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2 months ago
Planet Fitness, Inc. Announces First Quarter 2026 ResultsMay 7, 2026 6:30 AM
PR Newswire (US) System-wide same club sales increased 3.5%
Ended first quarter with total membership of approximately 21.5 million
Company updates 2026 outlookHAMPTON, N.H., May 7, 2026 /PRNewswire/ -- Today, Planet Fitness, Inc. (NYSE: PLNT) reported financial results for its first quarter ended March 31, 2026.First Quarter Fiscal 2026 HighlightsTotal revenue increased from the prior year period by 21.9% to $337.2 million.System-wide same club sales increased 3.5%.System-wide sales increased $88.0 million to $1.4 billion, from $1.3 billion in the prior year period.Net income attributable to Planet Fitness, Inc. was $51.6 million, or $0.65 per diluted share, compared to $41.9 million, or $0.50 per diluted share, in the prior year period.Net income increased $9.7 million to $51.8 million, compared to $42.1 million in the prior year period.Adjusted net income(1) increased $9.4 million to $59.4 million, or $0.74 per diluted share(1), compared to $50.0 million, or $0.59 per diluted share, in the prior year period.Adjusted EBITDA(1) increased $22.9 million to $139.9 million from $117.0 million in the prior year period.15 new Planet Fitness clubs were opened system-wide during the period, all of which were franchisee-owned, bringing system-wide total clubs to 2,909 as of March 31, 2026.Repurchased and retired 613,725 shares of Class A common stock using $50.0 million of cash on hand.Cash and marketable securities of $652.0 million, which includes cash and cash equivalents of $375.3 million, restricted cash of $81.2 million and marketable securities of $195.5 million as of March 31, 2026."In the first quarter, our top and bottom line results exceeded expectations. However, 2026 is off to a slower than expected start from a net member growth perspective as we faced internal and external headwinds during our peak sign-up period. As a result, we are sharpening our marketing to prioritize capturing demand and driving net member growth. Additionally, we are pausing the planned national Black Card price increase pending a broader pricing review," said Colleen Keating, Chief Executive Officer. "While we are resetting near-term expectations, we expect that these actions will help set the stage for enhanced top and bottom-line results in 2027. The fitness industry continues to benefit from a number of secular tailwinds given the growing awareness of the vital role movement plays in health and well-being. Long-term, our thesis remains intact and as the leader in the high-value, low-price segment, Planet Fitness is well positioned to capitalize on our industry leadership."_______________________________1Adjusted net income, Adjusted net income per share, diluted and Adjusted EBITDA are non-GAAP measures. For reconciliations of Adjusted net income and Adjusted EBITDA to U.S. GAAP ("GAAP") net income and a computation of Adjusted net income per share, diluted, see "Non-GAAP Financial Measures" accompanying this press release.Operating Results for the First Quarter Ended March 31, 2026For the first quarter of 2026, total revenue increased $60.6 million or 21.9% to $337.2 million from $276.7 million in the prior year period. By segment:Franchise segment revenue increased $19.3 million or 16.7% to $134.5 million from $115.2 million in the prior year period. The increase was primarily attributable to a $10.3 million increase in National Advertising Fund ("NAF") revenue from a 1% rate increase to NAF contributions from 2% to 3% for fiscal year 2026. There was also $6.0 million of higher royalty revenue, of which $2.8 million was attributable to a franchise same club sales increase of 3.5%, $2.2 million was attributable to new clubs opened since January 1, 2025 before they move into the same club sales base and $1.0 million was due to higher royalties on annual fees, and a $1.4 million increase in franchise and other fees.Corporate-owned clubs segment revenue increased $7.0 million or 5.2% to $140.6 million from $133.7 million in the prior year period. This increase was primarily attributable to $6.9 million from the corporate-owned clubs in the same club sales base, of which of $4.3 million was attributable to a same clubs sales increase of 3.5% and $2.6 million was attributable to higher other fees, and $4.9 million was from new clubs opened since January 1, 2025 before they move into the same club sales base. This increase was partially offset by $4.8 million of lower revenue attributable to the 8 clubs located in California that the Company sold to a franchisee in August 2025.Equipment segment revenue increased $34.3 million or 123.4% to $62.1 million from $27.8 million in the prior year period. This increase was primarily attributable to $32.0 million of higher revenue from equipment sales to existing franchisee-owned clubs and $2.3 million of higher revenue from equipment sales to new franchisee-owned clubs. In the first quarter of 2026, we had equipment sales to 14 new franchisee-owned clubs compared to 10 in the prior year period.Segment Adjusted EBITDA represents our Adjusted EBITDA broken out by the Company's reportable segments. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations, see "Non-GAAP Financial Measures" accompanying this press release.Segment Adjusted EBITDA was as follows:Franchise Segment Adjusted EBITDA increased $9.9 million or 11.6% to $94.7 million from $84.9 million in the prior year. This increase was primarily attributable to higher franchise segment revenue as described above, and $2.2 million of higher other gain, net, partially offset by $10.3 million of higher NAF expense and $1.2 million of higher selling, general and administrative expense.Corporate-owned clubs Segment Adjusted EBITDA increased $0.6 million or 1.4% to $46.5 million from $45.8 million in the prior year. This increase was primarily attributable to $4.3 million from clubs included in the same club sales base, partially offset by $2.1 million of higher expense from the 1% rate increase in NAF contributions and by $1.5 million of lower adjusted EBITDA attributable to the 8 clubs located in California that the Company sold to a franchisee in August 2025, as described above.Equipment Segment Adjusted EBITDA increased $12.0 million or 161.6% to $19.5 million from $7.4 million in the prior year. This increase was primarily driven by higher equipment sales to existing and new franchisee-owned clubs, as described above.2026 OutlookFor the year ending December 31, 2026, the Company is reiterating the following expectations:New equipment placements of approximately 150 to 160 in franchisee-owned locations.System-wide new club openings of approximately 180 to 190 locations.Based on lower net joins than planned in the first quarter, which has an outsized impact on full year results due to the seasonal nature of the Company's subscription revenue model and the decision to pause the Black Card price increase, the Company is updating certain of its 2026 growth expectations over 2025 results as follows:System-wide same club sales growth of approximately 1% (previously 4% to 5%).Revenue to increase approximately 7% (previously approximately 9%).Adjusted EBITDA to increase approximately 6% (previously approximately 10%).Adjusted net income to decrease approximately 2% (previously an increase of 4% to 5%).Adjusted net income per share, diluted to increase approximately 4% (previously 9% to 10%), based on adjusted diluted weighted-average shares outstanding of approximately 79.0 million (previously 80.0 million), inclusive of shares expected to be repurchased.The Company now expects 2026 net interest expense to be approximately $111.0 million (previously $114.0 million). It also continues to expect capital expenditures to increase approximately 10% to 15% driven by additional clubs in our corporate-owned portfolio and depreciation and amortization to increase approximately 10% compared to 2025.Presentation of Financial Measures Planet Fitness, Inc. (the "Company") was formed in March 2015 for the purpose of facilitating the initial public offering (the "IPO") and related recapitalization transactions that occurred in August 2015, and in order to carry on the business of Pla-Fit Holdings, LLC ("Pla-Fit Holdings") and its subsidiaries. