XP

Xponential Fitness Inc

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Xponential Fitness Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Negative equity of -230M with 380M debt at 49M interest expense TTM - interest exceeds operating income (49M) creating structural cash drain[Total Debt / Interest Expense]
  • Goodwill of 128M is 36% of total assets (355M) on negative equity base - any impairment directly hits already negative book value[Goodwill]
  • Operating margin 15.5% vs industry median 8.2% shows franchise model efficiency, but -15% net margin reveals debt burden consuming profits[Operating Margin TTM]

Watch Triggers

  • Interest Expense TTM: Exceeds Operating Income for 2+ consecutive quartersSignals unsustainable capital structure requiring immediate action
  • Free Cash Flow TTM: Turns negative or falls below 10MOnly 14M FCF cushion - decline triggers liquidity crisis
  • Total Debt: Any refinancing announcement or covenant breach380M debt at current rates is existential - terms matter more than operations

Bull Case

Asset-light franchise model generates 68% gross margin and 14M FCF TTM despite debt load - proves core business viability if capital structure fixed

Gross Margin TTMFree Cash Flow TTM

P/S of 0.88x vs industry median 1.48x prices in distress - successful deleveraging could unlock 70%+ multiple expansion

PS RatioEnterprise Value

Bear Case

Capital structure is broken: 380M debt on -230M equity with interest consuming 100% of operating income leaves zero margin for error

Total DebtInterest Expense TTMTotal Equity

Tangible book value of -425M means equity holders wiped out in liquidation - pure option value on turnaround execution

Tangible Book ValueBook Value Per Share

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Debt refinancing or equity raise likely within 12-18 months as interest burden exceeds operating capacity

3-12mhigh
  • Interest expense (49M) equals operating income (49M)
  • Net debt 334M vs market cap 279M
  • Negative equity limits borrowing capacity
Interest Expense TTM: 48.9MOperating Income TTM: 49.0MTotal Equity: -230M

Valuation Context

Caveats

Public Strategies Rankings

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