Looking back on consumer discretionary - leisure facilities stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Xponential Fitness (NYSE: XPOF) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure facilities companies own and operate theme parks, fitness centers, bowling alleys, and other venue-based entertainment destinations, generating revenue from admissions, memberships, and on-site spending. Tailwinds include consumer preference for experiential spending, tourism recovery, and technology-enhanced guest experiences that support premium pricing. Headwinds are notable: high fixed costs, such as real estate, labor, and maintenance, make profitability highly sensitive to attendance fluctuations during economic slowdowns. Weather, pandemics, and safety incidents can disrupt operations unpredictably. Rising construction and labor costs inflate expansion budgets, while competition from at-home entertainment alternatives and other experiential options limits pricing power in many markets.

The 10 consumer discretionary - leisure facilities stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results.

Xponential Fitness (NYSE: XPOF)

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $60.71 million, down 21% year on year. This print fell short of analysts’ expectations by 5.1%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and EBITDA estimates.

Xponential Fitness delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 6.2% since reporting and currently trades at $6.95.

Read our full report on Xponential Fitness here, it’s free.

Best Q1: Live Nation (NYSE: LYV)

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Live Nation reported revenues of $3.79 billion, up 12.1% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 16.9% since reporting. It currently trades at $183.89.

Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Dave & Buster's (NASDAQ: PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $559.2 million, down 1.5% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and same-store sales estimates.

As expected, the stock is down 14.5% since the results and currently trades at $11.27.

Read our full analysis of Dave & Buster’s results here.

AMC Entertainment (NYSE: AMC)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.05 billion, up 21.2% year on year. This print surpassed analysts’ expectations by 9%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.

The stock is up 21.1% since reporting and currently trades at $1.93.

Read our full, actionable report on AMC Entertainment here, it’s free.

Callaway Golf Company (NYSE: CALY)

Formed between the merger of Callaway and Topgolf, Callaway Golf Company (NYSE: CALY) sells golf equipment and operates technology-driven golf entertainment venues.

Callaway Golf Company reported revenues of $687.5 million, up 9.2% year on year. This result beat analysts’ expectations by 5.5%. It was an exceptional quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Callaway Golf Company delivered the highest full-year guidance raise among its peers. The stock is up 26.7% since reporting and currently trades at $18.72.

Read our full, actionable report on Callaway Golf Company here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.