Financial Data and Key Metrics Changes - The company reported total revenue of $340.9 million for Q2 2025, an increase of 13.3% compared to $300.9 million in Q2 2024 [21] - Adjusted EBITDA for the quarter was $147.6 million, reflecting a year-over-year increase of 15.8%, with an adjusted EBITDA margin of 43.3% compared to 42.4% in the prior year [24] - Net income was $58.3 million, with adjusted net income at $72.6 million, translating to an adjusted net income per diluted share of $0.86 [24] Business Line Data and Key Metrics Changes - System-wide same club sales growth was 8.2% in Q2, with franchisee same club sales increasing by 8.3% and corporate same club sales rising by 7% [20] - Black Card membership penetration reached 65.8%, a 340 basis point increase from the previous year [21] - Equipment segment revenue increased by 21.5%, primarily driven by higher revenue from replacement equipment sales [22] Market Data and Key Metrics Changes - The company ended the quarter with approximately 20.8 million members and 2,762 clubs globally [5][7] - The company has a club within a twelve-minute drive of 170 million people in the U.S., indicating strong market penetration [5] 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 is committed to an asset-light model, planning to own approximately 10% of its fleet while expanding franchisee relationships [18] - Internationally, the company opened its ninth club in Spain, indicating a commitment to global expansion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth targets for 2025, despite a slightly elevated attrition rate due to the rollout of online membership management [15][25] - The company anticipates continued strong demand for its offerings, supported by a growing focus on health and wellness among consumers, particularly Gen Z [6][58] - Management noted that the macroeconomic environment remains volatile, which has led to a conservative outlook for the second half of the year [27] Other Important Information - The company completed the national rollout of online cancellation functionality, which has led to a higher attrition rate but is expected to benefit future rejoining rates [10][16] - The company is evaluating potential price increases for the Black Card membership, with timing dependent on the impact of recent changes [8][70] Q&A Session Summary Question: What is the proportion of clubs with the new layout focused on strength equipment? - By the end of the year, over 70% of clubs will have an optimized format with a balanced mix of cardio and strength equipment [31] Question: What is the status of new amenities for Black Card members? - The company is piloting new amenities like red light therapy and spray tanning, with evaluations ongoing [35] Question: How does the company view market density and expansion opportunities? - The company is exploring both urban densification and opportunities in rural markets to expand its footprint [41] Question: What are the plans to offset higher churn rates? - The company is focusing on marketing initiatives and programs like the high school summer pass to drive membership [66] Question: How is the company performing in Spain compared to the U.S.? - Clubs in Spain are ramping up similarly to domestic clubs, indicating strong performance in the new market [61] Question: What are the plans for franchisee expansion? - The company aims to cultivate new franchisee relationships to support long-term growth ambitions [54] Question: How quickly do cancellation rates normalize after implementing online cancellation? - Generally, cancellation rates moderate about twelve weeks after rollout, but this nationwide rollout may behave differently [75]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Planet Fitness's strong financial performance and strategic achievements in Q2 FY2025, highlighting key growth metrics and CEO insights [Second Quarter Fiscal 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Highlights) Planet Fitness achieved strong financial performance in Q2 FY2025, with system-wide same-store sales growth of 8.2% and total membership reaching approximately 20.8 million, while maintaining its full-year 2025 growth outlook and advancing its asset-light model - System-wide same-store sales grew by **8.2%**[1](index=1&type=chunk)[5](index=5&type=chunk) - Total membership reached approximately **20.8 million** by the end of the second quarter[1](index=1&type=chunk)[17](index=17&type=chunk) - The company maintained its full-year 2025 growth outlook[1](index=1&type=chunk)[3](index=3&type=chunk) - An agreement was signed to sell eight corporate-owned clubs in California to a franchisee, aiming to recycle capital and reinforce the asset-light model[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Colleen Keating highlighted the company's significant growth over a decade as a public entity, including increased membership and club count, reaffirming its favorable position in a market with growing emphasis on health and wellness - Over the past decade, Planet Fitness added nearly **14 million members**, opened over **1,700 clubs globally**, and established operations in all 50 states and four countries[3](index=3&type=chunk) - The company