Xponential Fitness Inc

Current report

Changes in trade policies, including tariffs, could adversely affect our business.

Current report

In first quarter 2025, we observed significant shift in U.S. trade policy, with increased tariffs and the imposition of new tariffs that could impact our supply chain and our business. While certain of such tariffs have been paused, ultimately trade policy decisions are outside of our control and may have consequences for our and franchisees’ businesses. Changes in trade policies, such as new tariffs or increases in tariffs, or reactionary measures including retaliatory tariffs, legal challenges, or currency manipulation, could adversely impact us and our franchisees.

Current report

Certain of our vendors source materials, components, or finished goods, from countries, such as China, which have been in the past, are currently subject to or may in the future be subject to tariffs imposed by the U.S. government. The imposition of future tariffs or the increase in existing tariffs could result in these vendors increasing their prices, resulting in increased costs for us and our franchisees. If our franchisees’ costs are greater than expected, franchisees may need to outperform their operational plan to achieve their targeted return. In addition, increased costs may make our business model less attractive to new franchisees. The ultimate impact of tariffs and other trade restrictions will depend on various factors, including how long such trade policies remain in place, the ultimate levels of trade restrictions and how other countries respond to the U.S. trade policies. While we are evaluating the potential impacts of the trade policies, as well as our ability to mitigate their related impacts, changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, could have a material adverse effect on our business, financial condition and results of operations.

Current report

Activist investors could cause us to incur substantial costs, divert management’s attention, and have an adverse effect on our business.

Current report

Publicly-traded companies have increasingly become subject to activist investor campaigns. We have in the past received, and we may in the future be subject to, communications by activist investors urging us to take certain corporate actions. Activist investors may propose changes to our board composition, executive compensation, or other governance practices. Responding to actions of an activist investor may be a significant distraction for our management and staff and could require us to expend significant time and resources, including legal fees and potential proxy solicitation expenses. Any of these conditions could materially adversely affect our business, results of operations, cash flows and financial condition.

Current report

None.

Previous report

Rule 10b5-1 Trading Plans

Previous report

During the three months ended September 30, 2024, one of the Company’s officers, Sarah Luna, President, early terminated a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K of the Securities Exchange Act of 1934, as amended). Mrs. Luna’s Rule 10b5-1 trading arrangement was originally adopted on September 15, 2023 and was terminated on July 17, 2024. Mrs. Luna’s Rule 10b5-1 trading arrangement had provided for the potential sale of 40,000 shares of the Company’s Class A common stock. No transactions were completed under the arrangement.