Planet Fitness Raises EPS Outlook as Same-Club Growth Slows
Second-quarter revenue rose 7.1% to $365.2 million, sharply decelerating from the first quarter.
Planet Fitness Inc. (PLNT), the fitness-center franchiser, reported slower second-quarter same-club sales growth as its location base expanded without a sequential increase in membership. System-wide same-club sales rose 1.7%, down from 3.5% in the first quarter.
Membership remained about 21.5 million from March 31 through June 30, while the club count increased by 21 to 2,930. New-club openings accelerated to 23 from 15 in the first quarter, including two corporate-owned locations.
Revenue increased 7.1% from a year earlier, compared with 21.9% growth in the first quarter, and rose about 8.3% sequentially. GAAP net income climbed 15.6% to $67.4 million, aided by a $12.5 million gain on the sale of Planet Fitness’s investment in Bravo Fit Holdings. Diluted GAAP earnings rose to $0.87 a share from $0.69, while adjusted earnings edged up to $0.88 a share.
Adjusted EBITDA increased 3.5% to $152.8 million, trailing revenue growth and narrowing the margin to about 41.8% from 43.3% a year earlier. Adjusted net income fell 5.7% to $68.4 million, though a lower diluted share count supported adjusted earnings per share.
Franchise revenue rose 13.5% to $135.8 million, driven largely by an additional $10.1 million of National Advertising Fund revenue after the contribution rate increased to 3% from 2%. The matching increase in fund expense limited franchise adjusted EBITDA growth to 6.1% and reduced the segment margin to about 67.6% from 72.3%.
Corporate-owned-club revenue increased 3.5% to $143.9 million, while adjusted EBITDA rose 1.6%; the August 2025 sale of eight California clubs reduced revenue by $4.9 million. Equipment revenue grew 4.1% to $85.6 million, but replacement-equipment discount timing contributed to an 8.0% decline in segment adjusted EBITDA.
Planet Fitness reiterated its 2026 forecasts for about 1% same-club sales growth, 7% revenue growth and 6% adjusted EBITDA growth, along with 180 to 190 new-club openings. It raised its adjusted diluted EPS growth forecast to about 6% from 4% because repurchases reduced the expected share count, while lowering its adjusted-net-income outlook to a decline of about 3% and increasing expected net interest expense to roughly $115 million.
The company repurchased about $200 million of shares during the quarter, up from $50 million in the first quarter. Cash and marketable securities fell by $107.6 million sequentially to $544.4 million, underscoring the role of buybacks in the higher per-share forecast as operating growth moderated.