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Planet Fitness (PLNT) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Discretionary· May 7, 2026

Source: earnings call transcript

Executive summary

Planet Fitness Q1 FY26 — Marketing Shift and Black Card Pricing Pause Impact Outlook

Planet Fitness is recalibrating its strategy after Q1 FY26 net member growth fell short of expectations, primarily due to marketing messaging that over-indexed to fitness-minded consumers and a decision to pause the Black Card price increase. The company is refocusing on its core beginner audience and affordability, withdrawing its prior 3-year outlook while maintaining confidence in long-term investments.

Highlights

5

  • Net new members grew by over 700,000 in Q1 FY26.

  • System-wide same club sales grew 3.5% in Q1 FY26.

  • Adjusted EBITDA increased 19.5% year-over-year to $140 million in Q1 FY26.

  • Total revenue increased 22% to $337 million in Q1 FY26.

  • Black Card penetration reached 67% at quarter-end, up 240 basis points year-over-year.

Concerns

5

  • Net member growth in Q1 FY26 did not meet expectations, driven by marketing misalignment, competitive impacts, and macroeconomic pressures.

  • Decision to pause the national Black Card price increase will create a near-term headwind to member joins and impacts full-year guidance.

  • Full-year 2026 guidance for system-wide same club sales reduced to approximately 1% growth.

  • Full-year 2026 adjusted EBITDA growth guidance reduced to approximately 6%.

  • Monthly attrition rate averaged 3.8% in Q1 FY26, remaining in the top half of the historical range due to online member management and Gen Z penetration.

Guidance & targets

CategoryTargetConfidence
System-wide same club sales growth
approximately 1%
high materiality
Medium
Revenue growth
approximately 7%
high materiality
Medium
Adjusted EBITDA growth
approximately 6%
high materiality
Medium
Net interest expense
approximately $111 million
medium materiality
Medium
Adjusted net income decrease
approximately 2%
high materiality
Medium
Adjusted net income per diluted share growth
approximately 4%
high materiality
Medium
Unit growth (new clubs system-wide)
between 180 and 190
high materiality
High
Equipment placements
150 to 160
medium materiality
High
Re-equip sales as % of total equipment segment revenue
approximately 70%
medium materiality
High
Equipment margin rate
approximately 30%
medium materiality
High
Capital expenditures growth
up 10% to 15%
medium materiality
High
Depreciation and amortization growth
up approximately 10%
medium materiality
High
3-year algorithm outlook
withdrawn
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Franchise
NAF revenue increase due to 1% shift in contributions (2% to 3%). Average royalty rate 6.7%, up 10 bps.
National Ad Fund revenue increaseHigher royalty revenue from increased same club sales and new clubsPlacement and franchise fees
increased 17%——adjusted EBITDA was $95 million, and adjusted EBITDA margin decreased from 73.7% to 70.4%
Corporate-owned club
Increase primarily due to operating expenses from 23 new clubs opened since Jan 1, 2025 (11 in Q4 2025).
Sales from new clubsIncreased same club sales
increased 5%——adjusted EBITDA was $46 million, and adjusted EBITDA margin decreased from 34.3% to 33.1%
Equipment
Completed 14 new club placements (vs 10 last year). Replacement equipment accounted for 87% of total equipment revenue (vs 78% last year).
Higher revenue from replacement equipment salesHigher revenue from new franchisee-owned club placement sales
increased 123%——adjusted EBITDA was $19 million, and adjusted EBITDA margin increased from 26.8% to 31.3%

PLNT operating KPIs by quarter

PLNT operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25This call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Paid subscription members
~20.8M 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 compelling value proposition. Source: earnings call transcript
—
21.5M We finished the quarter with 21.5 million members, up 3.6% to last year. Source: earnings call transcript
—
New stores opened
104 Thanks to an incredible push by our total system, particularly in the last several weeks of the year, we opened 104 clubs during the fourth quarter, an all-time quarterly high for a total of 181 openings in 2025. Source: earnings call transcript
15 During the first quarter, we grew net new members by more than 700,000, achieved system-wide same club sales growth of 3.5%, increased adjusted EBITDA 19.5% over Q1 2025 and opened 15 new clubs. Source: earnings call transcript
23 System-wide same club sales increased by 1.7%, and and adjusted EBITDA increased 3.5% over Q2 2025, and we opened 23 new clubs. Source: earnings call transcript
+53.3%
New club placements
96 We completed 96 new club placements this quarter compared to 77 last year. Source: earnings call transcript
14 We completed 14 new club placements this quarter compared to 10 last year. Source: earnings call transcript
21 We completed 21 new club placements this quarter compared to 19 last year. Source: earnings call transcript
+50%
Black Card penetration rate
66.5% Black Card penetration was 66.5% at the end of the quarter, an all-time high and an increase of 260 basis points from the prior year. Source: earnings call transcript
67% Black Card penetration was 67% at the end of the quarter, an increase of 240 basis points from the prior year. Source: earnings call transcript
~68% Black Card penetration was approximately 68% at the end of the quarter, an increase of 210 basis points from the prior year. Source: earnings call transcript
—
Average royalty rate
6.7% For the fourth quarter, the average royalty rate was 6.7%, flat to the prior year. Source: earnings call transcript
6.7% For the first quarter, the average royalty rate was 6.7%, an increase of 10 basis points from prior year. Source: earnings call transcript
6.7% For the second quarter, the average royalty rate was 6.7%, which is flat compared to prior year. Source: earnings call transcript
0 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Risks & headwinds

