F45 reaches 10 years of operations

May 16, 2023

Nigel Benton

F45 Training has taken to social media over recent days to highlight that it has reached 10 years of operations.

While mainstream news outlets continue to focus on the challenges facing its now USA-based operations, social media posts from the group have pointed to F45’s ‘10 years of innovation and results’ and ‘10 years of changing lives … and we're just getting started’.

Locally, Australian media have focussed on a small number of closures and sales among F45’s chain of 500 clubs.

Generally seen as being a strong franchise model, the Australian-founded fell foul of offering overly optimistic revenue projections prior to growth projects in advance of its debut on the New York Stock Exchange (NYSE) which saw the company valued at in excess of US$1.46 billion.

A year later when it reduced annual revenue projections to US$120 to US$130 million, compared to prior guidance of US$255 to $275 million, the Austin, Texas, USA-based company laid off almost half of its corporate staff while co-founder Adam Gilchrist, who had been President, Chief Executive and Chairman of the board of directors, stepped down from those roles while remaining on the board.

However, as of April this year, Gilchrist who is understood to currently be under 24 hour security protection as a result of alleged debts owed to a range of parties, resigned as a member of F45 Training Holdings’ board of directors.

During this time, the publicly traded company’s US share price has plunged 93% from its peak.

According to reports, past F45 backers David Beckham and Greg Norman are suing the company in a US court case, claiming they are owed a combined US$22.5million for their promotion of the brand.

Meanwhile, several class actions have been launched in the USA, claiming the company misled investors about its finances and operations.

F45 Training delays US filings
Almost two months after declaring it had to delay filing its required filings form on its fourth quarter 2022 and full-year 2022 financials, F45 advised on 10th May that it was also delaying its latest filing for the first quarter 2023.

In the notification, F45 stated that “its focus is on the preparation, finalization and audit and review of the company’s financial statements to be included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Annual Report).”

As reported by Club Industry, F45 Training announced on 16^th March that it was unable to finalize the 2022 Form 10-K by the deadline.

Public companies have 90 days after the end of a quarter to file a Form 10-K or 10-Q with the Securities and Exchange Commission (SEC).

In March, the company said the delay on the 2022 filing was due to its company and independent registered public accounting firm needing additional time to complete certain items with respect to the form’s preparation and review processes, including management’s assessment of the effectiveness of the company’s internal controls over financial reporting for 2022.

It also said the recent appointment of an interim Chief Financial Officer was contributing to the delay. It repeated that claim in the notification of the delay of its first quarter 10-Q form, adding that the appointment of new Chief Executive Tom Dowd on 30th March was also contributing to the delay.

On 14th April 14, F45 received a notice from the NYSE that the company is not in compliance with NYSE rules due to its delayed filings.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.

With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.

Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.

In addition to publishing, Nigel speaks on marketing communications at a range of industry events.

He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).

In 2020, he launched the new Asian Leisure Business website.

As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.

Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.

His philosophy on life is to be kind to all and to indulge those that you love.

His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.

Click here to connect with him via LinkedIn.