Xponential Fitness, Inc.

Greetings and welcome to the Exponential Fitness, Inc. second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Avery Wanamik, Investor Relations. Thank you. You may begin.

Thank you, operator. Good afternoon, and thank you all for joining our conference call to discuss Exponential Fitness second quarter 2024 financial results. I am joined by Brenda Morris, lead director, Mark King, chief executive officer, and John Malone, chief financial officer. Sarah Luna, president, will join Mark and John for the question and answer A recording of this call will be posted on the investor section of our website at investor.exponential.com. We remind you that during this conference call, we will make certain forward-looking statements, including discussions of our business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligations to update the information provided on today's call. In addition, we will be discussing certain non-GAAP financial measures in this conference call. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release that was issued earlier today prior to this call. Please note that all numbers reported in today's prepared remarks refer to global figures unless otherwise noted. As a reminder, in order to ensure period-over-period comparability and consistent with our reporting methods since IPO, we present all KPIs on a fully pro forma basis. meaning for the full KPI history presented, we only include brands that are under our ownership as of the current reporting period. For the period ended June 30, 2024, this includes AKT, BFT, Club Pilates, Cycle Bar, Lindora, Pure Bar, Rumble, Stretch Lab, and Yoga 6. I will now turn the call over to Brenda Morris, Lead Director of Exponential Fitness.

Thanks, Avery, and thank you all for joining us this afternoon on Exponential's second quarter 2024 earnings conference call. During my brief tenure as interim CEO, I enjoyed the opportunity to speak with many of you. On behalf of the entire board, we thank you for your engagement and patience during our leadership transition. Prior to announcing Mark King as the new CEO, we had been in active discussions for some time about adding him to our board of directors. During that process, we got to know him well, and we are thrilled that he agreed to assume the CEO role in addition to joining the board. Mark has succeeded wherever he has been, rising from a territory sales representative to CEO in his 34 years at TaylorMade, growing sales and market share at Adidas, and most recently, adding 1,400 new locations and increasing international growth during his tenure at Taco Bell. The board is equally impressed with Mark's career-long focus on workplace culture, on franchisees, and on exceeding end-user expectations. We have full confidence in his ability to lead the company moving forward. and to further Exponential's mission of making health and wellness accessible to all. I'll now turn it over to Mark to share some high-level reflections from his first six weeks at the company.