Planet Fitness Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did PLNT Beat Earnings? Q1 2025 Results
Planet Fitness fell just short of Wall Street's expectations in the first quarter of 2025, posting adjusted earnings of $0.59 per diluted share against a consensus estimate of $0.62 and revenue of $276.66 million, a miss of 1.09% relative to the $279.71 million analysts had anticipated, even as top-line sales climbed 11.6% year over year. The most material driver behind the quarter's momentum was broad-based membership growth, with total members rising to approximately 20.6 million and system-wide same club sales advancing 6.1%, while the equipment segment delivered a 28.7% revenue jump fueled by higher replacement sales to existing franchisee-owned clubs. Rising corporate overhead costs, including severance and executive transition expenses, added pressure to margins. Despite the modest misses, management reiterated its full-year 2025 outlook, targeting roughly 10% revenue growth, 10% adjusted EBITDA growth, and system-wide same club sales expansion of 5% to 6%, signaling confidence in the brand's durability across shifting economic conditions.
- System-wide same club sales increased 6.1%
- Membership grew by approximately 900,000 to approximately 20.6 million
- Higher royalty revenue from franchise same club sales increase of 6.2%
- Corporate-owned clubs same club sales increase of 5.1%
- Higher equipment sales to existing franchisee-owned clubs with improved margin from updated equipment mix
- New clubs opened since January 2024 contributing incremental revenue before entering same club sales base
- New marketing campaign improved brand perceptions across all fitness levels
“We ended the first quarter with approximately 20.6 million members, an increase of approximately 900,000 from the end of 2024, and we grew system-wide same club sales by 6.1 percent. Given the strength and durability of our model, we delivered this healthy growth against a backdrop of increasing volatility in the macro-economic environment. Our new marketing campaign highlights our increased strength offering and our supportive community environment; our research showed the U.S. campaign improved brand perceptions across all fitness levels as well as the perceived value of our membership. As a leader in the High Value Low Price fitness category, we've successfully grown our model for over 30 years, often navigating a variety of different economic conditions throughout our history. We are a resilient brand and continue to strengthen our leadership position by offering consumers a place to get a high-quality workout at an incredible value in our Judgement Free atmosphere.”
Planet Fitness CEO, on the earnings call
Forward Guidance & Outlook
Planet Fitness reiterated its full-year 2025 guidance despite macro-economic uncertainty. The company continues to expect system-wide same club sales growth of 5% to 6%, revenue growth of approximately 10%, adjusted EBITDA growth of approximately 10%, adjusted net income growth of 8% to 9%, and adjusted net income per diluted share growth of 11% to 12% (based on approximately 84.5 million adjusted diluted weighted-average shares). System-wide new club openings are expected to be approximately 160 to 170 locations, with approximately 130 to 140 new equipment placements in franchisee-owned locations. Net interest expense is expected to be approximately $86.0 million. Capital expenditures are now expected to increase approximately 20% (previously approximately 25%), and depreciation and amortization is expected to remain flat. On tariffs, the company believes its exposure is limited at current levels and is developing mitigation plans, though guidance does not include assumptions for tariff impacts beyond existing regulations.
PLNT YoY Financials
PLNT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.