Planet Fitness Q2 Earnings Call Highlights

Planet Fitness reported solid Q2 growth: Revenue increased 7% to $365 million, while membership rose 3.6% year over year to 21.5 million. Same-club sales grew 1.7%, driven entirely by pricing, and Black Card penetration reached approximately 68%. Capital returns boosted the earnings outlook: The company repurchased about 4 million shares for $200 million during the quarter and raised its adjusted EPS growth forecast to approximately 6%. However, higher interest expense led management to forecast a roughly 3% decline in adjusted net income. Management is prioritizing member growth and retention: Planet Fitness is testing new marketing campaigns, regional pricing structures and a temporary $10 Classic Card promotion, while also developing AI-based churn tools, a redesigned app and a first-100-day member engagement program.

Planet Fitness NYSE: PLNT reported second-quarter revenue growth of 7% as the fitness chain continued efforts to rebuild sustainable membership growth through changes to its marketing, pricing tests and member experience. Total revenue rose to $365 million in the second quarter from $341 million a year earlier. System-wide same-club sales increased 1.7%, with both franchisee and corporate-owned club same-club sales up 1.7%. Chief Financial Officer and President International Sudhanshu Priyadarshi said the comparable-sales increase was entirely driven by rate growth.

The company ended the quarter with 21.5 million members, up 3.6% from a year earlier and flat with the first quarter. Average monthly attrition was 3.5%, at the midpoint of Planet Fitness’ historical 3% to 4% range. Black Card penetration reached approximately 68%, an increase of 210 basis points from the prior-year period.

Profitability and capital allocation Net income was $67 million, while adjusted net income was $68 million. Adjusted earnings per diluted share were $0.88. Adjusted EBITDA increased 3.5% year over year to $153 million, though adjusted EBITDA margin declined to 41.8% from 43.3%.

Franchisee segment revenue increased 13%, driven primarily by higher national advertising fund revenue, royalty revenue tied to same-club sales and new clubs, and franchise and other fees. The company increased national advertising fund contributions to 3% from 2% for 2026. Excluding the national advertising fund, franchisee adjusted EBITDA margins were consistent with the prior year, Priyadarshi said. Corporate-owned club revenue increased 4%, aided by new clubs and same-club sales growth. Equipment segment revenue also rose 4%, reflecting higher sales for new franchisee club placements and replacement equipment. Replacement equipment accounted for 85% of total equipment revenue during the quarter.

Planet Fitness opened 23 clubs in the quarter, including 21 franchise locations and two corporate-owned clubs. Five of the openings were international. The company said it remains on track to open 180 to 190 clubs system-wide during 2026, with openings and equipment placements weighted toward the fourth quarter.

During the quarter, the company repurchased approximately 4 million shares at an average price of $50.44, spending $200 million. Year-to-date repurchases totaled $250 million, leaving $250 million available under its $500 million authorization. Planet Fitness used cash on hand and a $75 million drawdown on a variable funding note to support the repurchases and said it plans to repay the drawdown by year-end.

Marketing and pricing initiatives Chief Executive Officer Colleen Keating said the company is prior...