Xponential Fitness is a boutique fitness franchisor operating five brands: Club Pilates, Pure Barre, StretchLab, YogaSix, and BFT. The company sells franchise licenses to independent owner-operators, who build and run small-format studios (typically 1,500–2,500 sq ft) in retail strip centers. Members buy recurring monthly membership packages or single-session passes. As of year-end 2025, Xponential's global system had roughly 704,000 active paying members across 3,097 open studios. Club Pilates is the flagship brand, contributing ~65% of North America system-wide sales and holding 1,414 studios globally. Xponential earns revenue primarily through royalty fees (a percentage of franchisee gross sales), one-time license fees amortized over the 10-year franchise term, marketing fund contributions, technology fees, and equipment sales. Roughly 78% of revenue is recurring. Because franchisees fund all studio capital expenditures and operating costs, Xponential's own cost base is largely fixed, and royalty revenue scales with network size and studio-level sales. The key financial levers are net new studio openings, average unit volumes, and same-store sales growth. Growth is driven by new studio openings in North America, international expansion via master franchise agreements, and AUV improvement through pricing optimization. Xponential recently narrowed its portfolio from as many as ten brands to five, divesting underperforming concepts. The company carries $525M in long-term debt following a December 2025 refinancing, and faces a pending FTC consent order related to franchise disclosure compliance.