PLNT

Planet Fitness’s second quarter saw revenue and profit exceed Wall Street expectations, but the market reacted negatively given the sharp slowdown in same-store sales growth and muted net new member additions. Management pointed to a period of transition as the company rolls out new marketing campaigns and adjusts pricing strategies. CEO Colleen Keating cited ongoing efforts to reignite member growth, explaining that “several of our key initiatives, particularly with marketing, will take time to fully implement and gain traction.” Is now the time to buy PLNT? Find out in our full research report (it’s free). Revenue: $365.2 million vs analyst estimates of $356.6 million (7.1% year-on-year growth, 2.4% beat) Adjusted EPS: $0.88 vs analyst estimates of $0.85 (3.7% beat) Adjusted EBITDA: $152.8 million vs analyst estimates of $151.9 million (41.8% margin, 0.6% beat) Operating Margin: 33.9%, up from 30% in the same quarter last year Same-Store Sales rose 1.7% year on year (8.2% in the same quarter last year) Market Capitalization: $3.63 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Arpine Kocharyan (UBS): Asked about the findings from regional pricing tests and the potential for a third pricing tier. CEO Colleen Keating replied that various tiers and price points are being tested, but decisions will be based on sustained member growth and franchisee economics. Randal Konik (Jefferies): Inquired about differences in churn between Classic and Black Card members and initial franchisee feedback on the $10 Classic Card promo. Keating confirmed churn is consistent across tiers and franchisees are generally supportive, understanding the test’s objectives. Jonathan Komp (Baird): Queried the rationale behind the marketing shift and potential for new member value offerings. Keating outlined a return to approachable messaging and highlighted ongoing enhancements to both Classic and Black Card memberships. Rahul Krotthapalli (JPMorgan): Asked if weekly billing plans are being considered. Keating stated that monthly billing remains standard in the U.S., with no current plans to test weekly billing domestically. Joseph Altobello (Raymond James): Questioned if successful price tests could lead to regional pricing and the status of Black Card pricing changes. Keating said regional nuances are being evaluated, and the company is pausing a broad Black Card price increase to prioritize net member growth. In the coming quarters, our analysts will focus on (1) the effectiveness of new marketing campaigns and whether they boost member acquisition, (2) the impact of promotional pricing on both new join rates and franchisee economics, and (3) the adoption rate of the redesigned Planet Fitness app and expanded Black Card Spa features. Further, management’s ability to maintain stable churn and execute disciplined capital allocation will be crucial for tracking long-term growth potential. Planet Fitness currently trades at $48.24, down from $56.59 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:00 a.m. ET Investor Relations - Brendon Frey Chief Executive Officer - Colleen Keating Chief Financial Officer and President, International - Sudhanshu Priyadarshi Interim Chief Financial Officer - Tom Fitzgerald Operator: Good morning, and thank you for joining today's Planet Fitness Second Quarter Earnings Conference Call. [Operator Instructions]. I would now like to hand the call over to Brendon Frey for opening remarks. Please go ahead. Brendon Frey: Thank you, operator, and good morning, everyone. Speaking on today's call will be Planet Fitness Chief Executive Officer, Colleen Keating; and Chief Financial Officer and President, International, Sudhanshu Priyadarshi. Colleen and Sudhanshu will be available for questions during the Q&A session following the prepared remarks. Today's call is being webcast live and recorded for replay. Before I turn the call over to Colleen, I'd like to remind everyone that the language on forward-looking statements included in our earnings release also applies to our comments made during the call. Our release can be found on our investor website along with any reconciliation of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures. With that, I'll now turn it over to Colleen. Colleen Keating: Thank you, Brendon, and thank you, everyone, for joining us for the Planet Fitness Second Quarter Earnings Call. We are pleased to welcome Sudhanshu Priyadarshi to Planet Fitness, a proven global leader with more than 25 years of experience driving enterprise value creation across consumer-facing businesses. His deep CFO expertise, vast international operating experience and disciplined approach to strategy, execution, margin expansion and capital allocation aligned closely with our strategic growth priorities. I look forward to partnering with him to deliver meaningful value for our members, franchisees, and shareholders. I also want to thank and recognize Tom Fitzgerald for pausing his retirement to shepherd our finance organization through our period of leadership transition. Tom provided a knowledgeable and steady hand as interim CFO, enabling us to complete a thorough search, and he will remain with us in an advisory capacity through early September. Given this, Tom is joining us on today's call and will be available to provide additional perspective during the Q&A. Now let me turn to our second quarter performance. During the quarter, we furthered the important work to reignite sustainable member growth, and we are confident that the actions we outlined on our first quarter call are the right ones to achieve this overarching goal. While we are encouraged by our initial progress, several of our key initiatives, particularly with marketing, will take time to fully implement and gain traction. We finished the quarter with 21.5 million members, up 3.6% to last year. System-wide same club sales increased by 1.7%, and adjusted EBITDA increased 3.5% over Q2 2025, and we opened 23 new clubs. The fitness industry is supported by strong long-term tailwinds as more people recognize the critical role movement plays in physical and mental well-being, disease prevention and living longer, healthier lives. Against that backdrop, our focus remains clear, broaden our reach to the approximately 70% of the U.S. population not currently paying for a fitness membership, strengthen