addresses growing consumer demand for health and wellness through its "Judgement Free Zone" and high-quality, affordable fitness experience[3](index=3&type=chunk) - Programs like High School Summer Pass performed exceptionally, surpassing last year's registrations and workouts, demonstrating the company's potential[3](index=3&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results) This section details the company's financial performance in Q2 FY2025, including overall revenue and profit growth, alongside a segmented analysis of franchise, corporate-owned, and equipment divisions [Overall Performance](index=1&type=section&id=Overall%20Performance) In Q2 2025, the company's total revenue increased by 13.3% to $340.9 million year-over-year, with significant growth in both net income and adjusted net income, reflecting strong operational performance and an expanding member base | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Growth (%) | | :-------------------------------- | :------------------- | :------------------- | :------------- | | Total Revenue | 340.9 | 300.9 | 13.3% | | System-wide Same-Store Sales Growth | 8.2% | - | - | | System Sales (million USD) | 1400 | 1200 | 16.7% | | Net Income Attributable to Planet Fitness, Inc. (million USD) | 58.0 | 48.6 | 19.3% | | Diluted Net Income Per Share (USD) | 0.69 | 0.56 | 23.2% | | Adjusted Net Income (million USD) | 72.6 | 62.2 | 16.7% | | Adjusted Diluted Net Income Per Share (USD) | 0.86 | 0.71 | 21.1% | | Adjusted EBITDA (million USD) | 147.6 | 127.5 | 15.8% | | New Club Openings | 23 | - | - | | Total Clubs as of June 30 | 2,762 | - | - | | Cash and Marketable Securities (million USD) | 582.5 | - | - | [Segment Revenue Analysis](index=1&type=section&id=Segment%20Revenue%20Analysis) All three reporting segments—Franchise, Corporate-owned Clubs, and Equipment—achieved revenue growth in Q2 2025, with the Equipment segment showing the most significant increase, reflecting higher equipment sales to existing and new franchise clubs [Franchise Segment](index=1&type=section&id=Franchise%20Segment) The franchise segment demonstrated robust revenue growth, driven by higher royalty income and contributions from new club openings | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Growth (%) | | :-------------------------------- | :------------------- | :------------------- | :------------- | | Franchise Segment Revenue (million USD) | 119.7 | 107.8 | 11.0% | | Higher Royalty Revenue (million USD) | 8.0 | - | - | | Franchise Same-Store Sales Growth | 8.3% | - | - | | New Club Royalty Revenue (million USD) | 1.6 | - | - | | Annual Fee Royalty Revenue (million USD) | 1.4 | - | - | | NAF Revenue (million USD) | 2.7 | - | - | | Other Franchise Fees (million USD) | 1.5 | - | - | [Corporate-owned Clubs Segment](index=1&type=section&id=Corporate-owned%20Clubs%20Segment) Corporate-owned clubs reported increased revenue, primarily fueled by strong same-store sales growth and contributions from new locations | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Growth (%) | | :-------------------------------- | :------------------- | :------------------- | :------------- | | Corporate-owned Clubs Revenue (million USD) | 139.0 | 125.5 | 10.8% | | Same-Store Sales Growth | 7.0% | - | - | | Higher Annual Fee Revenue (million USD) | 0.8 | - | - | | Other Fees (million USD) | 1.7 | - | - | | New Club Revenue (million USD) | 5.4 | - | - | [Equipment Segment](index=2&type=section&id=Equipment%20Segment) The equipment segment experienced significant revenue growth, attributed to increased sales to both new and existing franchise clubs | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Growth (%) | | :-------------------------------- | :------------------- | :------------------- | :------------- | | Equipment Segment Revenue (million USD) | 82.2 | 67.7 | 21.5% | | Equipment Sales to Existing Franchise Clubs (million USD) | 14.3 | - | - | | Equipment Sales to New Franchise Clubs (million USD) | 0.3 | - | - | | Number of New Franchise Clubs with Equipment Sales | 19 | 18 | 5.6% | [Segment Adjusted EBITDA Analysis](index=2&type=section&id=Segment%20Adjusted%20EBITDA%20Analysis) All segments achieved growth in Adjusted EBITDA, with the Equipment segment showing the largest increase, primarily due to higher equipment sales and improved profit margins from an updated equipment mix | Segment | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Growth (%) | | :-------------------------------- | :------------------- | :------------------- | :------------- | | Franchise Segment Adjusted EBITDA (million USD) | 86.5 | 77.5 | 11.7% | | Corporate-owned Clubs Adjusted EBITDA (million USD) | 56.6 | 49.6 | 14.2% | | Equipment Segment Adjusted EBITDA (million USD) | 26.4 | 18.6 | 42.3% | [Franchise Segment Adjusted EBITDA](index=2&type=section&id=Franchise%20Segment%20Adjusted%20EBITDA) Franchise segment Adjusted EBITDA saw an increase, primarily due to higher franchise revenue, partially offset by increased National Advertising Fund expenses - Franchise segment Adjusted EBITDA increased by **11.7%** to **$86.5 million**, primarily due to an **$11.9 million** increase in franchise revenue, partially offset by a **$2.7 