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings' financial results and reports a non-controlling interest related to the portion of Pla-Fit Holdings not owned by the Company.The financial information presented in this press release includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, to provide measures that we believe are useful to investors in evaluating the Company's performance. These non-GAAP financial measures are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by similar amounts or other unusual or nonrecurring items. See the tables at the end of this press release for a reconciliation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, to their most directly comparable GAAP financial measure.The non-GAAP financial measures used in our full-year outlook will differ from net income and net income per share, diluted, determined in accordance with GAAP in ways similar to those described in the reconciliations at the end of this press release. We do not provide guidance for net income or net income per share, diluted, determined in accordance with GAAP or a reconciliation of guidance for Adjusted net income and Adjusted net income per share, diluted, to the most directly comparable GAAP measure because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our net income and net income per share, diluted, for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our net income and net income per share, diluted, for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.Same club sales refers to year-over-year sales comparisons for the same club sales base of both corporate-owned and franchisee-owned clubs, which is calculated for a given period by including only sales from clubs that had sales in the comparable months of both years. We define the same club sales base to include those clubs that have been open and for which monthly membership dues have been billed for longer than 12 months. We measure same club sales based solely upon monthly dues billed to members of our corporate-owned and franchisee-owned clubs.Investor Conference Call The Company will hold a conference call at 8:00AM (ET) on May 7, 2026 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.planetfitness.com via the "Investor Relations" link. The webcast will be archived on the website for one year.About Planet Fitness Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the world by number of members and locations. As of March 31, 2026, Planet Fitness had approximately 21.5 million members and 2,909 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. Approximately 90% of Planet Fitness clubs are owned and operated by independent business owners.Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include the Company's statements with respect to expected future performance presented under the heading "2026 Outlook," those attributed to the Company's Chief Executive Officer in this press release, the Company's expected membership growth and club growth, share repurchases and the timing thereof, ability to deliver future shareholder value and other statements, estimates and projections that do not relate solely to historical facts. Forward-looking statements can be identified by words such as "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "might," "goal," "plan," "prospect," "predict," "project," "target," "potential," "assumption," "will," "would," "could," "should," "continue," "ongoing," "contemplate," "future," "strategy" and similar references to future periods, although not all forward-looking statements include these identifying words. Forward-looking statements are not assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results to differ materially include competition in the fitness industry, the Company's and franchisees' ability to attract and retain members, the Company's and franchisees' ability to identify and secure suitable sites for new franchise clubs, changes in consumer demand, changes in equipment costs, the Company's ability to expand into new markets domestically and internationally, operating costs for the Company and franchisees generally, availability and cost of capital for franchisees, acquisition activity, developments and changes in laws and regulations, our substantial indebtedness and our ability to incur additional indebtedness or refinance that indebtedness in the future, our future financial performance and our ability to pay principal and interest on our indebtedness, our corporate structure and tax receivable agreements, failures, interruptions or security breaches of the Company's information systems or technology, general economic conditions and the other factors described in the Company's annual report on Form 10-K for the year ended December 31, 2025 and, once available, the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2026, as well as the Company's other filings with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in forward-looking statements, investors should not place undue reliance on forward-looking statements, which reflect the Company's views only as of the date of this press release. Except as required by law, neither the Company nor any of its affiliates or representatives undertake any obligation to provide additional information or to correct or update any information set forth in this release, whether as a result of new information, future developments or otherwise.Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31,(in thousands, except per share amounts)
2026
2025Revenue:
Franchise
$ 102,249
$ 93,240National advertising fund revenue
32,218
21,940Franchise segment
134,467
115,180Corporate-owned clubs
140,622
133,669Equipment
62,147
27,813Total revenue
337,236
276,662Operating costs and expenses:
Cost of revenue
45,341
22,485Club operations
88,194
81,680Selling, general and administrative
34,150
34,307National advertising fund expense
32,218
21,944Depreciation and amortization
40,251
38,281Other gains, net
(1,587)
(1,237)Total operating costs and expenses
238,567
197,460Income from operations
98,669
79,202Other income (expense), net:
Interest income
5,662
5,812Interest expense
(32,967)
(26,197)Other income, net
615
283Total other expense, net
(26,690)
(20,102)Income before income taxes
71,979
59,100Provision for income taxes
19,309
16,216Losses from equity-method investments, net of tax
(874)
(805)Net income
51,796
42,079Less net income attributable to non-controlling interests
242
212Net income attributable to Planet Fitness, Inc
$ 51,554
$ 41,867Net income per share of Class A common stock:
Basic
$ 0.65
$ 0.50Diluted
$ 0.65
$ 0.50Weighted-average shares of Class A common stock outstanding:
Basic
79,575
84,170Diluted
79,786
84,402Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)(in thousands, except per share amounts)
March 31, 2026
December 31, 2025Assets
Current assets:
Cash and cash equivalents
$ 375,273
$ 345,652Restricted cash
81,223
66,304Short-term marketable securities
98,533
106,761Accounts receivable, net of allowances for uncollectible amounts of $428 as of March 31,
2026 and December 31, 2025
41,076
70,431Inventory
4,809
7,581Restricted assets - national advertising fund
15,376
—Prepaid expenses
26,275
24,605Other receivables
42,590
34,094Income tax receivable
1,917
2,958Total current assets
687,072
658,386Long-term marketable securities
96,963
88,263Investments, net of allowance for expected credit losses
68,927
69,700Property and equipment, net of accumulated depreciation of $482,134 and $453,852, as of
March 31, 2026 and December 31, 2025, respectively
452,201
466,747Right-of-use assets, net
398,676
409,320Intangible assets, net
278,389
286,409Goodwill
712,340
712,450Deferred income taxes
394,765
406,724Other assets, net
15,308
5,396Total assets
$ 3,104,641
$ 3,103,395Liabilities and stockholders' deficit
Current liabilities:
Current maturities of long-term debt
$ 25,750
$ 23,875Accounts payable
33,094
39,683Accrued expenses
68,789
75,371Equipment deposits
7,414
10,165Deferred revenue, current
86,373
58,593Payable pursuant to tax benefit arrangements, current
55,508
55,518Other current liabilities
54,810
49,285Total current liabilities
331,738
312,490Long-term debt, net of current maturities
2,453,337
2,458,379Lease liabilities, net of current portion
406,984
419,120Deferred revenue, net of current portion
29,133
29,657Deferred tax liabilities
1,076
1,177Payable pursuant to tax benefit arrangements, net of current portion
360,273
360,273Other liabilities
4,892
5,677Total noncurrent liabilities
3,255,695
3,274,283Stockholders' equity (deficit):
Class A common stock, $0.0001 par value, 300,000 shares authorized, 79,124 and 80,446
shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
8
8Class B common stock, $0.0001 par value, 100,000 shares authorized, 316 shares issued and
outstanding as of March 31, 2026 and December 31, 2025
—
—Additional paid in capital
625,604
623,333Accumulated other comprehensive (loss) income
(605)
1,311Accumulated deficit
(1,107,227)
(1,107,429)Total stockholders' deficit attributable to Planet Fitness, Inc.
