Boutique franchisor, Xponential Fitness, has initiated a review of strategic alternatives to maximise shareholder value, which include a sale, merger, or another strategic or financial transaction.

Jefferies LLC has been engaged as the financial advisor for the strategic review process.

Independent directors on Xponential’s board, Rachel Lee and Lily Yang, say, “Our board is firmly focused on maximising value for shareholders, and we are confident that undertaking a thorough and disciplined review of the opportunities available to the company will determine the best path forward.”

Mike Nuzzo, CEO of Xponential, said, “Xponential has built a differentiated platform with a leading portfolio of boutique fitness brands and an asset-light franchise model. While the board conducts this process, the Xponential team is continuing to execute our strategy to position our brands for success.”

Separately, the board has appointed Nicole Parent Haughey as an independent director and Jair Clarke, Chelsea A. Grayson and Bruce Haase have stepped down.

Haughey is a seasoned public company director and former Fortune 50 executive, with nearly two decades of experience on Wall Street, followed by senior operating and board roles. 

Xponential Fitness currently has a platform of five brands – Club Pilates, YogaSix, Stretch Lab, Pure Barre and strength training brand, BFT. Over the last three years it has shed six businesses to focus on the most profitable.

At the end of 2023, Xponential was still buying brands and the then CEO, Anthony Geisler, was bullish about expansion.

First to go, in early 2024, was running boutique, Stride Fitness. It was divested – at no cost – to Shaun Grove, who was then president of Rumble Boxing. Find out how Grove is getting on in the upcoming issue of HCM. 

In February 2024, class action lawsuits were filed against the company. Soon after some of the high ranking executives started to leave the company, followed in May by Geisler himself.

Hospitality expert, Mark King, was recruited out of retirement in June 2024. Losses were posted and more brands were shed. King left in May 2025, just as Geisler came back on the scene with Sequel Brands, a new boutique franchise company,  with a lot of former Xponential talent, including Sarah Luna heading up a new Pilates franchise, Pilates Addiction and going head to head  Club Pilates – Xponential’s best performing brand, which Luna had been instrumental in shaping. 

In August 2025, with the government investigations closed and the company down to six brands, consumer brand expert, Mike Nuzzo, was appointed as CEO. The strategy was set to focus on growth around the remaining core brands. Metabolic health business, Lindora – something of an outlier – was offloaded shortly after.

Last month, Xponential confirmed it had settled two major cases out of court for US$39.75 million, with no admission of liability over accusations of misleading franchisees in relation to financial projections, studio profitability and the financial health of certain brands. 

Net losses of US$53.7 million were reported for 2025 with adjusted EBITDA down by 4 per cent. The downgraded outlook saw share prices fall by 47 per cent.