Xponential Fitness, Inc. (NYSE: XPOF) Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Xponential Fitness, Inc. (“Xponential”) (NYSE: XPOF) Class A common stock between July 23, 2021 and May 10, 2024, inclusive (the “Class Period”).

The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Xponential had permanently closed at least 30 stores; (2) Xponential’s reported same-store sales and average unit volume metrics had been misstated by excluding underperforming stores; (3) 8 out of 10 Xponential brands were losing money monthly; (4) over 50% of Xponential studios did not make a positive financial return; (5) over 60% of Xponential’s revenue was one-time and non-recurring; (6) more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost; (7) Xponential had misled many of its franchisees into opening franchises by misrepresenting the financial profile and profitability of its studios, as well as the expected rate of return for new studio openings; (8) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability; and (9) as a result of the foregoing, Defendants’ statements about Xponential’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Current Status of Case:
On July 1, 2025, Defendants filed Motions to Dismiss the Amended Complaint. The Motions are pending decision before the Court. This action is ongoing.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.