million** increase in National Advertising Fund (NAF) expenses[10](index=10&type=chunk) [Corporate-owned Clubs Segment Adjusted EBITDA](index=2&type=section&id=Corporate-owned%20Clubs%20Segment%20Adjusted%20EBITDA) Corporate-owned clubs' Adjusted EBITDA grew, driven by same-store sales and reduced selling, general, and administrative expenses - Corporate-owned clubs Adjusted EBITDA increased by **14.2%** to **$56.6 million**, driven by **$5.8 million** in revenue from **7.0%** same-store sales growth and a **$1.5 million** reduction in selling, general, and administrative expenses, partially offset by lower Adjusted EBITDA from eight clubs in Spain[10](index=10&type=chunk) [Equipment Segment Adjusted EBITDA](index=2&type=section&id=Equipment%20Segment%20Adjusted%20EBITDA) Equipment segment Adjusted EBITDA significantly increased, reflecting higher sales to new and existing franchise clubs and improved profit margins - Equipment segment Adjusted EBITDA increased by **42.3%** to **$26.4 million**, primarily due to increased equipment sales to new and existing franchise clubs and higher profit margins from an updated equipment mix under the franchise growth model[10](index=10&type=chunk) [Subsequent Event](index=2&type=section&id=Subsequent%20Event) The company signed a binding agreement on August 4, 2025, to sell eight corporate-owned clubs in California to a franchisee, with the transaction expected to close in the third quarter - The company signed an agreement to sell eight corporate-owned clubs in California to a franchisee[8](index=8&type=chunk) - The transaction is expected to close in the third quarter, subject to customary closing conditions[8](index=8&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) This section outlines the company's reaffirmed and narrowed full-year 2025 financial guidance, including expectations for sales, revenue, and profitability growth [Full-Year Expectations](index=2&type=section&id=Full-Year%20Expectations) The company reaffirmed and narrowed its full-year 2025 outlook, projecting system-wide same-store sales growth of approximately 6%, revenue and Adjusted EBITDA growth of about 10%, and Adjusted Net Income and Adjusted Diluted Net Income per Share growth of 8%-9% and 11%-12%, respectively - The company continues to believe its tariff mitigation plan and current tariff levels present limited risk[9](index=9&type=chunk) - Net interest expense for 2025 is projected to be approximately **$86 million**[9](index=9&type=chunk) - Capital expenditures are expected to increase by approximately **20%**, primarily driven by new clubs in the corporate-owned portfolio[9](index=9&type=chunk) - Depreciation and amortization are anticipated to be consistent with 2024 levels[9](index=9&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) The company provided growth expectations for key financial metrics in 2025, including new equipment placements, new club openings, same-store sales, revenue, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Net Income per Share | Metric | 2025 Growth Outlook | | :-------------------------------- | :------------- | | New Equipment Placements in Franchise Locations | Approximately 130 to 140 units | | System-wide New Club Openings | Approximately 160 to 170 clubs | | System-wide Same-Store Sales Growth | Approximately 6% (previously 5% to 6%) | | Revenue Growth | Approximately 10% | | Adjusted EBITDA Growth | Approximately 10% | | Adjusted Net Income Growth | 8% to 9% | | Adjusted Diluted Net Income Per Share Growth | 11% to 12% | [Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including financial reporting methodologies, company mission, contact information, and forward-looking statement disclaimers [Presentation of Financial Measures](index=3&type=section&id=Presentation%20of%20Financial%20Measures) This section explains Planet Fitness's financial reporting structure, including its consolidated financial statements as the sole managing member of Pla-Fit Holdings, and details the use and limitations of non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Net Income per Share - Planet Fitness, Inc., as the sole managing member of Pla-Fit Holdings, consolidates its financial results and reports non-controlling interests[12](index=12&type=chunk) - Non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per Diluted Share, are used to evaluate company performance but should not be considered in isolation or as substitutes for GAAP measures[13](index=13&type=chunk) - The company does not provide guidance for GAAP net income or diluted net income per share due to the inability to reasonably determine the impact of all items[14](index=14&type=chunk) - "Same-store sales" refers to the year-over-year comparison of sales for corporate-owned and franchised clubs that have sales in comparable months[15](index=15&type=chunk) [About Planet Fitness](index=3&type=section&id=About%20Planet%20Fitness) Founded in 1992, Planet Fitness is one of the largest and fastest-growing fitness center franchisors and operators globally, committed to its "Judgement Free Zone" mission of providing high-quality, non-intimidating fitness experiences, boasting a vast membership base and extensive global