Planet Fitness(US:PLNT) ZACKSยท2025-05-09 15:15Core 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]