(482,220)
(482,777)Non-controlling interests
(572)
(601)Total stockholders' deficit
(482,792)
(483,378)Total liabilities and stockholders' deficit
$ 3,104,641
$ 3,103,395Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,(in thousands)
2026
2025Cash flows from operating activities:
Net income
$ 51,796
$ 42,079Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
40,251
38,281Equity-based compensation expense
2,981
2,631Deferred tax expense
11,841
10,961Amortization of deferred financing costs
1,536
1,314Accretion of marketable securities discount
(131)
(488)Losses from equity-method investments, net of tax
874
805Dividends accrued on held-to-maturity investment
(603)
(561)Credit loss on held-to-maturity investment
502
292Gain on re-measurement of tax benefit arrangement liability
—
(84)Gain on insurance proceeds
—
(1,461)Other
(697)
(260)Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
29,404
38,490Inventory
2,811
4,172Other assets and other current assets
1,603
868Restricted assets - national advertising fund
(15,380)
(16,670)Accounts payable and accrued expenses
(12,337)
(13,934)Other liabilities and other current liabilities
(724)
(918)Income taxes
6,661
4,967Payments pursuant to tax benefit arrangements
(10)
—Equipment deposits
(2,751)
637Deferred revenue
27,298
17,805Leases
2,596
5,001Net cash provided by operating activities
147,521
133,927Cash flows from investing activities:
Additions to property and equipment
(25,501)
(23,055)Insurance proceeds for property and equipment
—
2,053Payment of deferred consideration for acquired clubs
—
(1,479)Purchases of marketable securities
(36,395)
(42,334)Maturities of marketable securities
35,340
36,749Issuance of promissory notes to related parties
(20,647)
—Other investing activities
—
(33)Net cash used in investing activities
(47,203)
(28,099)Cash flows from financing activities:
Repayment of long-term debt
(4,563)
(5,625)Payment of deferred financing and other debt-related costs
(141)
—Proceeds from issuance of Class A common stock
613
655Repurchase and retirement of Class A common stock
(51,105)
(50,009)Principal payments on capital lease obligations
(45)
(31)Distributions paid to members of Pla-Fit Holdings
(365)
(349)Net cash used in financing activities
(55,606)
(55,359)Effects of exchange rate changes on cash and cash equivalents
(172)
348Net increase in cash, cash equivalents and restricted cash
44,540
50,817Cash, cash equivalents and restricted cash, beginning of period
411,956
349,674Cash, cash equivalents and restricted cash, end of period
$ 456,496
$ 400,491Supplemental cash flow information:
Cash paid for interest
$ 21,485
$ 25,065Net cash paid for income taxes
$ 329
$ 289Non-cash investing activities:
Non-cash additions to property and equipment included in accounts payable and accrued expenses
$ 12,006
$ 10,645Planet Fitness, Inc. and subsidiaries
Non-GAAP Financial Measures
(Unaudited)To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted (collectively, the "non-GAAP financial measures"). The Company believes that these non-GAAP financial measures, when used in conjunction with GAAP financial measures, are useful to investors in evaluating our operating performance. These non-GAAP financial measures presented in this release are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by unusual or nonrecurring items.Adjusted EBITDA and Segment Adjusted EBITDAWe refer to Adjusted EBITDA as we use this measure to evaluate our operating performance and we believe this measure is useful to investors in evaluating our performance. We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors. Our Board of Directors uses Adjusted EBITDA as a key metric to assess the performance of management. Our Chief Operating Decision Maker also uses Segment Adjusted EBITDA, which is Adjusted EBITDA specific to each of our three reportable segments, to assess the financial performance of and allocate resources to our segments in accordance with ASC 280, Segment Reporting. Corporate overhead costs not directly attributable to any individual segment are not allocated to the three segments and are included in Corporate and Other Adjusted EBITDA within Adjusted EBITDA.A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA is set forth below.
Three Months Ended March 31,(in thousands)2026
2025Net income$ 51,796
$ 42,079Interest income(5,662)
(5,812)Interest expense32,967
26,197Provision for income taxes19,309
16,216Depreciation and amortization40,251
38,281EBITDA138,661
116,961Severance costs(1)—
597Executive transition costs(2)842
1,041Loss on adjustment of allowance for credit losses on held-to-maturity investment502
292Dividend income on held-to-maturity investment(603)
(561)Insurance recovery(3)—
(1,636)Tax benefit arrangement remeasurement(4)—
(84)Amortization of basis difference of equity-method investments(5)240
240Other(6)226
155Adjusted EBITDA$ 139,868
$ 117,005(1) Represents severance related expenses recorded in connection with a reduction in force during the three months ended March 31, 2025.(2) Represents certain expenses recorded in connection with executive leadership transitions. During the three months ended March 31, 2026, amounts represent costs associated with the departure of the Chief Financial Officer and the search for a new Chief Financial Officer. During the three months ended March 31, 2025, amounts represent costs for stock-based compensation associated with certain equity awards granted to the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.(3) Represents insurance recoveries, net of costs incurred.(4) Represents a gain related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.(5) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.(6) Represents certain other gains and charges that we do not believe reflect our underlying business performance.A reconciliation of Segment Adjusted EBITDA to Adjusted EBITDA is set forth below.
Three Months Ended March 31,(in thousands)2026
2025Adjusted EBITDA
Franchise segment$ 94,721
$ 84,865Corporate-owned clubs segment46,485
45,849Equipment segment19,467
7,442Segment Adjusted EBITDA160,673
138,156Corporate and other Adjusted EBITDA(1)(20,805)
(21,151)Adjusted EBITDA(2)$ 139,868
$ 117,005(1) Corporate and other Adjusted EBITDA includes adjusted corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment and thus are unallocated.(2) Segment Adjusted EBITDA plus the Adjusted EBITDA of corporate and other is equal to Adjusted EBITDA. Adjusted EBITDA is a metric that is not presented in accordance with GAAP. Refer to "—Non-GAAP Financial Measures" for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.Adjusted Net Income and Adjusted Net Income per Diluted Share Our presentation of Adjusted net income assumes that all net income is attributable to Planet Fitness, Inc., which assumes the full exchange of all outstanding Holdings Units for shares of Class A common stock of Planet Fitness, Inc., adjusted for certain non-cash and other items that we do not believe directly reflect our core operations. Adjusted net income per share, diluted, is calculated by dividing Adjusted net income by the total weighted-average shares of Class A common stock outstanding plus any dilutive options and restricted stock units as calculated in accordance with GAAP and assuming the full exchange of all outstanding Holdings Units and corresponding Class B common stock as of the beginning of each period presented. Adjusted net income and Adjusted net income per share, diluted, are supplemental measures of operating performance that do not represent and should not be considered alternatives to net income and earnings per share, as calculated in accordance with GAAP. We believe Adjusted net income and Adjusted net income per share, diluted, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period.A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted net income, and the computation of Adjusted net income per share, diluted, are set forth below.