presence - Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers globally[17](index=17&type=chunk) - As of June 30, 2025, it boasts approximately **20.8 million members** and **2,762 clubs** across all 50 U.S. states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain[17](index=17&type=chunk) - The company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, known as the "Judgement Free Zone"[17](index=17&type=chunk) - Over **90%** of Planet Fitness clubs are owned and operated by independent businesspeople[17](index=17&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) This section provides contact information for investors and media to obtain further company-related information - Investor Contact: Stacey Caravella, email: investor@planetfitness.com, phone: 603-750-4674[18](index=18&type=chunk) - Media Contacts: McCall Gosselin (Planet Fitness), email: mccall.gosselin@pfhq.com, phone: 603-957-4650; ICR, Inc., email: PFCorpPR@icrinc.com[18](index=18&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future performance, member and club growth, share repurchases, and tariff impacts, which are based on current beliefs, expectations, and assumptions, subject to inherent uncertainties, risks, and changes in circumstances, where actual results may differ materially - Forward-looking statements include the 2025 outlook, CEO statements, anticipated member and club growth, timing of share repurchases, future shareholder value, and tariff impacts[18](index=18&type=chunk) - These statements are not guarantees of future performance but are based on company's current beliefs, expectations, and assumptions, subject to inherent uncertainties, risks, and changes in circumstances, including competition in the fitness industry, ability to attract and retain members, site selection, changes in consumer demand, equipment costs, market expansion, operating costs, capital availability, acquisition activities, changes in laws and regulations, debt, and information system security[18](index=18&type=chunk) - Investors should not place undue reliance on forward-looking statements, and the company undertakes no obligation to update or revise any information unless required by law[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated statements of operations, balance sheets, and cash flows, reflecting its financial position and performance [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, Planet Fitness's total revenue and net income both increased year-over-year, reflecting strong performance across its franchise, corporate-owned clubs, and equipment sales segments | (Amounts in thousands of USD, except per share amounts) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | **Revenue:** | | | | | | Franchise | 96,877 | 87,676 | 190,117 | 171,910 | | National Advertising Fund Revenue | 22,781 | 20,114 | 44,721 | 39,900 | | **Total Franchise Segment Revenue** | **119,658** | **107,790** | **234,838** | **211,810** | | Corporate-owned Clubs | 138,989 | 125,466 | 272,658 | 247,844 | | Equipment | 82,232 | 67,685 | 110,045 | 89,304 | | **Total Revenue** | **340,879** | **300,941** | **617,541** | **548,958** | | **Operating Costs and Expenses:** | | | | | | Cost of Revenue | 59,423 | 51,934 | 81,908 | 70,927 | | Club Operations | 77,437 | 70,152 | 159,117 | 144,505 | | Selling, General and Administrative | 35,511 | 31,613 | 69,818 | 60,806 | | National Advertising Fund Expense | 22,777 | 20,112 | 44,721 | 39,904 | | Depreciation and Amortization | 38,429 | 39,817 | 76,710 | 79,197 | | Other Loss (Gain), Net | 4,900 | (66) | 3,663 | 418 | | **Total Operating Costs and Expenses** | **238,477** | **213,562** | **435,937** | **395,757** | | **Operating Income** | **102,402** | **87,379** | **181,604** | **153,201** | | **Other Income (Expense), Net:** | | | | | | Interest Income | 5,690 | 5,616 | 11,502 | 11,077 | | Interest Expense | (26,181) | (24,533) | (52,378) | (45,966) | | Other Income, Net | 1,942 | 1,043 | 2,225 | 1,690 | | **Total Other Expense, Net** | **(18,549)** | **(17,874)** | **(38,651)** | **(33,199)** | | **Income Before Income Taxes** | **83,853** | **69,505** | **142,953** | **120,002** | | Provision for Income Taxes | 24,930 | 18,977 | 41,146 | 33,301 | | Loss from Equity Method Investment, Net of Tax | (628) | (1,216) | (1,433) | (2,416) | | **Net Income** | **58,295** | **49,312** | **100,374** | **84,285** | | Less: Net Income Attributable to Non-Controlling Interests | 276 | 672 | 488 | 1,336 | | **Net Income Attributable to Planet Fitness, Inc.