Xponential Fitness, Inc. (NYSE: XPOF) entered into a multi‑unit development agreement with franchise partner Riser Fitness that grants the latter the right to open 127 Club Pilates studios across California, Idaho, Minnesota, Nevada, Oregon, and Washington over the next five years. The deal expands Xponential’s presence in key growth markets and is the company’s largest development agreement to date.
Riser Fitness currently operates more than 110 Club Pilates studios and holds over 340 licenses in its global development pipeline. The new agreement adds a substantial number of studios to Riser’s portfolio and positions the partner to accelerate growth in the six states covered by the contract.
Club Pilates accounts for 65% of Xponential’s system‑wide sales, a figure that underscores the strategic importance of the deal. The company reported a $0.91 per share loss in Q4 2025, a miss against the $0.03 estimate, while revenue beat expectations at $82.96 million versus the $73.85 million forecast. The earnings miss was driven by margin compression and higher operating costs, while the revenue beat reflected strong demand for Club Pilates in core markets. Xponential is currently conducting a strategic review that could lead to a sale or merger, and the company faces regulatory scrutiny and significant long‑term debt.
"Riser Fitness has been an exceptional franchisee group and operator for Club Pilates and Xponential Fitness, bringing Pilates to so many communities that can benefit from the practice, and contributing to the brand's place as a leader in the booming Pilates industry. We are thrilled that Riser Fitness will continue to grow Club Pilates' presence with this exciting deal, which is the largest in Xponential's history," said Mike Nuzzo, CEO of Xponential Fitness. "As Pilates continues to boom, Riser Fitness' trajectory has been unmatched thanks to our team's operational excellence, Xponential and Club Pilates' playbook, and Fortress' support. We look forward to growing Club Pilates even more in states where we are already seeing great success and bringing Club Pilates to a global audience," added Jeffrey Nash, Co‑CEO of Riser Fitness.
Investors reacted cautiously to the announcement. The EPS miss in Q4 2025 and the company’s conservative 2026 outlook, coupled with an ongoing strategic review, tempered enthusiasm for the expansion. Nonetheless, the deal is viewed as a positive step toward increasing franchise revenue and broadening the brand’s geographic reach, potentially boosting long‑term royalty and marketing fee income.
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