false Q2 0001802156 --12-31 P8Y P5Y P10Y P10Y P10Y P5Y P5Y P6M P1Y P1Y P1Y P1Y P6M P1Y P1Y P1Y P1Y P6M P1Y P1Y P1Y P1Y P4Y P7Y6M P7Y6M P3Y P1Y P5Y P3Y P10Y P10Y P8Y P10Y 0001802156 2021-01-01 2021-06-30 xbrli:shares 0001802156 us-gaap:CommonClassAMember 2021-08-20 0001802156 us-gaap:CommonClassBMember 2021-08-20 iso4217:USD 0001802156 2021-06-30 0001802156 2020-12-31 0001802156 us-gaap:FranchiseMember 2021-04-01 2021-06-30 0001802156 us-gaap:FranchiseMember 2020-04-01 2020-06-30 0001802156 us-gaap:FranchiseMember 2021-01-01 2021-06-30 0001802156 us-gaap:FranchiseMember 2020-01-01 2020-06-30 0001802156 xpof:EquipmentRevenueMember 2021-04-01 2021-06-30 0001802156 xpof:EquipmentRevenueMember 2020-04-01 2020-06-30 0001802156 xpof:EquipmentRevenueMember 2021-01-01 2021-06-30 0001802156 xpof:EquipmentRevenueMember 2020-01-01 2020-06-30 0001802156 xpof:MerchandiseRevenueMember 2021-04-01 2021-06-30 0001802156 xpof:MerchandiseRevenueMember 2020-04-01 2020-06-30 0001802156 xpof:MerchandiseRevenueMember 2021-01-01 2021-06-30 0001802156 xpof:MerchandiseRevenueMember 2020-01-01 2020-06-30 0001802156 xpof:FranchiseMarketingFundRevenueMember 2021-04-01 2021-06-30 0001802156 xpof:FranchiseMarketingFundRevenueMember 2020-04-01 2020-06-30 0001802156 xpof:FranchiseMarketingFundRevenueMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseMarketingFundRevenueMember 2020-01-01 2020-06-30 0001802156 us-gaap:ServiceOtherMember 2021-04-01 2021-06-30 0001802156 us-gaap:ServiceOtherMember 2020-04-01 2020-06-30 0001802156 us-gaap:ServiceOtherMember 2021-01-01 2021-06-30 0001802156 us-gaap:ServiceOtherMember 2020-01-01 2020-06-30 0001802156 2021-04-01 2021-06-30 0001802156 2020-04-01 2020-06-30 0001802156 2020-01-01 2020-06-30 0001802156 us-gaap:ProductMember 2021-04-01 2021-06-30 0001802156 us-gaap:ProductMember 2020-04-01 2020-06-30 0001802156 us-gaap:ProductMember 2021-01-01 2021-06-30 0001802156 us-gaap:ProductMember 2020-01-01 2020-06-30 0001802156 xpof:FranchiseAndServiceRevenueMember 2021-04-01 2021-06-30 0001802156 xpof:FranchiseAndServiceRevenueMember 2020-04-01 2020-06-30 0001802156 xpof:FranchiseAndServiceRevenueMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseAndServiceRevenueMember 2020-01-01 2020-06-30 0001802156 xpof:MembersContributionMember 2020-12-31 0001802156 us-gaap:ReceivablesFromStockholderMember 2020-12-31 0001802156 us-gaap:RetainedEarningsMember 2020-12-31 0001802156 xpof:MembersContributionMember 2021-01-01 2021-06-30 0001802156 us-gaap:ReceivablesFromStockholderMember 2021-01-01 2021-06-30 0001802156 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001802156 xpof:MembersContributionMember 2021-06-30 0001802156 us-gaap:ReceivablesFromStockholderMember 2021-06-30 0001802156 us-gaap:RetainedEarningsMember 2021-06-30 0001802156 xpof:MembersContributionMember 2019-12-31 0001802156 us-gaap:ReceivablesFromStockholderMember 2019-12-31 0001802156 us-gaap:RetainedEarningsMember 2019-12-31 0001802156 2019-12-31 0001802156 xpof:MembersContributionMember 2020-01-01 2020-06-30 0001802156 us-gaap:ReceivablesFromStockholderMember 2020-01-01 2020-06-30 0001802156 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001802156 xpof:MembersContributionMember 2020-06-30 0001802156 us-gaap:ReceivablesFromStockholderMember 2020-06-30 0001802156 us-gaap:RetainedEarningsMember 2020-06-30 0001802156 2020-06-30 0001802156 xpof:MembersContributionMember 2021-03-31 0001802156 us-gaap:ReceivablesFromStockholderMember 2021-03-31 0001802156 us-gaap:RetainedEarningsMember 2021-03-31 0001802156 2021-03-31 0001802156 xpof:MembersContributionMember 2021-04-01 2021-06-30 0001802156 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001802156 xpof:MembersContributionMember 2020-03-31 0001802156 us-gaap:ReceivablesFromStockholderMember 2020-03-31 0001802156 us-gaap:RetainedEarningsMember 2020-03-31 0001802156 2020-03-31 0001802156 