the relevance of our brand messaging with our core audience and reinforce why Planet Fitness is uniquely positioned to bring people into the category. We appeal to fitness beginners, more casual gym goers or those progressing on their fitness journey who appreciate our strong value proposition and judgment-free environment. One of the reasons why people don't join a gym is intimidation and Planet Fitness is ideally and uniquely positioned for this population. We know proximity and convenience are also factors and with the Planet Fitness club within an approximate 12-minute drive of 170 million of the U.S. population, our reach and accessibility are unmatched. As we shared on our Q1 earnings call, we are concentrating our efforts this year on two priorities that are central to reigniting net member growth, driving acquisition and reinforcing affordability. I'll discuss our progress to date in key areas supporting these priorities, including our marketing evolution, net member growth trends, pricing architecture and in-club member experience enhancements. I'll also provide an update on global club expansion and franchisee engagement before turning the call over to Sudhanshu. Let me start with our marketing updates. As we continue to evolve our marketing strategy, our goal is to both target and speak more effectively to the roughly 70% of the U.S. population that doesn't have a gym membership, while reinforcing what makes Planet Fitness differentiated our welcoming, nonintimidating environment. We are approaching this work in phases with our newly engaged creative agency. To date, we made intentional refinements to our existing creative. So it feels a bit more approachable and supportive, depicting more variety of fitness levels, dialing down sweat levels and brightening the imagery. We will launch interim new creative that takes this a few steps further, featuring a more light-hearted tone aligned to our brand DNA with an intentional emphasis on our unique value proposition and brand differentiation within the HVLP landscape. You will see this new interim creative in market this quarter. At the same time, we will begin testing creative for an entirely new marketing campaign for our critical Q1 acquisition period, giving us time to read results and make adjustments before the campaign goes live in late December. We are continuing to advance our media optimization efforts. As we refine our creative and optimize our media mix, our goal is to better reach our target audience across social platforms and multiple media channels. To support that work, our Dynamic Creative Optimization engine remains on track for a rolling launch beginning in September. This will allow us to better tailor creative and our messaging over time as we reach prospective members with greater relevance. Also in September, we will launch a redesigned Planet Fitness app with updates to make the member experience more personalized, engaging and easier to navigate. This will include a dynamic home screen tailored to in-club workout, enhanced activity tracking, including weight, reps and sets, a redesigned fitness profile with progress metrics and improved crowd meter accuracy. Additional updates are planned for the balance of the year and into 2027, underscoring our commitment to continually enhancing member experience and supporting retention. Finally, on the marketing front, we kicked off our High School Summer Pass program in June, which continues to be an important way for us to introduce younger consumers to our brand and reinforce our commitment to making fitness accessible. We're continuing to build momentum with High School Summer pass with more than 12 million workouts completed to date. This program remains especially valuable as it builds awareness and brand affinity with the next generation of potential members, including Gen Alpha, as they become old enough to join. Now let me turn to our second quarter net member growth. As I noted earlier, we ended with 21.5 million members, up 3.6% to last year and flat to Q1. For Q2, our average monthly attrition rate was 3.5%, the midpoint of our historical range of 3% to 4%. While we expect it to remain within that range going forward, there will be some fluctuation in future quarters due to seasonality. In an effort to improve this metric, we are deepening our member retention efforts with our predictive AI churn model integrated in our CRM platform, which is designed to identify early churn indicators. The model is currently in an alpha phase and continues to learn from member behavior. The next capability will be a next best action engine to serve up retention offers. Also related to our retention efforts, we will kick off components of our first 100-day program with franchisees at our September conference. This will strengthen engagement, both inside and outside our clubs during the critical early period of a member's journey, as most members join online, an opportunity to engage with them shortly after joining can encourage a club visit. During the visit, our teams can proactively engage, understand the member's goals and connect them with the most relevant areas of the club to provide support and meet their needs. We also recently implemented a mystery shop program to support consistent brand standards, enhanced member satisfaction and operational excellence across our clubs in the U.S. and Canada. The program supplements last year's system-wide NPS rollout to enhance member experience and service delivery in our clubs. Now moving to our pricing architecture. We have launched several regional and local price tests to better understand consumer responses across different markets. As part of our continued focus on reinforcing affordability and driving member acquisition, we will also test a $10 classic card promotion nationally later this quarter. Offering the Classic Card at $10 for a limited time promotion nationally will help us better understand regional impacts. We are not running this test to inform a rollback of the classic card price. We want to understand its impact for use in limited promo windows, as well as read the impacts by region. Turning to member experience. We know from industry data and member feedback that recovery is an important part of fitness. To this end, we expanded our test of new Black Card Spa modalities to 