IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF), the largest global franchisor of health and wellness brands, today announced it has completed the divestiture of its brand STRIDE Fitness to Stride Fitness Franchising, Inc., which is owned by Shaun Grove. Mr. Grove is the President of Rumble Boxing.
“We continuously evaluate our portfolio of brands to ensure profitable growth, optimize global customer experiences, and drive long-term value creation for our stakeholders,” said Anthony Geisler, CEO of Xponential Fitness, Inc.
Mr. Geisler continued, “We are pleased to transition the STRIDE brand to an operator with almost a decade of experience owning and operating franchises prior to joining Xponential. After considering the potential alternatives for STRIDE, we concluded that this transaction was the best option for Xponential and the STRIDE brand.”
In connection with this announcement, Xponential has begun a search for a successor for Mr. Grove as President of Rumble Boxing. Mr. Grove has agreed to remain in his current role as President of Rumble Boxing until a successor is identified.
As of December 31, 2023, STRIDE Fitness locations represented less than 1% of Xponential’s total studios open. The divestiture of STRIDE Fitness is not expected to materially impact revenue in 2024. Xponential did not receive any consideration for the divestiture and will provide transition support to the new owner.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of health and wellness brands. Through its mission to make health and wellness accessible to everyone, the Company operates a diversified platform of ten brands spanning across verticals including Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, strength training, metabolic health, and yoga. In partnership with its franchisees, Xponential offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout the U.S. and internationally, with franchise, master franchise and international expansion agreements in 49 U.S. states and 22 additional countries. Xponential’s portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; CycleBar, the largest indoor cycling brand in the United States; StretchLab, the largest assisted stretching brand in the United States offering one-on-one and group stretching services; Row House, the largest franchised indoor rowing brand in the United States; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest yoga brand in the United States; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest Barre brand in the United States; BFT, a functional training and strength-based program; and Lindora, a leading provider of medically guided wellness and metabolic health solutions. For more information, please visit the Company’s website at xponential.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. These forward-looking statements include, without limitation, statements relating to divestiture of the STRIDE brand and expected business and financial benefits resulting from the divestiture. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our relationships with master franchisees, franchisees and international partners; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international markets; loss of reputation and brand awareness; general economic conditions and industry trends; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the full year ended December 31, 2022 filed by Xponential with the SEC and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.