xpof:MembersContributionMember 2020-04-01 2020-06-30 0001802156 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001802156 xpof:StudiosMember 2021-01-01 2021-06-30 0001802156 xpof:RumbleMember 2021-01-01 2021-06-30 0001802156 us-gaap:IPOMember us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 iso4217:USD xbrli:shares 0001802156 us-gaap:IPOMember us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2021-07-23 0001802156 us-gaap:IPOMember xpof:SeriesAOnePreferredStockMember us-gaap:PreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 xbrli:pure 0001802156 us-gaap:IPOMember xpof:SeriesAOnePreferredStockMember us-gaap:PreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 us-gaap:IPOMember xpof:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 0001802156 us-gaap:IPOMember xpof:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 us-gaap:IPOMember 2021-01-01 2021-06-30 0001802156 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2021-07-22 0001802156 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2021-07-22 2021-07-22 0001802156 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 xpof:TermLoanMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 xpof:IPOAndReorganizationTransactionsMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 xpof:ClassAFiveUnitsMember us-gaap:SubsequentEventMember 2021-07-23 xpof:Brand xpof:studio xpof:Segment 0001802156 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2021-06-30 0001802156 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-12-31 0001802156 xpof:StudiosMember 2021-06-30 0001802156 xpof:StudiosMember us-gaap:FranchiseRightsMember 2021-06-30 0001802156 xpof:StudiosMember us-gaap:FranchiseRightsMember srt:MinimumMember 2021-01-01 2021-06-30 0001802156 xpof:StudiosMember us-gaap:FranchiseRightsMember srt:MaximumMember 2021-01-01 2021-06-30 0001802156 xpof:StudiosMember us-gaap:FairValueInputsLevel3Member us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-06-30 0001802156 us-gaap:CommonClassAMember xpof:RumbleMember 2021-03-24 2021-03-24 0001802156 xpof:RumbleMember 2021-03-24 2021-03-24 0001802156 xpof:RumbleMember 2021-03-24 0001802156 us-gaap:MeasurementInputEbitdaMultipleMember xpof:RumbleMember srt:MinimumMember 2021-03-24 2021-03-24 0001802156 us-gaap:MeasurementInputEbitdaMultipleMember srt:MaximumMember xpof:RumbleMember 2021-03-24 2021-03-24 0001802156 xpof:RumbleMember us-gaap:FranchiseRightsMember 2021-03-24 0001802156 xpof:RumbleMember us-gaap:TrademarksMember 2021-03-24 0001802156 xpof:RumbleMember us-gaap:TradeNamesMember 2021-03-24 2021-03-24 0001802156 xpof:RumbleMember us-gaap:FranchiseRightsMember 2021-03-24 2021-03-24 0001802156 xpof:RumbleMember 2021-04-01 2021-06-30 0001802156 xpof:EquipmentAndOtherMember 2021-06-30 0001802156 xpof:FranchiseDevelopmentFeesMember 2020-12-31 0001802156 xpof:BrandFeesMember 2020-12-31 0001802156 xpof:FranchiseDevelopmentFeesMember 2021-01-01 2021-06-30 0001802156 xpof:BrandFeesMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 xpof:BrandFeesMember 2021-06-30 0001802156 2021-07-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2022-01-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2023-01-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2024-01-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2025-01-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2026-01-01 xpof:FranchiseDevelopmentFeesMember 2021-06-30 0001802156 2021-07-01 xpof:BrandFeesMember 2021-06-30 0001802156 2022-01-01 xpof:BrandFeesMember 2021-06-30 0001802156 2023-01-01 xpof:BrandFeesMember 2021-06-30 0001802156 2024-01-01 xpof:BrandFeesMember 2021-06-30 0001802156 2021-07-01 2021-06-30 0001802156 2022-01-01 2021-06-30 0001802156 2023-01-01 2021-06-30 0001802156 2024-01-01 2021-06-30 0001802156 2025-01-01 2021-06-30 0001802156 2026-01-01 2021-06-30 0001802156 2025-01-01 xpof:BrandFeesMember 2021-06-30 0001802156 2026-01-01 