100 clubs across multiple DMAs and began marketing the upgraded features this summer. The broader test is designed to help us understand how these offerings influence total joins, join mix, upgrades and retention. Additionally, based on strong member preference and franchisee enthusiasm, we offered the opportunity to our franchisees to order the Red Light Sauna and the LED red light booth early. We're excited for the test results for the other modalities as we endeavor to make recovery more accessible just as we democratize fitness access more than 30 years ago. Lastly, turning to development and franchisee engagement. During the second quarter, we opened 23 clubs, five of which were international and included 21 franchise locations and two corporate-owned clubs. We announced this morning that we welcomed a new franchisee to Planet Fitness, seasoned hospitality developer, Ian McClure, CEO of Gulf Coast Hotel Management acquired growth territory on the West Coast of Florida. Ian brings extensive experience in multiunit real estate development, operations and asset management. This is an important milestone and a clear signal of the momentum we are building behind disciplined, long-term system growth. It reflects the strength of our model the confidence experienced franchisees and operators see in the Planet Fitness brand and our opportunity to capitalize on population shifts in the U.S. by continuing to grow our footprint in markets where our accessible high-value offering can reach more consumers. Turning to International. In July, we completed the sale of our ownership stake in our Australia franchise. The strong progress we've seen in Australia demonstrates we can deploy capital in a disciplined, focused manner to accelerate Planet Fitness' international expansion. The sale of our stake to Franchise Equity Partners validates this approach, and we appreciate FEP's ambition to scale the Planet Fitness brand and accelerate growth across Australia. We remain steadfastly focused on unit economics and to that end, continued our active engagement with our franchisees during the quarter, including holding several small group luncheons and dinners to hear directly from them. We look forward to furthering this engagement at our franchisee conference in September. Before I turn it over to Sudhanshu, I want to again thank Tom for stepping in as our Interim CFO and graciously extending his time with us to support a smooth transition. His experience, leadership and partnership have been invaluable. We're grateful for his contributions and wish him the very best as he returns to the Everyday's a Saturday Club. Now I'll turn it over to Sudhanshu. Sudhanshu Priyadarshi: Thanks, Colleen, and good morning, everyone. It's a privilege to be with you today for my first earnings call as CFO of Planet Fitness. Before I walk through our second quarter results, I want to take a moment to share why I was drawn to this role. Over the course of my career, I have had the opportunity to work across a number of great consumer businesses. What drew me to Planet fits was its size and reach, over $5 billion in total system-wide sales, nearly 3,000 clubs and 21.5 million members as well as a combination of factors, I don't often see in one company, a brand with real emotional resonance in the judgment free zone, a highly franchised and capital-efficient operating model and a long runway for growth in the U.S. and internationally. I have spent my career focused on turning strategy into disciplined execution, driving margin expansion, capital efficiency and shareholder value and I see tremendous opportunity to do exactly that here working alongside Colleen and this leadership team while also helping lead our international expansion. I also want to take a moment to thank Tom. Tom stepped back in at a critical moment for this company and did an excellent job stabilizing the finance organization all while helping set me up for a smooth start. Tom, thank you for your partnership and I'm glad you will remain available to us as an adviser while we complete this transition. Now to our second quarter results. All of my comments regarding our second quarter performance, we'll be comparing Q2 2026 to Q2 of last year, unless otherwise noted. We opened 23 new clubs in Q2 this year, consistent with the number of openings in the year ago period. We delivered systemwide same club sales growth of 1.7% in the second quarter with franchisee and corporate same club sales, both up 1.7%. Our Q2 comp increase was entirely driven by rate growth. Black Card penetration was approximately 68% at the end of the quarter, an increase of 210 basis points from the prior year. For the second quarter, total revenue was $365 million compared to $341 million an increase of 7%. The increase was driven by revenue growth across all three segments, a 13% increase in franchisees segment revenue was primarily due to an increase in national ad fund or NAF, higher royalty revenue from increased same club sales as well as new clubs, and franchisee and other fees. The increase in NAF revenue was primarily due to a 1 percentage point increase in NAF contributions from 2% and to 3% for 2026. For the second quarter, the average royalty rate was 6.7%, which is flat compared to prior year. The 4% increase in revenue in the corporate owned club segment was driven by the sales from new clubs as well as increased same club sales. As a reminder, we opened 19 new corporate clubs since the end of Q2 last year, 11 of which occurred in the fourth quarter of 2025. Equipment segment revenue increased 4%. The increase was driven by higher revenue from new franchisee-owned club placement sales and higher revenue from replacement equipment sales. We completed 21 new club placements this quarter compared to 19 last year. For the quarter, replacement equipment accounted for 85% of total equipment revenue compared to 87%. Our cost of revenue, which primarily relates to the cost of equipment sales to franchisees on clubs amounted to $64 million compared to $59 million. Club operations expense, which relates to our corporate-owned club segment increased 6% to $82 million compared to $77 million. This increase was primarily due to operating expense from 19 new clubs opened since the end of Q2 last year, partially offset by the sale of eight clubs in California. SG&A