Planet Fitness (PLNT) came out with quarterly earnings of $0.59 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.84%. A quarter ago, it was expected that this fitness center operator would post earnings of $0.62 per share when it actually produced earnings of $0.70, delivering a surprise of 12.90%.Over the last four quarter ...

Planet Fitness, Inc. Announces First Quarter 2025 Results System-wide same club sales increased 6.1% Ended first quarter with total membership of approximately 20.6 million $50.0 million in shares repurchased in first quarter Exhibit 99.1 Hampton, NH, May 8, 2025 - Today, Planet Fitness, Inc. (NYSE: PLNT) reported financial results for its first quarter ended March 31, 2025. "We ended the first quarter with approximately 20.6 million members, an increase of approximately 900,000 from the end of 2024, and we ...

Industry Overview - The Consumer Discretionary sector has experienced mixed performance in 2025 due to elevated inflation, high interest rates, and uncertainty in trade and fiscal policies, leading to cautious consumer behavior in discretionary spending categories [1] - Despite a relatively stable job market, inflationary pressures and rising living costs have constrained consumer spending ability [1] - Businesses in the sector face planning challenges due to unpredictable tariff developments affecting sourcing, pricing strategies, and inventory management [1] Earnings Performance - As of April 30, 43.3% of companies in the Zacks Consumer Discretionary sector, representing 60.9% of the sector's market capitalization, reported earnings, with 53.8% beating earnings estimates and 46.2% surpassing revenue estimates [2] - Year-over-year earnings increased by 4% on a 0.7% rise in revenues, influenced by inflationary pressures and fluctuating consumer sentiment, particularly among lower-income households [2] - First-quarter 2025 earnings for the sector are expected to increase by 0.8% year-over-year, a significant decline from the 19% growth in the previous quarter [4] Segment Performance - The leisure and recreation services segment has performed relatively well despite headwinds, driven by a shift in consumer preference towards experience-based spending in fitness, gaming, and entertainment [3] - However, the industry is facing challenges such as rising labor and supply costs, tightening pricing flexibility, and increased competition [3] Company-Specific Insights - Planet Fitness is set to report first-quarter 2025 results, with an Earnings ESP of +0.71% and a Zacks Rank of 3, indicating a potential earnings beat [5][6] - The Zacks Consensus Estimate for Planet Fitness's first-quarter 2025 revenues is $280.7 million, reflecting a 13.2% increase year-over-year, with EPS expected to be 62 cents, up 17% from the previous year [7] - Peloton Interactive is expected to report a revenue decrease of 13.7% year-over-year, with a consensus estimate of $619.7 million and a projected loss per share of 6 cents, an improvement from a loss of 45 cents in the prior year [9] - Xponential Fitness is anticipated to report a revenue decline of 4.3% year-over-year, with revenues pegged at $76.1 million and EPS expected to decline by 6.3% [11] - PENN Entertainment is projected to report first-quarter revenues of $1.7 billion, indicating a 5.9% growth year-over-year, with a consensus loss per share of 29 cents, improving from a loss of 79 cents in the previous year [13]

Core Viewpoint - Planet Fitness is expected to report quarterly earnings of $0.62 per share, a 17% increase year-over-year, with revenues projected at $280.69 million, reflecting a 13.2% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.4% in the last 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock [3]. Revenue Projections - Analysts estimate 'Revenue- National advertising fund' to be $21.55 million, an 8.9% increase year-over-year [5]. - 'Revenue- Franchise' is expected to reach $93.64 million, indicating an 11.2% year-over-year change [5]. - The 'Revenue- Equipment segment' is projected at $26.26 million, reflecting a 21.5% increase from the previous year [5]. - 'Revenue- Corporate-owned stores segment' is anticipated to be $135.97 million, showing an 11.1% year-over-year change [6]. Same-store Sales and Store Metrics - The average prediction for 'Same-store sales' is 5.4%, down from 6.2% reported in the same quarter last year [6]. - The consensus for 'Total Stores - End of period' is 2,747, up from 2,599 a year ago [6]. - 'EOP Franchise Stores' are projected to reach 2,467, compared to 2,341 reported in the same quarter last year [7]. - 'EOP Corporate Stores' is expected to be 281, up from 258 year-over-year [7]. - 'Corporate-owned same store sales' is estimated at 5.0%, down from 6.2% in the previous year [7]. New Store Openings - Analysts forecast 'Total Stores - New stores opened' to be 23, down from 25 reported in the same quarter last year [8]. - 'Franchisee-owned same store sales' is expected to be 5.4%, compared to 6.3% in the same quarter last year [8]. - 'Total Stores - Beginning of period' is projected to be 2,722, up from 2,575 year-over-year [8]. Stock Performance - Planet Fitness shares have increased by 6.6% in the past month, compared to an 11.5% increase in the Zacks S&P 500 composite [9].

