Xponential Fitness Inc., an Irvine-based company with more than 3,000 fitness studios, said it has removed founder Anthony Geisler as chief executive and appointed Brenda Morris as interim CEO, effective immediately.
After the news, shares dropped 31% to $8.50 apiece during midday trading with a market cap of $479 million (NYSE: XPOF).
Xponential, which reported earnings on May 2, said on May 7 it received notice of an investigation by the United States Attorney’s Office (USAO) for the Central District of California. The fitness franchise operator in December disclosed an investigation by the Securities and Exchange Commission (SEC). The company’s board has formed a special committee of directors to investigate both matters.
Morris joined the Xponential board in 2019 and counts over 35 years in finance, accounting and operations roles. She is currently a partner at executive services firm CSuite Financial Partners.
“Over the last five years, Brenda has been a deeply involved Board member as we have pursued Xponential’s mission to make health and wellness accessible to everyone,” Chairman Mark Grabowski said in a statement.
Xponential reaffirmed its full-year 2024 guidance of opening 550 new studio locations and $1.7 billion in systemwide sales announced in May.
