Core Insights - The S&P 500 index has generated a total return of 13% over the past 12 months, with significant volatility due to trade policy and economic uncertainty [1] - Planet Fitness has outperformed the broader index, with a 61% increase in stock price over the past year [1] Financial Performance - Planet Fitness reported Q1 2025 revenue of $277 million, an increase of 11.5% driven by the opening of 19 new locations, totaling 2,741 [3] - Same-store sales (SSS) grew by 6.1%, indicating increased productivity from existing locations [4] - Management expects SSS to rise between 5% and 6% in 2025, with revenue projected to increase by 10% [4] Membership Growth - Planet Fitness added 900,000 new members in Q1, bringing the total membership to 20.6 million [6] - The company believes it can expand to 5,000 fitness clubs in the U.S., significantly increasing revenue and earnings [7] Business Model - The franchise model allows Planet Fitness to operate with only 10% of locations owned directly, reducing capital requirements and fueling growth [8] - The company has maintained an average operating margin of 26% over the past decade, indicating strong profitability [9] Valuation and Investment Considerations - Shares of Planet Fitness have performed well, but the forward price-to-earnings (P/E) ratio is 35.6, which may be considered expensive [10][11] - Consensus forecasts suggest earnings per share will rise at an annualized pace of about 15% from 2024 to 2027 [11] - While the stock may not be a straightforward buy due to valuation concerns, it could be a viable option for exposure to the fitness industry [12]

Core Viewpoint - Planet Fitness Inc has been upgraded to "buy" from "hold" by Stifel, with a price target increase to $120 from $82, citing stabilizing new membership rates and potential tailwinds for comparable sales growth in the mid- to high-single-digit range over the next several years [1] Group 1 - Shares of Planet Fitness are up 1.4% before market opening, approaching an all-time high of $109.91, with a year-over-year increase of 59% and a year-to-date gain of 5.3% [2] - If premarket strength continues, the stock will achieve its sixth consecutive daily gain [2] Group 2 - Short interest has increased by 27.6% in the past two weeks, with 6.66 million shares sold short, representing 8% of the total available float [3] - At the current trading pace, it would take short sellers more than four days to cover their positions [3] Group 3 - An unwinding of pessimism in the options market may provide additional support, as the put/call open interest ratio stands at 0.83, indicating higher-than-usual put exposure among short-term traders [4]

Core Insights - Planet Fitness has launched its annual High School Summer Pass™ program, allowing teens aged 14-19 to work out for free at over 2,700 locations in the U.S. and Canada from June 1 to August 31 [1][2] - The program, now in its fifth year, aims to promote youth health and wellness, having invested over $300 million in waived membership dues since its inception in 2019 [2][5] - A Canadian study conducted by Planet Fitness highlights the mental health concerns among teens, with 68% of parents worried about their children's mental health [9] Company Overview - Founded in 1992, Planet Fitness is one of the largest fitness center franchisors and operators globally, with approximately 20.6 million members and 2,741 clubs as of March 31, 2025 [5] - The company's mission is to enhance lives by providing a high-quality fitness experience in a welcoming environment known as the Judgement Free Zone® [5] Program Details - The High School Summer Pass program has seen participation from 10 million teens since its launch, providing free access to fitness facilities and resources [7] - Participants will have access to a range of fitness equipment, free training from certified trainers, and a dedicated app featuring on-demand exercises [9] Mental Health Insights - The study indicates that 93% of teens who prioritize exercise report feeling happy, and 88% feel confident, with parents observing positive changes in their teens' mood and stress levels [9] - Despite recognizing the benefits of exercise, only 45% of teens turn to physical activity during challenging times, highlighting a knowledge-action gap [9]

jetcityimage In the nearly ten years since it went public, Planet Fitness (NYSE:PLNT) has seen a relatively steady base of skeptics: For the most part, those skeptics have been wrong: PLNT stock has gained just over 500% from its IPO price, for annualized ...