Three Months Ended March 31,(in thousands, except per share amounts)2026
2025Net income$ 51,796
$ 42,079Provision for income taxes19,309
16,216Severance costs(1)—
597Executive transition costs(2)842
1,041Loss on adjustment of allowance for credit losses on held-to-maturity investment502
292Dividend income on held-to-maturity investment(603)
(561)Insurance recovery(3)—
(1,636)Tax benefit arrangement remeasurement(4)—
(84)Amortization of basis difference of equity-method investments(5)240
240Other(6)226
155Purchase accounting amortization(7)8,020
9,178Adjusted income before income taxes80,332
67,517Adjusted income taxes(8)20,886
17,487Adjusted net income$ 59,446
$ 50,030Adjusted net income per share, diluted$ 0.74
$ 0.59Adjusted weighted-average shares outstanding, diluted(9)80,102
84,744(1) Represents severance related expenses recorded in connection with a reduction in force during the three months ended March 31, 2025.(2) Represents certain expenses recorded in connection with executive leadership transitions. During the three months ended March 31, 2026, amounts represent costs associated with the departure of the Chief Financial Officer and the search for a new Chief Financial Officer. During the three months ended March 31, 2025, amounts represent costs for stock-based compensation associated with certain equity awards granted to the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.(3) Represents insurance recoveries, net of costs incurred.(4) Represents a gain related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.(5) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.(6) Represents certain other gains and charges that we do not believe reflect our underlying business performance.(7) Represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, associated with intangible assets created in connection with historical acquisitions of franchisee-owned clubs.(8) Represents corporate income taxes at an assumed effective tax rate of 26.0% and 25.9% for the three months ended March 31, 2026 and 2025, respectively, applied to adjusted income before income taxes.(9) Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.A reconciliation of net income per share, diluted, to Adjusted net income per share, diluted is set forth below:
Three Months Ended March 31, 2026
Three Months Ended March 31, 2025(in thousands, except per share
amounts)Net income
Weighted
Average Shares
Net income per
share, diluted
Net income
Weighted
Average Shares
Net income per
share, dilutedNet income attributable to Planet
Fitness, Inc.(1)$ 51,554
79,786
$ 0.65
$ 41,867
84,402
$ 0.50Net income attributable to non-
controlling interests(2)242
316
212
342
Net income51,796
42,079
Adjustments to arrive at adjusted
income before income taxes(3)28,536
25,438
Adjusted income before income
taxes80,332
67,517
Adjusted income taxes(4)20,886
17,487
Adjusted net income$ 59,446
80,102
$ 0.74
$ 50,030
84,744
$ 0.59(1) Represents net income attributable to Planet Fitness, Inc. and the associated weighted average shares of Class A common stock outstanding.(2) Represents net income attributable to non-controlling interests and the assumed exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. as of the beginning of the period presented.(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes.(4) Represents corporate income taxes at an assumed effective tax rate of 26.0% and 25.9% for the three months ended March 31, 2026 and 2025, respectively, applied to adjusted income before income taxes. View original content to download multimedia:https://www.prnewswire.com/news-releases/planet-fitness-inc-announces-first-quarter-2026-results-302764905.htmlSOURCE Planet Fitness, Inc. Original: Planet Fitness, Inc. Announces First Quarter 2026 Results
US Market News
5 months ago
Planet Fitness, Inc. Announces Fourth Quarter and Year-End 2025 ResultsFebruary 24, 2026 6:30 AM
PR Newswire (US)
Full-year system-wide same club sales increase of 6.7%
Net membership growth of 1.1 million in 2025
Opened 181 new Planet Fitness clubs in 2025HAMPTON, N.H., Feb. 24, 2026 /PRNewswire/ -- Today, Planet Fitness, Inc. (NYSE: PLNT) reported financial results for its fourth quarter and year ended December 31, 2025.Fourth Quarter Fiscal 2025 Highlights Total revenue increased from the prior year period by 10.5% to $376.3 million.System-wide same club sales increased 5.7%.System-wide sales increased to $1.3 billion from $1.2 billion in the prior year period.Net income attributable to Planet Fitness, Inc. was $60.4 million, or $0.73 per diluted share, compared to $47.1 million, or $0.56 per diluted share, in the prior year period.Net income increased $13.1 million to $60.7 million, compared to $47.6 million in the prior year period.Adjusted net income(1) increased $9.3 million to $69.0 million, or $0.83 per diluted share(1), compared to $59.7 million, or $0.70 per diluted share, in the prior year period.Adjusted EBITDA(1) increased $15.4 million to $146.3 million from $130.8 million in the prior year period.104 new Planet Fitness clubs were opened system-wide during the period, which included 93 franchisee-owned and 11 corporate-owned clubs, bringing system-wide total clubs to 2,896 as of December 31, 2025.New equipment placements in 96 new franchisee-owned clubs compared to 77 in the prior year period.Ended the year with cash and marketable securities of $607.0 million, which includes cash and cash equivalents of $345.7 million, restricted cash of $66.3 million and marketable securities of $195.0 million.Fiscal Year 2025 Highlights Total revenue increased from the prior year period by 12.1% to $1.3 billion.System-wide same club sales increased 6.7%.System-wide sales increased to $5.3 billion from $4.8 billion in the prior year period.Net income attributable to Planet Fitness, Inc. was $219.1 million, or $2.62 per diluted share, compared to $172.0 million, or $2.00 per diluted share, in the prior year period.Net income increased $46.0 million to $220.3 million, compared to $174.2 million in the prior year period.Adjusted net income([1]) increased $34.5 million to $258.3 million, or $3.07 per diluted share(1), compared to $223.8 million, or $2.59 per diluted share, in the prior year period.Adjusted EBITDA(1) increased $63.9 million to $551.6 million from $487.7 million in the prior year period.181 new Planet Fitness clubs were opened system-wide during the period, which included 158 franchisee-owned and 23 corporate-owned clubs, bringing system-wide total clubs to 2,896 as of December 31, 2025.New equipment placements in 152 new franchisee-owned clubs compared to 124 in the prior year period."We're pleased with our strong performance in 2025 that was the result of our unwavering focus on our four strategic imperatives. We ended the year with approximately 20.8 million members, and a global footprint of nearly 2,900 clubs, reinforcing the quality of our member experience and our core conviction that anyone