Marketing misalignment with target audience Q1 FY26

net new members by more than 700,000 (did not meet expectations)

Mitigation:refining our marketing messaging and targeting; testing new marketing initiatives; new campaign to be in market before year-end; investing in more advanced data-driven marketing tools

Competitive impacts in certain markets Q1 FY26

particularly South Central and Southeast U.S. (unquantified financial impact)

Mitigation:clearly and consistently message consumers that while our offering has evolved to meet consumer needs, what truly sets Planet Fitness apart is our nonintimidating judgment-free environment.

Unfavorable weather conditions late January and February

Severe cold and winter weather in late January and February disrupted joins, especially as several of the storms fell on Mondays, our busiest join day of the week (unquantified financial impact)

Mitigation:anticipated that our March campaign... would improve our join momentum (though it did not materialize as expected)

Macroeconomic pressures and uncertainty Q1 FY26 and ongoing

weighed on consumers; lower-income consumers experience mounting pressure (unquantified financial impact)

Mitigation:reinforcing Planet Fitness' long-standing commitment to affordability; pausing the national rollout of our Black Card price increase

Elevated attrition Q1 FY26 and rest of year

attrition rate averaged 3.8% per month (in Q1 FY26); expected monthly attrition to continue to be in the top half of our historical range

Mitigation:Planet Fitness is committed to delivering an exceptional member experience; adjusting the language (after "cancel anytime" messaging)

What to watch in Q2 FY26

Marketing campaign effectiveness

before year-end (for new campaign launch), Q1 FY27 (for full impact)
Current Q1 FY26 messaging resonated with fitness-minded consumers, not beginners
Target New campaign in market before year-end, effectively targeting fitness beginners

Why it matters

The new marketing campaign is crucial for reigniting net member growth by re-engaging the core beginner audience, which is essential for the company's long-term strategy.

we anticipate a new campaign to be in market before year-end to set us up for Q1 2027.

Find out whether PLNT delivers this. Inve re-checks your case every morning.

Q&A highlights

How are conversations with franchisees going given current performance? And is the revised guidance the final cut for the year?

Colleen stated alignment on strategy, with a town hall planned for franchisees to detail the go-forward plan. Tom confirmed the guidance revision was made with the intent of it being the final cut, driven by Q1 trends and the Black Card pricing pause.

“Our approach was to revise the guidance with the idea that we wouldn't lower it for the rest of the year.”

asked by Simeon Siegel · answered by Thomas Fitzgerald

2 min read 6 chapters

Detailed narrative

Marketing Strategy Refinement

Planet Fitness is adjusting its marketing strategy after Q1 FY26 messaging, which showcased more advanced gym-goers, resonated primarily with fitness-minded consumers. This led to underperformance in attracting the traditional "fitness beginner" or "casual gym goer" segment, which represents over 70% of the non-gym-member population. The company is now re-emphasizing its "no-gymtimidation" ethos and lighthearted, approachable tone to broaden its appeal. A new creative agency has been selected, with a new campaign expected before year-end to prepare for Q1 FY27.

Black Card Pricing Decision

The planned national rollout of a Black Card price increase has been paused. This decision was made to prioritize member growth, as past price increases have created near-term headwinds for new joins. The company continues to test various pricing scenarios in different markets, but no immediate price rollbacks are planned for existing higher-priced markets. The Black Card price increase was estimated to contribute 150 basis points to the original full-year same club sales outlook.

Q1 Member Growth Dynamics

Net new member additions in Q1 FY26 were over 700,000, falling short of expectations. This was influenced by elevated churn in January, partially attributed to "cancel anytime" messaging in TV ads, and severe winter weather in late January and February. The anticipated strong performance from the March "Black Card First Month Free" campaign did not materialize to expected levels.

Competitive Landscape and Macro Pressures

While competitive impacts were noted in specific regions (South Central and Southeast U.S.), management emphasized that Planet Fitness' scale (5-6x larger than its next competitor) means broad competition is not the primary driver of softer joins. Macroeconomic pressures, particularly on lower-income consumers, also weighed on performance. The company aims to leverage its differentiated non-intimidating environment and affordability against competitors who may offer lower headline prices but with more fees.

Operational Investments and Future Outlook

The company is continuing investments outlined at its Investor Day, including an AI-enabled predictive churn model (now in pilot), a dynamic content optimization engine (partner selection in progress), and an AI-enabled CRM engine (pilot in H2 FY26). These initiatives, alongside a revitalized app, are expected to drive sustainable long-term member growth and enhance top-line performance, with significant impact anticipated in Q1 FY27.

ADA Pipeline and Unit Development

The ADA pipeline has decreased, partly due to strong unit openings in the prior year (181 new clubs in 2025, with 104 in Q4). The company is also actively re-evaluating and potentially reselling territory, and adjusting ADAs based on population growth and new transaction opportunities, which can shorten the average ADA time frame.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.