Breaking Down F45 Training Holdings Inc. (FXLV) Financial Health: Key Insights for Investors

Are you an investor trying to understand the financial stability of F45 Training Holdings Inc. (FXLV)? How did FXLV's share price plummet by -80.50% in the last fiscal year (FY2024), closing at just $0.0975 after starting at $0.5? Did you know that analysts had forecasted an EPS of $0.0725 and revenue of $50.74M for the period ending December 2024? Dive in to discover more about FXLV's financial performance, key ratios, and what these numbers might suggest for the company's future.

F45 Training Holdings Inc. (FXLV) Revenue Analysis

F45 Training Holdings Inc. (FXLV) generates revenue primarily through several key streams. These include franchise fees from studios, equipment sales, and royalties based on studio performance. Understanding these streams is crucial for assessing the company's financial health and growth potential.

Analyzing F45 Training Holdings Inc.'s (FXLV) revenue streams involves looking at the contribution of different business segments to the overall revenue. Franchise fees and royalties from studio operations are significant components, reflecting the company's reliance on its global network of fitness studios. Equipment sales to new and existing studios also form a notable part of the revenue. Here's a breakdown of what to consider:

• Franchise Fees: Initial fees paid by franchisees to start an F45 studio.
• Royalties: Ongoing percentage of revenue paid by franchisees.
• Equipment Sales: Revenue from selling fitness equipment to studios.
• Other Revenue: Additional sources such as merchandise and training programs.

To provide a clearer picture, a detailed table illustrating the revenue breakdown by segment and region would be beneficial. However, without specific 2024 fiscal year data, a hypothetical example is provided below for illustrative purposes:

Year-over-year revenue growth is a critical indicator of F45 Training Holdings Inc.'s (FXLV) performance. Analyzing historical trends, including percentage increases or decreases, provides insights into the company's ability to expand and maintain its market position. Significant changes in revenue streams, such as a decline in franchise fees or an increase in equipment sales, can signal shifts in the business model or market dynamics. Investors should closely monitor these trends to assess the company's long-term viability and growth prospects.

For additional insights into the company's direction, see Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV).

F45 Training Holdings Inc. (FXLV) Profitability Metrics

Assessing the profitability of F45 Training Holdings Inc. (FXLV) involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins, which provide insights into the company's efficiency and overall financial health. Analyzing these metrics over time and comparing them against industry averages can reveal important trends and competitive positioning.

Here's a breakdown of key profitability aspects:

• Gross Profit: This is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently F45 Training manages its production costs.
• Operating Profit: This metric subtracts operating expenses (such as administrative and marketing costs) from the gross profit. It reflects the profitability of the company's core business operations before considering interest and taxes.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, are deducted from revenue. It represents the actual profit available to shareholders.

To fully understand F45 Training Holdings Inc.'s profitability, it's essential to consider these figures in the context of the 2024 fiscal year. Let's explore some potential ways to evaluate this:

Analyzing Profit Margins:

Profit margins are key indicators of financial health. Here’s how to interpret them:

• Gross Profit Margin: (Gross Profit / Revenue) x 100. A higher percentage indicates greater efficiency in managing production costs.
• Operating Profit Margin: (Operating Profit / Revenue) x 100. This shows how well the company controls its operating expenses.
• Net Profit Margin: (Net Profit / Revenue) x 100. This indicates the percentage of revenue that translates into profit.

Trends in Profitability Over Time

Examining trends in F45 Training's profitability over several periods can reveal whether the company's financial performance is improving or declining. Consistent growth in profit margins indicates strong financial management and operational efficiency.

Comparison with Industry Averages

Comparing F45 Training's profitability ratios with industry averages provides a benchmark for assessing its competitive positioning. If the company's margins are higher than the industry average, it suggests a competitive advantage. Conversely, lower margins may indicate areas needing improvement.

Operational Efficiency and Cost Management

Operational efficiency plays a crucial role in profitability. Effective cost management and optimized business processes can lead to higher profit margins. Analyzing the trend of the gross margin can provide insights into the company’s ability to control production costs and improve efficiency.

For instance, a hypothetical scenario for 2024 could look like this:

Understanding these metrics provides a comprehensive view of F45 Training Holdings Inc.'s financial health, enabling investors to make informed decisions.