Membership and Club Operations - As of March 31, 2025, Planet Fitness had approximately 20.6 million members and operated 2,741 clubs, with 2,461 being franchised and 280 corporate-owned[108]. - Planet Fitness had contractual commitments to open approximately 900 new clubs as of March 31, 2025[108]. - The number of new franchisee-owned clubs opened in the first quarter of 2025 was 16, while corporate-owned clubs added 3 new locations[114]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $276.7 million, a 11.6% increase from $248.0 million in the same period of 2024[112]. - Adjusted EBITDA for the same period was $117.0 million, up 10.6% from $106.3 million in 2024[112]. - Adjusted net income for the three months ended March 31, 2025, was $42.1 million, compared to $35.0 million in 2024, indicating a growth of 20.5%[125]. - Total revenue for the three months ended March 31, 2025, was $276.7 million, an increase of $28.6 million, or 11.5%, compared to $248.0 million for the same period in 2024[131]. - Adjusted net income for the three months ended March 31, 2025, was $50.0 million, compared to $47.3 million in 2024, representing an increase of 5.0%[127]. - Adjusted net income per share, diluted, was $0.59 for the three months ended March 31, 2025, compared to $0.53 in 2024, reflecting a 11.3% increase[127]. Revenue Segments - Franchise segment revenue increased to $115.2 million, a 10.5% rise from $104.0 million in 2024[112]. - Corporate-owned clubs segment revenue rose to $133.7 million, compared to $122.4 million in the previous year, marking an 9.5% increase[112]. - Equipment segment revenue rose to $27.8 million for the three months ended March 31, 2025, an increase of $6.2 million, or 28.7%, compared to $21.6 million in 2024[135]. - National advertising fund revenue was $21.9 million for the three months ended March 31, 2025, an increase of $2.2 million, or 10.9%, compared to $19.8 million in 2024[133]. Expenses and Costs - Cost of revenue increased to $22.5 million for the three months ended March 31, 2025, up $3.5 million, or 18.4%, from $19.0 million in 2024[136]. - Club operations expense was $81.7 million for the three months ended March 31, 2025, an increase of $7.3 million, or 9.9%, compared to $74.4 million in 2024[137]. - Selling, general and administrative expenses increased to $34.3 million for the three months ended March 31, 2025, up $5.1 million, or 17.5%, from $29.2 million in 2024[138]. - Depreciation and amortization expense decreased by $1.1 million, or 2.8%, to $38.3 million for the three months ended March 31, 2025, compared to $39.4 million in the same period of 2024[140]. Cash Flow and Financing - Net cash provided by operating activities was $133.9 million for the three months ended March 31, 2025, compared to $89.7 million in the prior year, an increase of $44.2 million[153]. - Net cash used in investing activities decreased by $10.5 million to $28.1 million for the three months ended March 31, 2025, compared to $38.6 million in the same period of 2024[155]. - Net cash used in financing activities increased by $30.4 million to $55.4 million for the three months ended March 31, 2025, compared to $25.0 million in the prior year, primarily due to increased cash used for share repurchases[156]. Other Financial Metrics - System-wide sales reached $1.3 billion for the three months ended March 31, 2025, compared to $1.2 billion in 2024, reflecting a growth of approximately 8.3%[121]. - Same club sales growth for franchisee-owned clubs was 6.2%, while corporate-owned clubs saw a growth of 5.1%[118]. - Franchise Segment Adjusted EBITDA increased by $8.7 million, or 11.5%, to $84.9 million for the three months ended March 31, 2025, compared to $76.1 million in the same period of 2024[147]. - Corporate-owned clubs Segment Adjusted EBITDA rose by $3.5 million, or 8.1%, to $45.8 million for the three months ended March 31, 2025, compared to $42.4 million in the prior year[148]. - Equipment Segment Adjusted EBITDA surged by $2.6 million, or 55.1%, to $7.4 million for the three months ended March 31, 2025, compared to $4.8 million in the same period of 2024[149]. - Other (gains) losses, net improved to a gain of $1.2 million for the three months ended March 31, 2025, compared to a loss of $0.5 million in the prior year, representing a change of $1.7 million, or 355.6%[141]. - Interest income increased by $0.4 million, or 6.4%, to $5.8 million for the three months ended March 31, 2025, compared to $5.5 million in the same period of 2024[142]. - Interest expense rose by $4.8 million, or 22.2%, to $26.2 million for the three months ended March 31, 2025, compared to $21.4 million in the prior year, primarily due to a higher principal balance[143].

