Planet Fitness, Inc., encompassing its various holdings, develops and oversees fitness facilities operating under the Planet Fitness brand. The company's business model ...
Planet Fitness, Inc. (NYSE: PLNT) is a prominent player in the fitness industry, operating a unique business model that combines franchising, corporate-owned locations, and equipment sales. Founded in 1992 in Dover, New Hampshire, the company has grown to become one of the largest and fastest-growing fitness center franchisors in the ...Planet Fitness, Inc. (NYSE: PLNT) is a prominent player in the fitness industry, operating a unique business model that combines franchising, corporate-owned locations, and equipment sales. Founded in 1992 in Dover, New Hampshire, the company has grown to become one of the largest and fastest-growing fitness center franchisors in the world, with a significant presence in the United States, Canada, Puerto Rico, Panama, Mexico, and Australia. As of the latest data, Planet Fitness operates over 2,900 clubs and serves approximately 21.5 million members, positioning itself as a key competitor in the value-based fitness segment.
The company's core strategy revolves around creating a non-intimidating, welcoming atmosphere, often referred to as the 'Judgement Free Zone®.' This approach appeals to a broad demographic, including first-time gym users and those seeking a low-cost fitness solution. Memberships start at an affordable $15 per month for the basic package, making fitness accessible to a wide audience. This pricing strategy, combined with a focus on cleanliness, friendly staff, and brand-name equipment, drives high member retention and consistent growth.
From a financial perspective, Planet Fitness generates revenue through three primary streams: franchise royalties and fees, income from corporate-owned clubs, and equipment sales to franchisees. The franchise model provides a steady, recurring revenue base with lower capital intensity compared to wholly-owned chains. As of the most recent fiscal year, the company reported total revenue of approximately $1.4 billion, with a net income margin of around 17%. The enterprise value stands at about $4.1 billion, with a price-to-earnings ratio of 16.95, reflecting moderate valuation relative to earnings. The company maintains a healthy current ratio of 1.58 and a modest debt-to-EBITDA ratio of 0.233, indicating sound financial health and capacity for growth initiatives.
Key leadership includes CEO Colleen Keating, who joined in 2024 with over 30 years of experience, bringing strategic vision to the company. The company's board includes industry veterans like Stephen Spinelli, Jr., Ph.D., president of Babson College. Planet Fitness continues to expand through new store openings, technology enhancements, and strategic partnerships, aiming to strengthen its market leadership and drive long-term shareholder value.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.3B
+12.1%
+8.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$219.1M
+27.4%
+30.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+82.6%
+58.7%
+111.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+29.8%
+8.6%
+15.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+16.5%
+13.7%
+20.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$254.8M
+34.9%
-96.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+19.2%
+20.4%
-97.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-600.2%
+49.8%
+19.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.11x
+1.2%
-23.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and thank you for joining today's Planet Fitness Second Quarter Earnings Conference Call. [Operator Instructions]. I would now like to hand the call over to Brendon Frey for opening remarks. Please go ahead.
Brendon Frey: Thank you, operator, and good morning, everyone. Speaking on today's call will be Planet Fitness Chief Executive Officer, Colleen Keating; and Chief Financial Officer and President, International, Sudhanshu Priyadarshi. Colleen and Sudhanshu will be available for questions during the Q&A session following the prepared remarks. Today's call is being webcast live and recorded for replay. Before I turn the call over to Colleen, I'd like to remind everyone that the language on forward-looking statements included in our earnings release also applies to our comments made during the call. Our release can be found on our investor website along with any reconciliation of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures. With that, I'll now turn it over to Colleen.
Colleen Keating: Thank you, Brendon, and thank you, everyone, for joining us for the Planet Fitness Second Quarter Earnings Call. We are pleased to welcome Sudhanshu Priyadarshi to Planet Fitness, a proven global leader with more than 25 years of experience driving enterprise value creation across consumer-facing businesses. His deep CFO expertise, vast international operating experience and disciplined approach to strategy, execution, margin expansion and capital allocation aligned closely with our strategic growth priorities. I look forward to partnering with him to deliver meaningful value for our members, franchisees, and shareholders. I also want to thank and recognize Tom Fitzgerald for pausing his retirement to shepherd our finance organization through our period of leadership transition. Tom provided a knowledgeable and steady hand as interim CFO, enabling us to complete a thorough search, and he will remain with us in an advisory capacity through early September. Given this, Tom is joining us on today's call and will be available to provide additional perspective during the Q&A. Now let me turn to our second quarter performance. During the quarter, we furthered the important work to reignite sustainable member growth, and we are confident that the actions we outlined on our first quarter call are the right ones to achieve this overarching goal. While we are encouraged by our initial progress, several of our key initiatives, particularly with marketing, will take time to fully implement and gain traction. We finished the quarter with 21.5 million members, up 3.6% to last year. System-wide same club sales increased by 1.7%, and adjusted EBITDA increased 3.5% over Q2 2025, and we opened 23 new clubs. The fitness industry is supported by strong long-term tailwinds as more people recognize the critical role movement plays in physical and mental well-being, disease prevention and living longer, healthier lives. …
