Mark Grabowski, a director and ten percent owner of Xponential Fitness, Inc. (NYSE:XPOF), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Grabowski sold a total of 2,595,598 shares of Class A Common Stock at a price of $15.35 per share. The total value of these transactions amounted to approximately $39.8 million.
The transactions took place on November 21, 2024, and were executed through H&W Investco LP and H&W Investco II LP, entities associated with Grabowski. After these sales, Investco I and Investco II retain shares in Xponential Fitness, reflecting their ongoing investment in the company.
The sales were conducted pursuant to Rule 144 under the Securities Act of 1933, as amended, with BofA Securities, Inc. acting as the broker-dealer. The public offering price was set at $15.35 per share, with a broker discount of $1.91 per share applied.
These transactions are notable for investors tracking insider activities, as they provide insights into the trading actions of significant shareholders within the company.
In other recent news, Xponential Fitness reported a widened net loss of $18 million, up from $5.2 million from the previous year. Despite this, the company saw growth in other areas, with consolidated revenue reaching $80.5 million and franchise revenue increasing by 22% to $44.5 million. Additionally, Xponential Fitness has revised its forecast for new global studio openings in 2024 to 490-510, indicating an expansion of operations.
Entities affiliated with Mark Grabowski, the chairman of the board of directors, sold over 2.5 million shares of Xponential Fitness's common stock, according to a recent SEC filing. Despite this sale, Grabowski retains beneficial ownership of 24% of the company's common stock.
The company also announced the appointment of Bruce Haase, a seasoned executive with extensive franchising experience, to its Board of Directors. This strategic appointment aligns with the company's efforts to enhance its governance structure and drive growth. These are just some of the recent developments that highlight Xponential Fitness's commitment to its vision of becoming a leading franchisor in the health and wellness space.
InvestingPro Insights
To provide additional context to Mark Grabowski's recent sale of Xponential Fitness shares, it's worth examining some key financial metrics and analyst insights from InvestingPro.
Xponential Fitness (NYSE:XPOF) currently has a market capitalization of $709.81 million. Despite the recent insider sale, the company has seen a substantial price increase over the past six months, with a total return of 57.22%. This significant uptick suggests strong market confidence in the company's prospects, which may have influenced the timing of Grabowski's sale.
InvestingPro Tips highlight that Xponential Fitness boasts impressive gross profit margins, which stood at 66.61% for the last twelve months as of Q3 2024. This robust profitability at the gross level indicates the company's ability to efficiently manage its direct costs, a crucial factor in the fitness industry where overhead can be substantial.
However, it's important to note that the company was not profitable over the last twelve months, with a negative return on assets of -8.81%. Despite this, analysts are optimistic about the company's near-term prospects. An InvestingPro Tip reveals that analysts predict the company will be profitable this year, which could explain the recent positive stock performance despite the current lack of profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Xponential Fitness. These tips could provide valuable context for understanding the company's financial health and future prospects in light of the recent insider transaction.
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