Xponential Fitness (NYSE:XPOF) ripped a 20.2% gain on Friday after beating revenue and EPS estimates with its Q3 earnings report.

Revenue was up 0.1% during the quarter to $80.5 million as increases in franchise and equipment revenues were largely offset by a $9.8 million decline in other service revenue, primarily attributable to the company's strategic shift away from company-owned transition studios.

On Wall Street, the measure approach by new Xponential Fitness (XPOF) CEO Mark King to balance growth, profitability, and franchisee relationships was highlighted by analysts as putting the company back on the right track.

Jefferies said new Xponential Fitness (XPOF) CEO King is focused on the right things for the long term. "We believe his decisions and strategic focus will lead to a more stable long-term growth story and allow shares to re-rate higher over time," updated analyst Randal Konik.

Roth MKM said it remains positive on Xponential Fitness (XPOF) following what it saw as a solid Q3 report. "The system continues to grow at a healthy pace with double-digit gains in membership and visitation, but fewer openings and some modest infrastructure investments mute margin leverage in 2025 and 2026," highlighted analyst George Kelly. The firm reiterated its Buy rating and $19 price target, with the stock trading at only 7.2X the 2025 EBITDA estimate.