Same-store sales declined 6.8%, and Club Pilates—the flagship brand—also posted negative comps, so the miss was rooted in weaker studio-level demand, not only accounting noise.

A shift to outsourced merchandise fulfillment further reduced reported sales, but that structural change does not explain soft same-store trends. Full-year revenue guidance was cut to $250–$260 million and adjusted EBITDA to $91–$97 million (about $255 million and $94 million at the midpoints), both below prior company guidance and consensus. Net new studio openings were also trimmed to about 150. Franchise fitness stocks are valued on system-wide sales growth and unit economics; when comps crack and the guide comes down in the same print, multiple compression tends to be immediate—especially with a strategic review already hanging over the story.

Xponential Fitness is down 29.4% since the beginning of the year, and at $5.67 per share, it is trading 37% below its 52-week high of $9 from February 2026. Investors who bought $1,000 worth of Xponential Fitness’s shares 5 years ago would now be looking at only $508.62.

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