Achieved 12% revenue growth and 13% adjusted EBITDA growth in 2025, driven by a record 181 new club openings and 1.1 million net new members. Successfully transitioned to a higher classic card membership price point while maintaining a unique value proposition that drove a 10% increase in net new members over the prior year. Redefined the brand promise by focusing on younger demographics, with the High School Summer Pass reaching 3.7 million teens and achieving an 8.3% conversion rate to paying member ...

Planet Fitness (NYSE:PLNT) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsChris O'Cull - Managing DirectorColleen Keating - CEOJay Stasz - CFOMax Rakhlenko - Managing DirectorStacey Caravella - VP of Investor RelationsStephen Grambling - Managing DirectorConference Call ParticipantsJonathan Komp - Senior Research AnalystJoseph Altobello - Managing Director and Senior AnalystRahul Krotthapalli - Equity Research AnalystRandy Konik - Managing Director and Senior Equity AnalystNone - An ...

Planet Fitness (NYSE:PLNT) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Speaker7Good morning, thank you for joining today's Planet Fitness Q4 Earnings Conference Call. After prepared remarks by management, there will be an opportunity to ask questions. Please limit yourself to one question and one follow-up. If you have additional questions, please rejoin the queue. I would now like to hand the call over to Stacy Caravella, Vice President, Investor Relations, for opening remarks. Please go ahead.Spea ...

Financial Data and Key Metrics Changes - The company reported a net member growth of 20.8 million members by the end of 2025, with a total of 181 new unit openings, primarily domestic franchises [3][9] - The company achieved a same-store sales growth of 6.7% for the year [9][10] - The rejoin rate for members who lapse is consistently around mid-30%, indicating strong member retention [5] Business Line Data and Key Metrics Changes - The company has optimized its club formats, with approximately 80% of its estate on some version of an optimized format by the end of 2025, focusing on a balanced mix of strength and cardio equipment [5][6] - The marketing campaign "We Are All Strong on This Planet" launched in Q1 2025 has resonated well with consumers, contributing to member growth [4] Market Data and Key Metrics Changes - The company noted a slight easing in real estate availability, with vacancies improving to 4.3%-4.4%, although still not expecting a significant increase in new openings [18][20] - The company is proactively partnering with franchisees and landlords to secure prime locations as retail closures increase [20] Company Strategy and Development Direction - The company aims for 6%-7% unit growth over the planning horizon, with expectations of accelerating unit openings in 2026 compared to 2025 [21][23] - The company is focusing on international expansion, particularly in Spain, where the brand has shown strong resonance and high Net Promoter Scores [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fitness industry's growth, citing a cultural shift towards fitness awareness among consumers, particularly among Gen Z [42][43] - The company is positioned to leverage its brand and marketing strategies to continue attracting new members and enhancing member experience [42][43] Other Important Information - The company is committed to maintaining a capital-light model, with 90% of its operations being franchise-based [39] - The company has initiated a process to refranchise its operations in Spain to recycle capital and grow the market with franchise partners [32] Q&A Session Summary Question: How did the year-end metrics perform against internal expectations? - Management expressed satisfaction with the year-end metrics, including the strong net member growth and unit openings, which exceeded expectations [9][10] Question: What is the outlook for January member growth? - Management refrained from discussing January specifics but emphasized confidence in the brand's momentum and marketing effectiveness [11] Question: How does the company plan to handle price increases for the Black Card? - Management indicated confidence in the Black Card price increase due to strong consumer demand and the value offered, while also testing enhancements to amenities [13][17] Question: What is the sentiment among franchisees regarding growth? - Management reported strong franchisee sentiment, evidenced by the significant number of new club openings and ongoing investments in equipment [22][23] Question: What are the expectations for international market expansion? - Management highlighted the successful ramp-up of the first club in Spain and the intention to enter new international markets with strong franchise partners [30][32]

Financial Data and Key Metrics Changes - The company reported a net member growth of 20.8 million members by the end of 2025, with 181 new unit openings, primarily domestic franchises [3][10] - The company achieved a same-store sales growth of 6.7% for the year [9] - The Classic Card price increase from $10 to $15 has been successful, contributing to overall revenue growth [13][18] Business Line Data and Key Metrics Changes - The company optimized its club formats, with about 80% of its estate on some version of an optimized format by the end of 2025, enhancing the balance of strength and cardio equipment [5][6] - The rejoin rate for members who lapse is consistently around mid-30%, indicating strong member retention [5] Market Data and Key Metrics Changes - The company noted a slight easing in real estate availability, with vacancies improving to 4.3%-4.4%, although it does not expect a significant increase in new openings [19][21] - The company is well-positioned to capitalize on retail space becoming available due to closures in other sectors, enhancing its growth potential [21] Company Strategy and Development Direction - The company aims for 6%-7% unit growth over the planning horizon, with expectations of accelerating unit openings in 2026 [22][25] - The company is focusing on international expansion, particularly in Spain, where it plans to refranchise operations to enhance growth [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fitness industry's growth, citing increased consumer awareness and participation in fitness activities [45][46] - The company is leveraging its brand awareness and marketing strategies to attract younger demographics, particularly Gen Z [46] Other Important Information - The company is committed to maintaining a capital-light model, with 90% of its operations being franchise-based [41] - The company has initiated a $350 million accelerated share repurchase program, reflecting its commitment to returning value to shareholders [44] Q&A Session Summary Question: How did the year-end metrics perform against internal expectations? - Management expressed satisfaction with the year-end metrics, including the strong net member growth and unit openings [8][10] Question: What is the outlook for January member growth? - Management refrained from discussing January specifics but emphasized confidence in their marketing strategies and brand messaging [11] Question: How does the company plan to handle price increases for the Black Card? - Management believes the Black Card price increase to $29.99 will be well-received due to strong consumer demand and the value offered [13][18] Question: What is the sentiment among franchisees regarding growth? - Franchisee sentiment is strong, as indicated by the significant growth in domestic franchise openings and ongoing investments in equipment [23][25] Question: What are the expectations for international market expansion? - The company plans to continue its international expansion thoughtfully, focusing on strong market presence and potential franchise partnerships [33][36]

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]

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]