xpof:BrandFeesMember 2021-06-30 0001802156 xpof:FranchiseAndAreaDevelopmentFeesMember 2021-06-30 0001802156 xpof:FranchiseAndAreaDevelopmentFeesMember 2020-12-31 0001802156 xpof:EquipmentAndOtherMember 2020-12-31 0001802156 xpof:FranchiseAgreementsMember 2021-06-30 0001802156 xpof:FranchiseAgreementsMember 2020-12-31 0001802156 xpof:UnsecuredAdvancesMember 2021-01-01 2021-06-30 0001802156 us-gaap:UnsecuredDebtMember 2021-01-01 2021-06-30 0001802156 srt:MinimumMember us-gaap:UnsecuredDebtMember 2021-06-30 0001802156 srt:MaximumMember us-gaap:UnsecuredDebtMember 2021-06-30 0001802156 2020-01-01 2020-12-31 0001802156 us-gaap:FurnitureAndFixturesMember 2021-06-30 0001802156 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001802156 xpof:ComputersAndSoftwareMember 2021-06-30 0001802156 xpof:ComputersAndSoftwareMember 2020-12-31 0001802156 us-gaap:VehiclesMember 2021-06-30 0001802156 us-gaap:VehiclesMember 2020-12-31 0001802156 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001802156 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001802156 us-gaap:ConstructionInProgressMember 2021-06-30 0001802156 us-gaap:ConstructionInProgressMember 2020-12-31 0001802156 us-gaap:CustomerRelationshipsMember 2021-01-01 2021-06-30 0001802156 us-gaap:NoncompeteAgreementsMember 2021-01-01 2021-06-30 0001802156 xpof:DeferredVideoProductionCostsMember 2021-01-01 2021-06-30 0001802156 us-gaap:TrademarksMember srt:MinimumMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseAgreementsMember srt:MinimumMember 2021-01-01 2021-06-30 0001802156 us-gaap:FranchiseRightsMember srt:MinimumMember 2021-01-01 2021-06-30 0001802156 xpof:WebDesignAndDomainMember srt:MinimumMember 2021-01-01 2021-06-30 0001802156 us-gaap:TrademarksMember srt:MaximumMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseAgreementsMember srt:MaximumMember 2021-01-01 2021-06-30 0001802156 us-gaap:FranchiseRightsMember srt:MaximumMember 2021-01-01 2021-06-30 0001802156 xpof:WebDesignAndDomainMember srt:MaximumMember 2021-01-01 2021-06-30 0001802156 us-gaap:TrademarksMember 2021-06-30 0001802156 xpof:FranchiseAgreementsMember 2021-06-30 0001802156 us-gaap:FranchiseRightsMember 2021-06-30 0001802156 us-gaap:NoncompeteAgreementsMember 2021-06-30 0001802156 xpof:WebDesignAndDomainMember 2021-06-30 0001802156 xpof:DeferredVideoProductionCostsMember 2021-06-30 0001802156 us-gaap:TrademarksMember 2020-12-31 0001802156 xpof:FranchiseAgreementsMember 2020-12-31 0001802156 us-gaap:FranchiseRightsMember 2020-12-31 0001802156 us-gaap:CustomerRelationshipsMember 2020-12-31 0001802156 us-gaap:NoncompeteAgreementsMember 2020-12-31 0001802156 xpof:WebDesignAndDomainMember 2020-12-31 0001802156 xpof:DeferredVideoProductionCostsMember 2020-12-31 0001802156 xpof:TermLoanMember 2017-09-29 0001802156 xpof:TermLoanMember 2017-09-29 2017-09-29 0001802156 us-gaap:RevolvingCreditFacilityMember 2017-09-29 0001802156 xpof:TermLoanMember 2018-06-28 0001802156 us-gaap:RevolvingCreditFacilityMember 2018-10-25 0001802156 xpof:TermLoanMember 2018-06-28 2018-06-28 0001802156 us-gaap:RevolvingCreditFacilityMember 2018-10-25 2018-10-25 0001802156 xpof:TermLoanMember 2020-02-01 2020-02-01 0001802156 xpof:TermLoanMember 2021-06-01 2021-06-30 0001802156 xpof:TermALoansMember 2020-02-01 2020-02-01 0001802156 xpof:TermALoansMember 2020-02-01 2020-02-29 0001802156 xpof:TermLoanMember 2020-02-01 2020-02-29 0001802156 xpof:TermLoanMember 2020-03-01 2020-07-31 0001802156 xpof:TermLoanMember 2020-08-01 2020-08-01 0001802156 2019-12-01 2019-12-31 0001802156 2020-02-01 2020-02-29 0001802156 xpof:TwoThousandAndTwentyFacilityMember xpof:TermLoanMember 2020-02-28 0001802156 xpof:TwoThousandAndTwentyFacilityMember xpof:TermLoanMember 2020-02-28 2020-02-28 0001802156 xpof:TwoThousandAndTwentyFacilityMember us-gaap:RevolvingCreditFacilityMember 2020-02-28 0001802156 xpof:TwoThousandAndTwentyFacilityMember