Financial Data and Key Metrics Changes - Total revenue increased by 14% to $761 million, driven by a 14% increase in membership dues and enrollment fees, and a 14.4% increase in in-center revenue [5][6] - Net income for the quarter was $72.1 million, an increase of 36.5%, including approximately $9 million of tax-effective losses on sale leaseback [6][7] - Adjusted net income was $84.1 million, up 60.5% year over year, while adjusted EBITDA increased by 21.6% to $211 million [7][8] - Free cash flow was $112 million for the second quarter, marking the fifth consecutive quarter of positive free cash flow [8] Business Line Data and Key Metrics Changes - Memberships reached over 849,000, with total memberships, including on-hold memberships, at approximately 899,000 [6] - Average monthly dues grew by 10.6% year over year to $219, and average revenue per center membership was $888, an increase of 11.8% from the prior year quarter [6][7] - Comparable center revenue grew by 11.2%, prompting an increase in full-year comparable center revenue guidance to between 9.5% and 10% [5][6] Market Data and Key Metrics Changes - Lifetime Digital accounts increased by 216% year over year to 2.3 million [11] - The nutritional supplement line saw revenue growth of 31% compared to the prior year quarter [12] Company Strategy and Development Direction - The company is focusing on growth, with plans to accelerate the development of new club openings, targeting 12 to 14 openings in 2026 [11] - The company aims to maintain a strong balance sheet and has achieved a BB credit rating, which will help lower interest costs and increase earnings [10] - The company is committed to an asset-light, high-margin expansion strategy to drive sustained revenue and adjusted EBITDA growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth opportunities ahead, noting that visits per membership are up 5.7% year over year [10] - The management team emphasized that they are not seeing any signs of weakness in membership or revenue growth, despite typical seasonal fluctuations [20][30] - The company is focused on maintaining a strong customer experience and is cautious about overextending membership growth to ensure quality [43][52] Other Important Information - The company closed on the sale leaseback of three properties, generating net proceeds of approximately $149 million [9] - The company plans to close another $100 million in sale leaseback transactions in the second half of the year [10] Q&A Session Summary Question: How did new membership sign-ups track through the quarter? - Management noted that membership sign-ups were slightly slower in the first half of the quarter but picked up significantly in the latter half, resulting in a strong finish [16][18] Question: Any further commentary on monetizing membership? - Management indicated that revenue per membership increased nearly 12%, reflecting effective monetization strategies [22] Question: Clarification on unit guidance and timing shifts? - Management explained that the narrowing of unit guidance was due to a focus on existing spaces and ensuring financial stability, with a robust pipeline for future growth [26][27] Question: Expectations for membership in the back half of the year? - Management expects typical seasonality to affect membership numbers, but they are not seeing any signs of weakness [30][32] Question: How does the waitlist affect member growth? - Management clarified that waitlists are a tool for managing member experience and should not be viewed as a KPI [50][52] Question: Insights on average revenue per membership growth? - Management reported no signs of fatigue among demographics and emphasized strong performance across all business areas [60] Question: Trends in in-center revenue and initiatives? - Management highlighted growth in personal training and nutritional products, with plans for further expansion in these areas [66][70] Question: Pricing strategies for legacy members? - Management confirmed that pricing adjustments for legacy members were consistent with their strategy and that they remain optimistic about comp sales growth [78] Question: Pipeline for new clubs beyond 2026? - Management indicated a solid pipeline and expects to maintain growth of at least 10 to 12 clubs per year [81][82]