can get a great workout at Planet Fitness for an incredible value. Adding approximately 1.1 million net new members in 2025—the first full-year of our 50 percent price increase for new Classic Card members—highlights the incredible demand for our brand," said Colleen Keating, Chief Executive Officer. "The progress we made on both our topline and new club growth is evidence of our powerful scale and reach. Our scale provides a foundation to introduce our brand to even more people looking to improve their mental and physical health globally. I'd like to thank our franchisees and team members for their passion and commitment that helped drive this strong performance."Operating Results for the Fourth Quarter Ended December 31, 2025For the fourth quarter of 2025, total revenue increased $35.8 million or 10.5% to $376.3 million from $340.5 million in the prior year period. By segment:Franchise segment revenue increased $10.4 million or 9.6% to $119.4 million from $109.0 million in the prior year period. The increase was primarily attributable to $6.9 million of higher royalty revenue, of which $3.7 million was attributable to a franchise same club sales increase of 5.6%, $2.3 million was attributable to new clubs opened since October 1, 2024 before moving into the same club sales base and $1.0 million was from higher royalties on annual fees. There was also a $1.9 million increase in franchise and other fees. Franchise segment revenue also included $1.4 million of higher National Advertising Fund ("NAF") revenue;Corporate-owned clubs segment revenue increased $9.3 million or 7.4% to $135.6 million from $126.3 million in the prior year period. The increase was primarily attributable to $8.0 million of higher revenue from corporate-owned clubs included in the same club sales base, of which $6.1 million was attributable to a same club sales increase of 6.0% and $1.4 million was attributable to higher other fees. Additionally, $1.3 million was from new clubs opened and acquired since October 1, 2024 before moving into the same club sales base; andEquipment segment revenue increased $16.1 million or 15.3% to $121.2 million from $105.1 million in the prior year period. The increase was primarily attributable to $11.9 million of higher revenue from equipment sales to existing franchisee-owned clubs and $4.2 million of higher revenue from equipment sales to new franchisee-owned clubs.Segment Adjusted EBITDA represents our Adjusted EBITDA broken out by the Company's reportable segments. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations, see "Non-GAAP Financial Measures" accompanying this press release.Segment Adjusted EBITDA was as follows:Franchise Segment Adjusted EBITDA increased $8.1 million or 10.9% to $82.9 million from $74.7 million in the prior year period. The increase was primarily attributable to higher franchise segment revenue of $10.4 million, as described above, partially offset by higher NAF expense of $2.0 million;Corporate-owned clubs Segment Adjusted EBITDA increased $3.8 million or 8.1% to $50.2 million from $46.4 million in the prior year period. The increase was primarily attributable to $4.0 million from the corporate-owned same club sales increase of 6.0% and $0.7 million of lower selling, general and administrative expenses. The increase was partially offset by $0.4 million of lower Adjusted EBITDA from new clubs located in Spain, the majority of which have opened since October 1, 2024; andEquipment Segment Adjusted EBITDA increased $7.0 million or 23.3% to $36.9 million from $29.9 million in the prior year period. The increase was primarily attributable to higher equipment sales to existing and new franchisee-owned clubs.Operating Results for the Fiscal Year Ended December 31, 2025For the fiscal year ended December 31, 2025, total revenue increased $142.5 million or 12.1% to $1.3 billion from $1.2 billion in the prior year period. By segment:Franchise segment revenue increased $44.7 million or 10.6% to $468.0 million from $423.2 million in the prior year period. The increase was primarily attributable to $28.4 million of higher royalty revenue, of which $16.7 million was attributable to a franchise same club sales increase of 6.8%, $7.1 million was attributable to new clubs opened since January 1, 2024 before moving into the same club sales base and $4.6 million was from higher royalties on annual fees. There was also a $7.8 million increase in franchise and other fees and a $2.1 million increase in placement revenue, partially offset by a $1.6 million decrease in revenue associated with the sale of HVAC units to franchisees. Franchise segment revenue also included $8.1 million of higher NAF revenue;Corporate-owned clubs segment revenue increased $43.8 million or 8.7% to $546.1 million from $502.3 million in the prior year period. The increase was primarily attributable to $28.1 million of higher revenue from corporate-owned clubs included in the same club sales base, of which $21.1 million was attributable to a same clubs sales increase of 6.0%, $3.6 million was attributable to higher other fees and $3.4 million was attributable to higher annual fee revenue. Additionally, $15.7 million was from new clubs opened and acquired since January 1, 2024 before moving into the same club sales base; andEquipment segment revenue increased $54.0 million or 21.1% to $310.1 million from $256.1 million in the prior year period. The increase was primarily attributable to $47.4 million of higher revenue from equipment sales to existing franchisee-owned clubs and $6.6 million of higher revenue from equipment sales to new franchisee-owned clubs.Segment Adjusted EBITDA was as follows:Franchise Segment Adjusted EBITDA increased $35.5 million or 11.8% to $336.6 million from $301.1 million in the prior year period. The increase was primarily attributable to $44.7 million of higher franchise segment revenue, as described above, and $1.4 million of lower other expense, net, partially offset by $8.6 million of higher NAF expense and $1.9 million of higher selling, general and administrative expense.Corporate-owned clubs Segment Adjusted EBITDA increased $17.6 million or 9.3% to $206.3 million from $188.8 million in the prior year period. The increase was primarily attributable to $14.6 million from the corporate-owned same clubs sales increase of 6.0%, $3.9 million of lower selling, general and administrative expenses and $3.1 million from new clubs located domestically opened since January 1, 2024 before moving into the same club sales base, The increase was partially offset by $3.5 million of lower Adjusted EBITDA from new clubs located in Spain, all of which have opened since January 1, 2024; andEquipment Segment Adjusted EBITDA increased $22.7 million or 31.6% to $94.5 million from $71.8 million in the prior year period. The increase was primarily attributable to higher equipment sales to existing and new franchisee-owned clubs.