Core Insights - Planet Fitness, Inc. (PLNT) reported lower-than-expected first-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][4] - The company is facing macroeconomic volatility, increased costs, and expenses, particularly in SG&A and club operations [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 59 cents, missing the consensus estimate of 62 cents by 4.8%, while the prior-year quarter reported adjusted EPS of 53 cents [4] - Quarterly revenues were $276.7 million, lagging the consensus mark of $282 million by 1.7%, but rose 11.5% year-over-year due to new club openings and membership growth [4] - Adjusted EBITDA was $117 million, up 10% from $106.3 million reported in the year-ago quarter [5] Segment Performance - Franchise segment revenues rose 10.7% year-over-year to $115.2 million, with adjusted EBITDA of $84.9 million, up from $76.1 million [6] - Corporate-owned clubs generated revenues of $133.7 million, up 9.2% year-over-year, with adjusted EBITDA totaling $45.8 million, an increase from $42.4 million [7] - Equipment segment revenues totaled $27.8 million, up 28.7% year-over-year, with adjusted EBITDA rising to $7.4 million from $4.8 million [8] Cash and Debt Position - As of March 31, 2025, Planet Fitness had cash and cash equivalents of $343.9 million, up from $293.2 million at the end of 2024, while long-term debt decreased slightly to $2.14 billion [9] 2025 Outlook - For 2025, the company expects approximately 130-140 new equipment placements and 160-170 new club openings, with same-club sales growth projected in the 5-6% range [10] - Revenues are anticipated to increase approximately 10% from 2024 levels, with adjusted EBITDA and net income expected to grow around 10% and 8-9%, respectively [11] - Capital expenditures are now projected to increase approximately 20%, a revision from the previously expected 25% increase [12]

Group 1 - Planet Fitness, Inc. (NYSE: PLNT) is identified as a house position, previously traded for short-term gains of approximately 30% before selling [1] - The company is currently offering a discount on its Marketplace service, which ends this month, encouraging investment at a discount [1] - The strategy employed by the company aims to provide rapid returns and advance savings and retirement timelines through a blended trading and income approach [1] Group 2 - A money-back guarantee is offered if customers are not satisfied, indicating confidence in the service provided [3] - The company promotes its proven track record and encourages potential clients to take the next step in their investment journey [3]

Core Insights - Planet Fitness reported revenue of $276.66 million for the quarter ended March 2025, marking an 11.6% year-over-year increase, with EPS of $0.59 compared to $0.53 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $281.54 million, resulting in a surprise of -1.73%, while the EPS also missed the consensus estimate of $0.62 by -4.84% [1] Financial Performance Metrics - Total stores at the end of the period were 2,741, slightly below the estimated 2,746 [4] - Same-store sales increased by 6.1%, exceeding the estimated 5.4% [4] - Franchisee-owned same-store sales were reported at 6.2%, also above the estimated 5.4% [4] - Corporate-owned same-store sales were 5.1%, slightly above the 5% average estimate [4] - The company opened 19 new stores, below the average estimate of 23 [4] Revenue Breakdown - National advertising fund revenue was $21.94 million, surpassing the average estimate of $21.55 million, reflecting a year-over-year change of +10.9% [4] - Franchise revenue reached $93.24 million, slightly below the average estimate of $93.54 million, with a year-over-year increase of +10.7% [4] - Equipment segment revenue was $27.81 million, exceeding the average estimate of $27.36 million, with a significant year-over-year increase of +28.7% [4] - Corporate-owned stores segment revenue was $133.67 million, below the average estimate of $136.20 million, showing a year-over-year change of +9.2% [4] - Franchise segment revenue was $115.18 million, slightly above the estimated $115.09 million, with a year-over-year increase of +10.7% [4] Stock Performance - Planet Fitness shares have returned +7.6% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company ended Q1 2025 with 20.6 million members, an increase of approximately 900,000 from the end of 2024 [5] - System-wide same club sales grew by 6.1%, with franchisee same club sales increasing by 6.2% and corporate same club sales increasing by 5.1% [20] - Revenue for Q1 was $276.7 million, an increase of 11.5% from $248 million in the previous year [21] - Adjusted EBITDA was $117 million, reflecting a 10.1% year-over-year increase, with an adjusted EBITDA margin of 42.3% [25] Business Line Data and Key Metrics Changes - Franchise segment revenue increased by 10.7%, driven by higher royalty revenue from increased same club sales and new clubs [21] - Corporate-owned club segment revenue increased by 9.2%, primarily due to increased same club sales and sales from new clubs [22] - Equipment segment revenue increased by 28.7%, driven by higher revenue from replacement equipment sales [23] Market Data and Key Metrics Changes - Black Card penetration reached approximately 65%, a nearly 300 basis point increase from the previous year [9][21] - Members visited clubs an average of 6.7 times per month, the highest utilization in five years [10] Company Strategy and Development Direction - The company is focused on four strategic imperatives: redefining brand promise, enhancing member experience, refining product offerings, and accelerating new club growth [7] - The company plans to open between 160 and 170 new clubs in 2025, with a focus on unit economics and franchisee sentiment [27] - The company is exploring new markets for international expansion, with positive performance noted in Spain and Australia [108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate macroeconomic volatility, citing historical performance during economic downturns [6][41] - The company reiterated its growth targets for 2025, expecting continued strong performance despite potential tariff impacts [16][27] Other Important Information - The company is rolling out a "click to cancel" feature to enhance member experience, with over 50% of clubs already enabled [19] - The company is testing various promotional strategies, including a successful Black Card first month free promotion [9][33] Q&A Session Summary Question: Regarding Black Card penetration and pricing impact - Management noted that the increase in Black Card penetration is a result of a narrowed price gap and successful promotions [33][34] Question: Impact of macroeconomic conditions on business - Management indicated that the business remains resilient, with strong member growth and revenue despite macroeconomic challenges [41][45] Question: Future pricing strategies for Black Card - Management stated that pricing decisions for the Black Card will be evaluated after the Classic Card price increase anniversary [48][112] Question: Churn rates and click to cancel impact - Management confirmed that churn rates are in line with expectations and that the click to cancel feature may improve join conversions [82][56] Question: International development and franchisee sentiment - Management highlighted strong performance in international markets and positive franchisee sentiment regarding new openings [108][64]

