Xponential (XPOF) Enters Into a Partnership With KINRGY
Xponential Fitness, Inc. XPOF collaborated with KINRGY, a dance and fitness platform, for the debut of brick-and-mortar KINRGY studio locations.
Per the agreement, Xponential will acquire certain intellectual property of KINRGY along with the opportunity to rebrand three studio locations of its dance-cardio brand, AKT, and operate it as KINRGY Studios.
Xponential is optimistic about the new partnership with Julianne Hough’s KINRGY as it believes that by leveraging its platform and proven success in operating fitness studios, its team can create and deliver a top-tier in-studio experience.
Xponential’s Expansion Initiatives
Xponential is one of the largest global franchisors of boutique fitness brands and is witnessing robust demand for its brands outside of North America. The company’s growth durability is primarily backed by new studios opened by its franchisees, collaborations and other additional business in the existing locations.
As of Sep 30, 2023, Xponential operated about 2,980 studios globally with a total of 6,088 licenses sold across its 10 leading fitness brands. As of the third quarter of 2023, the company has franchise, master franchise and international expansion agreements in 23 countries globally. In the same quarter, the franchise revenues of the company grew 21% to $36.4 million year over year.
The company’s persistent expansion initiatives into new markets have reflected in 1,000 studios obligated to open under its master franchise agreements.
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Shares of XPOF have lost 47.2% in the past six months compared with the Zacks Leisure and Recreation Services industry’s 1.5% decline. Although the shares of the company have underperformed the industry, its accretive expansion strategies will help it gain traction in this high-cost environment in the upcoming period.
Zacks Rank & Key Picks
Xponential currently carries a Zacks Rank #3 (Hold).
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