** | **$ 58,019** | **$ 48,640** | **$ 99,886** | **$ 82,949** | | **Net Income Per Share of Class A Common Stock:** | | | | | | Basic | $ 0.69 | $ 0.56 | $ 1.19 | $ 0.95 | | Diluted | $ 0.69 | $ 0.56 | $ 1.19 | $ 0.95 | | **Weighted-Average Shares of Class A Common Stock Outstanding:** | | | | | | Basic | 83,861 | 86,809 | 84,015 | 86,859 | | Diluted | 84,065 | 86,955 | 84,233 | 87,083 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets increased compared to December 31, 2024, primarily due to increases in cash and cash equivalents, long-term marketable securities, and right-of-use assets | (Amounts in thousands of USD, except per share amounts) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :------------- | | **Assets** | | | | **Current Assets:** | | | | Cash and Cash Equivalents | 335,723 | 293,150 | | Restricted Cash | 56,452 | 56,524 | | Short-Term Marketable Securities | 106,998 | 114,163 | | Accounts Receivable, Net | 72,847 | 77,145 | | Inventory | 4,347 | 6,146 | | Restricted Assets - National Advertising Fund | 9,071 | — | | Prepaid Expenses | 19,202 | 21,499 | | Other Receivables | 24,954 | 16,776 | | Income Tax Receivable and Prepayments | 7,788 | 2,616 | | **Total Current Assets** | **637,382** | **588,019** | | Long-Term Marketable Securities | 83,327 | 65,668 | | Investments, Net | 70,896 | 75,650 | | Property and Equipment, Net | 430,387 | 423,991 | | Right-of-Use Assets, Net | 417,573 | 395,174 | | Intangible Assets, Net | 304,961 | 323,318 | | Goodwill | 721,118 | 720,633 | | Deferred Income Taxes | 443,082 | 470,197 | | Other Assets, Net | 10,426 | 7,058 | | **Total Assets** | **$ 3,119,152** | **$ 3,069,708** | | **Liabilities and Stockholders' Deficit** | | | | **Current Liabilities:** | | | | Current Portion of Long-Term Debt | 22,500 | 22,500 | | Accounts Payable | 49,128 | 32,887 | | Accrued Expenses | 57,768 | 67,895 | | Equipment Deposits | 7,860 | 1,851 | | Deferred Revenue, Current | 77,309 | 62,111 | | Tax Receivable Agreement Payable, Current | 55,044 | 55,556 | | Other Current Liabilities | 40,581 | 39,695 | | **Total Current Liabilities** | **310,190** | **282,495** | | Long-Term Debt, Net of Current Portion | 2,139,418 | 2,148,029 | | Lease Liabilities, Net of Current Portion | 432,950 | 405,324 | | Deferred Revenue, Non-Current | 30,752 | 31,990 | | Deferred Tax Liabilities | 1,250 | 1,386 | | Tax Receivable Agreement Payable, Non-Current | 358,569 | 411,360 | | Other Liabilities | 4,304 | 4,497 | | **Total Non-Current Liabilities** | **2,967,243** | **3,002,586** | | **Stockholders' Equity (Deficit):** | | | | Class A Common Stock | 9 | 9 | | Class B Common Stock | — | — | | Accumulated Other Comprehensive Income (Loss) | 1,010 | (2,348) | | Additional Paid-in Capital | 615,040 | 609,115 | | Accumulated Deficit | (774,753) | (822,156) | | **Total Stockholders' Deficit Attributable to Planet Fitness, Inc.** | **(158,694)** | **(215,380)** | | Non-Controlling Interests | 413 | 7 | | **Total Stockholders' Deficit** | **(158,281)** | **(215,373)** | | **Total Liabilities and Stockholders' Deficit** | **$ 3,119,152** | **$ 3,069,708** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, the company saw an increase in net cash from operating activities, reduced cash outflows from investing activities, and significantly decreased cash outflows from financing activities, resulting in a net increase in cash, cash equivalents, and restricted cash | (Amounts in thousands of USD) | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | | **Cash Flows From Operating Activities:** | | | | Net Income | 100,374 | 84,285 | | Adjustments to Reconcile Net Income | 77,520 | 83,663 | | Changes in Operating Assets and Liabilities | 177,894 | 167,948 | | **Net Cash Provided by Operating Activities** | **177,894** | **167,948** | | **Cash Flows From Investing Activities:** | | | | Purchases of Property and Equipment | (58,801) | (64,345) | | Purchases of Marketable Securities | (81,958) | (73,930) | | Maturities of Marketable Securities | 71,954 | 47,839 | | **Net Cash Used in Investing Activities** | **(70,962)** | **(90,436)** | | **Cash Flows From Financing Activities:** | | | | Repayments of Long-Term Debt | (11,250) | (599,437) | | Repurchases and Retirements of Class A Common Stock | (52,085) | (300,205) | | **Net Cash Used in Financing Activities** | **(66,089)** | **(103,693)** | | Effect of Exchange Rate Changes | 1,658 | (1,179) | | **Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash** | **42,501** | **(27,360)** | | Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 349,674 | 322,121 | | **Cash, Cash Equivalents, and Restricted Cash at End of Period** | **$ 392,175** | **$ 294,761** | | **Supplemental Cash Flow Information:** | | | | Cash Paid for Interest | $ 50,067 | $ 40,814 | | Cash Paid for Income Taxes, Net | $ 18,285 | $ 9,168 | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted Net Income, to their most directly comparable GAAP counterparts [Overview of Non-GAAP Measures](index=8&type=section&id=Overview%20of%20Non-GAAP%20Measures) The company uses non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per Diluted Share to assess operating performance, which supplement but do not replace GAAP financial measures, aiming to provide a clearer view of core business performance - Non-GAAP financial measures include Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per Diluted Share[26](index=26&type=chunk) - These metrics are used to evaluate company performance and serve as key indicators for the Board of Directors and chief operating decision-makers[27](index=27&type=chunk) - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for certain non-cash and other items[27](index=27&type=chunk) - These non-GAAP measures should not be considered in isolation or as substitutes for GAAP financial measures[26](index=26&type=chunk) [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation from GAAP net income to Adjusted EBITDA and segment Adjusted EBITDA, detailing various adjustments to better reflect the company's core operational performance | (Amounts in thousands of USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | 58,295 | 49,312 | 100,374 | 84,285 | | Interest Income | (5,690) | (5,616) | (11,502) | (11,077) | | Interest Expense | 26,181 | 24,533 | 52,378 | 45,966 | | Provision for Income Taxes | 24,930 | 18,977 | 41,146 | 33,301 | | Depreciation and Amortization | 38,429 | 39,817 | 76,710 | 79,197 | | **EBITDA** | **142,145** | **127,023** | **259,106** | **231,672** | | Severance | 52 | — | 649 | 1,602 | | Executive Transition Costs | 1,406 | 1,348 | 2,447 | 1,631 | | Held-to-Maturity Investment Credit Loss Adjustment | 4,311 | 82 | 4,603 | 557 | | Held-to-Maturity Investment Dividend Income | (578) | (537) | (1,139) | (1,065) | | Insurance Proceeds | — | — | (1,636) | — | | Lease Exit Costs, Net | 1,067 | — | 1,067 | — | | Tax Receivable Agreement Revaluation | (1,210) | (987) | (1,294) | (1,349) | | Amortization of Equity Method Investment Basis Difference | 240 | 240 | 480 | 469 | | Other | 176 | 334 | 331 | 297 | | **Adjusted EBITDA** | **$ 147,609** | **$ 127,503** | **$ 264,614** | **$ 233,814** | | (Amounts in thousands of USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | **Adjusted EBITDA** | | | | | | Franchise Segment | $ 86,502 | $ 77,454 | $ 171,367 | $ 153,592 | | Corporate-owned Clubs | 56,598 | 49,565 | 102,447 | 91,963 | | Equipment Segment | 26,435 | 18,575 | 33,877 | 23,373 | | **Segment Adjusted EBITDA** | **169,535** | **145,594** | **307,691** | **268,928** | | Corporate and Other Adjusted EBITDA | (21,926) | (18,091) | (43,077) | (35,114) | | **Adjusted EBITDA** | **$ 147,609** | **$ 127,503** | **$ 264,614** | **$ 233,814** | [Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Net%20Income%20per%20Diluted%20Share%20Reconciliation) This section provides a reconciliation from GAAP net income to Adjusted Net Income and Adjusted Net Income per Diluted Share, assuming all net income is attributable to Planet Fitness, Inc., and adjusting for certain non-cash and other items to offer a more comparable measure of operating performance | (Amounts in thousands of USD, except per share amounts) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | $ 58,295 | $ 49,312 | $ 100,374 | $ 84,285 | | Provision for Income Taxes | 24,930 | 18,977 | 41,146 | 33,301 | | Severance | 52 | — | 649 | 1,602 | | Executive Transition Costs | 1,406 | 1,348 | 2,447 | 1,631 | | Held-to-Maturity Investment Credit Loss Adjustment | 4,311 | 82 | 4,603 | 557 | | Held-to-Maturity Investment Dividend Income | (578) | (537) | (1,139) | (1,065) | | Insurance Proceeds | — | — | (1,636) | — | | Lease Exit Costs, Net | 1,067 | — | 1,067 | — | | Tax Receivable Agreement Revaluation | (1,210) | (987) | (1,294) | (1,349) | | Amortization of Equity Method Investment Basis Difference | 240 | 240 | 480 | 469 | | Loss on Debt Extinguishment | — | 2,285 | — | 2,285 | | Other | 176 | 334 | 331 | 297 | | Purchase Accounting Amortization | 9,178 | 12,758 | 18,356 | 25,515 | | **Adjusted Income Before Income Taxes** | **97,867** | **83,812** | **165,384** | **147,528** | | Adjusted Income Tax Provision | 25,299 | 21,645 | 42,752 | 38,101 | | **Adjusted Net Income** | **$ 72,568** | **$ 62,167** | **$ 122,632** | **$ 109,427** | | **Adjusted Net Income per Diluted Share** | **$ 0.86** | **$ 0.71** | **$ 1.45** | **$ 1.24** | | Adjusted Diluted Weighted-Average Shares Outstanding | 84,398 | 87,685 | 84,570 | 88,036 | | (Amounts in thousands of USD, except per share amounts) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net Income Attributable to Planet Fitness, Inc. | $ 58,019 | $ 48,640 | $ 99,886 | $ 82,949 | | Diluted Weighted-Average Shares Outstanding | 84,065 | 86,955 | 84,233 | 87,083 | | Diluted Net Income per Share | $ 0.69 | $ 0.56 | $ 1.19 | $ 0.95 | | Net Income Attributable to Non-Controlling Interests | 276 | 672 | 488 | 1,336 | | Adjustments to Arrive at Adjusted Income Before Income Taxes | 39,572 | 34,500 | 65,010 | 63,243 | | Adjusted Income Before Income Taxes | 97,867 | 83,812 | 165,384 | 147,528 | | Adjusted Income Tax Provision | 25,299 | 21,645 | 42,752 | 38,101 | | Adjusted Net Income | $ 72,568 | $ 62,167 | $ 122,632 | $ 109,427 | | Adjusted Diluted Weighted-Average Shares Outstanding | 84,398 | 87,685 | 84,570 | 88,036 | | Adjusted Net Income per Diluted Share | $ 0.86 | $ 0.71 | $ 1.45 | $ 1.24 |

