Xponential Fitness Inc. (NYSE: XPOF) dropped 31% to $8.40 during after hours trading on Thursday after reporting 2024 fourth-quarter revenue fell 7% to $83 million.
Analysts were expecting a 10% drop to $81 million.
“We have made significant progress over the course of my first two full quarters as CEO and I have gained a deeper understanding of both the opportunities and challenges at Xponential,” Chief Executive Mark King said in a statement.
2024 revenue grew 1% to $320.3 million, slightly above analysts’ consensus of $319.7 million for the year. The Irvine-based fitness studio franchisor has a market cap of $585 million.
Xponential also announced a restatement of 2023 financial statements citing “accounting errors primarily related to accrued inventory, 401(k) compliance, purchase accounting, and vendor rebates.”
“It is clear from some of the issues we have found and are addressing that there is a lot to do. That said, I have full confidence in the team we’ve assembled; they all have experience executing on exactly what Xponential must execute on to sustainably grow,” King said.
