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Planet Fitness (PLNT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 6, 2026

Source: earnings call transcript

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

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

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

PLNT operating KPIs by quarter

PLNT operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25 Mar 2026 Q1 FY26This call 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.

Product announcements

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

Deals & partnerships

Ian McClure, CEO of Gulf Coast Hotel Management Acquired 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

System-wide same club sales growth moderation H2 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 expense FY26

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 compression Q2 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 decrease Q2 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 Promo Later 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

National $10 Classic Card Promo Impact

Next quarter (Q3 FY26 earnings call)
Current Test underway in Q3 FY26; localized tests showed no significant trade down from $15 to $10.
Target Read 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.

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

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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