Delve deeper into investor insights: Exploring F45 Training Holdings Inc. (FXLV) Investor Profile: Who’s Buying and Why?

F45 Training Holdings Inc. (FXLV) Debt vs. Equity Structure

Understanding how F45 Training Holdings Inc. (FXLV) finances its operations is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities.

Here's an overview of F45 Training Holdings Inc.'s (FXLV) debt levels:

• The company's financial strength is ranked at 1, indicating potential financial distress due to high debt.
• As of a recent period, the company had $34.45 million in cash and $148.57 million in debt, resulting in a net debt of -$114.13 million.

The debt-to-equity ratio provides insights into the proportion of debt and equity used to finance the company's assets.

• Insufficient data is available to accurately calculate FXLV's net debt-to-equity ratio.
• For the quarter that ended in June 2023, F45 Training Holdings's debt to revenue ratio was 2.15.
• The debt to equity ratio was reported as -1.73 as of March 2025.

Recent debt issuances, credit ratings, and refinancing activities reflect the company's efforts to manage its debt obligations.

• In February 2023, F45 Training closed a new $90 million subordinated debt facility led by Kennedy Lewis.
• The new facility has a five-and-a-half-year term, with interest to be paid in kind and the net proceeds were used for general corporate purposes and partial paydown of existing credit facilities.

Balancing debt financing and equity funding is essential for sustainable growth.

• Issuing new debt securities would give debt holders rights senior to common stockholders, potentially restricting the company's operations and ability to pay dividends.
• Issuing additional equity securities would dilute existing stockholders and could give new equity securities rights senior to those of common stock.

For additional insights into F45 Training Holdings Inc. (FXLV), you might find this resource helpful: Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV).

F45 Training Holdings Inc. (FXLV) Liquidity and Solvency

When evaluating a company's financial health, liquidity and solvency are critical indicators. Liquidity refers to the ability of a company to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities. Analyzing these aspects of F45 Training Holdings Inc. (FXLV) provides insights into its financial stability and sustainability.

Assessing F45 Training Holdings Inc.'s Liquidity

Several key ratios and financial statements help in assessing F45 Training Holdings Inc.'s (FXLV) liquidity position:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. For F45 Training Holdings Inc. (FXLV), the current ratio is 1.52.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, provides a more conservative view of liquidity. The quick ratio for FXLV is 0.71.

These ratios offer a snapshot of the company's ability to cover its immediate liabilities.

Analysis of Working Capital Trends

Working capital, the difference between a company's current assets and current liabilities, is a fundamental measure of its short-term financial health. Trends in working capital can indicate whether a company is efficiently managing its resources. However, comprehensive data on F45 Training Holdings Inc.'s (FXLV) working capital trends over the past few years is needed to provide a detailed analysis.

Cash Flow Statements Overview

Cash flow statements provide a detailed look at how a company generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends can reveal strengths and weaknesses in F45 Training Holdings Inc.'s (FXLV) financial management.

• Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations.
• Investing Activities: This section includes cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment. For the three months ended in Jun. 2023, F45 Training Holdings's (FXLV) cash flow for capital expenditures was -0.32 Mil. Its cash flow for capital expenditures for the trailing twelve months (TTM) ended in Jun. 2023 was $-5.14 Mil.
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

By examining these trends, investors can gain a better understanding of the company's overall financial health.

Potential Liquidity Concerns and Strengths

Based on available data, here's an overview of potential liquidity concerns and strengths for F45 Training Holdings Inc. (FXLV):

• Market Cap: $6.08 million
• Enterprise Value: $120.21 million
• The company has 34.45 million in cash and 148.57 million in debt, giving a net cash position of -114.13 million or -1.15 per share.

For additional insights into the investors of F45 Training Holdings Inc. (FXLV), you might find this resource helpful: Exploring F45 Training Holdings Inc. (FXLV) Investor Profile: Who’s Buying and Why?

F45 Training Holdings Inc. (FXLV) Valuation Analysis

Determining whether F45 Training Holdings Inc. (FXLV) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. Let's delve into these aspects to provide a clearer picture of FXLV's valuation.

Currently, comprehensive real-time data for specific ratios like price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) for F45 Training Holdings Inc. (FXLV) is not available. These ratios are critical for assessing market valuation relative to earnings, book value, and operational cash flow. The absence of this data makes a definitive declaration on overvaluation or undervaluation challenging.

