Financial Model · 2027–2031
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A bottom-up operating model across three revenue pillars: company-owned flagships, franchised studios, and direct device sales. All figures in USD. Fiscal years 2027–2031.
| Line item | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Company-owned studios | |||||
| New studios | 1 | 1 | 2 | 3 | 4 |
| Cumulative studios | 1 | 2 | 4 | 7 | 11 |
| Company-owned revenue | 3,182,400 | 6,739,200 | 14,077,440 | 25,159,680 | 40,360,320 |
| Franchised studios | |||||
| New franchised studios | 0 | 2 | 6 | 10 | 15 |
| Cumulative franchised | 0 | 2 | 8 | 18 | 33 |
| Initial franchise fees | 0 | 150,000 | 450,000 | 750,000 | 1,125,000 |
| Recurring royalty | 0 | 96,000 | 384,000 | 864,000 | 1,584,000 |
| Hardware sales to franchisees | 0 | 883,575 | 2,783,261 | 4,870,707 | 7,671,364 |
| Service revenue from franchisees | 0 | 16,632 | 69,854 | 165,031 | 317,685 |
| Franchised revenue | 0 | 1,146,207 | 3,687,116 | 6,649,738 | 10,698,049 |
| Direct device sales | |||||
| Hardware units sold | 8 | 25 | 60 | 120 | 200 |
| Hardware revenue | 696,960 | 2,286,900 | 5,762,988 | 12,102,275 | 21,178,981 |
| Service revenue (after Yr-1) | 0 | 38,981 | 98,233 | 206,289 | 361,005 |
| Direct device revenue | 696,960 | 2,325,881 | 5,861,221 | 12,308,564 | 21,539,986 |
| Total revenue | 3,879,360 | 10,211,288 | 23,625,776 | 44,117,982 | 72,598,355 |
| Recurring revenue | 1,272,960 | 3,088,253 | 7,206,807 | 14,209,144 | 24,894,882 |
| Recurring % of total | 32.8% | 30.2% | 30.5% | 32.2% | 34.3% |
| Line item | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Revenue | 3,879,360 | 10,211,288 | 23,625,776 | 44,117,982 | 72,598,355 |
| Company-owned studios | 3,182,400 | 6,739,200 | 14,077,440 | 25,159,680 | 40,360,320 |
| Franchised studios | 0 | 1,146,207 | 3,687,116 | 6,649,738 | 10,698,049 |
| Direct device sales | 696,960 | 2,325,881 | 5,861,221 | 12,308,564 | 21,539,986 |
| Cost of goods sold | |||||
| Hardware COGS | (360,000) | (1,535,625) | (3,850,031) | (7,090,474) | (11,183,138) |
| Service & royalty COGS | 0 | (50,052) | (151,278) | (334,188) | (610,821) |
| Gross profit | 3,519,360 | 8,625,611 | 19,624,467 | 36,693,320 | 60,804,396 |
| Gross margin | 90.7% | 84.5% | 83.1% | 83.2% | 83.8% |
| Operating expenses | |||||
| Sales & marketing (general) | (581,904) | (1,225,355) | (2,362,578) | (3,529,439) | (5,081,885) |
| Athlete & influencer marketing | (2,000,000) | (1,000,000) | (750,000) | (500,000) | (400,000) |
| Studio operating costs | (1,050,000) | (2,200,000) | (4,600,000) | (8,400,000) | (13,750,000) |
| AQT protection plan | (8,000) | (16,000) | (32,000) | (56,000) | (88,000) |
| G&A (fixed) | (750,000) | (900,000) | (1,100,000) | (1,300,000) | (1,500,000) |
| Total operating expenses | (4,389,904) | (5,341,355) | (8,844,578) | (13,785,439) | (20,819,885) |
| EBITDA | (870,544) | 3,284,257 | 10,779,889 | 22,907,881 | 39,984,511 |
| EBITDA margin | -22.4% | 32.2% | 45.6% | 51.9% | 55.1% |
| Depreciation & amortization | (460,714) | (854,809) | (1,650,948) | (2,790,188) | (4,222,064) |
| Taxes (25%) | 0 | (607,362) | (2,282,235) | (5,029,423) | (8,940,612) |
| Net income | (1,331,258) | 1,822,086 | 6,846,706 | 15,088,270 | 26,821,836 |
| Net margin | -34.3% | 17.8% | 29.0% | 34.2% | 36.9% |
| Line item | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Operating activities | |||||
