Skip to content
    PLNT
    Earnings call· Jun 2026(Q2 FY26)

    Planet Fitness Q2 FY26 earnings call PLNT

    Aug 6, 2026 Source

    Executive summary

    Planet Fitness Q2 FY26 — Strategic Marketing & Pricing Tests Underway to Reignite Member Growth

    Planet Fitness is actively implementing strategic shifts in marketing and pricing to reignite sustainable member growth, with new creative campaigns and a national $10 classic card promotional test underway. While Q2 FY26 saw revenue and adjusted EBITDA growth, same-club sales were rate-driven, prompting a deeper focus on member acquisition and retention efforts, including AI-powered churn models and enhanced in-club experiences. The company continues to pursue capital-efficient growth, evidenced by share repurchases and strategic divestitures, while evaluating its unit economics and franchisee engagement.

    Highlights

    5

    • Total revenue increased 7% to $365 million in Q2 FY26, driven by growth across all segments.

    • Adjusted EBITDA grew 3.5% to $153 million in Q2 FY26, with a margin of 41.8%.

    • Repurchased approximately 4 million shares for $200 million at an average price of $50.44, raising adjusted net income per diluted share growth outlook to 6%.

    • Opened 23 new clubs in Q2 FY26, including 5 international locations, demonstrating continued unit expansion.

    • Black Card penetration increased by 210 basis points year-over-year, reaching approximately 68% of total members.

    Concerns

    4

    • System-wide same club sales growth was 1.7% in Q2 FY26, entirely driven by rate growth, indicating a slowdown in net new joins.

    • Adjusted EBITDA margin decreased to 41.8% from 43.3% in Q2 FY25, primarily due to increased National Ad Fund contributions and timing of equipment discounts.

    • Franchisee adjusted EBITDA margin decreased from 72.3% to 67.6% due to the increase in the NAV contribution rate.

    • Interest expense for FY26 is now expected to be approximately $115 million, up $4 million from prior guidance, partially offsetting share count benefits.

    Guidance & targets

    13
    CategoryTargetConfidence
    Adjusted Net Income per Diluted Share Growth
    approximately 6%
    high materiality
    High
    Adjusted Diluted Weighted Average Shares Outstanding
    approximately $77 million
    medium materiality
    High
    Interest Expense
    approximately $115 million
    medium materiality
    High
    Adjusted Net Income Growth
    down 3%
    high materiality
    High
    System-wide Same Club Sales Growth
    approximately 1%
    high materiality
    High
    Revenue Growth
    approximately 7%
    high materiality
    High
    Adjusted EBITDA Growth
    approximately 6%
    high materiality
    High
    New Club Openings
    between 180 and 190
    high materiality
    High
    Equipment Placements
    150 to 160
    medium materiality
    High
    Replacement Equipment Revenue % of Total Equipment Segment Revenue
    approximately 70%
    low 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%
    low materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Franchisee
    Revenue increase primarily due to increased national ad fund contributions, higher royalty revenue from increased same club sales and new clubs, and franchisee and other fees. NAV contribution increased by 1 percentage point from 2% to 3% for 2026.
    Adjusted EBITDA margin: 67.6% (vs 72.3% prior year)Average royalty rate: 6.7% (flat YoY)
    		—13%—$92 million
    Corporate-owned Club
    Revenue increase driven by sales from new clubs and increased same club sales. 19 new corporate clubs opened since Q2 FY25, with 11 in Q4 FY25. Operating expense increased 6% to $82 million, primarily due to new clubs, partially offset by sale of 8 clubs in California.
    Adjusted EBITDA margin: 40% (vs 40.7% prior year)
    		—4%—$57 million
    Equipment
    Revenue increase driven by higher revenue from new franchisee-owned club placement sales and higher replacement equipment sales. Change in EBITDA margin due to timing of replacement equipment discounts. H1 FY26 Equipment adjusted EBITDA margins were 29.6%.
    Adjusted EBITDA margin: 28.4% (vs 32.1% prior year)New club placements: 21 (vs 19 prior year)Replacement equipment revenue % of total: 85% (vs 87% prior year)
    		—4%—$24 million

    Operational metrics

    23
    US population within 12-minute drive of a club
    $170 million
    Q2 FY26

    Highlights reach and accessibility.