(1)Adjusted net income, Adjusted net income per share, diluted and Adjusted EBITDA are non-GAAP measures. For reconciliations of Adjusted net income and Adjusted EBITDA to U.S. GAAP ("GAAP") net income and a computation of Adjusted net income per share, diluted, see "Non-GAAP Financial Measures" accompanying this press release.2026 OutlookFor the year ending December 31, 2026, the Company expects the following:New equipment placements of approximately 150 to 160 in franchisee-owned locationsSystem-wide new club openings of approximately 180 to 190 locationsThe following are 2026 growth expectations over its 2025 results:System-wide same club sales growth in the 4% to 5% rangeRevenue to increase approximately 9%Adjusted EBITDA to increase approximately 10%Adjusted net income to increase in the 4% to 5% rangeAdjusted net income per share, diluted to increase in the 9% to 10% range, based on adjusted diluted weighted-average shares outstanding of approximately 80.0 million, inclusive of shares expected to be repurchased.The Company also expects 2026 net interest expense to be approximately $114.0 million. It also expects capital expenditures to increase approximately 10% to 15% driven by additional clubs in our corporate-owned portfolio and depreciation and amortization to increase approximately 10% compared to 2025.Presentation of Financial MeasuresPlanet Fitness, Inc. (the "Company") was formed in March 2015 for the purpose of facilitating the initial public offering (the "IPO") and related recapitalization transactions that occurred in August 2015, and in order to carry on the business of Pla-Fit Holdings, LLC ("Pla-Fit Holdings") and its subsidiaries. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings' financial results and reports a non-controlling interest related to the portion of Pla-Fit Holdings not owned by the Company.The financial information presented in this press release includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, to provide measures that we believe are useful to investors in evaluating the Company's performance. These non-GAAP financial measures are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by similar amounts or other unusual or nonrecurring items. See the tables at the end of this press release for a reconciliation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, to their most directly comparable GAAP financial measure.The non-GAAP financial measures used in our full-year outlook will differ from net income and net income per share, diluted, determined in accordance with GAAP in ways similar to those described in the reconciliations at the end of this press release. We do not provide guidance for net income or net income per share, diluted, determined in accordance with GAAP or a reconciliation of guidance for Adjusted net income and Adjusted net income per share, diluted, to the most directly comparable GAAP measure because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our net income and net income per share, diluted, for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our net income and net income per share, diluted, for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.Same club sales refers to year-over-year sales comparisons for the same club sales base of both corporate-owned and franchisee-owned clubs, which is calculated for a given period by including only sales from clubs that had sales in the comparable months of both years. We define the same club sales base to include those clubs that have been open and for which monthly membership dues have been billed for longer than 12 months. We measure same club sales based solely upon monthly dues billed to members of our corporate-owned and franchisee-owned clubs.Investor Conference Call The Company will hold a conference call at 8:00AM (ET) on February 24, 2026 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.planetfitness.com via the "Investor Relations" link. The webcast will be archived on the website for one year.About Planet Fitness Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness clubs in the world by number of members and locations. As of December 31, 2025, Planet Fitness had approximately 20.8 million members and 2,896 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. Approximately 90% of Planet Fitness clubs are owned and operated by independent business owners.Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include the Company's statements with respect to expected future performance presented under the heading "2026 Outlook," those attributed to the Company's Chief Executive Officer in this press release, the Company's expected membership growth and club growth, share repurchases and the timing thereof, ability to deliver future shareholder value, and other statements, estimates and projections that do not relate solely to historical facts. Forward-looking statements can be identified by words such as "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "might," "goal," "plan," "prospect," "predict," "project," "target," "potential," "assumption," "will," "would," "could," "should," "continue," "ongoing," "contemplate," "future," "strategy" and similar references to future periods, although not all forward-looking statements include these identifying words. Forward-looking statements are not assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results to differ materially include competition in the fitness industry, the Company's and franchisees' ability to attract and retain members, the Company's and franchisees' ability to identify and secure suitable sites for new franchise clubs, changes in consumer demand, changes in equipment costs, the Company's ability to expand into new markets domestically and internationally, operating costs for the Company and franchisees generally, availability and cost of capital for franchisees, acquisition activity, developments and changes in laws and regulations, our substantial increased indebtedness as a result of our refinancing and securitization transactions and our ability to incur additional indebtedness or refinance that indebtedness in the future, our future financial performance and our ability to pay principal and interest on our indebtedness, our corporate structure and tax receivable agreements, failures, interruptions or security breaches of the Company's information systems or technology, general economic conditions and the other factors described in the Company's annual report on Form 10-K for the year ended December 31, 2024 and, once available, the Company's annual report on Form 10-K for the year ended December 31, 2025, as well as the Company's other filings with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in forward-looking statements, investors should not place undue reliance on forward-looking statements, which reflect the Company's views only as of the date of this press release. Except as required by law, neither the Company nor any of its affiliates or representatives undertake any obligation to provide additional information or to correct or update any information set forth in this release, whether as a result of new information, future developments or otherwise. Planet Fitness, Inc. and subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended December 31,
Years Ended December 31,(in thousands, except per share amounts)2025
2024
2025
2024Revenue:
Franchise$ 98,609
$ 89,537
$ 380,971
$ 344,320National advertising fund revenue20,836
19,485
86,987
78,927Franchise segment119,445
109,022
467,958
423,247Corporate-owned clubs135,606
126,311
546,097
502,287Equipment121,207
105,117
310,089
256,120Total revenue376,258
340,450
1,324,144
1,181,654Operating costs and expenses:
Cost of revenue90,245
80,494
230,308
197,122Club operations79,636
74,388
318,545
290,507Selling, general and administrative37,291
35,693
137,634
129,146National advertising fund expense21,430
19,385
87,580
79,009Depreciation and amortization39,967
40,116
155,785
160,346Other loss (gain), net1,684
628
(385)
1,326Total operating costs and expenses270,253
250,704
929,467
857,456Income from operations106,005
89,746
394,677
324,198Other income (expense), net:
Interest income5,561
6,428
22,999
23,115Interest expense(29,524)
(27,468)
(108,244)
(100,037)Other expense, net(3,746)
(1,680)
(454)
(548)Total other expense, net(27,709)
(22,720)
(85,699)
(77,470)Income before income taxes78,296
67,026
308,978
246,728Provision for income taxes16,754
18,619
85,874
68,443Losses from equity-method investments, net of tax(835)
(844)
(2,840)
(4,042)Net income60,707
47,563
220,264
174,243Less net income attributable to non-controlling interests 318
479
1,160
2,201Net income attributable to Planet Fitness, Inc.$ 60,389
$ 47,084
$ 219,104
$ 172,042Net income per share of Class A common stock:
Basic$ 0.73
$ 0.56
$ 2.62
$ 2.01Diluted$ 0.73
$ 0.56
$ 2.62
$ 2.00Weighted-average shares of Class A common stock
outstanding:
Basic82,544
84,224
83,519
85,621Diluted82,853
84,442
83,726
85,827 Planet Fitness, Inc. and subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except per share amounts)December 31, 2025
December 31, 2024Assets
Current assets:
Cash and cash equivalents$ 345,652
$ 293,150Restricted cash66,304
56,524Short-term marketable securities106,761
114,163 Accounts receivable, net of allowances for uncollectible amounts of $428 and $30 as of
December 31, 2025 and 2024, respectively70,431
77,145Inventory7,581
6,146Prepaid expenses24,605
21,499Other receivables34,094
16,776Income tax receivable2,958
2,616Total current assets658,386
588,019Long-term marketable securities88,263
65,668Investments, net of allowance for expected credit losses of $24,424 and $18,834 as of
December 31, 2025 and 2024, respectively69,700
75,650Property and equipment, net of accumulated depreciation of $453,852 and $370,118, as of
December 31, 2025 and 2024, respectively466,747
423,991Right-of-use assets, net409,320
395,174Intangible assets, net286,409
323,318Goodwill712,450
720,633Deferred income taxes406,724
470,197Other assets, net5,396
7,058Total assets$ 3,103,395
$ 3,069,708Liabilities and stockholders' deficit
Current liabilities:
Current maturities of long-term debt$ 23,875
$ 22,500Accounts payable39,683
32,887Accrued expenses75,371
67,895Equipment deposits10,165
1,851Deferred revenue, current58,593
62,111Payable pursuant to tax benefit arrangements, current55,518
55,556Other current liabilities49,285
39,695Total current liabilities312,490
282,495Long-term debt, net of current maturities2,458,379
2,148,029Lease liabilities, net of current portion419,120
405,324Deferred revenue, net of current portion29,657
31,990Deferred tax liabilities1,177
1,386Payable pursuant to tax benefit arrangements, net of current portion360,273
411,360Other liabilities5,677
4,497Total noncurrent liabilities3,274,283
3,002,586Stockholders' equity (deficit):
Class A common stock, $.0001 par value, 300,000 shares authorized, 80,446 and 84,323 shares
issued and outstanding as of December 31, 2025 and 2024, respectively8
9Class B common stock, $.0001 par value, 100,000 shares authorized, 316 and 342 shares issued
and outstanding as of December 31, 2025 and 2024, respectively—
—Additional paid in capital623,333
609,115Accumulated other comprehensive income (loss)1,311
(2,348)Accumulated deficit(1,107,429)
(822,156)Total stockholders' deficit attributable to Planet Fitness, Inc.(482,777)
(215,380)Non-controlling interests(601)
7Total stockholders' deficit(483,378)
(215,373)Total liabilities and stockholders' deficit$ 3,103,395
$ 3,069,708 Planet Fitness, Inc. and subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Years Ended December 31,(in thousands)2025
2024Cash flows from operating activities:
Net income$ 220,264
$ 174,243Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization155,785
160,346Equity-based compensation12,333
8,913Deferred tax expense63,876
55,689Amortization of deferred financing costs5,362
5,362Loss on extinguishment of debt1,731
2,285Accretion of marketable securities discount(1,337)
(3,307)Losses from equity-method investments, net of tax2,840
4,042Dividends accrued on held-to-maturity investment(2,337)
(2,180)Credit loss on held-to-maturity investment5,590
1,145Loss on re-measurement of tax benefit arrangement liability2,431
1,300Gain on sale of corporate-owned clubs(6,443)
—Gain on insurance proceeds(1,461)
(1,441)Other154
2,050Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable7,226
(36,459)Inventory(1,377)
(1,484)Other assets and other current assets(15,927)
(11,785)Accounts payable and accrued expenses6,932
17,312Other liabilities and other current liabilities18
(519)Income taxes498
407Payments pursuant to tax benefit arrangements(54,288)
(44,946)Equipment deposits8,293
(2,653)Deferred revenue(3,327)
2,775Leases11,585
12,778Net cash provided by operating activities418,421
343,873Cash flows from investing activities:
Additions to property and equipment(163,670)
(155,061)Insurance proceeds for property and equipment2,053
848Payment of consideration for acquired clubs(3,082)
—Proceeds from sale of corporate-owned clubs21,626
—Purchases of marketable securities(156,141)
(155,423)Maturities of marketable securities141,577
103,672Issuance of note receivable, related party(2,639)
(2,145)Other investments112
(602)Net cash used in investing activities(160,164)
(208,711)Cash flows from financing activities:
Proceeds from issuance of long-term debt750,000
800,000Repayment of long-term debt(431,562)
(608,688)Payment of deferred financing and other debt-related costs(13,806)
(12,055)Repurchase and retirement of Class A common stock(500,373)
(300,205)Proceeds from issuance of Class A common stock1,852
21,875Principal payments on capital lease obligations(149)
(98)Payment of share repurchase excise tax(2,549)
(1,032)Distributions to members of Pla-Fit Holdings(1,508)
(4,792)Net cash used in financing activities(198,095)
(104,995)Effects of exchange rate changes on cash and cash equivalents2,120
(2,614)Net increase in cash, cash equivalents and restricted cash62,282
27,553Cash, cash equivalents and restricted cash, beginning of period349,674
322,121Cash, cash equivalents and restricted cash, end of period$ 411,956
$ 349,674Supplemental cash flow information:
Cash paid for interest$ 100,247
$ 90,853Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued expenses $ 18,399
$ 11,423 Planet Fitness, Inc. and subsidiaries
Non-GAAP Financial Measures
(Unaudited)To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted (collectively, the "non-GAAP financial measures"). The Company believes that these non-GAAP financial measures, when used in conjunction with GAAP financial measures, are useful to investors in evaluating our operating performance. These non-GAAP financial measures presented in this release are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by unusual or nonrecurring items.Adjusted EBITDA and Segment Adjusted EBITDAWe refer to Adjusted EBITDA as we use this measure to evaluate our operating performance and we believe this measure is useful to investors in evaluating our performance. We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors. Our Board of Directors uses Adjusted EBITDA as a key metric to assess the performance of management. Our Chief Operating Decision Maker also uses Segment Adjusted EBITDA, which is Adjusted EBITDA specific to each of our three reportable segments, to assess the financial performance of and allocate resources to our segments in accordance with ASC 280, Segment Reporting. Corporate overhead costs not directly attributable to any individual segment are not allocated to the three segments and are included in Corporate and Other Adjusted EBITDA within Adjusted EBITDA.A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA is set forth below.
Three Months Ended December 31,
Years Ended December 31,(in thousands)2025
2024
2025
2024Net income$ 60,707
$ 47,563
$ 220,264
$ 174,243Interest income(5,561)
(6,428)
(22,999)
(23,115)Interest expense29,524
27,468
108,244
100,037Provision for income taxes16,754
18,619
85,874
68,443Depreciation and amortization39,967
40,116
155,785
160,346EBITDA141,391
127,338
547,168
479,954Severance costs(1)—
—
649
1,602Executive transition costs(2)384
1,227
3,239
4,200Loss on adjustment of allowance for credit losses on
held-to-maturity investment501
297
5,590
1,146Dividend income on held-to-maturity investment(604)
(562)
(2,337)
(2,180)Insurance recovery(3)—
—
(1,636)
—Lease closure expenses, net(4)—
—
1,328
—Tax benefit arrangement remeasurement(5)4,200
2,074
2,431
1,300Gain on sale of corporate-owned clubs(6)—
—
(6,443)
—Amortization of basis difference of equity-method
investments(7)240
240
960
949Other(8)152
211
695
739Adjusted EBITDA$ 146,264
$ 130,825
$ 551,644
$ 487,710
(1) Represents severance related expenses recorded in connection with a reduction in force.(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and stock-based compensation associated with certain equity awards granted to, the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.(3) Represents insurance recoveries, net of costs incurred.(4) Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.(5) Represents a loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.(6) Represents a gain on the sale of eight corporate-owned clubs to a franchisee.(7) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our consolidated statements of operations.(8) Represents certain other gains and charges that we do not believe reflect our underlying business performance. A reconciliation of Segment Adjusted EBITDA to Adjusted EBITDA is set forth below.