xpof:TermLoanMember 2020-03-01 2020-03-31 0001802156 xpof:TwoThousandAndTwentyFacilityMember xpof:TermLoanMember 2021-01-01 2021-06-30 0001802156 xpof:TermLoanMember xpof:AmendedTwoThousandAndTwentyCreditFacilityMember 2021-03-24 0001802156 xpof:TermLoanMember xpof:AmendedTwoThousandAndTwentyCreditFacilityMember xpof:RumbleHoldingsLLCMember 2021-03-24 2021-03-24 0001802156 xpof:TermLoanMember xpof:AmendedTwoThousandAndTwentyCreditFacilityMember 2021-03-24 2021-03-24 0001802156 xpof:TermLoanMember xpof:AmendedTwoThousandAndTwentyCreditFacilityMember 2021-01-01 2021-06-30 0001802156 xpof:TermLoanFacilityMember 2021-04-19 0001802156 xpof:TermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-19 0001802156 xpof:TermLoanFacilityMember xpof:ReferenceRateMember 2021-04-19 0001802156 xpof:TermLoanFacilityMember xpof:ReferenceRateMember 2021-06-30 0001802156 xpof:TermLoanFacilityMember srt:MaximumMember 2021-04-18 2021-04-19 0001802156 xpof:TermLoanFacilityMember srt:MinimumMember 2021-04-18 2021-04-19 0001802156 xpof:TermLoanFacilityMember 2021-04-18 2021-04-19 0001802156 xpof:TermLoanFacilityMember 2021-04-01 2021-06-30 0001802156 xpof:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2020-04-30 0001802156 xpof:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2020-04-01 2020-04-30 0001802156 xpof:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-01-01 2021-06-30 0001802156 xpof:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-04-01 2021-06-30 0001802156 xpof:TermLoanFacilityMember us-gaap:SubsequentEventMember 2021-07-01 2021-07-31 0001802156 xpof:TPGGrowthIIIManagementLLCMember 2017-09-01 2017-09-30 0001802156 xpof:HAndWInvestcoManagementLLCMember 2021-04-01 2021-06-30 0001802156 xpof:HAndWInvestcoManagementLLCMember 2021-01-01 2021-06-30 0001802156 xpof:HAndWInvestcoManagementLLCMember 2020-04-01 2020-06-30 0001802156 xpof:HAndWInvestcoManagementLLCMember 2020-01-01 2020-06-30 0001802156 xpof:HAndWInvestcoManagementLLCMember 2019-12-31 0001802156 xpof:STGMember 2020-01-01 2020-03-31 0001802156 xpof:HAndWInvestcoManagementLLCMember 2020-02-29 0001802156 xpof:HAndWInvestcoManagementLLCMember xpof:TwoThousandAndTwentyFacilityMember 2020-01-01 2020-03-31 0001802156 xpof:RumbleHoldingsLLCMember 2021-03-31 0001802156 xpof:RumbleHoldingsLLCMember 2021-03-01 2021-03-31 0001802156 xpof:RumbleHoldingsLLCMember 2021-06-30 0001802156 xpof:ICIMember 2021-01-01 2021-06-30 0001802156 xpof:ICIMember 2020-12-31 0001802156 xpof:ICIMember 2021-06-30 0001802156 xpof:ICIMember 2021-04-01 2021-06-30 0001802156 xpof:ICIMember 2020-04-01 2020-06-30 0001802156 xpof:ICIMember 2020-01-01 2020-06-30 0001802156 xpof:VonKarmanProductionLLCMember 2019-09-01 2019-09-30 0001802156 xpof:VonKarmanProductionLLCMember 2019-09-30 0001802156 xpof:VonKarmanProductionLLCMember 2021-04-01 2021-06-30 0001802156 xpof:VonKarmanProductionLLCMember 2021-01-01 2021-06-30 0001802156 xpof:VonKarmanProductionLLCMember 2020-04-01 2020-06-30 0001802156 xpof:VonKarmanProductionLLCMember 2020-01-01 2020-06-30 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2021-04-01 2021-06-30 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2021-01-01 2021-06-30 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2020-04-01 2020-06-30 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2020-01-01 2020-06-30 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2020-12-31 0001802156 xpof:FranchiseRevenueMarketingFundRevenueAndMerchandiseRevenueMember 2021-06-30 0001802156 xpof:FranchiseesMember 2020-12-31 0001802156 xpof:FranchiseesMember 2021-06-30 0001802156 xpof:AccruedExpensesMember 2021-06-30 0001802156 xpof:AccruedExpensesMember 2020-12-31 0001802156 xpof:CycleBarHoldcoLLCMember 2021-06-30 xpof:Milestone 0001802156 xpof:CycleBarHoldcoLLCMember 2021-01-01 2021-06-30 0001802156 xpof:CycleBarHoldcoLLCMember xpof:FirstMilestoneMember 2021-01-01 2021-06-30 0001802156 