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Soumya Eswaran
3 min read
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.