Core Viewpoint - Planet Fitness, Inc. (PLNT) has experienced a 10.7% decline in share price over the past three months, yet it has outperformed the Zacks Leisure and Recreation Services industry, the broader Zacks Consumer Discretionary sector, and the S&P 500 during the same period [1][3]. Group 1: Company Performance - Despite the decline, PLNT stock has outperformed competitors such as Xponential Fitness, OneSpaWorld, and Peloton, which saw declines of 52.2%, 20.1%, and 43.6% respectively [4]. - The company has approximately 19.7 million members and operates 2,722 clubs across various regions, including the U.S., Canada, and parts of Europe and Latin America [6]. - PLNT has enacted several in-house initiatives aimed at gaining market share, optimizing costs, and increasing cash flow to mitigate adverse market impacts [6][19]. Group 2: Growth Strategies - The company introduced a new economic growth model in 2024, focusing on reduced build costs and extended capital investment timelines to enhance returns from new stores [7]. - PLNT has successfully integrated pricing trials into its operations, with the Classic Card membership priced at $15, and ongoing trials for the premium Black Card membership expected to conclude in Q1 2025 [8]. - The company plans to open 160-170 new clubs in 2025, building on the 150 new club openings reported in 2024 [9]. Group 3: Financial Outlook - Earnings estimates for 2025 have increased by 0.3% over the past week, with a projected year-over-year growth rate of 12.4% for 2025 earnings [10]. - The current earnings per share (EPS) estimates for 2025 stand at $2.91, with a projected increase to $3.41 in 2026 [11]. - PLNT is currently trading at a premium compared to industry peers, indicating strong market potential despite the challenges faced [13][15]. Group 4: Challenges and Risks - The company is facing pressures from elevated costs due to inflation and global macroeconomic risks, which have led to a 7.4% year-over-year increase in total operating costs to $857.5 million in 2024 [5][20]. - The uncertain global market scenario, including newly levied tariffs and potential foreign exchange risks, poses additional challenges for PLNT [16][18].

It has been about a month since the last earnings report for Planet Fitness (PLNT) . Shares have added about 11% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Planet Fitness due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then ...

In the last year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But some businesses have fared much better, and investors should take notice of them. In particular, one consumer-facing company has well outperformed the broader index: Its shares have soared by 42% just in the past 12 months (as of Feb. 25). Should you buy this growth stock with $1,000 right now, which would give you about 11 shares at the current price?On solid footingThe growth stock in question is Planet Fit ...

Core Viewpoint - Planet Fitness, Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations, but faced negative investor sentiment due to a cautious 2025 outlook [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were 70 cents, surpassing the Zacks Consensus Estimate of 62 cents by 12.9%, and up from 60 cents in the prior-year quarter [3]. - Quarterly revenues reached $340.5 million, exceeding the consensus mark of $327 million by 4.2%, and improved 19.4% year over year, driven by a 5.5% increase in same-club sales [3]. - Adjusted EBITDA for the quarter was $130.8 million, an increase from $114.3 million reported in the year-ago quarter [4]. Segment Performance - Franchise segment revenues rose 11% year over year to $109 million, driven by increased royalty revenues and new club openings [5]. - Corporate-owned clubs generated revenues of $126.3 million, up 8.5% year over year, attributed to new clubs opened and acquired [6]. - Equipment segment revenues totaled $105.1 million, a significant increase of 49.2% year over year, due to higher sales to franchisee-owned clubs [7]. 2024 Highlights - Total revenues for 2024 were $1.18 billion, compared to $1.07 billion in 2023 [10]. - Adjusted EBITDA for 2024 was $487.7 million, up from $435.4 million in 2023 [10]. - Adjusted net income per share (diluted) for 2024 was $2.59, compared to $2.24 in the previous year [10]. 2025 Outlook - For 2025, the company expects revenue growth of approximately 10% over 2024 levels, with same-club sales growth projected in the 5-6% range [11]. - Adjusted EBITDA for 2025 is estimated to grow by approximately 10%, while adjusted net income is expected to increase in the 8-9% range [12]. - Capital expenditures are projected to rise by 25% in 2025, driven by investments in new corporate-owned clubs [13].

Group 1 - The article discusses the performance of Planet Fitness, Inc. (NYSE: PLNT), highlighting a previous short-term gain of approximately 30% from trading the stock [1] - The company is positioned as a house position, indicating a strong belief in its potential for future returns [1] - The article promotes a blended trading and income approach to enhance savings and retirement timelines for investors [1] Group 2 - The content encourages potential investors to try the service with a money-back guarantee, emphasizing a proven track record of high conviction ideas [2]

