Executive Summary

Record quarter: Revenue $61.8M (+242% Y/Y), Adjusted EBITDA $25.9M (+376% Y/Y), and net income $14.8M, driven by >300 World Pack deliveries and continued U.S. strength .
KPIs healthy: Global SSS +6% (U.S. +53%), system-wide sales $113.9M (+27%), visits 6.7M (+7%); 290 net franchises sold and 131 net studio openings in Q4 .
2022 guidance: Revenue $255–$275M and Adj. EBITDA $90–$100M; ~1,000 net franchises sold and ~1,000 net openings; CFO on the call referenced $265–$275M revenue (vs $255–$275M in PR) .
Stock catalysts: Accelerating U.S. AUVs now above pre-pandemic and >3 visits/week, 1,200 equipment packs secured supporting the 2022 opening cadence, and a deep multi‑unit backlog; potential concern around sustainability of elevated equipment margins (2021 benefited from volume rebate) .

What Went Well and What Went Wrong

What Went Well
- Record top-line and profitability: Q4 revenue $61.8M (+242% Y/Y), Adj. EBITDA $25.9M (+376% Y/Y), gross margin 72% (mix and better equipment margins) .
- U.S. strength and engagement: U.S. revenues were $47.1M in Q4 (+291% Y/Y) with AUVs above pre-pandemic and visits >3 per week, supporting recurring royalties .
- Strategic execution: Secured ~1,200 equipment packs for 2022, aiding opening cadence; robust multi‑unit pipeline and plan to keep equipment margins within 40–50% via pricing and scale .
- Quote: “We… set a record sales pace of over 1,000 franchise sales for the full year… and opened over 300 franchises globally… despite lingering impacts of the COVID-19 pandemic” .
What Went Wrong
- Non‑recurring items and cost noise: Q4 SG&A $36.8M vs $26.1M LY on one-time legal, relocation, stock comp and COVID concessions; full‑year SG&A $182.7M (public-company and growth costs) .
- Margin sustainability watch: 2021 equipment gross margins aided by a supplier volume rebate; normalized target is 40–50%—a headwind if rebates don’t recur .
- Operational lag: Fit-out and approvals extend time from equipment delivery to opening (typically 3–9 months), pushing more openings into 2H timing .

Financial Results

Metric	Q4 2020	Q3 2021	Q4 2021
Revenue ($M)	$18.1	$27.2	$61.8
Franchise Revenue ($M)	$12.8	$18.5	$21.5
Equipment & Merchandise Revenue ($M)	$5.3	$8.7	$40.4
Gross Profit ($M)	$9.4	$19.8	$44.8
Gross Margin %	52%	72.8%	72%
Net Income (Loss) ($M)	$(32.8)	$(130.2)	$14.8
Adjusted EBITDA ($M)	$5.5	$10.1	$25.9
Adjusted EBITDA Margin %	30.2%	37.2%	42%

Notes: GAAP EPS for Q4 was not disclosed in the 8‑K; company reported quarterly net income ($14.8M). Full-year per-share data was provided separately .

Geographic revenue mix and progression:

Region	Q3 2021 Revenue ($M)	Q4 2021 Revenue ($M)	Q4 2021 Y/Y Growth
United States	$15.3	$47.1	+291%
Australia	$6.6	$3.8	+426%
Rest of World	$5.3	$10.9	+107%

Key KPIs

KPI	Q3 2021	Q4 2021
Same-Store Sales (Global)	+6%	+6%
Same-Store Sales (U.S.)	+67%	+53%
System-wide Sales ($M)	$99.4	$113.9
System-wide Visits (M)	6.4	6.7
Net Franchises Sold (units)	210	290
Net Initial Studio Openings (units)	63	131

Balance Sheet (year-end context): Cash $42.0M, no debt outstanding; $89–90M revolver capacity as of 12/31/21; revolver partially drawn post‑year‑end to fund equipment purchases .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net New Franchises Sold	FY 2022	n/a (first formal issuance)	~1,000	New
Net Initial Studio Openings	FY 2022	n/a	~1,000; back‑half weighted	New
Revenue	FY 2022	n/a	$255–$275M (press release) ; CFO: $265–$275M (call)	New; oral remarks at high end
Adjusted EBITDA	FY 2022	n/a	$90–$100M	New