xpof:CycleBarHoldcoLLCMember xpof:SecondMilestoneMember 2021-01-01 2021-06-30 0001802156 xpof:CycleBarHoldcoLLCMember us-gaap:MeasurementInputDiscountRateMember 2021-06-30 0001802156 xpof:CycleBarHoldcoLLCMember xpof:SecondMilestoneMember 2020-03-01 2020-03-31 0001802156 xpof:CycleBarHoldcoLLCMember xpof:FirstAndSecondMilestoneMember 2020-03-01 2020-03-31 0001802156 xpof:CycleBarHoldcoLLCMember xpof:FirstMilestoneMember 2020-03-01 2020-03-31 0001802156 xpof:CycleBarHoldcoLLCMember 2020-03-31 0001802156 us-gaap:InterestExpenseMember 2021-04-01 2021-06-30 0001802156 us-gaap:InterestExpenseMember 2021-01-01 2021-06-30 0001802156 us-gaap:InterestExpenseMember 2020-04-01 2020-06-30 0001802156 us-gaap:InterestExpenseMember 2020-01-01 2020-06-30 0001802156 xpof:RowHouseMember 2021-01-01 2021-06-30 0001802156 xpof:RowHouseMember 2021-04-01 2021-06-30 0001802156 xpof:RowHouseMember 2020-04-01 2020-06-30 0001802156 xpof:RowHouseMember 2020-01-01 2020-06-30 0001802156 xpof:RowHouseMember us-gaap:InterestExpenseMember 2020-04-01 2020-06-30 0001802156 xpof:RowHouseMember us-gaap:InterestExpenseMember 2020-01-01 2020-06-30 0001802156 xpof:RowHouseMember 2021-06-30 0001802156 xpof:RowHouseMember 2020-12-31 0001802156 xpof:StretchLabMember 2021-01-01 2021-06-30 0001802156 xpof:StretchLabMember 2019-09-01 2019-09-30 0001802156 xpof:StretchLabMember xpof:AccruedExpensesMember 2021-06-30 0001802156 xpof:StretchLabMember xpof:AccruedExpensesMember 2020-12-31 0001802156 xpof:StretchLabMember 2019-09-30 0001802156 xpof:StretchLabMember 2019-12-31 0001802156 xpof:StretchLabMember srt:ScenarioForecastMember 2021-09-30 0001802156 xpof:AKTMember 2021-01-01 2021-06-30 0001802156 xpof:AKTMember 2020-04-01 2020-06-30 0001802156 xpof:AKTMember 2020-01-01 2020-06-30 0001802156 xpof:AKTMember 2020-12-31 0001802156 xpof:AKTMember 2021-06-30 0001802156 xpof:YogaSixMember 2021-06-30 0001802156 xpof:YogaSixMember xpof:AccruedExpensesMember 2021-06-30 0001802156 xpof:YogaSixMember xpof:AccruedExpensesMember 2020-12-31 0001802156 xpof:StrideMember 2018-12-31 0001802156 xpof:StrideMember 2021-01-01 2021-06-30 0001802156 xpof:StrideMember 2021-06-30 0001802156 xpof:StrideMember xpof:AccruedExpensesMember 2020-12-31 0001802156 xpof:StrideMember xpof:AccruedExpensesMember 2021-06-30 0001802156 xpof:RumbleMember 2021-03-31 0001802156 2020-02-29 0001802156 xpof:TwoThousandAndTwentyFacilityMember 2020-02-01 2020-02-29 0001802156 us-gaap:PerformanceSharesMember 2021-06-01 2021-06-30 0001802156 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2021-07-23 0001802156 us-gaap:ConvertiblePreferredStockMember 2021-01-01 2021-06-30 0001802156 us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2021-07-23 0001802156 us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2021-07-23 2021-07-23 0001802156 us-gaap:CommonClassBMember us-gaap:SubsequentEventMember xpof:ReorganizationTransactionsMember 2021-07-23 0001802156 us-gaap:SubsequentEventMember xpof:TermLoanFacilityMember 2021-07-23 2021-07-23 0001802156 us-gaap:SubsequentEventMember 2021-07-23 0001802156 us-gaap:CommonClassAMember us-gaap:OverAllotmentOptionMember srt:ScenarioForecastMember 2021-08-01 2021-08-31 0001802156 us-gaap:CommonClassAMember us-gaap:SubsequentEventMember us-gaap:OverAllotmentOptionMember 2021-08-24 2021-08-24 0001802156 us-gaap:CommonClassAMember us-gaap:SubsequentEventMember us-gaap:OverAllotmentOptionMember srt:ChiefExecutiveOfficerMember 2021-08-24 2021-08-24 0001802156 us-gaap:SubsequentEventMember xpof:RumbleHoldingsLLCMember 2021-07-23 0001802156 us-gaap:SubsequentEventMember xpof:RumbleHoldingsLLCMember us-gaap:ReceivablesFromStockholderMember 2021-07-23 0001802156 us-gaap:IPOMember us-gaap:SubsequentEventMember 2021-07-23 0001802156 xpof:CycleBarHoldcoLLCMember us-gaap:SubsequentEventMember 2021-08-01 2021-08-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission File Number: 001-40638