decreased 3% to $34 million compared to $36 million, while adjusted SG&A was $33 million, a decrease of 2%. The National advertising fund expense was $33 million compared to $23 million, primarily due to the 1.6% this year in marketing from the local fund to the National Fund. Net income was $67 million, adjusted net income was $68 million and adjusted net income per diluted share was $0.88. Our adjusted net income per share is based on an adjusted weighted diluted average share count of 77.5 million shares compared with 80.1 million in the first quarter of 2026. The decrease in our share count reflects the open market repurchases made during the second quarter, which I will cover in detail shortly.. Adjusted EBITDA was $153 million, an increase of 3.5% year-over-year, and adjusted EBITDA margin was 41.8% compared to $148 million with adjusted EBITDA margin of 43.3%. By segment, franchisee adjusted EBITDA was $92 million, and adjusted EBITDA margin decreased from 72.3% to 67.6%, with the change in margin primarily due to the increase in the NAF contribution rate. Excluding NAF, franchisee adjusted EBITDA margins were consistent year-over-year. Corporate club adjusted EBITDA was $57 million, and adjusted EBITDA margin decreased from 40.7% to 40%. Equipment adjusted EBITDA was $24 million, and adjusted EBITDA margin decreased from 32.1% to 28.4%. The change in equipment adjusted EBITDA margins was due to the timing of replacement equipment discounts. For the first half of 2026, Equipment adjusted EBITDA margins were 29.6%, in line with our expectations. Now turning to the balance sheet. In Q2 2026, utilizing cash on hand and a $75 million drawdown on one of our variable funding notes, we repurchased approximately 4 million shares at an average price of $50.44 for a total of $200 million. This brought our year-to-date repurchases to $250 million leaving $250 million remaining under the $500 million repurchase program authorized by the Board late last year. As of June 30, 2026, we had total cash, cash equivalents and marketable securities of $544 million compared to $607 million on December 31, 2025, which included $73 million and $66 million of restricted cash, respectively, in each period. We plan to utilize a portion of our available cash to repay the $75 million VFN by year-end. Moving on to our 2026 outlook. Based on our second quarter share repurchase activity, we are raising our view for adjusted net income per diluted share, which is now projected to grow approximately 6%, up from our prior outlook of approximately 4%. This is based on adjusted diluted weighted average shares outstanding of approximately 77 million, down from our prior expectations of approximately 79 million. The benefit of lower share count is being partially offset by higher interest expense following the drawdown of our $75 million VFN. Interest expense for the year is now expected to be approximately $115 million, up $4 million from our prior guidance, which is requiring us to adjust our adjusted net income guidance slightly to down 3% versus down 2%. The rest of our outlook remains unchanged. We still expect system-wide same club sales growth to be approximately 1% and revenue to grow approximately 7% and adjusted EBITDA to grow approximately 6%. As we discussed on our Q1 call, we anticipate quarterly same club sales growth to moderate sequentially as we move through the year. This is still the expectation. However, our forecast does not assume that same club sales are negative in either third or fourth quarters. Moving to unit growth, we still expect to open between 180 and 190 new club system-wide with 150 to 160 equipment placements and anticipate that the cadence of the remaining opening and placement to be weighted to the fourth quarter. We expect that replacement equipment sales will make up approximately 70% of total Equipment segment revenue for the full year. We expect second half replacement equipment revenue to be slightly lower than the first half with a higher mix in quarter 3. We also expect full year equipment margin rate of approximately 30%. Lastly, we continue to expect capital expenditures to be up 10% to 15% and depreciation and amortization to be up approximately 10%. In closing, having now had the chance to get closer to the business, over the past 40 days, I am even more convinced of what drew me to Planet Fitness in the first place. This is a highly franchised capital-efficient model, built around a brand that continues to resonate broadly with consumers. And it has tremendous growth prospects domestically and more so internationally, where the TAM is even greater given the lower fitness participation rates outside of the U.S. As we look to the back half of the year and beyond, we remain focused on disciplined execution of the strategic priorities, Colleen outlined, aimed at driving sustainable growth and generating increased value for our members, franchisees and shareholders. I will now turn the call back to the operator to open it up for Q&A. Operator: [Operator Instructions]. Your first question comes from the line of Arpine Kocharyan with UBS. Arpine Kocharyan: Sudhanshu, welcome to the call. Look forward to working with you. You talked about having completed well. You talked about having completed different pricing tests -- would you be able to share at all some of those initial findings and learnings and what that could mean for your broader pricing structure specifically how you're thinking about maybe introducing a third tier of pricing? Does that even make sense at this point? And also, is it fair to assume that any update to that lower end pricing or maybe Classic Card pricing or whatever it could be, wouldn't come without a kind of a review of Black Card pricing at this point? Colleen Keating: Arpine, thanks for the question. As I indicated, we've got a number of price tests, both regionally and locally to really understand consumer response across a number of different pricing architectures in different markets, many of the tests are still in slate, and we are still reading the results, as you know, due to the subscription nature of our business and our seasonality. We tend to run tests for a fairly long period of time. We'll evaluate those tests on really reinforcing affordability, driving member acquisition and sustained member growth -- and to your