Core Points - Planet Fitness franchise groups, including National Fitness Partners, Taymax, and TG3E, raised over $62,700 for St. Jude Children's Research Hospital during a month-long campaign [1][2] - The campaign involved encouraging members to donate at over 400 Planet Fitness locations and track their mileage on treadmills, resulting in over 200,000 miles and nearly $20,000 raised [2] - National Fitness Partners operates 200 Planet Fitness locations and is the largest franchisee within the Planet Fitness system, backed by Argonne Capital [4] Company Contributions - National Fitness Partners, Taymax, and TG3E collaborated to support St. Jude's mission, emphasizing the importance of partnerships in creating meaningful impacts for children and families [3] - The fundraising efforts are part of a broader commitment to community health and support for childhood cancer research, with St. Jude's survival rate for childhood cancer increasing from 20% to over 80% since its opening [3] Industry Context - The fitness industry is increasingly engaging in philanthropic efforts, as demonstrated by the collaboration of multiple franchise groups to support a significant cause [3] - The partnership highlights the potential for fitness organizations to extend their impact beyond health and wellness, contributing to critical healthcare initiatives [3]

Core Viewpoint - The fitness industry is experiencing significant growth, with Planet Fitness emerging as a strong performer, outpacing the S&P 500 and demonstrating robust membership and revenue increases [1][2][4]. Company Performance - Planet Fitness has seen its stock rise 25% over the past year, outperforming the overall market, which has increased by 19% [1][2]. - In Q2, Planet Fitness reported a revenue increase of 13.3% year over year, reaching $340.9 million, with a membership growth from 14.4 million in 2019 to 20.8 million [6]. - The company operates 2,762 studios, with plans to expand to 5,000 locations in the U.S. [7]. Market Opportunity - Only 7% of the U.S. population over the age of 14 were members of Planet Fitness at the end of last year, indicating a substantial untapped market [8]. - The low monthly fees of $15 and $25 for premium offerings facilitate easier membership sign-ups [8]. Business Model - Planet Fitness reported an operating income of $102 million in Q2, reflecting a 17.2% year-over-year increase and a 30% operating margin [10]. - The franchise model is a key component of its business strategy, with 90% of locations owned by franchise partners, allowing for an asset-light growth model [11][12]. Valuation and Investment Considerations - The stock currently trades at a price-to-earnings ratio of 45.3, which may not present a bargain opportunity, suggesting potential investors should consider waiting for a price pullback [13][14].

Market Trends - Since the start of 2025, investors have been actively pursuing gains in the stock market, particularly focusing on large-cap technology stocks that dominate the market [1] Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications, with his articles being syndicated to popular trading apps like Robinhood [1]

Market Trends - Since the start of 2025, investors have been actively pursuing gains in the stock market, particularly focusing on large-cap technology stocks that dominate the market [1] Analyst Insights - Gary Alexander, with extensive experience in covering technology companies and working in Silicon Valley, has been contributing to the discourse on industry themes since 2017, providing insights that shape the current market landscape [1]

Core Insights - Planet Fitness reported record participation in its 2025 High School Summer Pass™ program, with over 3.7 million teens participating and completing more than 19 million workouts across 2,700+ locations in the U.S. and Canada [1][2][3] Group 1: Program Impact - The program reflects a strong desire among teens to stay active and prioritize their wellbeing during summer, a time when regular fitness programs are typically unavailable [2][3] - Planet Fitness has invested over $168 million in waived membership dues to promote youth health and wellness through this initiative [3] - A survey indicated that 93% of teen participants believe the program will help them build long-lasting health and wellness habits beyond the summer [7] Group 2: Participant Feedback - Participants reported positive experiences, with one teen stating the program provided a safe and supportive environment that empowered her [4] - 91% of parents noted that the program fostered meaningful wellness conversations at home [7] - 83% of teen participants experienced a noticeable boost in overall happiness since joining the program [7] Group 3: Company Overview - As of June 30, 2025, Planet Fitness had approximately 20.8 million members and 2,762 clubs across various regions, including the U.S., Canada, and several other countries [6] - The company's mission focuses on enhancing lives through accessible, high-quality fitness experiences in a welcoming environment known as the Judgement Free Zone® [6][5]

