Why Xponential Fitness (XPOF) Shares Are Falling Today

Shares of boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) fell 3.4% in the afternoon session after the company announced that it completed the divestiture of its Lindora brand to Next Health Management Group, Inc.

The global franchisor of boutique health and wellness brands framed the transaction as a strategic move to sharpen its business focus. According to CEO Mike Nuzzo, selling the Lindora weight management brand will permit Xponential to concentrate its time and capital on its core fitness modalities, aiming for a greater impact on profitability. This portfolio reshuffle is intended to steer resources toward the company’s main fitness brands. The financial terms of the sale were not disclosed to the public, leaving some details of the deal unclear.

The shares closed the day at $7.95, down 3% from previous close.

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Xponential Fitness’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock gained 3.2% on the news that the latest Consumer Price Index (CPI) report came in largely as expected, reinforcing investor hopes for a Federal Reserve interest rate cut.

Data from the Bureau of Labor Statistics showed headline inflation for August at a 2.9% annual rate, with core inflation, which excludes volatile food and energy prices, holding steady at 3.1%. While inflation remains above the Federal Reserve’s target, Wall Street interpreted the figures as not being high enough to prevent a widely anticipated rate reduction at the central bank’s meeting.

Analysts noted that the Fed’s focus shifted toward the risks of a cooling labor market. With this report being the last key data point before the meeting, the market’s conviction for a rate cut strengthened, fueling a broad rally that pushed major U.S. stock indexes to record highs.

Xponential Fitness is down 43.2% since the beginning of the year, and at $7.92 per share, it is trading 57.1% below its 52-week high of $18.47 from February 2025. Investors who bought $1,000 worth of Xponential Fitness’s shares at the IPO in July 2021 would now be looking at an investment worth $646.57.

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