Xponential Fitness Inc

Xponential Fitness lowered its full-year 2026 guidance after second-quarter results fell below internal expectations. North American same-store sales declined 6.8%, consolidated revenue dropped 13% to $66 million, and adjusted EBITDA fell 22% to $21.9 million. The company now projects global net new studio openings of approximately 150, North America system-wide sales of $1.70 billion to $1.75 billion, total revenue of $250 million to $260 million, and adjusted EBITDA of $91 million to $97 million. Management is shifting focus toward organic membership growth and franchisee economics while maintaining elevated paid-media spending, and the board continues to review strategic alternatives including a potential sale or merger. Xponential expects approximately $11.4 million in additional settlement payments for the rest of 2026 and anticipates cash flow turning positive in 2027.

Applied Materials shares jumped 43.3% over the past month, driven by projected revenue growth of 33% for the next 12 months, an operating margin of 29.1%, and a return on invested capital of 46.2%. In contrast, Royal Caribbean gained 22.1% but faces weak demand with declining passenger cruise days and a low 6% return on capital, while Xponential Fitness rose 17.3% despite a 4.4% annual sales decline and a free cash flow margin of just 1.3%. Applied Materials trades at $619.41 per share, Royal Caribbean at $312.80, and Xponential Fitness at $6.70.