To evaluate FXLV's valuation, consider these factors:

• Stock Price Trends: Examine FXLV's stock price movement over the past year to understand market sentiment and historical performance.
• Analyst Consensus: Look for analyst ratings (buy, hold, or sell) and price targets to gauge professional opinions on the stock's potential value.

Given the data limitations, a conclusive statement on whether FXLV is currently overvalued or undervalued cannot be made. Investors should conduct thorough due diligence, considering the factors mentioned above and consulting with financial advisors before making any investment decisions. For further insights, you might find this resource helpful: Breaking Down F45 Training Holdings Inc. (FXLV) Financial Health: Key Insights for Investors.

F45 Training Holdings Inc. (FXLV) Risk Factors

Investing in F45 Training Holdings Inc. (FXLV) involves navigating a landscape of both internal and external risks that could significantly impact its financial health. These risks span from intense industry competition to the ever-evolving regulatory environment and fluctuating market conditions. Understanding these factors is crucial for investors aiming to make informed decisions.

Here's a breakdown of key risks:

• Industry Competition: The fitness industry is highly competitive, with numerous established players and new entrants vying for market share. This competition can pressure F45 Training Holdings Inc. (FXLV)'s pricing, marketing expenses, and overall profitability.
• Regulatory Changes: Changes in regulations related to health and safety standards, franchise operations, or consumer protection laws could increase compliance costs and potentially disrupt F45 Training Holdings Inc. (FXLV)'s business model.
• Market Conditions: Economic downturns or shifts in consumer preferences towards alternative fitness activities could reduce demand for F45 Training Holdings Inc. (FXLV)'s services, impacting revenue and growth.

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Operational Risks: These might involve challenges in managing franchise relationships, ensuring consistent service quality across locations, or effectively scaling operations to meet growing demand.
• Financial Risks: Potential financial risks could include high levels of debt, difficulty in securing financing for expansion, or fluctuations in cash flow due to seasonal demand or unforeseen events.
• Strategic Risks: Strategic risks might involve the failure to adapt to changing consumer preferences, unsuccessful expansion into new markets, or ineffective marketing strategies.

Mitigation strategies are crucial for addressing these risks. While specific plans may vary, common strategies include:

• Diversification: Expanding service offerings or targeting new customer segments to reduce reliance on a single market or demographic.
• Cost Management: Implementing measures to control expenses and improve operational efficiency.
• Innovation: Continuously innovating and adapting to changing consumer preferences through new workout programs, technology integration, or enhanced customer experiences.
• Compliance: Maintaining strict adherence to all applicable regulations and standards to avoid legal or reputational risks.

For further insights into F45 Training Holdings Inc. (FXLV)'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV).

F45 Training Holdings Inc. (FXLV) Growth Opportunities

For F45 Training Holdings Inc. (FXLV), several factors could influence its future growth prospects. These include product innovations, market expansions, strategic initiatives, and competitive advantages.

Analysis of key growth drivers:

• Product Innovations: Continued development and introduction of new workout programs and fitness challenges to keep members engaged and attract new customers.
• Market Expansions: Expanding the franchise network into new geographic regions, both domestically and internationally, and increasing the penetration in existing markets.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies that can enhance the company's offerings or expand its market reach.

Future revenue growth projections and earnings estimates are not available for fiscal year 2024 in the provided search results.

Strategic initiatives or partnerships that may drive future growth:

• Technology Integration: Further integration of technology into the workout experience, such as wearable devices and data analytics, to personalize training and track progress.
• Partnerships: Collaborating with complementary businesses, such as nutrition companies or athletic apparel brands, to offer bundled products and services and reach new customers.
• Digital Presence: Enhancing the company's digital presence through online training programs, virtual classes, and social media engagement to reach a wider audience.

Competitive advantages that position the company for growth:

• Brand Recognition: Strong brand recognition and reputation for effective and innovative workout programs.
• Franchise Model: Scalable franchise model that allows for rapid expansion with limited capital investment.
• Community Focus: Emphasis on creating a supportive and engaging community environment within its studios, fostering member loyalty and retention.

For more insights into the company's strategic direction, consider exploring: Mission Statement, Vision, & Core Values of F45 Training Holdings Inc. (FXLV).