Three Months Ended December 31,
Years Ended December 31,(in thousands)2025
2024
2025
2024Adjusted EBITDA
Franchise segment$ 82,858
$ 74,744
$ 336,592
$ 301,122Corporate-owned clubs segment50,163
46,397
206,347
188,751Equipment segment36,877
29,918
94,478
71,778Segment Adjusted EBITDA169,898
151,059
637,417
561,651Corporate and other Adjusted EBITDA(1) (23,634)
(20,234)
(85,773)
(73,941)Adjusted EBITDA(2)$ 146,264
$ 130,825
$ 551,644
$ 487,710
(1) Corporate and other Adjusted EBITDA includes adjusted corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment and thus are unallocated.(2) Segment Adjusted EBITDA plus the Adjusted EBITDA of corporate and other is equal to Adjusted EBITDA. Adjusted EBITDA is a metric that is not presented in accordance with GAAP. Refer to "—Non-GAAP Financial Measures" for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure. Adjusted Net Income and Adjusted Net Income per Diluted Share Our presentation of Adjusted net income assumes that all net income is attributable to Planet Fitness, Inc., which assumes the full exchange of all outstanding Holdings Units for shares of Class A common stock of Planet Fitness, Inc., adjusted for certain non-cash and other items that we do not believe directly reflect our core operations. Adjusted net income per share, diluted, is calculated by dividing Adjusted net income by the total weighted-average shares of Class A common stock outstanding plus any dilutive options and restricted stock units as calculated in accordance with GAAP and assuming the full exchange of all outstanding Holdings Units and corresponding Class B common stock as of the beginning of each period presented. Adjusted net income and Adjusted net income per share, diluted, are supplemental measures of operating performance that do not represent and should not be considered alternatives to net income and earnings per share, as calculated in accordance with GAAP. We believe Adjusted net income and Adjusted net income per share, diluted, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period.A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted net income, and the computation of Adjusted net income per share, diluted, are set forth below.
Three Months Ended December 31,
Years Ended December 31,(in thousands, except per share amounts)2025
2024
2025
2024Net income$ 60,707
$ 47,563
$ 220,264
$ 174,243Provision for income taxes16,754
18,619
85,874
68,443Severance costs(1)—
—
649
1,602Executive transition costs(2)384
1,227
3,239
4,200Loss on adjustment of allowance for credit losses on
held-to-maturity investment501
297
5,590
1,146Dividend income on held-to-maturity investment(604)
(562)
(2,337)
(2,180)Insurance recovery(3)—
—
(1,636)
—Lease closure expenses, net(4)—
—
1,328
—Tax benefit arrangement remeasurement(5)4,200
2,074
2,431
1,300Gain on sale of corporate-owned clubs(6)—
—
(6,443)
—Amortization of basis difference of equity-method
investments(7)240
240
960
949Other(8)152
211
695
739Loss on extinguishment of debt(9)1,731
—
1,731
2,285Purchase accounting amortization(10)9,179
10,918
36,713
49,190Adjusted income before income taxes93,244
80,587
349,058
301,917Adjusted income taxes(11)24,243
20,863
90,755
78,163Adjusted net income$ 69,001
$ 59,724
$ 258,303
$ 223,754Adjusted net income per share, diluted$ 0.83
$ 0.70
$ 3.07
$ 2.59Adjusted weighted-average shares outstanding, diluted(12) 83,169
84,845
84,052
86,537
(1) Represents severance related expenses recorded in connection with a reduction in force.(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and stock-based compensation associated with certain equity awards granted to, the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.(3) Represents insurance recoveries, net of costs incurred.(4) Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.(5) Represents a loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.(6) Represents a gain on the sale of eight corporate-owned clubs to a franchisee.(7) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our consolidated statements of operations.(8) Represents certain other gains and charges that we do not believe reflect our underlying business performance.(9) Represents a loss on extinguishment of debt as a result of the repayment of the 2022-1 Class A-2-I notes prior to the anticipated repayment date.(10) Includes $1.3 million and $10.6 million for the three months and year ended December 31, 2024 of amortization for intangible assets recorded in connection with investment funds affiliated with TSG Consumer Partners, LLC, purchasing interests in Pla-Fit Holdings in 2012 (the "2012 Acquisition"), other than favorable leases. During the fourth quarter of 2024, the intangible assets recorded in connection with the 2012 Acquisition became fully amortized. Also includes $9.2 million and $9.6 million for the three months ended December 31, 2025 and 2024, respectively, and $36.7 million and $38.6 million for the years ended December 31, 2025 and 2024, respectively, of amortization for intangible assets created in connection with historical acquisitions of franchisee-owned clubs. The adjustment represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, in each period.(11) Represents corporate income taxes at an assumed effective tax rate of 26.0% for both the three months and year ended December 31, 2025 and 25.9% for both the three months and year ended December 31, 2024, respectively, applied to adjusted income before income taxes.(12) Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. A reconciliation of net income per share, diluted, to Adjusted net income per share, diluted is set forth below:
Three Months Ended December 31, 2025
Three Months Ended December 31, 2024(in thousands, except per share
amounts)Net income
Weighted
Average Shares
Net income per
share, diluted
Net income
Weighted
Average Shares
Net income per
share, diluted Net income attributable to Planet
Fitness, Inc.(1)$ 60,389
82,853
$ 0.73
$ 47,084
84,442
$ 0.56Net income attributable to non-
controlling interests(2)318
316
479
403
Net income60,707
47,563
Adjustments to arrive at adjusted
income before income taxes(3) 32,537
33,024
Adjusted income before income
taxes93,244
80,587
Adjusted income taxes(4)24,243
20,863
Adjusted net income$ 69,001
83,169
$ 0.83
$ 59,724
84,845
$ 0.70
Year Ended December 31, 2025
Year Ended December 31, 2024(in thousands, except per share
amounts)Net income
Weighted
Average Shares
Net income per
share, diluted
Net income
Weighted
Average Shares
Net income per
share, diluted Net income attributable to Planet
Fitness, Inc.(1)$ 219,104
83,726
$ 2.62
$ 172,042
85,827
$ 2.00Net income attributable to non-
controlling interests(2)1,160
327
2,201
709
Net income220,264
174,243
Adjustments to arrive at adjusted
income before income taxes(3)128,794
127,674
Adjusted income before income
taxes349,058
301,917
Adjusted income taxes(4)90,755
78,163
Adjusted net income$ 258,303
84,052
$ 3.07
$ 223,754
86,537
$ 2.59
(1) Represents net income attributable to Planet Fitness, Inc. and the associated weighted average shares of Class A common stock outstanding.(2) Represents net income attributable to non-controlling interests and the assumed exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. as of the beginning of the period presented.(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes.(4) Represents corporate income taxes at an assumed effective tax rate of 26.0% for both the three months and year ended December 31, 2025 and 25.9% both the three months and year ended December 31, 2024, respectively, applied to adjusted income before income taxes.
View original content to download multimedia:https://www.prnewswire.com/news-releases/planet-fitness-inc-announces-fourth-quarter-and-year-end-2025-results-302695046.htmlSOURCE Planet Fitness, Inc.
Original: Planet Fitness, Inc. Announces Fourth Quarter and Year-End 2025 Results
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