Planet Fitness 2025 Investor Day Summary Company Overview - **Company**: Planet Fitness (NYSE: PLNT) - **Event**: 2025 Investor Day held on November 13, 2025 - **Location**: Boston, MA Key Industry Insights - **Growth in Fitness Demand**: The demand for fitness offerings is increasing, driven by a growing awareness of health and wellness, particularly among younger generations like Gen Z and Gen Alpha [5][6][8] - **Market Position**: Planet Fitness has grown from approximately 1,000 clubs in 2015 to over 2,800 clubs today, with membership increasing from over 7 million to nearly 21 million [5][6] - **Real Estate Opportunities**: The availability of real estate is improving, with many big box retailers closing, leading to opportunities for new club locations [9][10] Strategic Imperatives 1. **Brand Evolution**: The company is modernizing its brand while maintaining its core values, focusing on marketing the value and benefits of membership rather than just pricing [10][11] 2. **Member Experience Enhancement**: Improving the member experience is crucial for retention and loyalty, with a focus on increasing average visits and rejoin rates [12][13] 3. **Product Refinement**: The introduction of new equipment and optimized club formats is aimed at meeting diverse member needs and preferences [14][15] 4. **Accelerated Growth**: The strategic initiatives are designed to enhance unit economics, streamline build costs, and ultimately drive growth [16][17] Marketing and Member Engagement - **Effective Marketing Campaigns**: The marketing messaging has resonated well, leading to a net membership increase of approximately 1 million members through Q3, despite a 50% increase in entry-level pricing [11][12] - **Data-Driven Insights**: The company is leveraging data to understand consumer needs better and to refine its marketing strategies, focusing on both non-members and lapsed members [22][24] - **Emotional Connection**: Building emotional equity with consumers is a priority, as the brand aims to differentiate itself through emotional needs alongside functional offerings [26][27] International Expansion - **Global Growth**: Planet Fitness has surpassed 1 million international members, with a presence in six countries and plans to expand further, particularly in Spain and Australia [60][61] - **Market Strategy**: The company is adopting a cluster development approach in international markets to build brand awareness and member growth [61][63] Real Estate and Development - **Domestic Real Estate Trends**: The company is seeing stagnant growth in new supply but is identifying opportunities for expansion due to changing market dynamics [64][65] - **Flexible Prototype Design**: The club prototype allows for flexibility in space requirements, enabling the company to adapt to various market conditions [65] Member Experience Innovations - **First 100 Days Program**: Enhancements to the onboarding process for new members are being implemented to improve early engagement and retention [42][43] - **Black Card Spa Enhancements**: The company is reimagining its Black Card membership offerings to include new wellness amenities, aiming to drive joins and upgrades [55][57] Conclusion - **Future Outlook**: Planet Fitness is well-positioned for continued growth, with a focus on evolving its brand, enhancing member experiences, and leveraging data-driven insights to meet consumer demands [40][60]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $330.3 million, an increase of 13% compared to $292.2 million in Q3 2024 [16] - Adjusted net income was $67 million, with adjusted net income per diluted share at $0.80, reflecting a growth of 16-17% range [20] - Adjusted EBITDA increased by 14.4% to $140.8 million, with an adjusted EBITDA margin of 42.6% compared to 42.1% in the previous year [18] Business Line Data and Key Metrics Changes - System-wide Same Club sales growth was 6.9%, with franchisee Same Club sales increasing by 7.1% and corporate Same Club sales rising by 6.0% [15] - Equipment segment revenue surged by 27.8%, driven by higher revenue from equipment sales, including new equipment and re-equips [17] - Black Card penetration reached 66.1%, a 300 basis point increase from the prior year [16] Market Data and Key Metrics Changes - The company ended Q3 with approximately 20.7 million members, consistent with expectations, and added 35 new clubs, bringing the total to 2,795 [3][14] - The High School Summer Pass program saw record participation, with over 3.7 million teens completing more than 19 million free workouts, reflecting a 30% increase from the previous year [4] 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 [5] - Plans to raise the Black Card price to $29.99 after the peak join season in 2026, while testing new amenities to enhance the Black Card offering [8] - The company aims to open between 160 and 170 new clubs in 2025, with a focus on maximizing economic value for franchisees [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the effectiveness of strategic imperatives, leading to an increase in the 2025 outlook [21] - The company noted that elevated attrition rates were not out of line with historical levels and expected moderation in the future [33] - Management highlighted the importance of community and member experience in driving retention and loyalty [10] Other Important Information - The company received recognition