Xponential Fitness, Inc. Segments Disclosure
Note 18 – Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) for purposes of making operating decisions, allocating resources to an individual segment and in assessing performance. The Company’s is the Company’s CODM. The CODM regularly reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it operates in one reportable and operating segment. The Company’s reportable segment is the Company’s franchise business of its health and wellness brands which require similar technology and operating strategies. The CODM evaluates the operating results through consolidated net income (loss). The CODM uses consolidated net income (loss) predominantly in the annual budget and forecasting process and to monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources.
During the years ended December 31, 2025, 2024 and 2023, the Company generated $11,092, $13,987, and $13,361 of revenue outside of the United States, respectively, primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of December 31, 2024 and 2023, the Company did not have material assets located outside of the United States.
The following table presents the financial information for the Company’s one reportable and operating segment:
|
|
Year ended December 31, |
|
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|||
Total revenue, net |
|
$ |
314,879 |
|
|
$ |
320,346 |
|
|
$ |
317,937 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|||
Costs of product revenue |
|
|
42,411 |
|
|
|
59,477 |
|
|
|
60,331 |
|
|
Costs of franchise and service revenue |
|
|
22,338 |
|
|
|
21,806 |
|
|
|
15,985 |
|
|
Marketing and promotion |
|
|
9,719 |
|
|
|
11,850 |
|
|
|
15,663 |
|
|
Salary and wages |
|
|
47,232 |
|
|
|
43,132 |
|
|
|
55,400 |
|
|
Professional services (including legal and accounting) |
|
|
56,114 |
|
|
|
53,837 |
|
|
|
29,642 |
|
|
Rent and occupancy |
|
|
5,969 |
|
|
|
16,673 |
|
|
|
27,548 |
|
|
Marketing fund expense |
|
|
40,484 |
|
|
|
26,673 |
|
|
|
22,683 |
|
|
Acquisition and transaction expenses (income) |
|
|
(6,948 |
) |
|
|
8,886 |
|
|
|
(18,464 |
) |
|
Other segment items(1) |
|
|
46,279 |
|
|
|
36,894 |
|
|
|
25,806 |
|
|
Equity-based compensation |
|
|
12,908 |
|
|
|
15,466 |
|
|
|
17,997 |
|
|
Depreciation and amortization |
|
|
12,027 |
|
|
|
17,713 |
|
|
|
16,883 |
|
|
Impairment of goodwill and other noncurrent assets |
|
|
32,718 |
|
|
|
62,551 |
|
|
|
16,750 |
|
|
Interest income |
|
|
(3,212 |
) |
|
|
(1,824 |
) |
|
|
(1,611 |
) |
|
Interest expense |
|
|
49,189 |
|
|
|
46,250 |
|
|
|
38,733 |
|
|
Income taxes |
|
|
1,322 |
|
|
|
(342 |
) |
|
|
1,034 |
|
|
Segment net loss |
|
$ |
(53,671 |
) |
|
$ |
(98,696 |
) |
|
$ |
(6,443 |
) |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.