Today, Xponential Fitness, Inc. (NYSE:XPOF) reported a significant transaction involving its Class A common stock. According to a recent SEC filing, entities affiliated with Mark Grabowski, the chairman of the board of directors, sold 2,595,598 shares of the company's stock. Despite this sale, Mr. Grabowski maintains a substantial stake in the fitness company, retaining beneficial ownership of 24% of Xponential Fitness's common stock.
The sale was made public through a Form 144 filed with the Securities and Exchange Commission. This document is typically used to report proposed sales of securities by an affiliate of the issuing company and is a requirement for secondary market transactions involving insiders or affiliates of publicly-traded companies.
Xponential Fitness, headquartered in Irvine, California, operates within the miscellaneous amusement and recreation services industry. The company's decision to disclose this transaction is in line with regulations governing fair disclosure, ensuring that all market participants have equal access to material information.
The details of the share sale were not deemed to be filed under Section 18 of the Exchange Act, nor incorporated by reference into any of the company's filings under the Securities Act of 1933 or the Exchange Act, except as explicitly referenced in such filings.
This financial move by one of Xponential Fitness's key insiders was formally announced by the company's Chief Financial Officer, John Meloun, who signed off on the report dated November 21, 2024. The transaction comes as part of the normal course of business for corporate insiders, who may sell shares for a variety of personal or financial reasons.
In other recent news, Xponential Fitness Inc. has undergone significant developments. The company has appointed Bruce Haase, a seasoned executive with extensive franchising experience, to its Board of Directors. This strategic appointment coincides with the company's efforts to enhance its governance structure and drive growth.
In financial highlights, Xponential Fitness reported an 8% rise in North American average unit volume and a 21% increase in North American system-wide sales. However, the company also noted a widened net loss of $18 million, up from $5.2 million from the previous year. Consolidated revenue reached $80.5 million, and franchise revenue saw a notable increase of 22% to $44.5 million.
Looking ahead, Xponential has revised its forecast for global new studio openings in 2024 to 490-510. The company projects system-wide sales to range between $1.705 billion and $1.715 billion, with total revenue expected to be between $310 million and $320 million. These developments underscore Xponential Fitness's commitment to its vision of becoming a leading franchisor in the health and wellness space.
InvestingPro Insights
To complement the recent news about Xponential Fitness, Inc. (NYSE:XPOF), InvestingPro data offers additional context for investors. Despite the significant stock sale by the chairman, XPOF has shown strong market performance, with a 67.76% price return over the last six months and a 19.83% return in the past month. This positive momentum suggests that the market remains optimistic about the company's prospects, even in light of the insider sale.
InvestingPro Tips highlight that XPOF boasts impressive gross profit margins, which is reflected in the data showing a 66.61% gross profit margin for the last twelve months as of Q3 2024. This strong profitability metric could be a factor in the company's ability to attract and retain investor interest.
Additionally, analysts are predicting that the company will be profitable this year, which could explain why the stock has maintained its upward trajectory despite the large insider sale. For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for XPOF, providing a deeper understanding of the company's financial health and market position.
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