as one of Fortune's 100 fastest-growing companies and ranked 22nd in Franchise Times Top 400 [12] - The marketing strategy has shifted to include more digital and influencer marketing, particularly targeting younger consumers [4] Q&A Session Summary Question: Thoughts on marketing split between local and national - Management indicated that the shift from local to national advertising would enhance digital marketing efforts and improve media buying efficiency [25] Question: Density and market opportunities for new clubs - Management noted opportunities in less dense areas due to population growth and deurbanization, with plans to develop smaller club prototypes [26] Question: Churn rates and future member growth - Management confirmed that while attrition rates were elevated year-over-year, they were consistent with historical trends and expected moderation [33] Question: Confidence in guidance raise and Black Card pricing - Management attributed increased confidence to strong Q3 results and positive trends in equipment business and franchisee engagement [39] Question: Competitive landscape and new store openings - Management expressed satisfaction with join trends and noted positive indicators for increased availability of retail space for new clubs [48] Question: Strategic brand partnerships - Management highlighted ongoing efforts to cultivate brand partnerships that benefit members, with significant redemption rates for perks [61] Question: Use of AI for membership retention - Management discussed plans to leverage AI for personalized member experiences and targeted marketing [63] Question: Insights on Black Card Spa services - Management is measuring utilization and gathering feedback on new services to optimize the Black Card Spa offering [67]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $330.3 million, an increase of 13% compared to $292.2 million in Q3 2024 [21] - Adjusted EBITDA increased by 14.4% to $140.8 million, with an adjusted EBITDA margin of 42.6% compared to 42.1% in the prior year [23] - Net income for the quarter was $59.2 million, with adjusted net income at $67 million, translating to an adjusted net income per diluted share of $0.80 [23][24] Business Line Data and Key Metrics Changes - Franchise segment revenue increased by 11%, while corporate-owned club segment revenue rose by 7.6% [21] - Equipment segment revenue saw a significant increase of 27.8%, driven by higher sales from both new equipment and replacements [22] - Black Card penetration reached 66.1%, a 300 basis point increase from the previous year [20] Market Data and Key Metrics Changes - The company ended Q3 with approximately 20.7 million members, reflecting strong join trends and conversions from the High School Summer Pass program [4][20] - System-wide same club sales growth was reported at 6.9%, with franchisee same club sales increasing by 7.1% and corporate same club sales by 6% [19] 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] - Plans to raise the Black Card membership price to $29.99 after the peak join season in 2026, reflecting confidence in the brand's value [9] - The company aims to open between 160 and 170 new clubs in 2025, including both franchise and corporate locations [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the effectiveness of their strategic imperatives, leading to an increase in the 2025 outlook [25] - The company noted that while attrition rates were elevated year-over-year, they were consistent with historical levels and showed signs of moderation [39] - Management highlighted the importance of member engagement and retention, emphasizing the positive impact of personalized experiences and community [11][12] Other Important Information - The company invested nearly $170 million in waived membership dues as part of its marketing strategy [6] - Planet Fitness was recognized as one of Fortune's 100 Fastest Growing Companies and ranked 22nd in Franchise Times Top 400 [16] Q&A Session Summary Question: Thoughts on marketing split between local and national - Management discussed the shift of 1% from local to national advertising, aiming to enhance digital marketing and CRM efficiency [30] Question: Density and market opportunities - Management indicated opportunities for growth in less dense markets due to demographic shifts and population growth [31][32] Question: Churn and member growth expectations - Management confirmed that elevated attrition rates were not out of line with historical trends and expected moderation [39][40] Question: Confidence in guidance and Black Card pricing - Management attributed increased confidence to strong Q3 results and positive trends in equipment business and SG&A [44][46] Question: Competitive landscape and franchisee returns - Management noted strong join trends and franchisee confidence, with positive indicators for real estate availability [52][53] Question: Strategic brand partnerships - Management highlighted ongoing efforts to cultivate brand partnerships and the positive impact on member benefits [66] Question: AI and technology for membership retention - Management discussed plans to leverage AI for personalized member experiences and marketing [70][81] Question: Equipment replacement and franchisee returns - Management assured that the quality of equipment would maintain consistent replacement cycles despite increased usage [117][118]