Disclosure note: The call commentary referenced revenue $265–$275M vs $255–$275M in the press release; management is “comfortable” with guidance as set .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2021, Q3 2021)	Current Period (Q4 2021)	Trend
Supply chain & equipment	Q2: Strong growth; acknowledged uncertainty; World Pack deliveries recovered . Q3: Port congestion; proactive inventory and manufacturer capacity; backlog visibility .	Secured ~1,200 equipment packs for 2022; Q4 equipment revenue $40.4M; equipment margin aided by supplier rebate; target 40–50% margin via pricing/scale .	Improving availability; margins normalize toward 40–50%.
Multi‑unit strategy	Q2: 554 net franchises sold; strong investor interest . Q3: 65% of franchises sold owned by multi‑unit; large ROW deals; pipeline robust .	Majority of backlog is multi‑unit; plan 2–3 large portfolios in 2022; avg owner ~20 units over time .	Accelerating scale with disciplined partner selection.
Real estate/openings cadence	Q3: CBRE partnership to compress ~9‑month timeline; F45 Playbook visibility .	Fit‑out 3–9 months; expect openings 4–5 months post World Pack delivery; more openings Q2/Q3 .	Gradual compression; still multi‑month lag.
AUVs & engagement	Q3: U.S. AUVs exceeded pre‑COVID; 3M U.S. quarterly visits .	AUVs above pre‑COVID; >3 visits per week on average .	Improving.
New modalities & brand	Q3: FS8, Malibu Crew, Avalon House; Vive Active acquisition .	Investing in modalities; small company‑owned studios for proof‑of‑concept in 2022 .	Expanding portfolio.
Pricing & positioning	—	Premium stance maintained (“Ferrari of training”); no discounting to chase volume .	Premium sustained.
Regional recovery	Q3: Australia closures; recovery post‑quarter .	92% studios open globally and 97% in U.S. at Q4 end; recovering in AU/ROW; near 100% U.S. as of call .	Improving.

Management Commentary

Strategy and ambition: “Our goal is to be the world’s fastest growing franchisor… our ability to achieve this goal has never been stronger” .
On 2021 performance and momentum: “Record revenues and Adjusted EBITDA… over 1,000 franchise sales… over 300 franchises opened globally” .
On engagement and unit economics: “Average visits per week… now over three… AUVs are above pre‑pandemic levels” .
On supply chain and 2022 execution: “We have secured 1200 equipment packs for delivery in 2022… bulk purchases enable savings and mitigate cost increases” .
On premium pricing: “We are the Ferrari of training… we enjoy being the Ferrari of training… absolutely not [cutting prices]” .
On equipment margins: “We will maintain a 40% to 50% margin across our geographies moving forward… protecting… with pricing if required” .

Q&A Highlights

AUV ramp and pricing: Management expects a return to pre‑COVID 3‑year AUV ramp, profitability in ~6 months post‑opening; reiterated premium positioning and capacity constraints as reasons not to discount .
Opening cadence: World Pack delivery to opening typically 4–5 months; fit‑out 3–9 months; expect the cohort to open through Q2/Q3 .
Multi‑unit pipeline: Intend to add 2–3 >100‑unit portfolios in 2022; average franchisee could own ~20 studios over time; >80% of multi‑unit franchisees increased portfolios .
Equipment margins sustainability: 2021 margins aided by a volume rebate; normalized 40–50% targeted via pricing, scale and logistics efficiencies (e.g., 3 packs in 2 containers) .
Definition change for openings: From revenue threshold to actual opening date via CRM tagging starting Oct 1, 2021 for cleaner operational tracking .
Cash flow normalization: 2021 operating cash outflow impacted by COVID fee relief and IPO one‑times; 2022 expected to normalize with strong FCF generation .

Estimates Context

S&P Global consensus for Q4 2021 EPS/Revenue/EBITDA was unavailable for FXLV via our connector at the time of analysis; therefore, beats/misses vs consensus could not be determined (consensus data unavailable from S&P Global).

Key Takeaways for Investors

Momentum inflection: Q4 delivered record revenue/EBITDA and returned to GAAP profitability; U.S. AUVs and engagement are above pre‑COVID levels—constructive for recurring royalties and margin mix .
2022 visibility: Secured 1,200 equipment packs and a deep multi‑unit backlog provide line‑of‑sight to ~1,000 openings; watch real estate/fit‑out cadence as the key gating factor .
Margin watch: Elevated equipment margins in 2021 benefited from a volume rebate; management aims to sustain 40–50% via pricing/scale—monitor execution as inflation normalizes .
Premium strategy intact: No discounting strategy—supports brand equity and visit frequency but caps member count per studio; growth lever remains densification and multi‑unit expansion .
Guidance nuance: Revenue guidance communicated as $255–$275M in the PR, but $265–$275M on the call; read‑through suggests confidence toward the upper half of the range .
Regional recovery: High percentage of studios open globally/US; AU/ROW are recovering, a tailwind to SSS/system‑wide sales through 2022 if restrictions remain limited .
Near‑term trading setup: Positive narrative momentum (record quarter, robust 2022 guide, backlog) vs. a watchlist of execution factors (opening cadence, equipment margin normalization, SG&A discipline) likely drives stock reactions around quarterly updates .

F45 Training Holdings Inc. (FXLV)·Q4 2021 Earnings Summary