question, we've tested tiers. We've tested different price points and in different regions as well. Arpine Kocharyan: Great. And part of -- the reason for part of -- latter part of my question is churn is actually coming in pretty steady, right, even when we think about sort of what it was in the prior quarter. It seems like churn is pretty steady. Does that make you sort of rethink the Black Card pricing strategy a little bit? Or would you say that it's going to be viewed holistically more aligned with what you're doing with the rest of the pricing structure? Colleen Keating: Yes. Again, we're leaning hard into sustainable net member growth. So as we evaluate any pricing decisions in our architecture, whether they're tiers, regional nuance or something with Black Card. We're going to evaluate the price elasticity in conjunction with join mix as well as total sustainable net member growth and impact on churn. Operator: Your next question comes from the line of Randy Konik with Jefferies. Randal Konik: Great. Just curious, on churn, again, as mentioned, that's stable on the last question there. Is there any kind of difference you're seeing between churn statistics of Black Card versus the Classic Card at the moment? Just curious on what you're seeing there. Colleen Keating: Good morning, Randy, and thanks for the question. With regards to churn, specifically, you're right, but it's within the range that we've typically set an average monthly churn rate between 3% and 4%, and it was solidly in the middle there. we haven't seen a significant difference between classic and Black Card member churn. As we've talked about before, we do see some variance across generational cohorts, but not marked difference between classic and Black Card. Randal Konik: Got it. And I guess just following up here on the $10 Classic Card test -- can you just expand upon that a little bit more in terms of the scope? How long it will be in place if you offer a $10 limited time offer, what does that mean? And then when you kind of think about that and you put that forth, you said you had some engagement with franchisees, with dinners and stuff like that before the September meeting, any initial impressions from these meetings you've held thus far with franchisees on communicating to them or different pricing architectures, different pricing objectives and what their feedback is and what they've been asking for or what they're kind of focused on right now? Colleen Keating: Sure. So specific to the $10 Classic Card promo, it is a promo window. I guess for competitive reasons, we won't indicate the exact dates we're going to run it or exactly how long it will run. But it will be a limited time promotion and we do intend to run it during this quarter. We have communicated with our franchisees about our intent to test that as a promo, again, a limited time promo nationally and one of the reasons it's important to test it nationally is to read the regional nuances and really understand kind of price elasticity and demand indicators around price point in different markets around the country. And from a franchisee sentiment standpoint, we've been very communicative with them around our strategic pivots and again, around this promo. As in any franchise organization, we'll have some franchisees that would be completely on board and others that might be a little bit more reticent. But certainly, they understand the outputs that we're seeking to evaluate by running this test nationally. Operator: Your next question comes from the line of Simeon Siegel with Guggenheim Securities. Simeon Siegel: Looking forward to working with you. Colleen, maybe just a follow-up on that. So if someone buys the $10 Classic test, do they get it temporarily? Or does that become their go-forward rate? It just feels like that's a pretty compelling offer now. And so I'm curious how you plan to use that to strategically trigger new ads and also how you ensure it doesn't drive any negative response from anyone who joined at 15 or maybe would have joined a 15 in the future? And then just curious how you're thinking about the potential impact to franchisee unit economics, do you have offsets to the lower revenue? Do you think it drives incremental members in that offset. Just curious how you're thinking about that full picture. Colleen Keating: Simeon, and thanks for the question.. So from a standpoint of pricing, it's a limited time offer, but it's not a limited time. It's not intended to be a limited time rate. So when someone joins at a Classic Card price point, as we've done historically, they -- that's a legacy protected rate. So as long as they remain a member of Planet Fitness, they continue to enjoy the rate at which they joined, and that will be or is intended to be the case with this limited $10 promo. From a standpoint of unit economics, we do know that the lift of the classic card price from $10 to $15 across the system holistically has been accretive to the AUVs of our franchisees' clubs. There are some franchisees in certain markets who have encouraged us to test the $10 promo pricing. We did it in a very concentrated regional test earlier this summer, late spring and really, again, want to read and better understand the regional nuances and regional price elasticity by running the test nationally. And I think as I indicated, we're not running the test because we're contemplating a rollback of 15 to 10. Operator: Your next question comes from the line of Jonathan Komp with Baird. Jonathan Komp: Colleen, I want to follow up on the marketing pivot that you highlighted. Would you characterize this more as a shift back to the historical Planet playbook? And are you contemplating within the test ways to drive incremental value to members that you could find new ways to monetize? I know there's a lot of discussion about testing different price points. But what about alternative offerings or new ways to add value that you might be able to capture more dues or price from members over time? Colleen Keating: Sure. Thanks for the questions. So to your first question about kind of the marketing playbook, and I alluded to it in my remarks a bit -- what you'll see in the campaign, the new campaign that we're developing is certainly a lighter approach. We want to convey approachability and ensure that our messaging resonates with the 