 

 

Xponential Fitness, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

84-4395129

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

17877 Von Karman Ave., Suite 100

Irvine, CA

92614

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (949) 346-3000

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, par value $0.0001 per share

 

XPOF

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of August 20, 2021, the registrant had 22,994,044 shares of Class A common stock outstanding and 23,542,663 shares of Class B common stock outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations

2

 

Condensed Consolidated Statements of Changes to Member’s Equity

3

 

Condensed Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

35

PART II.

OTHER INFORMATION

37

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

72

Item 3.

Defaults Upon Senior Securities

72

Item 4.

Mine Safety Disclosures

72

Item 5.

Other Information

72

Item 6.

Exhibits

73

Signatures

75

 

 

 

 


 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Xponential Fitness LLC (a wholly owned subsidiary of H&W Franchise Holdings, LLC)

Condensed Consolidated Balance Sheets

(Unaudited)

(amounts in thousands)

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

20,203

 

 

$

11,299

 

Accounts receivable, net (Note 9)

 

 

7,890

 

 

 

5,196

 

Inventories

 

 

5,284

 

 

 

6,161

 

Prepaid expenses and other current assets

 

 

8,696

 

 

 

5,480

 

Deferred costs, current portion

 

 

3,392

 

 

 

3,281

 

Notes receivable from franchisees, net (Note 9)

 

 

1,130

 

 

 

1,288

 

Related party receivable (Note 9)

 

 

314

 

 

 

 

Total current assets

 

 

46,909

 

 

 

32,705

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

12,587

 

 

 

13,694

 

Goodwill

 

 

147,863

 

 

 

139,680

 

Intangible assets, net

 

 

107,896

 

 

 

98,124

 

Deferred costs, net of current portion

 

 

37,021

 

 

 

35,445

 

Notes receivable from franchisees, net of current portion (Note 9)

 

 

2,046

 

 

 

2,576

 

Other assets

 

 

588

 

 

 

614

 

Total assets

 

$

354,910

 

 

$

322,838

 

Liabilities and Member’s Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,283

 

 

$

18,339

 

Accrued expenses (Note 9)

 

 

13,957

 

 

 

13,764

 

Deferred revenue, current portion

 

 

18,590

 

 

 

14,247

 

Notes payable (Note 9)

 

 

932

 

 

 

970

 

Current portion of long-term debt

 

 

2,120

 

 

 

5,795

 

Other current liabilities

 

 

1,933

 

 

 

1,804

 

Total current liabilities

 

 

51,815

 

 

 

54,919

 

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

82,137

 

 

 

74,361

 

Contingent consideration from acquisitions (Note 10)

 

 

9,240

 

 

 

8,399

 

Long-term debt, net of current portion, discount and issuance costs

 

 

204,733

 

 

 

176,002

 

Other liabilities

 

 

4,431

 

 

 

4,408

 

Total liabilities

 

 

352,356

 

 

 

318,089

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Member’s equity:

 

 

 

 

 

 

 

 

Member’s contribution

 

 

124,251

 

 

 

113,697

 

Receivable from Member (Note 9)

 

 

(1,454

)

 

 

(1,456

)

Accumulated deficit

 

 

(120,243

)

 

 

(107,492

)

Total member’s equity

 

 

2,554

 

 

 

4,749

 

Total liabilities and member’s equity

 

$

354,910

 

 

$

322,838

 

 

See accompanying notes to condensed consolidated financial statements.

