Xponential Fitness Inc

Vail Resorts reported second-quarter revenues of $278.1 million, up 2.5% year on year and 1.6% above analysts' expectations, in a mixed quarter that saw a decent beat of EBITDA estimates but full-year EBITDA guidance slightly missing expectations. The mountain resort operator, which spans over 30 locations globally, said it has appointed a new CEO, a new Chief Revenue Officer and a new independent board member, with a search ongoing for a second director, and announced a multi-year Epic Experience growth strategy alongside an expansion of its resource efficiency transformation plan to deliver an additional $30 million of savings by fiscal 2028. Among its leisure facilities peers, Sphere Entertainment posted the strongest quarter with revenues of $313.6 million, up 11% year on year and 1.8% above expectations, while Xponential Fitness was the weakest, with revenues of $65.97 million, down 13.4% year on year, and the slowest revenue growth and weakest full-year guidance update of the group. United Parks & Resorts reported revenues of $483.3 million, down 1.4% year on year and 1.4% below expectations, and Planet Fitness reported revenues of $365.2 million, up 7.1% year on year and 2.4% above expectations. Across the 10 consumer discretionary leisure facilities stocks tracked, group revenues beat consensus by 1.4% while next quarter's revenue guidance came in 0.8% below, and share prices have fallen an average of 12.6% since the latest earnings results, though Vail Resorts stock is up 5.8% since reporting and trades at $146.16.

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.