70% that is really our target audience, our core consumer. So more casual gym goers beginner what this brand has historically done very successfully is bring people into the category. So we want to ensure that we're reaching people with messaging that can base that approachability, judgment-free and welcoming no-gym intimidation environment that makes Planet Fitness unique and special. As it relates to continuing to enhance the value proposition for our members, we've done a lot over the last period, a couple of periods, few periods to enhance the value proposition for our members. We're seeing it resonate in the increases in our Net Promoter Scores. Our Net Promoter Scores are up 9 percentage points year-on-year as of the end of Q2. And our feedback about the format optimization and the investments that we've made in equipment on the club floor are telling us that -- member feedback is telling us that they're seeing enhanced value in their relationship with Planet Fitness. And as you know, more than 2/3 of our members today are Black Card members, and we're making significant enhancements to our recovery offering in the Black Card Spa by having tested it in 13 -- testing new modalities in 13 clubs earlier this year and now this summer moving to 100 club test with the five new Black Card modalities. So we're very focused on continuing to add value for our members, both at the classic and Black Card tiers. Jonathan Komp: Okay. And then just separately, I wanted to ask how we should view capital allocation in light of the pretty significant buyback completed during the quarter? And maybe more broadly, as your business has become more capital intensive over the past several years. Just any broader thoughts on evaluating the current structure, the current ownership rate of your unit base, especially with the new franchise interest you mentioned? Just any broader thoughts there would be helpful. Sudhanshu Priyadarshi: So Jonathan, this is Sudhanshu. First capital allocation will remain what we have today. We are a cash flow generative business. We use a lot of cash to generate value, whether opening clubs, you saw how we recycle capital in Australia or buying back share when we see the value. At the same time, we will continue to look at international growth opportunities, seem like Australia model where we see growth. But your question about why we having corporate Club, why we have a franchisee. We want to run an asset-light model, that's what we have. We have less than 10% is the Corporate Club. We want to continue to run that model -- that model is working for us. But overall, we feel that we will look at all our options available to us, management team and board to create shareholder value. That's what we are here for and all of those options we consider regularly. But is driving growth is driving member growth, and we are happy about it. Anything, Colleen, you want to add? Colleen Keating: Yes. I'll just say your -- Jon, I know you're aware -- we sold our California clubs last year to an existing franchisee who had infrastructure on the West Coast and could operate them more efficiently than we could because we didn't have a large portfolio on the West Coast, exiting our position in Australia is another example. We'll use our balance sheet to help fuel and accelerate growth in a healthy way. At the same time, if we have an opportunity to exit a position and recycle that capital we will do that as well. So to date, we've kept the ish 90-10, 90%, 10% franchise versus corporate owned. We see our corporate portfolio is a great test lab for us as we continue to be a test and learn shop and want to invest in kind of R&D. At the same time, we continue to evaluate opportunities for capital recycling, and that could include other portfolio transactions our currently corporate stores if the right opportunity presented itself. So again, similar to as we did with Australia, California, you know that we've considered our position in Spain as well and at some juncture, intend that we'll either sell the Spain territory or bring a franchisee into that market as well. Operator: Your next question comes from the line of Rahul Krotthapalli with JPMorgan. Rahul Krotthapalli: Colleen, does it make sense to test weekly membership plans in the system, say it like a lower 499 or 599 White Card or like a 699 and 799 Black Card. Given like mature club capacity still remains. And I know you guys do this in Australia or probably in some other markets. Are you testing these? Or what do you think the impact could be? And I have a follow-up. Colleen Keating: Sure. Nice to hear from you. Thanks for the question. You're right, we do have other billing cycles in other geographies, some of the international geographies more because that market and that's what the consumer expects in those geographies. Here domestically, in the U.S. the monthly billing is the most typical billing structure. So to clearly answer your question, we have not tested and are not currently contemplating a weekly billing test in the U.S. Got it. Rahul Krotthapalli: And then you shared some details on the upcoming app announcements. Is there an opportunity to provide something on the lines of like a nutrition or a dietary recommendations or partnerships with many networks out there, to your point on like democratizing like even wellness beyond recovery? Any thoughts there? Colleen Keating: Sure. So you're asking about the ability to use our app to highlight partnerships -- is that -- am I getting the question clearly? Rahul Krotthapalli: Partnerships with an index nutrition or dietary recommendations for the existing membership base as an added feature for the wellness? Colleen Keating: So we've done some of that to date. We've got a partnership with Factor Meals, which provides prepackaged nutrition, balanced nutrition, meal plan options and had fairly good utilization with that from that -- with our members with that perk. We have also had a partnership with Ro and Ro provides nutrition and wellness counseling and also GLP-1 access and access to physician support -- and that launched in late Q4 of last year, It's been one of our most successful and most utilized Perks programs to date So we're -- we're always exploring additional opportunities for Perks and partnerships, again, for competitive reasons, I probably won't talk