 

1


 

 

Xponential Fitness LLC (a wholly owned subsidiary of H&W Franchise Holdings, LLC)

Condensed Consolidated Statements of Operations

(Unaudited)

(amounts in thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise revenue

 

$

17,764

 

 

$

8,984

 

 

$

31,519

 

 

$

23,831

 

Equipment revenue

 

 

4,755

 

 

 

5,159

 

 

 

8,821

 

 

 

11,894

 

Merchandise revenue

 

 

4,509

 

 

 

3,552

 

 

 

8,741

 

 

 

8,616

 

Franchise marketing fund revenue

 

 

3,314

 

 

 

737

 

 

 

5,797

 

 

 

3,434

 

Other service revenue

 

 

5,433

 

 

 

3,030

 

 

 

9,962

 

 

 

5,474

 

Total revenue, net

 

 

35,775

 

 

 

21,462

 

 

 

64,840

 

 

 

53,249

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of product revenue

 

 

6,274

 

 

 

6,781

 

 

 

11,618

 

 

 

14,879

 

Costs of franchise and service revenue

 

 

3,127

 

 

 

2,048

 

 

 

5,446

 

 

 

4,130

 

Selling, general and administrative expenses (Note 9)

 

 

21,202

 

 

 

15,437

 

 

 

37,804

 

 

 

27,310

 

Depreciation and amortization

 

 

2,407

 

 

 

1,883

 

 

 

4,462

 

 

 

3,697

 

Marketing fund expense

 

 

2,860

 

 

 

821

 

 

 

5,476

 

 

 

3,406

 

Acquisition and transaction expenses (income)

 

 

297

 

 

 

(5,035

)

 

 

647

 

 

 

(5,809

)

Total operating costs and expenses

 

 

36,167

 

 

 

21,935

 

 

 

65,453

 

 

 

47,613

 

Operating income (loss)

 

 

(392

)

 

 

(473

)

 

 

(613

)

 

 

5,636

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(358

)

 

 

(87

)

 

 

(453

)

 

 

(177

)

Interest expense (Note 9)

 

 

11,591

 

 

 

4,366

 

 

 

16,014

 

 

 

12,352

 

Gain on debt extinguishment

 

 

(3,707

)

 

 

 

 

 

(3,707

)

 

 

 

Total other expense

 

 

7,526

 

 

 

4,279

 

 

 

11,854

 

 

 

12,175

 

Loss before income taxes

 

 

(7,918

)

 

 

(4,752

)

 

 

(12,467

)

 

 

(6,539

)

Income taxes

 

 

83

 

 

 

 

 

 

284

 

 

 

162

 

Net loss

 

$

(8,001

)

 

$

(4,752

)

 

$

(12,751

)

 

$

(6,701

)

 

See accompanying notes to condensed consolidated financial statements.

 

2


 

 

Xponential Fitness LLC (a wholly owned subsidiary of H&W Franchise Holdings, LLC)

Condensed Consolidated Statements of Changes to Member’s Equity

(Unaudited)

(amounts in thousands)

 

 

 

Member’s

Contribution

 

 

Receivable

from Member

 

 

Accumulated

Deficit

 

 

Total

Member’s

Equity

 

Balance at December 31, 2020

 

$

113,697

 

 

$

(1,456

)

 

$

(107,492

)

 

$

4,749

 

Equity based compensation

 

 

671

 

 

 

 

 

 

 

 

 

671

 

Parent contribution of Rumble assets

 

 

20,483

 

 

 

 

 

 

 

 

 

20,483

 

Distributions to Member

 

 

(10,600

)

 

 

 

 

 

 

 

 

(10,600

)

Payment received from Member, net

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

(12,751

)

 

 

(12,751

)

Balance at June 30, 2021

 

$

124,251

 

 

$

(1,454

)

 

$

(120,243

)

 

$

2,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Member’s

Contribution

 

 

Receivable

from Member

 

 

Accumulated

Deficit

 

 

Total

Member’s

Equity

 

Balance at December 31, 2019

 

$

152,265

 

 

$

(31,735

)

 

$

(93,852

)

 

$

26,678

 

Equity based compensation

 

 

865

 

 

 

 

 

 

 

 

 

865

 

Member contributions

 

 

22,884

 

 

 

 

 

 

 

 

 

22,884

 

Distributions to Member

 

 

(73,203

)

 

 

 

 

 

 

 

 

(73,203

)

Payment received from Member, net

 

 

 

 

 

30,279

 

 

 

 

 

 

30,279

 

Net loss

 

 

 

 

 

 

 

 

(6,701

)

 

 

(6,701

)

Balance at June 30, 2020

 

$

102,811

 

 

$

(1,456

)

