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Planet Fitness (PLNT) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Consumer Discretionary· Feb 24, 2026

Source: earnings call transcript

Executive summary

Planet Fitness Q4 FY25 — Strong Member Growth and Strategic Imperatives Drive Performance

Planet Fitness delivered a strong Q4 FY25, driven by robust member growth, successful strategic initiatives, and record club openings. The company reiterated its 3-year growth algorithm, anticipating FY26 to be the lowest growth year due to equipment replacement cycles and a corporate club sale. Management remains confident in its model and ability to drive future growth despite short-term weather and attrition headwinds.

Highlights

5

  • Ended 2025 with approximately 20.8 million members and nearly 2,900 clubs.

  • System-wide same club sales grew 6.7% for the full year 2025.

  • Opened 181 new clubs and added 1.1 million net new members in 2025.

  • Adjusted EBITDA grew 13% and adjusted diluted EPS grew 19% for the full year 2025.

  • Black Card penetration reached an all-time high of 66.5% in Q4 FY25.

Concerns

3

  • Q1 FY26 join trends impacted by storms and cold weather in late January across many markets.

  • Experienced a slightly higher cancel rate in January FY26 than anticipated, though attrition trends normalized in February.

  • FY26 revenue and profit growth impacted by the extended equipment replacement cycle and the Q3 FY25 sale of 8 corporate-owned clubs in California.

Guidance & targets

CategoryTargetConfidence
System-wide same club sales growth
4% to 5%
high materiality
High
New club openings
180 to 190
high materiality
High
Equipment placements
150 to 160
medium materiality
High
Reequipment sales as % of total segment revenue
approximately 70%
medium materiality
High
Equipment margin rate
approximately 30%
medium materiality
High
Total revenue growth
approximately 9%
high materiality
High
Adjusted EBITDA growth
approximately 10%
high materiality
High
Adjusted net income growth
4% to 5% range
high materiality
High
Adjusted diluted EPS growth
9% to 10%
high materiality
High
Adjusted diluted weighted average shares outstanding
approximately 80 million
medium materiality
High
Share repurchases
approximately $150 million
medium materiality
High
Net interest expense
approximately $114 million
medium materiality
High
Capital expenditures growth
up between 10% and 15%
medium materiality
High
D&A growth
up approximately 10%
medium materiality
High
3-year growth algorithm (revenue)
step-up in the out years to get back to targets
high materiality
High
3-year growth algorithm (EBITDA)
step-up in the out years to get back to targets
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Franchise segment
Revenue increase driven by higher royalty revenue and national advertising fund revenue.
—9.6%——
Corporate-owned club segment
Revenue increase.
—7.4%——
Equipment segment
Revenue increase driven by higher revenue from equipment sales to franchisee-owned clubs.
—15.3%——

PLNT operating KPIs by quarter

PLNT operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Dec 2025 Q4 FY25 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.

Deals & partnerships

Ro Perks partnership for GLP-1 users

Partnership to position Planet Fitness at the forefront of consumer wellness, offering discounts and benefits to members using GLP-1s.

Risks & headwinds

Extended equipment replacement cycle FY26

approximately 300 basis point impact to top line and slightly north of 200 basis point impact on EBITDA for FY26

Mitigation:Contemplated and known, part of the 3-year algorithm.

Sale of 8 corporate-owned clubs in California FY26

approximately 300 basis point impact to top line and slightly north of 200 basis point impact on EBITDA for FY26

Mitigation:Aligns with asset-light strategy, allows capital recycling, and puts market in hands of well-capitalized franchisee.

Weather impact on Q1 FY26 join trends Q1 FY26

impacted join volumes across many markets (approx. 2,000 clubs) in late January

Mitigation:Join trends have rebounded, and healthy join rates seen in February due to promotions; impact is temporary and much less than other factors.

Elevated cancel rate in January FY26 January FY26

slightly higher cancel rate last month than anticipated

Mitigation:Attrition trends normalized in February; tweaks made to messaging and digital platform around cancellation.

Competitive real estate market ongoing

remains highly competitive

Mitigation:Partnering with franchisees to demonstrate value to landlords, leveraging industry relationships for prime sites from retail bankruptcies, franchisee-led acquisitions/conversions.

What to watch in Q1 FY26

FY26 Q1 Join Trends

Q1 FY26 earnings call
Current Impacted by storms in late January, rebounding in February
Target Continued normalization and strong join rates

Why it matters

Join trends are a key indicator of member growth and revenue trajectory, especially early in the year.

Our join trends were impacted by the storms and cold weather in late January across many of our markets, and we experienced a slightly higher cancel rate last month than anticipated. Notably, recent attrition trends are returning in line with our expectations.

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Q&A highlights

Clarification on how FY26 guidance, being the lowest growth year, shapes expectations for revenue, unit expansion, and EBITDA growth in FY27 and FY28, given the reiterated 3-year algorithm.

Management confirmed FY26 is the lowest growth year due to re-equip cycle and California club sales (300bps revenue, 200bps EBITDA impact). They reiterated commitment to the 3-year algorithm, expecting a "step-up" in growth for FY27 and FY28 to meet targets, driven by strategic imperatives and flow-through to the bottom line.

“So there's a bit of a step-up in the out years... We expected, and this is not dissimilar to what we rolled out with our 3-year algo at Investor Day. We didn't indicate that the algo was going to be an annual growth rate.”

asked by Randal Konik · answered by Jay Stasz

2 min read 5 chapters

Detailed narrative

Strategic Imperatives and 2025 Performance

Planet Fitness's strong 2025 performance was driven by its four strategic imperatives: redefining brand promise, enhancing member experience, refining product/optimizing format, and accelerating new club growth. The company ended the year with approximately 20.8 million members and nearly 2,900 clubs, opening 181 new clubs and adding 1.1 million net new members. This growth occurred during the first full year of the new Classic Card membership dues, reinforcing the brand's value proposition.

Marketing and Brand Redefinition

The "We are all strong on this Planet" campaign was extended into 2026, leveraging its strong resonance and avoiding new creative development costs. Savings were redirected to high-impact media. A shift of 1% of contributions from local to national ad funds for 2026 (starting Q2) will accelerate technology projects like AI-enabled CRM, dynamic content optimization, and a predictive churn model to enhance member acquisition and retention.

Member Experience and Format Optimization

The company is using a data-driven approach and technology to deepen engagement. The mobile app remains a top download, and early digital and in-club engagement contributes to higher lifetime value. AI-driven tools are being piloted for personalized coaching. The company is also addressing GLP-1 users, noting that 50% of GLP-1 users consider a gym membership, and Planet Fitness's judgment-free environment is well-suited for this demographic. The Perks partnership with Ro has shown excellent early results.

New Club Growth and International Expansion

Planet Fitness opened 104 clubs in Q4 2025, an all-time quarterly high, contributing to 181 total openings for the year. The company is navigating a competitive real estate market by partnering with franchisees and leveraging retail bankruptcies for prime sites. International expansion is a key pillar, focusing on existing markets (Mexico, Australia, Spain) and entering 1-2 new markets annually. The company surpassed 1 million international members and 200 international clubs in 2025.

Black Card Amenities Test

The company is testing new Black Card spa modalities, including Dry Cold plunge and Red Light sauna, in corporate clubs. Member feedback has been resoundingly positive, indicating an opportunity to drive joins, upgrades, and enhance retention by democratizing recovery and wellness. This initiative aims to further differentiate the Black Card offering and appeal to a broader wellness-focused demographic.

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