F45 Training Holdings Inc. (FXLV) Stock Analysis

F45 Training Holdings Inc. (FXLV) Consumer Business Overview

F45 Training Holdings Inc. is a fitness franchisor providing high-intensity interval, circuit, and functional training workouts through a network of digitally-connected studios across the United States, South America, Australia, New Zealand, and internationally, facing competition in the broader leisure industry.

What Is the Investment Thesis for FXLV?

F45 Training Holdings Inc. presents a high-risk, high-reward investment opportunity. The company's franchise model allows for rapid expansion, but its profitability is a concern given its negative profit margin of -171.2%. Key value drivers include the growth of its studio network and the appeal of its workout format. The company's beta of 0.35 suggests lower volatility compared to the market. However, the OTC market listing introduces additional risks. Investors should closely monitor the company's ability to improve profitability and manage its franchise network effectively. The absence of a dividend yield means investors are relying solely on capital appreciation.

Based on FMP financials and quantitative analysis

FXLV Key Highlights

F45 Training Holdings Inc. operates as a fitness franchisor, offering functional 45-minute workouts.

• The company's gross margin stands at 68.8%, indicating a strong potential for profitability if costs are managed effectively.
• As of December 31, 2021, F45 Training operated 1,749 studios across multiple countries.
• The company's market capitalization is $1.95M, reflecting its current valuation in the market.
• F45 Training's P/E ratio is -0.04, indicating that the company is currently not profitable.

Who Are FXLV's Competitors?

FXLV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are FXLV's Key Strengths?

Established brand name

• Scalable franchise model
• Unique workout programs
• Global presence

What Are FXLV's Weaknesses?

Negative profit margin

• High reliance on franchise sales
• Limited product diversification
• OTC market listing

What Could Drive FXLV Stock Higher?

Expansion of studio network into new geographic markets.

• Enhancement of digital platform to offer virtual workout classes.
• Strategic partnerships with complementary businesses.
• Development and launch of new workout programs and formats.
• Increased focus on corporate wellness programs.

What Are the Key Risks for FXLV?

Financial-distress signal — its Altman Z-Score of -7.88 sits in the distress zone (elevated bankruptcy risk).

• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Intense competition in the fitness industry from other franchises and individual studios.
• Changing consumer preferences and trends in fitness activities.
• Economic downturn impacting consumer spending on leisure activities.
• Franchise disputes and legal challenges.
• Negative profit margin and financial instability.

What Are the Growth Opportunities for FXLV?

• Expansion of Studio Network: F45 Training has the opportunity to expand its studio network both domestically and internationally. The global health and fitness club market is projected to reach $96.8 billion by 2028. By strategically opening new studios in underserved markets and leveraging its franchise model, F45 can increase its revenue and market share. The timeline for this growth is ongoing, with continuous efforts to attract new franchisees and expand its geographic footprint.
• Enhancement of Digital Platform: F45 Training can enhance its digital platform to offer virtual workout classes, personalized training programs, and nutritional guidance. The online fitness market is experiencing rapid growth, driven by advancements in technology and changing consumer preferences. By investing in its digital capabilities, F45 can reach a wider audience and generate additional revenue streams. The timeline for this growth is immediate, with ongoing development and updates to its digital offerings.
• Strategic Partnerships: F45 Training can form strategic partnerships with complementary businesses, such as athletic apparel brands, nutrition companies, and corporate wellness programs. These partnerships can help F45 expand its reach, increase brand awareness, and offer additional value to its members. The timeline for establishing these partnerships is ongoing, with continuous efforts to identify and collaborate with relevant businesses.
• Development of New Workout Programs: F45 Training can develop new workout programs and formats to cater to different fitness levels and interests. By continuously innovating its workout offerings, F45 can attract new members and retain existing ones. The timeline for developing new programs is ongoing, with regular updates and additions to its workout library.
• Increased Focus on Corporate Wellness: F45 Training can increase its focus on corporate wellness programs, offering its workout services to businesses as an employee benefit. Corporate wellness programs are becoming increasingly popular as companies recognize the importance of employee health and well-being. By targeting this market, F45 can secure recurring revenue streams and expand its customer base. The timeline for this growth is immediate, with active outreach to corporations and businesses.

What Are FXLV's Competitive Advantages?

• Brand Recognition: Established brand name and reputation in the fitness industry.
• Franchise Model: Scalable business model that allows for rapid expansion.
• Proprietary Workouts: Unique and effective workout programs that differentiate F45 from competitors.

What Does FXLV Do?

F45 Training Holdings Inc., founded in 2013 and headquartered in Austin, Texas, operates as a fitness franchisor. The company provides consumers with 45-minute functional workouts combining high-intensity interval, circuit, and functional training elements. These workouts are delivered primarily through its digitally-connected network of studios. As of December 31, 2021, F45 Training operated 1,749 studios globally. The company has a presence in the United States, South America, Australia, New Zealand, and surrounding island nations, as well as other international markets. Originally known as Flyhalf Holdings Inc., the company rebranded to F45 Training Holdings Inc. in March 2019. The F45 model focuses on short, effective workout sessions designed to appeal to a broad range of fitness enthusiasts. The company's franchise model allows for rapid expansion and brand consistency across different geographic locations. F45 Training competes within the broader fitness industry, which includes traditional gyms, boutique fitness studios, and at-home workout solutions.

What Products and Services Does FXLV Offer?

• Operates as a fitness franchisor.
• Offers 45-minute functional workouts.
• Combines high-intensity interval, circuit, and functional training.
• Provides workouts through a digitally-connected network of studios.
• Operates studios in the United States, South America, Australia, New Zealand, and internationally.
• Utilizes a franchise model for expansion.

How Does FXLV Make Money?

• Franchise Fees: Generates revenue through initial franchise fees paid by new studio owners.
• Recurring Royalties: Collects ongoing royalty payments from franchisees based on a percentage of their revenue.
• Equipment Sales: Sells branded fitness equipment to franchisees for use in their studios.

What Industry Does FXLV Operate In?

F45 Training operates in the competitive leisure industry, which includes fitness franchises, traditional gyms, and at-home workout solutions. The industry is driven by increasing health awareness and a growing interest in fitness activities. F45's focus on short, high-intensity workouts positions it within the boutique fitness segment, which has experienced significant growth in recent years. Competitors include other fitness franchises and individual fitness studios. The market is characterized by evolving consumer preferences and a need for innovative workout formats.

Who Are FXLV's Key Customers?

• Franchisees: Individuals or groups who purchase the rights to operate F45 Training studios.
• Fitness Enthusiasts: Consumers who participate in F45 Training workouts.
• Corporate Clients: Businesses that offer F45 Training programs as part of their employee wellness initiatives.

Company Profile

F45 Training Holdings Inc. operates in the Leisure industry within the Consumer Cyclical sector. It is headquartered in Austin, US. The company is led by CEO Tom Dowd. FXLV has traded publicly since 2021.

The most recent 10 insider filings for F45 Training Holdings Inc. break down as 7 sales and 3 purchases. On net that is roughly 2K shares disposed (about $36K), a signal worth weighing alongside the fundamentals.

F45 Training Holdings Inc.'s Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -7.88 places it in the distress zone, a signal of elevated financial risk.

FXLV Valuation & Market Position

With a $1.95M market cap, F45 Training Holdings Inc. sits in the micro-cap segment of the market.

FXLV Financials

FXLV Latest News

Common Questions About FXLV (Consumer Cyclical)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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