| Net income | (1,331,258) | 1,822,086 | 6,846,706 | 15,088,270 | 26,821,836 |
| + Depreciation & amortization | 460,714 | 854,809 | 1,650,948 | 2,790,188 | 4,222,064 |
| + Increase in accounts payable | 390,403 | 178,942 | 486,481 | 687,470 | 937,294 |
| + Increase in accrued expenses | 61,644 | 12,329 | 16,438 | 16,438 | 16,438 |
| − Increase in accounts receivable | (159,426) | (260,216) | (551,280) | (842,145) | (1,170,426) |
| Cash from operations | (577,923) | 2,607,949 | 8,449,293 | 17,740,220 | 30,827,205 |
| Investing activities | |||||
| Capex · studio buildout | (3,000,000) | (3,000,000) | (6,000,000) | (9,000,000) | (12,000,000) |
| Capex · company-owned hardware | (225,000) | (219,375) | (427,781) | (625,630) | (813,319) |
| Total investing | (3,225,000) | (3,219,375) | (6,427,781) | (9,625,630) | (12,813,319) |
| Financing activities | |||||
| Seed capital raise | 7,500,000 | 0 | 0 | 0 | 0 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 |
| Net cash flow | 3,697,077 | (611,426) | 2,021,512 | 8,114,590 | 18,013,886 |
| Beginning cash balance | 0 | 3,697,077 | 3,085,651 | 5,107,163 | 13,221,754 |
| Ending cash balance | 3,697,077 | 3,085,651 | 5,107,163 | 13,221,754 | 31,235,640 |
| Line item | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Assets | |||||
| Cash & equivalents | 3,697,077 | 3,085,651 | 5,107,163 | 13,221,754 | 31,235,640 |
| Accounts receivable | 159,426 | 419,642 | 970,922 | 1,813,068 | 2,983,494 |
| Net fixed assets (PP&E) | 2,764,286 | 5,128,852 | 9,905,686 | 16,741,128 | 25,332,383 |
| Total assets | 6,620,789 | 8,634,145 | 15,983,771 | 31,775,949 | 59,551,517 |
| Liabilities | |||||
| Accounts payable | 390,403 | 569,345 | 1,055,826 | 1,743,296 | 2,680,590 |
| Accrued expenses | 61,644 | 73,973 | 90,411 | 106,849 | 123,288 |
| Total liabilities | 452,047 | 643,318 | 1,146,237 | 1,850,145 | 2,803,878 |
| Equity | |||||
| Common equity (seed) | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 |
| Retained earnings | (1,331,258) | 490,828 | 7,337,534 | 22,425,804 | 49,247,639 |
| Total equity | 6,168,742 | 7,990,828 | 14,837,534 | 29,925,804 | 56,747,639 |
| Total liabilities + equity | 6,620,789 | 8,634,145 | 15,983,771 | 31,775,949 | 59,551,517 |
| Company-owned studio | Year 1 | Year 5 |
|---|---|---|
| Total revenue / studio / yr | 3,231,900 | 3,729,288 |
| Treatment revenue | 3,182,400 | 3,669,120 |
| Recurring (5 units) | 49,500 | 60,168 |
| Studio operating cost / yr | (1,050,000) | (1,250,000) |
| Contribution margin | 67.5% | 66.5% |
| Hardware gross margin | 54.5% | 66.2% |
| Operator payback | 19.6 mo | 17.7 mo |
| Franchisee studio | Year 1 | Year 5 |
|---|---|---|
| Total investment | 1,095,750 | 1,186,424 |
| Hardware (5 units, −15%) | 420,750 | 511,424 |
| Franchise fee + buildout | 675,000 | 675,000 |
| Annual treatment revenue | 2,618,000 | 3,665,200 |
| Net operating profit | 1,570,500 | 2,457,032 |
| Payback period | 8.4 mo | 5.8 mo |
| 5-yr net return multiple | 7.2× | 10.4× |
Exit multiples benchmarked to public/private comparables in connected fitness, wellness, and medical devices. Recurring revenue (30–36% of total) supports higher multiples than pure hardware businesses (3–6× revenue). All scenarios substantially exceed the typical seed target of 3–5× MOIC. Clean common-equity view; liquidation preferences and anti-dilution not modeled.