Membership and Club Operations - As of December 31, 2024, Planet Fitness had approximately 19.7 million members, with 82% of membership fee payments collected via ACH direct debit[22]. - The company operated 2,722 clubs system-wide as of December 31, 2024, including 2,445 franchised and 277 corporate-owned locations[23]. - PF Black Card membership penetration increased from 61% as of December 31, 2020, to 64% as of December 31, 2024, with average monthly dues per member rising from $17.01 to $19.01[1]. - Monthly membership dues start at $15 for the standard Classic Card and $24.99 for the PF Black Card, with current standard annual fees at $49[24]. - As of December 31, 2024, the company had 96 franchisee groups operating 2,445 clubs, indicating a substantial franchise network[115]. Marketing and Brand Strategy - Planet Fitness spent $88.6 million in 2024 on national marketing campaigns and local advertising, with franchisees required to contribute 2% of their gross monthly membership dues to the National Advertising Fund[1]. - The company plans to enhance its free fitness training program and provide over 500 workouts via its mobile application to attract new members[1]. - Planet Fitness aims to increase brand investment to drive awareness and growth, leveraging significant marketing expenditures from both franchisees and corporate[1]. - Franchisees in the U.S. and Canada are required to spend 7% of their monthly dues on local marketing to support branding efforts[47]. - The company has aligned with high-profile media partners, reaching over one billion TV viewers annually through sponsorships[48]. Financial Performance and Royalties - The average royalty rate for Planet Fitness was 6.6% in 2024, up from 6.3% in 2020, with only 57% of clubs paying royalties at the current franchise agreement rate[1]. - The company's financial results are heavily reliant on royalties from franchisees, which are based on a percentage of gross monthly membership dues and annual fees[115]. - Economic conditions such as recession, inflation, and decreased consumer confidence could materially harm franchisees' financial conditions, adversely affecting the company's revenues[115]. Challenges and Risks - The health club industry is highly competitive, with various fitness and non-fitness alternatives vying for consumer discretionary spending[51]. - The company and its franchisees face challenges in attracting and retaining members, which could adversely impact business operations and financial condition[91]. - The company is exposed to risks related to cybersecurity, which could disrupt operations and damage reputation if data integrity is compromised[15]. - The company must effectively respond to changing consumer preferences in health and fitness to avoid adverse impacts on business[89]. - The company faces increased risks of cybersecurity incidents due to geopolitical events, which could disrupt operations and affect member services[97]. Debt and Financial Obligations - As of December 31, 2024, the Master Issuer had approximately $2.2 billion of outstanding debt[173]. - The Master Issuer issued $575 million in Series 2018-1 Fixed Rate Senior Secured Notes and $625 million in Series 2018-1 Fixed Rate Senior Secured Notes on August 1, 2018[165]. - The company expects substantial payments under tax receivable agreements, which may affect future cash flow and operational decisions[180]. - The financial covenants may limit the ability to incur additional indebtedness in the future, intensifying existing risks[177]. - The company has significant outstanding debt, which could affect financial condition and operational results[84]. Employee and Operational Management - The company employed 3,806 employees at corporate-owned clubs and 367 employees across Corporate Support Centers as of December 31, 2024[55]. - The company emphasizes a competitive pay and benefits structure to support team members' financial, physical, and mental well-being[62]. - Competition for qualified employees is intense, and the inability to attract and retain key personnel could hinder the company's strategic objectives[112]. - The company must effectively manage growth to avoid strains on management, employees, and internal controls, which could adversely impact business operations[110]. Regulatory and Compliance Issues - Compliance with numerous laws and regulations is required, and failure to do so may result in fines, damages, and reduced royalty revenue[136]. - The company is subject to extensive regulations regarding indoor tanning services, which could harm reputation and profitability due to negative public perception[143]. - Changes in data privacy laws could impose additional costs and operational constraints, adversely affecting business models and revenue[141]. - The handling of personally identifiable information is regulated at multiple levels, and noncompliance could lead to material adverse effects on business and financial condition[103]. Strategic Growth and Expansion - The company is expanding internationally, which presents risks including inadequate brand infrastructure and political instability in foreign markets[113]. - The growth strategy is dependent on franchisees' ability to access funds for new club development, which could be adversely affected if financing is not available[107]. - The company must effectively market and promote its brand in new markets to ensure the success of new clubs, or growth may be significantly delayed[108]. - Failure to open new clubs as anticipated could hinder revenue growth and adversely affect operating income[109]. Technology and Innovation - The company utilizes a computerized club management system to track and analyze sales, membership statistics, and demographic profiles[66]. - Since 2019, the company has developed a new customized mobile application and rolled out a new in-club media solution to enhance digital experiences[96]. - The adoption of artificial intelligence technologies may require substantial resources and could impact financial performance if not managed properly[163]. Financial Volatility and Market Risks - The stock price of Class A common stock has fluctuated between $13.23 and $102.01 since the IPO, indicating potential volatility[205]. - The company’s financial forecasting may differ materially from actual results, potentially causing a decline in stock price[212]. - The company faces potential litigation costs and management distraction due to securities class action litigation following stock price volatility[209]. - Inflationary conditions may lead to increased shipping, labor, and equipment costs, impacting profitability, particularly due to minimum wage increases affecting labor costs[337].