Planet Fitness Misses Wall Street Mark, But Keeps Pumping Up Revenue

Planet Fitness Inc (NYSE: PLNT) shares traded lower premarket on Wednesday after the company reported first-quarter 2025 results.

The gym franchise disclosed:

• Sales increased 11.5% year-on-year (Y/Y) to $276.7 million, missing the analyst consensus estimate of $279.16 million.
• Franchise segment revenue increased 10.7% Y/Y; corporate-owned stores gained 9.2% Y/Y; and the equipment segment jumped 28.7% Y/Y in the quarter.
• System-wide same club sales increased 6.1% year over year, reaching $1.3 billion from $1.2 billion last year.
• Q1 ended with 20.6 million members, an increase of about 900,000 from the end of 2024. 
• Adjusted EPS of 59 cents, missing the analyst consensus of 62 cents.
• Operating expenses increased to $197.5 million from $182.2 million a year ago.
• Adjusted EBITDA increased to $117 million from $106.3 million in the prior year quarter, with the Franchise segment rising 11.5% Y/Y, the corporate-owned clubs segment growing 8.1% Y/Y, and the Equipment segment rising 55.1% Y/Y.
• Adjusted EBITDA increased to $117.0 million from $106.3 million last year.
• 19 new Planet Fitness clubs opened during the period, including 16 franchisee-owned and three corporate-owned clubs
• System-wide total clubs are now 2,741 as of March 31.
• The company held $343.9 million in cash and equivalents as of March 31.
• Net cash provided by operating activities for the quarter amounted to $133.9 million.

CEO Colleen Keating said the franchise delivered “healthy growth against a backdrop of increasing volatility in the macro-economic environment.”

Outlook: Planet Fitness reiterated FY25 revenue guidance of $1.3 billion vs. consensus of $1.31 billion and adjusted EPS outlook of $2.87-$2.90 vs $2.93 estimate.

The company expects system-wide same club sales growth of 5% to 6%. It also expects adjusted EBITDA to increase around 10% and system-wide new club openings of approximately 160 to 170 locations.

The company has stated that it is creating strategies to lessen the potential effects of tariffs and believes that, at the current levels, its exposure to these tariffs is limited.

ETFs With PLNT Exposure: John Hancock Multifactor Small Cap ETF JHSC and Hilton Small-MidCap Opportunity ETF SMCO.

Price Action: PLNT shares are trading lower by 3.54% at $98.13 premarket at the last check Thursday.

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