Xponential Fitness, Inc. (NASDAQ:XPOF) shares are trading lower on Tuesday after Fuzzy Panda Research issued a short report on the stock.
What To Know:
The short report, titled, "Xponential Fitness (XPOF) – 'Abusive Franchisor That Is A House Of Cards,'" claims:
- More than 50% of XPOF studios never make a positive financial return, and 80% of franchises are losing money each month while XPOF has increased the fees the company receives.
- Anthony Geisler, XPOF CEO, and other insiders are consistently selling their XPOF shares with more than $167.5 million worth of shares sold by insiders in 2023.
- Geisler's character and professional resume includes past fraudulent business activity, criminal arrest record and a culture of sexual harassment.
The report stated, "Franchised businesses are only as healthy as their franchisee base, and a large part of Xponential’s franchisee base is bleeding red ink every month … We believe the XPOF house of cards is beginning to fall."
Benzinga reached out to Xponential Fitness for comment on the short seller report, but has not received a response.
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XPOF Price Action: According to Benzinga Pro, Xponential Fitness shares are trading down by 34.5% at $16.45 at the time of publication.
Image: Mohamed_hassan from Pixabay
