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    PLNT
    Earnings call· Dec 2025(Q4 FY25)

    Planet Fitness Q4 FY25 earnings call PLNT

    Feb 24, 2026 Source

    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

    16
    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

    3
    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%——

    Operational metrics

    41
    Total members
    20.8 million
    Q4 FY25

    Approximately 20.8 million members at year-end.

    Global clubs
    nearly 2,900
    Q4 FY25

    Global footprint of nearly 2,900 clubs at year-end.

    New club openings
    181up >20% YoY
    FY25

    Opened 181 new clubs in 2025, a 20% lift over 2024.

    Net new members added
    1.1 millionup 10% YoY
    FY25

    Added 1.1 million net new members in 2025, a 10% increase over 2024.

    High School Summer Pass participants
    3.7 million
    Summer 2025

    More than 3.7 million teens completed over 19 million workouts.

    High School Summer Pass conversion to paying members
    8.3%elevation over past 2 years
    FY25

    Conversion rate of teen participants to paying members.

    Clubs with optimized format
    nearly 80%
    Q4 FY25

    Percentage of entire system featuring some version of a format optimized layout or equipment offering.

    New/remodeled clubs choosing optimized format
    95%
    2025

    95% of those who opened or remodeled clubs chose an optimized format in 2025.

    Q4 new club openings
    104up from 86 in Q4 FY24
    Q4 FY25

    All-time quarterly high for Q4 openings.

    International members
    over 1 million
    FY25

    Surpassed 1 million member milestone across international markets.

    International clubs
    over 200
    Q4 FY25

    Crested 200 international clubs.

    Shareholder returns (buybacks)
    nearly $800 million
    last 2 years

    Returned nearly $800 million to shareholders through buybacks over the last 2 years.

    Q4 new club placements
    96up from 77 in Q4 FY24
    Q4 FY25
    Q4 Total revenue
    $376.3 millionup from $340.5 million
    Q4 FY25

    Total revenue for the fourth quarter. This is a GAAP figure, captured per specific instruction.

    Q4 Total revenue (prior year)
    $340.5 million
    Q4 FY24

    Total revenue for Q4 FY24. This is a GAAP figure, captured per specific instruction.

    Q4 Cost of revenue
    $90.2 millionup 12.1% from $80.5 million
    Q4 FY25

    Relates to cost of equipment sales to franchisee-owned clubs.

    Q4 Cost of revenue (prior year)
    $80.5 million
    Q4 FY24

    Cost of revenue for Q4 FY24. Captured per specific instruction.

    Q4 Club operations expense
    $79.6 millionup 7.1% from $74.4 million
    Q4 FY25
    Q4 SG&A
    $37.3 millionup from $35.7 million
    Q4 FY25

    SG&A for the quarter. Captured per specific instruction.

    Q4 SG&A (prior year)
    $35.7 million
    Q4 FY24

    SG&A for Q4 FY24. Captured per specific instruction.

    Q4 Adjusted SG&A
    $36.8 million
    Q4 FY25

    Compared to $34.4 million or 10.1% of total revenue in Q4 FY24.

    Q4 National advertising fund expense
    $21.4 millionup 10.5% from $19.4 million
    Q4 FY25
    Q4 Net income
    $60.7 million
    Q4 FY25

    Net income for the quarter. Captured per specific instruction.

    Q4 Adjusted net income
    $69 million
    Q4 FY25
    Q4 Adjusted net income per diluted share
    $0.83
    Q4 FY25
    Q4 Adjusted EBITDA
    $146.3 millionup from $130.8 million
    Q4 FY25

    Compared to $130.8 million with adjusted EBITDA margin of 38.4% in Q4 FY24.

    Q4 Adjusted EBITDA (prior year)
    $130.8 million
    Q4 FY24

    Adjusted EBITDA for Q4 FY24. Captured per specific instruction.

    FY Adjusted EBITDA margin
    41.7%up from 41.3% in FY24
    FY25
    Cash, cash equivalents and marketable securities
    $607 millionup from $529.5 million on 2024-12-31
    2025-12-31

    Includes $66.3 million of restricted cash.

    Cash, cash equivalents and marketable securities (prior year)
    $529.5 million
    2024-12-31

    Includes $56.5 million of restricted cash.

    Debt refinanced
    $400 million
    Q4 FY25

    Refinanced debt due next year.

    Upsized debt deal
    $750 million
    Q4 FY25

    Upsized deal at a blended coupon of 5.4%.

    Accelerated share repurchase
    $350 million
    Q4 FY25

    Executed a $350 million accelerated share repurchase.

    Impact of re-equip cycle and California club sales on FY26 revenue growth
    300 bps
    FY26

    Headwind to top line growth.

    Impact of re-equip cycle and California club sales on FY26 EBITDA growth
    200 bps
    FY26

    Headwind to EBITDA growth.

    Q4 FY24 club openings in Q4
    57%
    Q4 FY24

    Percentage of total openings in Q4 FY24.

    FY26 club openings in Q4
    closer to 60%
    FY26

    Anticipated percentage of total openings in Q4 FY26.

    GLP-1 users considering gym membership
    50%
    current

    A recent survey indicated 50% of people taking a GLP-1 consider a gym membership.

    Digital join flow conversion rate increase
    6%
    current

    Increase in conversion rates in the digital join flow since noting the ability to manage membership.

    Rejoin rate
    34.8%
    Q4 FY25

    Percentage of joins that are rejoins.

    Franchise vs Corporate-owned club split
    90% / 10%
    current

    Current split, considered a good balance.

    Industry KPIs

    3
    MetricValueDetails
    Comparable sales comps5.7%%
    Global system wide sales6.7%%
    Net unit growth development pipeline181clubs

    Deals & partnerships

    1
    RoPerks 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

    5
    Extended equipment replacement cycleFY26

    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 CaliforniaFY26

    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 trendsQ1 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 FY26January 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 marketongoing

    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

    5

    FY26 Q1 Join Trends

    Q1 FY26 earnings call
    CurrentImpacted by storms in late January, rebounding in February
    TargetContinued 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

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