Core Insights - Planet Fitness reported a strong financial performance for the second quarter of 2025, with total revenue increasing by 13.3% to $340.9 million compared to the prior year period [4][5] - The company ended the second quarter with approximately 20.8 million members and continues to maintain its growth outlook for the full year 2025 [1][3] - System-wide same club sales increased by 8.2%, indicating robust demand for its services [1][4] Financial Performance - Total revenue for the second quarter of 2025 was $340.9 million, up from $300.9 million in the prior year [4][5] - Net income attributable to Planet Fitness, Inc. rose to $58.0 million, or $0.69 per diluted share, compared to $48.6 million, or $0.56 per diluted share, in the prior year [5][20] - Adjusted EBITDA increased by $20.1 million to $147.6 million from $127.5 million in the prior year [5][25] Membership and Expansion - The company added nearly 14 million members over the past decade and expanded its global footprint by more than 1,700 clubs [3] - As of June 30, 2025, Planet Fitness had a total of 2,762 clubs, with 23 new clubs opened during the second quarter [5][17] Segment Performance - Franchise segment revenue increased by 11.0% to $119.7 million, driven by higher royalty revenue and same club sales growth of 8.3% [6][7] - Corporate-owned clubs segment revenue rose by 10.8% to $139.0 million, with a same club sales increase of 7.0% [6][7] - Equipment segment revenue saw a significant increase of 21.5% to $82.2 million, primarily due to higher sales to existing franchisee-owned clubs [6][8] Strategic Initiatives - The company signed a binding agreement to sell eight corporate clubs in California to a franchisee, reinforcing its asset-light model [3][9] - Planet Fitness is well-positioned to capitalize on the growing consumer focus on health and well-being, as indicated by early momentum in programs like the High School Summer Pass [3] 2025 Outlook - The company continues to expect net interest expense to be approximately $86.0 million and capital expenditures to increase by about 20% [10] - Revenue is projected to increase in the 10% range, with Adjusted EBITDA and Adjusted net income also expected to grow in the 10% and 8% to 9% ranges, respectively [16]

Wall Street is pumped up on Planet Fitness. The low-cost gym giant is coming off four consecutive months of higher foot traffic despite raising its signature membership price to $15 from $10 last summer. ...

Company Overview - Planet Fitness is a leading franchisor and operator of fitness centers in the United States, with approximately 20.6 million members and 2,741 clubs as of March 31, 2025 [11] - The company operates in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain, with about 90% of franchise stores owned and operated by franchisee groups [11] Investment Analysis - Planet Fitness holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [12] - The stock has a Momentum Style Score of B, with shares increasing by 4.2% over the past four weeks [12] - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing to $2.91 per share [12] - The company has an average earnings surprise of 6.9%, suggesting potential for positive performance [12] Investment Recommendation - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Planet Fitness is recommended for investors' consideration [13]

Market Overview & Policy Impact - Washington's decisions significantly impact markets and underlying businesses [2] - Passage of the "one big beautiful bill" (OB3) is anticipated in July, potentially removing debt ceiling overhang and uncertainty regarding tax cuts [2][3] - The bill's passage is expected to provide market comfort and reduce volatility, paving the way for improved performance [3] Lyft Valuation & Opportunity - A significant valuation disconnect exists between Uber (market cap of $180 billion) and Lyft (market cap of $6 billion), despite Lyft holding 30% of the US ride-share market compared to Uber's 70% [5][6] - The valuation skew is considered excessive, suggesting a potential reset for Lyft [6] - Lyft is actively pursuing interesting business strategies in tier 2 markets like Indianapolis and Charlotte, supported by a strong management team [7] Planet Fitness Turnaround & Growth - Planet Fitness is viewed as a turnaround story with a new and strong management team [9] - The company is reorienting gym equipment, shifting towards strength-intensive offerings to attract and retain Gen Z customers [10] - Planet Fitness is operating systematically with close collaboration with franchisees, employing a "test, read, repeat" approach [10] - The company aims to return to a level of 200 gym openings [11] - Planet Fitness possesses the largest advertising fund in the industry, exceeding $300 million, with a new chief marketing officer to effectively utilize it [12]

Company Overview - Planet Fitness is a leading franchisor and operator of fitness centers in the United States, with approximately 20.6 million members and 2,741 clubs as of March 31, 2025 [11] - The company operates in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain, with about 90% of franchise stores owned and operated by franchisee groups [11] Investment Ratings - Planet Fitness holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [12] - The company is considered a top pick for growth investors, with a Growth Style Score of A, forecasting year-over-year earnings growth of 12.4% for the current fiscal year [12] Earnings Estimates - In the last 60 days, two analysts revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing by $0.01 to $2.91 per share [12] - Planet Fitness has an average earnings surprise of 6.9%, suggesting a positive trend in earnings performance [12] Conclusion - With a strong Zacks Rank and top-tier Growth and VGM Style Scores, Planet Fitness is recommended for investors' consideration [13]