Group 1 - The article emphasizes a strong buy recommendation for Planet Fitness (NYSE: PLNT) based on strong demand fundamentals, improving franchisee economics, and international expansion potential [1] - The investment approach focuses on companies with steady long-term growth, no cyclicality, and a robust balance sheet, rather than merely low multiple stocks [1] - The author acknowledges the risks of overpaying for successful companies but believes that in certain situations, the potential for growth outweighs immediate price concerns [1]

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements based on current beliefs and expectations, subject to inherent uncertainties and risks - Forward-looking statements are based on current beliefs, expectations, and assumptions, and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict[9](index=9&type=chunk) - Important factors that could cause actual results to differ materially include risks related to brand value, competition, intellectual property, cybersecurity, and regulatory compliance[11](index=11&type=chunk)[13](index=13&type=chunk) [PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the period [ITEM 1. Condensed Consolidated Financial Statements](index=5&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including balance sheets, operations, cash flows, and detailed notes [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Total assets | $3,119,152 | $3,069,708 | $49,444 | 1.6% | | Total current liabilities | $310,190 | $282,495 | $27,695 | 9.8% | | Total noncurrent liabilities | $2,967,243 | $3,002,586 | $(35,343) | -1.2% | | Total stockholders' deficit | $(158,281) | $(215,373) | $57,092 | 26.5% | [Condensed Consolidated Statements of Operations (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) This section presents the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total revenue | $340,879 | $300,941 | $39,938 | 13.3% | | Income from operations | $102,402 | $87,379 | $15,023 | 17.2% | | Net income | $58,295 | $49,312 | $8,983 | 18.2% | | Net income attributable to Planet Fitness, Inc. | $58,019 | $48,640 | $9,379 | 19.3% | | Basic EPS | $0.69 | $0.56 | $0.13 | 23.2% | | Diluted EPS | $0.69 | $0.56 | $0.13 | 23.2% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Total revenue | $617,541 | $548,958 | $68,583 | 12.5% | | Income from operations | $181,604 | $153,201 | $28,403 | 18.5% | | Net income | $100,374 | $84,285 | $16,089 | 19.1% | | Net income attributable to Planet Fitness, Inc. | $99,886 | $82,949 | $16,937 | 20.4% | | Basic EPS | $1.19 | $0.95 | $0.24 | 25.3% | | Diluted EPS | $1.19 | $0.95 | $0.24 | 25.3% | [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Unaudited%29) This section reports net income and other comprehensive income items, reflecting all changes in equity except owner transactions Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net income including non-controlling interests | $58,295 | $49,312 | $8,983 | 18.2% | | Total other comprehensive income (loss), net | $2,362 | $(661) | $3,023 | -457.3% | | Total comprehensive income attributable to Planet Fitness, Inc. | $60,381 | $47,979 | $12,402 | 25.8% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Net income including non-controlling interests | $100,374 | $84,285 | $16,089 | 19.1% | | Total other comprehensive income (loss), net | $3,358 | $(1,268) | $4,626 | -364.8% | | Total comprehensive income attributable to Planet Fitness, Inc. | $103,244 | $81,681 | $21,563 | 26.4% | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) This section details the inflows and outflows of cash from operating, investing, and financing activities over a period Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Net cash provided by operating activities | $177,894 | $167,948 | $9,946 | 5.9% | | Net cash used in investing activities | $(70,962) | $(90,436) | $19,474 | -21.5% | | Net cash used in financing activities | $(66,089) | $(103,693) | $37,604 | -36.3% | | Net increase (decrease) in cash, cash equivalents and restricted cash | $42,501 | $(27,360) | $69,861 | -255.3% | | Cash, cash equivalents and restricted cash, end of period | $392,175 | $294,761 | $97,414 | 33.0% | [Condensed Consolidated Statements of Changes in Equity (Unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20%28Unaudited%29) This section outlines the changes in each component of stockholders' equity over the reporting period Condensed Consolidated Statements of Changes in Equity (Deficit) Highlights (in thousands) | Metric | Balance at December 31, 2024 | Balance at June 30, 2025 | Change | | :-------------------------------- | :--------------------------- | :----------------------- | :----- | | Total stockholders' deficit | $(215,373) | $(158,281) | $57,092 | | Key Changes (Six Months Ended June 30, 2025) | Amount (in thousands) | | :--------------------------------------- | :-------------------- | | Net income | $100,374 | | Equity-based compensation expense | $6,138 | | Repurchase and retirement of Class A common stock | $(52,483) | | Other comprehensive income | $3,358 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) These notes provide detailed disclosures for the condensed consolidated financial statements, covering accounting policies, investments, debt, leases, revenue, and segment information [Note 1. Business Organization](index=12&type=section&id=%281%29%20Business%20organization) This note describes the company's business structure, operational segments, and ownership interests as of the reporting date - As of June 30, 2025, Planet Fitness operates approximately **20.8 million members** and **2,762 owned and franchised locations** across multiple countries[27](index=27&type=chunk) - The Company operates three distinct lines of business: licensing and selling franchises, owning and operating fitness centers, and selling fitness-related equipment to franchisee-owned clubs[33](index=33&type=chunk) - Planet Fitness, Inc. is a holding company that consolidates

