Xponential Fitness Inc. (NYSE: XPOF) announced its board of directors has initiated a review of strategic alternatives to maximize shareholder value, according to a company statement.

The board's independent directors will evaluate potential alternatives including a sale of the company, merger, or another strategic or financial transaction. Xponential has engaged Jefferies LLC as its financial advisor for the strategic review process.

"Our Board is firmly focused on maximizing value for shareholders, and we are confident that undertaking a thorough and disciplined review of the opportunities available to the Company will determine the best path forward," said Rachel Lee and Lily Yang, independent directors on Xponential's board.

CEO Mike Nuzzo stated that while the board conducts this process, the company will continue executing its strategy to position its brands for success. Xponential operates boutique fitness franchise brands including Club Pilates, StretchLab, YogaSix, Pure Barre, and BFT.

The company also appointed Nicole Parent Haughey as an independent director. Jair Clarke, Chelsea A. Grayson and Bruce Haase stepped down from the board.

Parent Haughey brings nearly two decades of Wall Street experience and has held senior operating roles. She is founder of Halsey Loganberry Growth Advisors and serves on the board of Allegion plc (NYSE: ALLE). She previously served on the board of Altra Industrial Motion Corp, which was acquired by Regal Rexnord in 2023.

Xponential operates as a franchisor of boutique health and wellness brands with franchise agreements in 49 U.S. states, Puerto Rico, and 28 additional countries. The Irvine, California-based company's portfolio spans modalities including Pilates, barre, stretching, strength training and yoga.