about them with specificity except to talk about the ones that we've recently -- we -- I just highlighted in the real partnership and the fact that we do see an opportunity to utilize the app to bring to bear opportunities for a more holistic more access to other wellness partners through the member relationship with Planet Fitness. Operator: Your next question comes from the line of Max Rakhlenko with TD Cowen. Maksim Rakhlenko: So first, Colleen, can you remind us, historically, the mix of joints that would come during promotion versus non-promotion periods, there are some concerns that this price that you're doing on the Classic Card could eventually become almost the shadow price decrease. And then separately, how do you maintain the $15 classic card members from not putting and rejoining at $10. Colleen Keating: It's nice to hear from you. So we have historically not really deconstructed publicly the promo versus non-promo joined. What I will say is that we will -- we intend to test this promo really national promo really to read, read how it performs across different regions and different geographies. It is again, it's not contemplated to be kind of the new class of card pricing at all. And then as it relates to kind of trade down, which I think is your question, we ran a localized $10 Classic Card promo a couple of months ago, earlier in the summer, late spring. And one of the things that we were reading from that test before we made the decision to test nationally was trade down, and we did not see significant trade down from 15 to 10 at all. Thomas Fitzgerald: Max, it's Tom. I'd add one thing, too. Back when we were testing moving from 10 to 15, we had numerous test cells back in 2024. One of the test cells was at 15 all the time and we would promote to 10 and across multiple promotions on plastic card, we didn't see really anybody. I mean you could count them on one hand, how many people bought a $15 membership, came back in when we went to tend to essentially downgraded just they weren't doing it. Colleen Keating: And I think the importance is that very limited time offer so that it doesn't become to use your vernacular shadow pricing. Maksim Rakhlenko: Got it. That's super helpful. And then in the 150 to 160 franchise placements for this year, what's your expectation for the number of boxes that may open ahead of the ADAs? And then separately, can you just update us on usage of where cure periods are today versus prior periods as we assess any potential risk around opening slowing next year? Thomas Fitzgerald: Yes. Max, it's Tom. I'll try that one. So we don't really disclose how many people are ahead of ADAs. I think we've talked historically sort of directionally pre-COVID a number of folks were ahead of their ADAs given where the system was at the time, but we currently don't really disclose that. But I think broadly speaking, most folks are tracking to their ADAs, a couple might be slightly ahead. And we also -- in terms of the cure periods and sort of which I think to your point is really for those who are unaware the time to get a club open if it's not going to open on time for reasons that are beyond your control like permitting or whatever. We don't really disclose that either. But I would say it's not it's not disproportionately higher or lower than it's been in recent years. Maksim Rakhlenko: And maybe as a quick follow-up, given that it doesn't seem like you think that there is going to be much of the cell in openings next year? Is that it? Colleen Keating: We're not guiding -- we're not guiding next year at this point. We will do that in due course. But we're confident in our -- in where we guided openings for this year and of course, came off a very strong opening year last year. So we're feeling good about the unit opening momentum. And I think to the kind of the use of cure periods and your earlier question, at the end of the day, our franchisees want to open clubs. We have a -- we're heavily weighted to Q4 openings because they want to open clubs in time for the Q1 acquisition period. And at the end of the day, leaning into the flywheel and the strong economics of our focus on sustained member growth are the things that are going to be most accretive to unit economics and bring people into the system like the new franchisee that we just announced this morning. Operator: Your next question comes from the line of Joseph Altobello with Raymond James. Joseph Altobello: So I understand the plan is not to roll back classic to $10. But if the test does prove successful in certain areas, could you have different pricing across regions, for example, on Classic. And then to follow up on that, is the plan still to go to $30 nationally on Black Card at some point? Colleen Keating: So I'll take that. I'll start that. I've said a couple of times, one of the things that we want to read from the National Classic Card promo at 10 is kind of the regional nuance. And if different regions have a different performance to the $10 price plate. So again, we're not going to talk forward-looking about what our intentions are from a pricing architecture because we still have a lot of things in test. And we consider this $10 national promo also at test. So as we read the test and make decisions, we'll communicate that. But you're right to infer that we're reading regional nuance with this. And then as far as the Black Card pricing to $30, I'd say we made an appropriate decision given that we're leaning into net member growth very heavily this year because it's the thing that's most accretive to the economic flywheel for our franchisees. So it was an appropriate decision to pause the nationwide rollout of the Black Card price -- at the same time, we're putting new modalities into the Black Card Spa, continuing to add value, looking at regional nuance -- so at some juncture, we obviously, we see that there'll be an opportunity to move on Black Card pricing exactly where, how much and will it be static nationwide -- those are things that we're continuing to evaluate. Joseph Altobello: Got it. Helpful. And just a follow-up on that. What sort of changes have you made to the creative development process to ensure that it resonates with your target customer? Because it seems like you kind of lost your way a little bit, obviously, during this past holiday period. Colleen