👉 Background: F45 is the fitness franchise that started in Sydney and grew to over 2,300 franchises in over 63 countries. After its rapid growth and support from Mark Wahlberg, F45 listed on the NASDAQ at a valuation of nearly $2 billion.

👉 What happened: Investors of F45 were frustrated because it hadn't provided investors with an update of financial accounts since November 2022... until now. And it's not pretty. F45's financial accounts have been released for the 2022 calendar year, and they're uglier than a poorly executed burpee. They also reworked their 2021 revenue numbers because they were over-reported. Overall, they lost $370 million USD over the past two years.

👉 What else:  So, it's no surprise that F45 was booted from the NASDAQ when their valuation dropped to just $10 million. Seems like F45 needs a full-blown rehab session after lacking financial sustainability.

What's the key learning?

💡Financial sustainability isn't just a buzzword, it's the backbone of any long-term business strategy.

💡F45 was so focused on growth (or “gains” in the gym world), it forgot all about operating a sustainable business. In F45's case, it burned through more than $370 million USD during 2021 and 2022 in an effort to grow at all costs.

💡But the good times just didn't keep rolling - so F45 became very vulnerable to changes in the market and changes in consumer behaviour.

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