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    PLNT
    Earnings call· Mar 2026(Q1 FY26)

    Planet Fitness Q1 FY26 earnings call PLNT

    May 7, 2026 Source

    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

    13
    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

    3
    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%

    Operational metrics

    16
    Adjusted EBITDA growth
    19.5%YoY
    Q1 FY26

    Adjusted EBITDA increased 19.5% over Q1 2025.

    Adjusted EBITDA
    $140 millionvs $117 million Q1 2025
    Q1 FY26

    Adjusted EBITDA was $140 million, an increase of 20% year-over-year, and adjusted EBITDA margin was 41.5% compared to $117 million with adjusted EBITDA margin of 42.3%.

    Net new members
    700,000+vs 1.1 million Q1 2025
    Q1 FY26

    We grew net new members by more than 700,000... The addition of more than 700,000 net new members during the quarter did not meet our expectations. We added about 1 million net members in Q1 last year. And this year, it was about 700,000 -- a bit over 700,000.

    Club growth
    6.4%
    2025

    delivering 6.4% club growth and adding approximately 1.1 million net new members, a 10% increase in net new membership adds over 2024.

    Fitness memberships growth (industry)
    5.4%over 2024
    2025

    A recent Health & Fitness Association study cited that fitness memberships for 2025 were up 5.4% over '24, reflecting that the industry experienced solid growth last year as well.

    Monthly attrition rate
    3.8%within historical range (3-4%)
    Q1 FY26

    For Q1, our attrition rate averaged 3.8% per month, which was within our historical range. Our monthly attrition has historically been between 3% and 4%.

    Black Card penetration
    67%up 240 bps YoY
    Q1 FY26

    Black Card penetration was 67% at the end of the quarter, an increase of 240 basis points from the prior year.

    National Ad Fund contribution increase
    1%from 2% to 3%
    2026

    The increase in NAF revenue was primarily due to a 1% increase in NAF contributions from 2% to 3% for 2026.

    Average royalty rate
    6.7%up 10 bps YoY
    Q1 FY26

    For the first quarter, the average royalty rate was 6.7%, an increase of 10 basis points from prior year.

    Replacement equipment as % of total equipment revenue
    87%vs 78% last year
    Q1 FY26

    For the quarter, replacement equipment accounted for 87% of total equipment revenue compared to 78%.

    Share repurchase
    $50 million614,000 shares
    Q1 FY26

    In Q1 2026, we used $50 million to repurchase approximately 614,000 shares at an average price of $81.47.

    Black Card price
    $24.99
    Current

    getting more penetration at the Black Card price of $24.99 versus the Classic price of $15.

    Classic Card price
    $15
    Current

    getting more penetration at the Black Card price of $24.99 versus the Classic price of $15.

    Black Card price
    $29
    Current

    we do have some markets still at $29, Joe, if that's what you were asking.

    ADA pipeline
    closer to 750down from 800
    Latest 10-K

    Your ADA pipeline came down further from 800 to closer to 750 in your latest 10-K. And I think it says including more than 500 clubs over the next 3 years.

    Cash, cash equivalents and marketable securities
    $652 millionvs $607 million Dec 31, 2025
    March 31, 2026

    As of March 31, 2026, we had total cash, cash equivalents and marketable securities of $652 million compared to $607 million on December 31, 2025, which included $81 million and $66 million of restricted cash, respectively, in each period.

    Industry KPIs

    3
    MetricValueDetails
    Comparable sales comps3.5%%
    Global system wide sales3.5%%
    Net unit growth development pipeline15clubs

    Risks & headwinds

    5
    Marketing misalignment with target audienceQ1 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 marketsQ1 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 conditionslate 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 uncertaintyQ1 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 attritionQ1 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

    5

    Marketing campaign effectiveness

    before year-end (for new campaign launch), Q1 FY27 (for full impact)
    CurrentQ1 FY26 messaging resonated with fitness-minded consumers, not beginners
    TargetNew 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.

    Q&A highlights

    5

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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 headwind📎s 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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.