Financial Data and Key Metrics Changes - Revenue increased 24% year-over-year to $115 million, driven primarily by contributions from acquired businesses, with legacy operations also contributing [6] - Gross margin expanded to nearly 31%, reflecting favorable product mix, pricing discipline, and benefits from strategic acquisitions [7] - Net income increased 110% to 2.1% of revenues, and Adjusted EBITDA increased 49% to $7.7 million, or 6.6% of revenue, demonstrating strong underlying operating performance [7] Business Line Data and Key Metrics Changes - The company has achieved record results in revenue, gross profit, and operating profit during the second quarter, surpassing $425 million in trailing twelve months revenue for the period ended December 31, 2025 [2][3] - The company generated compounded annual growth rates of approximately 30% in revenue, 16% in net income, and 27% in adjusted EBITDA since 2016 [3] Market Data and Key Metrics Changes - The company continues to evaluate a robust pipeline of acquisition opportunities and is pursuing strategic initiatives to expand product portfolios and deepen relationships with OEM partners [9][10] - The company is taking a broader view of growth, evaluating opportunities in and around the laundry ecosystem that can be supported by existing operations and distribution reach [10] Company Strategy and Development Direction - The company is focused on building the broadest and most flexible portfolio of products in the industry, sourced from leading OEMs, to address a full range of customer needs across all market segments [5] - Investments in people, technology, and operational capabilities are aimed at expanding competitive advantages and positioning the company for sustained growth and long-term value for shareholders [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth strategy and the company's ability to deliver durable value for customers, employees, and shareholders [11] - The company maintains strong liquidity, solid working capital, and access to low-cost capital, providing flexibility to continue investing and pursuing disciplined growth initiatives [11] Other Important Information - Operating cash flow during the period was impacted by a planned inventory buildup of approximately $12 million to support confirmed customer sales orders [10] - The company is investing in data-driven operational systems to improve service execution and decision support, contributing to a 13% improvement in average response time over the past 12 months [8] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Total company net sales for the quarter were $354.4 million, with U.S. consumer sales at $328.5 million, exceeding expectations due to early season load-in activities [29][30] - GAAP gross margin rate improved to 25%, up 90 basis points year-over-year, while non-GAAP adjusted gross margin rate was 25.4%, compared to 24.5% a year ago [34] - The GAAP net loss from continuing operations was $47.8 million, or $0.83 per share, an improvement from a loss of $66.1 million, or $1.15 per share in the prior year [36] Business Line Data and Key Metrics Changes - The divestiture of the Hawthorne business has been classified as a discontinued operation, contributing to a 40 basis point improvement in gross margin [12][28] - POS for indoor gardening increased by 7.7% in dollars and 9% in units, while Roundup saw a 24% increase in dollars and 27% in units [33] - E-commerce POS dollars for branded products were up 12% and units were up 17%, representing 14% of overall POS in Q1, a 150 basis point increase over the prior year [33] Market Data and Key Metrics Changes - The company is focusing on expanding household penetration, which is currently as low as 10% in some categories, while shifting demographics show a growing interest from Millennials and Gen Z [17][18] - Retailer shipments in January were at a record pace, indicating strong early season demand [30] - The company is enhancing its digital platform to consolidate brands and improve e-commerce capabilities, which is expected to drive further growth [23] Company Strategy and Development Direction - The company is investing nearly $1 billion annually in marketing and innovation to drive sales of high-margin branded products [5][6] - A new multi-year, $500 million share repurchase program has been approved, aiming to reduce share count to around 40 million shares over time [6][10] - The company plans to achieve $1 billion in top-line sales growth and total EBITDA of $1 billion by 2030, with a focus on modest tuck-in M&A to fill gaps in the lawn and garden portfolio [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming fiscal 2026 guidance due to strong retailer relationships and innovative product offerings [39][43] - The company is focused on long-term growth rather than quarterly results, emphasizing the importance of achieving milestones [54][56] - Management highlighted the positive consumer engagement in the lawn and garden category, which is expected to drive future sales growth [18][25] Other Important Information - The company is planning to hold an Investor Day in the summer to share more details about its long-term financial priorities [37] - The sale of Hawthorne is expected to close this quarter, which will further strengthen the company's balance sheet and eliminate cannabis sector volatility [12][14] Q&A Session Questions and Answers Question: Can you discuss the confidence in outperforming guidance this year? - Management indicated that improvements in gross margin and strong retailer relationships contribute to their confidence in outperforming guidance [40][43] Question: How has early retailer activity influenced your view on inventory loads? - Management noted that early retailer shipments have shown positive momentum, suggesting a return to more traditional inventory patterns [56][59] Question: What is the potential for e-commerce growth and its margin compared to brick-and-mortar? - Management believes e-commerce can be a significant growth area, with margins closely aligned to brick-and-mortar, showing less than a five percentage point delta [78]

Core Insights - Planet Fitness is hosting its 2025 Investor Day to outline strategic plans for growth, modernization of member experience, and enhancing franchisee value [1][2] - The company has over 2,800 clubs and nearly 21 million members, positioning itself as a leader in the fitness sector [2][8] - The leadership emphasizes a favorable market environment for growth, including rising global fitness demand and easing real estate availability [2] Long-term Growth Outlook - Planet Fitness projects a low-double digit percent compound annual growth rate (CAGR) for revenue from fiscal years 2026 to 2028 [3] - System-wide same club sales growth is expected to be in the mid-single digit percent range [3] - New club unit growth is targeted at 6% to 7% [3] - Adjusted EBITDA is anticipated to grow at a mid-teens percent CAGR [3] - Adjusted net income per share is projected to grow at a mid-to-high teens percent CAGR [3] Strategic Imperatives - The company aims to modernize its brand while maintaining core values [4] - Enhancing member experience to foster loyalty and long-term growth is a priority [4] - Refining club floorplans and amenities to improve franchise returns is part of the strategy [4] - Accelerating global club growth by optimizing club formats is also a key focus [4]