Core Insights - SEGG Media Corporation has signed a binding Letter of Intent to acquire the rights to David Lloyd's All-Sports Arena in Boca Raton, FL, valued at $14 million, marking the brand's entry into the U.S. market [2][3] Company Overview - SEGG Media is a technology company focused on the intersection of sports, entertainment, and gaming, operating under the NASDAQ ticker SEGG [2][11] - David Lloyd is a prominent figure in British and European sports, known for founding David Lloyd Leisure, which operates 130 health and fitness clubs serving over 710,000 members [4][12] Facility Details - The All-Sports Arena will be a 100,000 square-foot facility in Boca Raton, designed to combine sports infrastructure with co-working and business amenities, branded as "Sports.com All-Sports Arena, designed by David Lloyd" [3][8] - Key features of the facility include indoor padel, basketball, and pickleball courts, climbing walls, AI-driven golf simulators, and a luxury co-working space of approximately 10,000 square feet [8][10] Financial Projections - The Boca facility is projected to generate over $6 million in EBITDA in its first year of operations, with plans for additional facilities to be developed [10] Strategic Expansion - The Boca Raton launch is part of a broader international rollout strategy, with plans for expansion across major U.S. cities and the Middle East, leveraging Sports.com's digital audience and David Lloyd's operational expertise [7][9]

Core Viewpoint - SEGG Media Corporation has signed a binding Letter of Intent to acquire the rights to David Lloyd's All-Sports Arena in Boca Raton, FL, valued at $14 million, marking the entry of the David Lloyd brand into the U.S. market [3][4] Company Overview - SEGG Media Corporation operates in the sports, entertainment, and gaming sectors, focusing on immersive fan engagement and AI-driven experiences [11] - David Lloyd is a prominent figure in global sport and fitness, known for founding David Lloyd Leisure, which operates 130 premium health and fitness clubs [6][12] Strategic Partnership - The LOI was signed during Wimbledon, symbolizing a significant partnership between SEGG Media and David Lloyd, aimed at creating a unique sports and business ecosystem [4][7] - The Boca Raton facility will be branded as "Sports.com All-Sports Arena, designed by David Lloyd," featuring a blend of sports infrastructure and business amenities [4][9] Facility Features - The arena will span 100,000 square feet and include indoor padel, basketball, and pickleball courts, climbing walls, AI-driven golf simulators, and a luxury co-working space [4][15] - The facility is projected to generate over $6 million in EBITDA in its first year of operations [10] Expansion Plans - This launch is part of a broader international rollout strategy, with plans for additional facilities across major U.S. cities and the Middle East [8][9]

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 Viewpoint - Planet Fitness Inc has been upgraded to "buy" from "hold" by Stifel, with a price target increase to $120 from $82, citing stabilizing new membership rates and potential tailwinds for comparable sales growth in the mid- to high-single-digit range over the next several years [1] Group 1 - Shares of Planet Fitness are up 1.4% before market opening, approaching an all-time high of $109.91, with a year-over-year increase of 59% and a year-to-date gain of 5.3% [2] - If premarket strength continues, the stock will achieve its sixth consecutive daily gain [2] Group 2 - Short interest has increased by 27.6% in the past two weeks, with 6.66 million shares sold short, representing 8% of the total available float [3] - At the current trading pace, it would take short sellers more than four days to cover their positions [3] Group 3 - An unwinding of pessimism in the options market may provide additional support, as the put/call open interest ratio stands at 0.83, indicating higher-than-usual put exposure among short-term traders [4]

