The SEC’s investigation into Xponential Fitness Inc. (NYSE: XPOF) ended on July 1 after 18 months with no action taken, according to regulatory filings.
Shares jumped 23% to $9.20 apiece during after-hours trading.
The Irvine-based franchisor of fitness and wellness studios was first notified of the probe in December 2023 when the SEC requested certain documents, the filing said.
Later in May 2024, it received notice of another investigation by the United States Attorney’s Office (USAO) for the Central District of California which led to the exit of Founder and Chief Executive Anthony Geisler.
The company appointed Mark King, Taco Bell’s previous leader, as CEO the next month. King announced plans to retire due to health reasons in May.
Xponential was accused by a short trader called Fuzzy Panda Research, which issued an 11,000-word report in 2023 claiming the company misrepresented the health of its franchisees and omitted past business practices of Geisler.
The stock has fallen by almost 60% since then. Xponential has a market cap of $362 million.