    Total Members
    21.5 millionup 3.6% to last year; flat to Q1
    Q2 FY26
    Average Monthly Attrition Rate
    3.5%midpoint of historical 3-4% range
    Q2 FY26

    Expected to remain within historical range with seasonal fluctuations.

    High School Summer Pass Workouts Completed
    12 million
    YTD (as of Q2 FY26)

    Program continues to build momentum and awareness with younger consumers.

    Net Promoter Score (NPS) increase
    9 percentage pointsup YoY
    YoY as of Q2 FY26

    Reflects enhanced value proposition and investments.

    Total Revenue
    $365 millionincreased 7% YoY
    Q2 FY26

    Driven by revenue growth across all three segments.

    National Ad Fund (NAV) Contribution Rate Increase
    1 percentage pointfrom 2% to 3%
    FY26

    Primarily drove the increase in franchisee segment revenue.

    Corporate Club Openings
    19
    since Q2 FY25

    Contributed to corporate-owned club segment revenue growth.

    Clubs Sold
    8
    Q2 FY26

    Partially offset increase in club operations expense.

    Adjusted SG&A
    $33 milliondecrease of 2% YoY
    Q2 FY26
    National Advertising Fund Expense
    $33 millionvs $23 million prior year
    Q2 FY26

    Primarily due to 1.6 percentage point shift in marketing from local to national fund.

    Marketing Shift from Local to National Fund
    1.6%
    FY26

    Contributed to increased National Advertising Fund expense.

    Adjusted Net Income
    $67 million
    Q2 FY26
    Adjusted Net Income per Diluted Share
    $0.88
    Q2 FY26
    Adjusted Weighted Diluted Average Share Count
    77.5 millionvs 80.1 million in Q1 FY26
    Q2 FY26

    Decrease reflects open market repurchases.

    Adjusted EBITDA
    $153 millionincrease of 3.5% YoY
    Q2 FY26
    Adjusted EBITDA Margin
    41.8%vs 43.3% prior year
    Q2 FY26
    Shares Repurchased
    4 million
    Q2 FY26

    Utilized cash on hand and $75 million drawdown on VFN.

    Year-to-Date Repurchases
    $250 million
    YTD FY26

    Part of $500 million repurchase program.

    Remaining Repurchase Authorization
    $250 million
    as of Q2 FY26

    Under the $500 million repurchase program.

    Total Cash, Cash Equivalents and Marketable Securities
    $544 millionvs $607 million on 2025-12-31
    as of 2026-06-30
    VFN Repayment Plan
    $75 million
    by year-end

    Plan to utilize a portion of available cash to repay the variable funding note.

    Equipment Adjusted EBITDA Margins
    29.6%in line with expectations
    H1 FY26

    Industry KPIs

    2
    MetricValueDetails
    Comparable sales comps1.7%%
    Net unit growth development pipeline23clubs

    Product announcements

    5
    ProductTypeDetails
    Planet Fitness Appupdate
    Dynamic Creative Optimization Enginelaunch
    Predictive AI Churn Modelmilestone
    First 100-Day Programlaunch
    Mystery Shop Programlaunch

    Deals & partnerships

    2
    Ian McClure, CEO of Gulf Coast Hotel ManagementAcquired growth territory on the West Coast of Florida as a new franchisee.

    Ian McClure brings extensive experience in multiunit real estate development, operations, and asset management. This expands Planet Fitness's footprint in a market with population shifts.

    Franchise Equity Partners (FEP)Sale of Planet Fitness's ownership stake in its Australia franchise.

    Sale completed in July. Planet Fitness had deployed capital to accelerate international expansion in Australia.

    Risks & headwinds

    5
    System-wide same club sales growth moderationH2 FY26

    Expected to moderate sequentially through the year, but remain positive in Q3 and Q4.

    Mitigation: Focus on reigniting net member growth through marketing evolution, pricing tests, and retention efforts.

    Higher interest expenseFY26

    FY26 interest expense expected to be $115 million, up $4 million from prior guidance.

    Mitigation: Partially offset by benefits from share repurchases; plan to repay $75 million VFN by year-end.

    Franchisee adjusted EBITDA margin compressionQ2 FY26

    Decreased from 72.3% to 67.6% in Q2 FY26.

    Mitigation: Primarily due to a strategic increase in NAV contribution rate (from 2% to 3%), which is a planned investment in marketing.