Financial Data and Key Metrics Changes - Total revenue increased by 18.3% to $706 million, driven by a 17.9% increase in membership dues and enrollment fees and an 18.7% increase in in-center revenue [4][8] - Net income rose by 206% to $76.1 million, while adjusted net income increased by 189% to $88.1 million [8] - Adjusted EBITDA grew by 31.2% to $191.6 million, with an adjusted EBITDA margin of 27.1%, up 260 basis points year-over-year [9] - Net cash provided by operating activities increased approximately 103% to $184 million compared to the prior year [10] Business Line Data and Key Metrics Changes - Comparable center revenue increased by 12.9%, up from 11.1% in the prior year period, attributed to higher membership dues and strong performance in in-center businesses [5][6] - Average monthly dues grew by 11.8% year-over-year to $208, and average revenue per center membership increased by 13.3% to $844 [7][8] - Center memberships increased by 3% year-over-year, totaling over 826,000, with total memberships reaching approximately 880,000 when including on-hold memberships [6][7] Market Data and Key Metrics Changes - Visits in comparable centers increased by 4.7% compared to the first quarter of the previous year, indicating strong member engagement [12] - The company is focused on premium markets with strong demand and higher dues rates, which is reflected in the membership growth strategy [7][14] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and positive free cash flow while growing the business, with plans to open 10 to 12 clubs per year [12][13] - The strategy includes focusing on member experience and attracting higher revenue memberships, with a robust pipeline for club growth [13][14] - The company is also expanding into digital health and wellness through LT Digital and LT Health initiatives, with significant growth expected in these areas [14][88] Management's Comments on Operating Environment and Future Outlook - Management raised revenue and adjusted EBITDA guidance modestly due to macroeconomic uncertainties, emphasizing the importance of maintaining a strong balance sheet [12][14] - The company is monitoring customer behavior closely, noting that while retention rates are high, new member sign-ups may be slightly softer due to economic conditions [41][60] - Management expressed confidence in navigating both robust and challenging economic conditions, leveraging a strong financial position to capitalize on opportunities [25][56] Other Important Information - The company has signed a letter of intent for a sale-leaseback of three properties for approximately $150 million, expected to close in the second quarter [10] - The company does not anticipate significant impacts from tariffs on its operations, having assessed exposure in key areas [11][43] Q&A Session Summary Question: How many clubs have wait lists and what is the strategy around that? - Management indicated that many clubs are using waitlists to manage capacity and ensure a quality member experience, focusing on full dues-paying customers [20][21] Question: What is the capacity to open more clubs beyond the planned 10 to 12? - Management stated that while 10 to 12 clubs is the target for 2025, there is potential to exceed that number if economic conditions allow [25][26] Question: How does the company view pricing strategies for legacy members? - Management confirmed that no significant legacy price increases were implemented in Q1, with plans to roll out increases in the following quarters [31][33] Question: How is the company addressing potential impacts from tariffs? - Management noted minimal exposure to tariffs, with most equipment sourced from Italy and Sweden, and ongoing efforts to mitigate any potential impacts [48][49] Question: How is LT Health performing and what are the growth expectations? - Management reported significant month-over-month growth in LT Health and emphasized the goal of establishing it as a trusted nutritional brand [86][88]

Core Insights - Planet Fitness reported revenue of $276.66 million for the quarter ended March 2025, marking an 11.6% year-over-year increase, with EPS of $0.59 compared to $0.53 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $281.54 million, resulting in a surprise of -1.73%, while the EPS also missed the consensus estimate of $0.62 by -4.84% [1] Financial Performance Metrics - Total stores at the end of the period were 2,741, slightly below the estimated 2,746 [4] - Same-store sales increased by 6.1%, exceeding the estimated 5.4% [4] - Franchisee-owned same-store sales were reported at 6.2%, also above the estimated 5.4% [4] - Corporate-owned same-store sales were 5.1%, slightly above the 5% average estimate [4] - The company opened 19 new stores, below the average estimate of 23 [4] Revenue Breakdown - National advertising fund revenue was $21.94 million, surpassing the average estimate of $21.55 million, reflecting a year-over-year change of +10.9% [4] - Franchise revenue reached $93.24 million, slightly below the average estimate of $93.54 million, with a year-over-year increase of +10.7% [4] - Equipment segment revenue was $27.81 million, exceeding the average estimate of $27.36 million, with a significant year-over-year increase of +28.7% [4] - Corporate-owned stores segment revenue was $133.67 million, below the average estimate of $136.20 million, showing a year-over-year change of +9.2% [4] - Franchise segment revenue was $115.18 million, slightly above the estimated $115.09 million, with a year-over-year increase of +10.7% [4] Stock Performance - Planet Fitness shares have returned +7.6% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]