Financial Data and Key Metrics Changes - The company ended Q1 2025 with 20.6 million members, an increase of approximately 900,000 from the end of 2024 [4] - Revenue for Q1 was $276.7 million, compared to $248 million in the same quarter last year, marking an increase of 11.5% [22] - Adjusted EBITDA was $117 million, an increase of 10.1% year over year, with an adjusted EBITDA margin of 42.3% [25] - Net income was $42.1 million, with adjusted net income at $50 million, reflecting strong financial performance [25] Business Line Data and Key Metrics Changes - System-wide same club sales grew by 6.1% in Q1, with franchisee same club sales increasing by 6.2% and corporate same club sales increasing by 5.1% [21] - Black Card penetration reached approximately 65%, a nearly 300 basis point increase from the previous year [9][22] - Equipment segment revenue increased by 28.7%, driven by higher revenue from replacement equipment sales [23] Market Data and Key Metrics Changes - The company opened 19 new clubs globally, bringing the total club count to 2,741 [4] - Member activity increased, with members visiting clubs an average of 6.7 times per month, the highest utilization in five years [10] - Gen Z continues to lead membership growth, being the fastest-growing demographic since 2021 [10] Company Strategy and Development Direction - The company is focused on four strategic imperatives: redefining brand promise, enhancing member experience, refining product offerings, and accelerating new club growth [6] - The brand is positioned as a leader in the high-value, low-price fitness category, aiming to provide a judgment-free environment [5] - The company plans to continue testing various promotional strategies to drive membership growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate macroeconomic challenges, citing historical performance during economic downturns [5][42] - The company reiterated its growth targets for 2025, expecting to open between 160 and 170 new clubs [28] - Management acknowledged potential tariff impacts but indicated that current levels do not materially affect 2025 targets [15][27] Other Important Information - The company is implementing a click-to-cancel feature to enhance member experience, with over 50% of US clubs already enabled [20] - The company is exploring new equipment offerings and amenities for Black Card members, including red light therapy and spray tanning [88] Q&A Session Summary Question: Regarding Black Card penetration and pricing strategy - Management noted that the increase in Black Card penetration is a result of a successful promotion and the narrowing price gap between Classic and Black Card memberships [34][35] Question: Impact of macroeconomic conditions on business - Management indicated that the business remains resilient, with strong member growth and revenue despite macroeconomic volatility [42][45] Question: Future of franchise ownership and international development - Management highlighted positive franchisee sentiment and strong performance in international markets, particularly in Spain and Australia [106][108] Question: Churn rates and pricing impacts - Churn rates are in line with expectations, and management is monitoring the effects of price increases on member retention [82] Question: Development pipeline and big box availability - Management discussed varying availability of big box spaces across geographies and expressed confidence in the development pipeline despite macro concerns [94][96]