    Equipment adjusted EBITDA margin decreaseQ2 FY26

    Decreased from 32.1% to 28.4% in Q2 FY26.

    Mitigation: Due to timing of replacement equipment discounts; H1 FY26 margins were 29.6%, in line with expectations.

    Potential negative response to $10 Classic Card PromoLater this quarter (Q3 FY26)

    Localized tests showed no significant trade down from $15 to $10.

    Mitigation: Promo is for a limited time; $10 rate is protected for new joiners; not intended as a permanent rollback; communication with franchisees.

    What to watch in Q3 FY26

    5

    National $10 Classic Card Promo Impact

    Next quarter (Q3 FY26 earnings call)
    CurrentTest underway in Q3 FY26; localized tests showed no significant trade down from $15 to $10.
    TargetRead results on regional nuances, price elasticity, and demand indicators; impact on member acquisition and retention.

    Why it matters

    This test will inform future pricing strategies and the balance between affordability and unit economics, crucial for sustainable member growth.

    As part of our continued focus on reinforcing affordability and driving member acquisition, we will also test a $10 classic card promotion nationally later this quarter. Offering the plastic card at $10 for a limited time promotion nationally will help us better understand regional impacts. We are not running this test to inform a rollback of the classic card price. We want to understand its impact for use in limited promo windows, as well as read the impacts by region.

    Q&A highlights

    6

    Asked about initial findings from pricing tests, potential for a third pricing tier, and whether Black Card pricing would be reviewed alongside lower-end pricing changes.

    Colleen Keating stated that many tests are still underway, and results are being read over a long period due to the subscription nature. They are evaluating tiers and different price points, focusing on affordability, member acquisition, and sustained growth. She confirmed they have tested tiers.

    “many of the tests are still in slate, and we are still reading the results, as you know, due to the subscription nature of our business and our seasonality. We tend to run tests for a fairly long period of time. We'll evaluate those tests on really reinforcing affordability, driving member acquisition and sustained member growth -- and to your question, we've tested tiers. We've tested different price points and in different regions as well.”

    asked by Arpine Kocharyan · answered by Colleen Keating

    2 min read6 chapters

    Detailed Narrative

    01

    Marketing Evolution and New Creative Strategy

    Planet Fitness is evolving its marketing strategy to better target the 70% of the U.S. population without a gym membership. Initial refinements to existing creative have been made, focusing on approachability and variety of fitness levels. Interim new creative with a light-hearted tone will launch this quarter, followed by testing for an entirely new campaign for the critical Q1 acquisition period, emphasizing the brand's unique value proposition and judgment-free environment.

    02

    Digital Engagement and Member Experience Enhancements

    The company is advancing media optimization and will launch a dynamic creative optimization engine in September to tailor messaging. A redesigned Planet Fitness app will also launch in September, offering personalized experiences, enhanced activity tracking, and improved crowd meter accuracy. Additional app updates are planned through 2027 to continually enhance member experience and retention.

    03

    Member Retention Initiatives

    To improve retention, Planet Fitness is integrating a predictive AI churn model into its CRM platform to identify early churn indicators. This model is currently in alpha phase and learning from member behavior, with a "next best action" engine planned to serve retention offers. A "first 100-day program" will be kicked off with franchisees in September to strengthen engagement for new members, particularly those joining online.

    04

    Pricing Architecture and Testing

    Planet Fitness has launched regional and local price tests to understand consumer responses. A national test of a $10 classic card promotion will occur later this quarter to understand regional impacts and its use in limited promotional windows. Management clarified this is not intended to inform a permanent rollback of the classic card price from $15.

    05

    Black Card Spa Modalities and Recovery

    The company expanded its test of new Black Card spa modalities to 100 clubs across multiple DMAs, marketing upgraded features this summer. This broader test aims to understand the influence of these offerings on total joins, join mix, upgrades, and retention. Franchisees were also offered the opportunity to order Red Light Sona and LED red light booths early due to strong member preference.

    06

    Franchisee Engagement and Unit Growth

    Planet Fitness opened 23 new clubs in Q2, including 5 international locations. A new seasoned hospitality developer, Ian McClure, acquired growth territory on the West Coast of Florida, signaling momentum in disciplined long-term system growth. The company completed the sale of its ownership stake in its Australia franchise, demonstrating a disciplined approach to international expansion and capital recycling.

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