Voss Capital’s Updates on Xponential Fitness (XPOF)

XPOF +1.43% ^GSPC +0.39%

Voss Capital, LLC, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +5.0% and +4.9% to investors net of fees and expenses respectively, in the third quarter compared to a +12.4% return for the Russell 2000 Index, +12.6% return for the Russell 2000 Value Index, and +8.3% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 205.4% and the net long exposure was 95.8% as of September 30, 2025. The weight of the fund’s top 10 longs was 77.8% and the top 10 shorts were -43.5%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Voss Capital highlighted stocks such as Xponential Fitness, Inc. (NYSE:XPOF). Xponential Fitness, Inc. (NYSE:XPOF) is a North America-based boutique fitness franchisor. The one-month return of Xponential Fitness, Inc. (NYSE:XPOF) was 3.10%, and its shares lost 56.99% of their value over the last 52 weeks. On December 01, 2025, Xponential Fitness, Inc. (NYSE:XPOF) stock closed at $6.65 per share, with a market capitalization of $325.232 million.

Voss Capital stated the following regarding Xponential Fitness, Inc. (NYSE:XPOF) in its third quarter 2025 investor letter:

We believe Xponential Fitness (XPOF) currently represents one of the most asymmetric risk/reward profiles in our portfolio. The stock is trading at roughly 7x 2025 estimated EBITDA and ~6x consensus 2026 EBITDA, a valuation that in our view also implies terminal decline. For context, this is a discount of approximately 66% relative to its closest peer, Planet Fitness (trading at ~20-21x). The market’s bearish narrative has shifted from governance and regulatory concerns to a "growth stall" narrative following Q3 same-store sales (“SSS”) of -1%. However, our diligence suggests this headline metric masks a bullish reality regarding unit economics and intrinsic value from a franchisor and franchisee point of view.

Xponential Fitness, Inc. (NYSE:XPOF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Xponential Fitness, Inc. (NYSE:XPOF) at the end of the third quarter, which was 27 in the previous quarter. In Q3 2025, Xponential Fitness, Inc. (NYSE:XPOF) reported revenue of $78.8 million, compared to $80.5 million in Q3 2024. While we acknowledge the potential of Xponential Fitness, Inc. (NYSE:XPOF) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Xponential Fitness, Inc. (NYSE:XPOF) and shared Bristlemoon Global Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.