Core Insights - BAD BEAT Investing, led by Quad 7 Capital, has been providing investment opportunities for nearly 12 years, with a notable call in February 2020 to sell everything and go short [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, focusing on both long and short trades [1] - The investment strategy emphasizes short- and medium-term investments, income generation, special situations, and momentum trades, aiming to educate investors on becoming proficient traders [1] Company Benefits - BAD BEAT Investing offers a range of benefits including understanding market dynamics, executing well-researched trade ideas weekly, and access to multiple chat rooms for discussions [2] - Members receive daily summaries of key analyst upgrades and downgrades, along with learning opportunities in basic options trading and access to extensive trading tools [2]

Earnings Reports Overview - The Walt Disney Company reported fiscal Q3 results with earnings of $1.61 per share, exceeding expectations of $1.46, marking a +10.3% earnings beat. However, revenues were slightly below consensus at $23.65 billion, a +2.12% increase from $23.16 billion a year ago [3][4] - McDonald's reported Q2 earnings of $3.19 per share, beating estimates by 4 cents, with revenues of $6.84 billion, a +1.92% surprise and a +5% year-over-year increase. Comparable sales grew +3.8% overall, with +2.5% in the U.S. and +4% internationally [5] - Shopify's shares surged +14% after reporting Q2 earnings of 35 cents per share and revenues of $2.68 billion, surpassing expectations by +25% and +5.5% respectively, marking its first earnings beat in three quarters [6] - Uber reported earnings of 63 cents per share, beating estimates by a penny, with revenues of $12.65 billion, exceeding consensus by +1.57%. The company also announced a $20 billion share buyback [7] - Honda Motor Co. posted a +90% earnings surprise in its fiscal Q1 report with earnings of 97 cents per ADS, significantly improving from a -75% miss in the prior quarter [8] - Planet Fitness beat estimates by +8.86% with earnings of 86 cents in its Q2 report, maintaining a Zacks Rank 2 (Buy) [8]

Group 1 - PIGEON CORP (PGENY) is part of the Consumer Discretionary group, which ranks 10 among 16 groups in the Zacks Sector Rank [2] - The Zacks Rank system indicates that PIGEON CORP has a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] - PIGEON CORP has seen a 39.6% return year-to-date, significantly outperforming the Consumer Discretionary sector average return of 5.8% [4] Group 2 - PIGEON CORP belongs to the Consumer Products - Discretionary industry, which is currently ranked 67 in the Zacks Industry Rank, while this industry has an average loss of 10.2% year-to-date [6] - Another stock in the Consumer Discretionary sector, Planet Fitness (PLNT), has returned 10.5% year-to-date and has a Zacks Rank of 2 (Buy) [5][7] - The Leisure and Recreation Services industry, which includes Planet Fitness, is ranked 195 and has increased by 5.7% this year [7]