Planet Fitness, Inc.

What they do

Planet Fitness operates bright, clean clubs of typically 20,000 square feet offering Planet Fitness-branded cardio, circuit and strength equipment and unlimited free fitness instruction in small groups, under its 'Judgement Free Zone' positioning. It sells a standard Classic Card membership starting at $15 per month for new members and a PF Black Card at $24.99 per month for new members that provides system-wide club access and guest privileges. As of June 30, 2026, 2,636 clubs were franchisee-owned and 294 were corporate-owned, and the company reported segments for Franchise, Corporate-owned clubs, and Equipment.

Revenue drivers

• Franchise segment — Includes royalties on franchisee club dues, National Advertising Fund (NAF) and Canadian Advertising Fund (CAF) revenue, and franchise and other fees. Q2 2026 revenue was $135.8 million, up 13.5% year over year, driven by a NAF rate increase to 3% for 2026 and higher royalty revenue.
• Corporate-owned clubs segment — Membership dues and fees from the 294 corporate-owned clubs throughout the U.S., Canada and Spain. Q2 2026 revenue was $143.9 million, up 3.5%, partly offset by $4.9 million of lower revenue after selling eight California clubs to a franchisee in August 2025.
• Equipment segment — Sells equipment to franchisee-owned clubs in the U.S., Canada, Mexico and Australia. Q2 2026 revenue was $85.6 million, up 4.1%, from higher sales to both new and existing franchisee-owned clubs.
• System-wide sales base — System-wide sales, defined as monthly dues and annual fees billed by the company and its franchisees, were $5.3 billion in 2025, of which $4.7 billion was attributable to franchisee-owned clubs and $552.2 million to corporate-owned clubs.

Recent performance

For the second quarter ended June 30, 2026, total revenue rose 7.1% to $365.2 million from $340.9 million a year earlier. Net income attributable to Planet Fitness, Inc. was $67.1 million, or $0.87 per diluted share, versus $58.0 million, or $0.69 per diluted share, in the prior-year period. Adjusted EBITDA increased to $152.8 million from $147.6 million, while adjusted net income decreased to $68.4 million, or $0.88 per diluted share, from $72.6 million, or $0.86 per diluted share. System-wide same club sales increased 1.7% and system-wide sales rose $66.6 million to $1.4 billion. The company opened 23 new clubs system-wide in the quarter and repurchased and retired approximately 4.0 million Class A shares for $200.0 million.

Strategy

Management said it is taking actions to communicate its differentiated welcoming, non-intimidating environment in the near term while developing a new marketing campaign aimed at a broader audience. The company initiated and expanded tests around pricing, member experience and retention, and expects to apply the learnings. During the second quarter it appointed Sudhanshu Priyadarshi as Chief Financial Officer President, International, and repurchased $200.0 million of Class A stock. As of June 30, 2026, Planet Fitness had contractual commitments to open approximately 800 new clubs.

Risks

• Member attraction and retention — The 10-K states that the company's and its franchisees' clubs may be unable to attract and retain members, which would materially and adversely affect results.
• Brand and competition — The 10-K cites the high level of competition in the health, fitness and wellness industry and the need to anticipate consumer preferences and maintain strategic partnerships.
• Information systems and cybersecurity — The 10-K warns that reliance on information systems and the occurrence of cyber incidents or deficiencies in cybersecurity could disrupt operations and harm reputation.
• Growth execution — The 10-K states that failure to successfully implement the growth strategy, or strains on management, employees, information systems and internal controls from planned growth, could adversely affect revenues and operating profits.

Outlook

The earnings release does not provide specific financial guidance. Management said it is moving quickly on near-term actions to communicate the brand's differentiated environment while developing a new marketing campaign for a broader audience in the coming months. It also cited pricing, member experience and retention tests currently underway, with learnings intended to enhance future performance. The company reported contractual commitments to open approximately 800 new clubs as of June 30, 2026.