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Stock impact report

Xponential Fitness: Refinancing, Preferred Share Buyout Strengthen Financial Position [Seeking Alpha]

Xponential Fitness, Inc. Class A (XPOF) 
Company Research Source: Seeking Alpha
New management's strategic divestment of lagging brands and focus on high-margin core brands drives margin expansion and operational efficiency, supporting a 'Buy' rating. Club Pilates' same-store sales slowdown signals brand maturity, with new studios opening at near-full capacity and AUV up 8% year-over-year. Valuation upside is driven by EBITDA margin expansion, lower interest costs, and a conservative 7x multiple, implying a $13.5 target price—nearly double current levels. Maki Nakamura/DigitalVision via Getty Images Thesis Xponential Fitness's ( XPOF ) new loan agreement with much better conditions will remove the risk of short-term refinancing needs while also significantly reducing interest expenses. Part of the new debt will be used to buy out preferred shares, thereby eliminating the This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such pos Show less Read more
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