 

$

(100,553

)

 

$

802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Member’s

Contribution

 

 

Receivable

from Member

 

 

Accumulated

Deficit

 

 

Total

Member’s

Equity

 

Balance at March 31, 2021

 

$

123,802

 

 

$

(1,454

)

 

$

(112,242

)

 

$

10,106

 

Equity based compensation

 

 

449

 

 

 

 

 

 

 

 

 

449

 

Net loss

 

 

 

 

 

 

 

 

(8,001

)

 

 

(8,001

)

Balance at June 30, 2021

 

$

124,251

 

 

$

(1,454

)

 

$

(120,243

)

 

$

2,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Member’s

Contribution

 

 

Receivable

from Member

 

 

Accumulated

Deficit

 

 

Total

Member’s

Equity

 

Balance at March 31, 2020

 

$

102,364

 

 

$

(1,456

)

 

$

(95,801

)

 

$

5,107

 

Equity based compensation

 

 

447

 

 

 

 

 

 

 

 

 

447

 

Net loss

 

 

 

 

 

 

 

 

(4,752

)

 

 

(4,752

)

Balance at June 30, 2020

 

$

102,811

 

 

$

(1,456

)

 

$

(100,553

)

 

$

802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

3


 

 

Xponential Fitness LLC (a wholly owned subsidiary of H&W Franchise Holdings, LLC)

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(amounts in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(12,751

)

 

$

(6,701

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,462

 

 

 

3,697

 

Amortization of debt issuance cost

 

 

5,350

 

 

 

2,501

 

Amortization of discount on long-term debt

 

 

271

 

 

 

 

Change in contingent consideration from acquisitions

 

 

340

 

 

 

(5,809

)

Bad debt expense

 

 

10

 

 

 

3,547

 

Equity based compensation

 

 

671

 

 

 

865

 

Non-cash interest

 

 

512

 

 

 

644

 

Gain on debt extinguishment

 

 

(3,707

)

 

 

 

Loss from disposal of assets

 

 

179

 

 

 

44

 

Impairment of long-lived assets

 

 

781

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,619

)

 

 

1,407

 

Inventories

 

 

876

 

 

 

(125

)

Prepaid expenses and other current assets

 

 

(3,217

)

 

 

(1,676

)

Deferred costs

 

 

(1,809

)

 

 

(2,006

)

Notes receivable, net

 

 

177

 

 

 

53

 

Accounts payable

 

 

(3,241

)

 

 

(3,458

)

Accrued expenses

 

 

2,059

 

 

 

(687

)

Related party payable

 

 

(315

)

 

 

(8

)

Other current liabilities

 

 

129

 

 

 

(841

)

Deferred revenue

 

 

12,302

 

 

 

3,190

 

Other assets

 

 

26

 

 

 

(43

)

Other liabilities

 

 

24

 

 

 

42

 

Net cash provided by (used in) operating activities

 

 

510

 

 

 

(5,364

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,023

)

 

 

(764

)

Purchase of studios

 

 

(390

)

 

 

(627

)

Proceeds from sale of assets

 

 

318

 

 

 

50

 

Purchase of intangible assets

 

 

(568

)

 

 

(554

)

Notes receivable issued

 

 

 

 

 

(326

)

Notes receivable payment received

 

 

550

 

 

 

 

Net cash used in investing activities

 

 

(2,113

)

 

 

(2,221

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings from line of credit

 

 

 

 

 

10,000

 

Payments on line of credit

 

 

 

 

 

(8,000

)

Borrowings from long-term debt

 

 

218,360

 

 

 

188,665

 

Payments on long-term debt

 

 

(194,330

)

 

 

(147,369

)

Debt issuance costs

 

 

(904

)

 

 

(5,036

)

Payment of contingent consideration

 

 

(1,935

)

 

 

(1,375

)

Payments on loans from related party (Note 9)

 

 

(86

)

 

 

(110

)

Member contributions

 

 

 

 

 

17,286

 

Distributions to Member

 

 

(10,600

)

 

 

(73,203

)

Receipts from (advances to) Member, net (Note 9)

 

 

2

 

 

 

30,279

 

Net cash provided by financing activities

 

 

10,507

 

 

 

11,137

 

Increase in cash, cash equivalents and restricted cash

 

 

8,904

 

 

 

3,552

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

11,299

 

 

 

9,339

 

Cash, cash equivalents and restricted cash, end of period

 

$

20,203

 

 

$

12,891

 

 

See accompanying notes to condensed consolidated financial statements.

4


 

Xponential Fitness LLC (a wholly owned subsidiary of H&W Franchise Holdings, LLC)

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(amounts in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2021