Core Insights - Peloton Interactive, Inc. (PTON) shares have increased by 21.6% over the past three months, outperforming the Zacks Leisure and Recreation Products industry's growth of 13.2% and the Consumer Discretionary sector's rise of 13.5% [1][2] - Investor sentiment has improved due to Peloton's turnaround efforts and focus on cost efficiency, including the launch of a "Repowered" marketplace for refurbished products [2][6] - The company is currently trading 32.3% below its 52-week high of $10.90, raising questions about future investment [7] Performance Metrics - Peloton's subscription revenues now account for nearly 70% of total sales, indicating a shift towards a profitability-driven recovery [8] - The company added 5,000 net Connected Fitness subscriptions in the fiscal third quarter, maintaining a low churn rate of 1.2% despite a 27% decline in hardware sales [9][10] - Marketing spend has decreased by 46% year over year, improving customer acquisition metrics and driving higher attach rates for Tread sales [11] Strategic Initiatives - Peloton is implementing new retail formats and expanding through university partnerships and commercial installations, which are expected to lower customer acquisition costs [12] - The "Find Your Power" marketing campaign has broadened the company's appeal, particularly among male users [11] Challenges and Risks - Hardware revenues fell by 27% year over year, raising concerns about demand for premium fitness equipment [13] - Competitive pressures from digital fitness alternatives are increasing, making subscriber growth more challenging [14] - Leadership transitions with multiple key executive roles unfilled may hinder strategic execution [15] Financial Outlook - Earnings per share (EPS) estimates for fiscal 2025 have been revised downward from a loss of 33 cents to a loss of 41 cents, reflecting declining analyst confidence [16] - Peloton's stock is trading at a forward price-to-sales (P/S) multiple of 1.18X, significantly below the industry average of 4.95X, indicating a potentially attractive investment opportunity [19] Conclusion - Peloton is showing operational improvements through cost control and growing subscription revenue, but challenges in hardware sales and leadership gaps remain [25][26] - The mixed outlook suggests that investors may consider holding existing positions rather than pursuing new investments at this time [26]

Group 1 - The company has acquired its first locations in Illinois, increasing its total club count to 198 across 14 states [1] - The newly acquired clubs were previously owned by Pizzazz Fitness and will continue to operate under the Planet Fitness brand [2] - National Fitness Partners (NFP) is backed by Argonne Capital Group, LLC, a private investment firm based in Atlanta [2]

Core Insights - Planet Fitness, Inc. (PLNT) shares have increased by 10.5% over the past three months, outperforming the Zacks Leisure and Recreation Services industry, which declined by 2.7%, as well as the broader Consumer Discretionary sector's rise of 1.4% and the S&P 500 index's growth of 1% during the same period [1][10]. Group 1: Strategic Efforts - The company is focusing on four key strategic efforts: strengthening brand positioning through marketing, enhancing member experience, refining products and formats, and accelerating new club openings [2]. - Membership reached approximately 20.6 million in Q1 2025, an increase of about 900,000 from the end of 2024, supported by promotional strategies such as limited-time offers and Black Card incentives [7]. - A new marketing campaign launched at the beginning of the year has improved brand perception and increased interest among former members, with a strong rejoin rate above 30% [8]. Group 2: Member Experience and Product Enhancements - The company aims to provide a judgment-free environment with quality equipment that supports various fitness levels and goals, expanding strength equipment and functional training space [11]. - As of the end of Q1 2025, the company updated the equipment mix in nearly 1,800 clubs and plans to complete the rollout across all locations by year-end [12]. Group 3: Expansion and Growth - Planet Fitness added 19 new clubs in Q1 2025, including 16 franchisee-owned and 3 corporate-owned locations, and expects to open 160-170 new clubs during the year [14]. - The company recorded a 6.1% rise in system-wide same-club sales, driven by new member growth and club openings [14]. Group 4: Financial Performance and Valuation - Earnings estimates for 2025 have increased by 0.3% in the past 30 days, with a year-over-year expected growth rate of 12.4% for 2025 earnings [17]. - The company is currently trading at a premium compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis, indicating strong market potential despite challenges [18][20]. Group 5: Challenges and Market Conditions - The company faces pressures from elevated costs and expenses due to inflation and global macroeconomic risks, as well as uncertainties from recently imposed tariffs [21]. - Despite these challenges, the company is experiencing steady membership growth and improved brand engagement, supported by club enhancements and targeted marketing [22][23].