Keating: Yes. What I would say is the last campaign did a lot of what we asked it to do in conveying that you could get strong at Planet Fitness and that we were -- we have top quality equipment -- at the same time, we left some of our customers feeling like we weren't talking to them with regard to the things that make us most unique and special, which is our approachability and our judgment-free environment. So in the new creative and then in the new -- in the interim creative and in the new campaign, you will see us dialing up a bit more a lightheartedness, little bit of humor, more approachability so that we broaden the reach and really ensure that we are marketing to the full 70% that is our deep pool of consumers and unique for Planet Fitness. As I mentioned in my remarks, you will see later this quarter, some interim new creative that will convey that bit of humor, a bit of lightheartedness, while at the same time, conveying that you can get a great work out at Planet Fitness. And then for the new -- the full new campaign that we'll launch at the end of Q4 and carry us into the critical Q1 join period, member acquisition period. We'll be testing that new campaign and creative throughout the next few months. Operator: Your next question comes from the line of Sharon Zackfia with William Blair. Sharon Zackfia: Colleen, maybe following up on that last question. Can you talk about any changes in the way you're testing the creative relative to last year? Because I know you felt good about the test last year and then when the launch happened, it didn't really meet expectations? Colleen Keating: Yes. So for the creative that we were running last year in 2025, we tested that fairly extensively before we launched it. And it was driving increase in joint volume. As you know, we had a 10% lift in that member growth in 2025 versus 2024, despite the two headwinds of the nationwide rollout of click to cancel and the price increase of 50% on the classic card pricing. At the same time, as we saw traction with that campaign, we dialed it up and I'd say we probably overtorqued dialed up the sweat level, dialed up the size of the muscle and brought talent in that was -- that represented a little bit more of the fit getting fitter versus the 70% that is our target. So the change in the creative the next creative and the new campaign. You'll see us featuring not only in messaging the approachability, but also in the talent and how we shoot that creative. We will continue to test it with consumers extensively and probably even a little bit more than we've tested in the past. And that's one of the reasons why we're going to run interim creative that will start this quarter and how we read that will also help inform the full new campaign that we'll launch for Q1. Operator: Your next question comes from the line of Xian Siew with BNP Paribas. Xian Siew Hew Sam: It sounds like summer pass is going well. Maybe could you compare it a little bit to last year? And I know it's important to attract the next generation of gym goers, but maybe could you talk about how that balancing between younger consumers who may be a little bit more gym serious versus more casual or consumers? And is the marketing shift to maybe less kind of sweat less getting better impacting the acquisition of younger consumers and all? Colleen Keating: Sure. So high school summer pass last year. So obviously, we're still in the middle of high school summer past this year. But high school summer passed last year, we had a significant increase in participation, more than 30% increase in participation 2025 versus 2024. And saw an increase in the conversion percentage at the end of high school summer pass last year. How we're tracking this year is pretty close in line to the -- to what we had -- what we saw last year. So maintaining that significant increase that we had seen last year we're within a couple of percent of last year's numbers. But again, we're still in the middle of high school summer pass and we won't measure conversion until after the past program ends and then we market for conversion in the fall. But as I said, we've had 12 million workouts, incredible participation. And it remains a key program for us to attract young consumers into the category. As it relates to the younger consumer, maybe being a bit more fitness minded or fitness aware. We have seen, again, Gen Z as the fastest growing proportion of our membership and also the largest proportion of our joins. So we know our brand is resonating with Gen Z One of the things we're doing with the DCO engine, the dynamic creative optimization engine that will enable us to tailor our marketing messaging to different target audiences. We've also probably seen enhanced the use of influencers across social channels, and we've seen these influencers resonate with the younger consumer. So we'll ensure that the optimization of our media mix and the use of the DCO engine, which is scheduled to launch in September will enable us to reach across all of our target consumers. Xian Siew Hew Sam: And then for maybe the second half same-store sales, I think you mentioned some moderation, but staying positive. Could you maybe give us a little bit more color on how we should think about the mix of rate versus member growth in the second half? Colleen Keating: Yes. I could start or you want to take that. Yes, go ahead. Sudhanshu Priyadarshi: So the rate -- we said that in Q2, most of entirely everything was driven by rate. And that was our expectation, and it's reflected the slowdown in net new joints. But it's more than 100% of the comp is driven by rate. It reinforces our focus on prioritizing member growth across entire system. And we recognize that including the membership is what will fuel the Planet Fitness flywheel. And that's our focus area, sustainable long-term growth is basically driven by expanding the member base, complemented by rate growth rather than the other way around. And as Colleen said, we have continued to sharpen and intensify our focus on driving the growth and member acquisition. Colleen Keating: I'll just say two additional things perhaps relative to this question. We are not contemplating or anticipating in our guidance a negative comp quarter in either of the two remaining quarters of the year. So we're not projecting a negative quarter in Q3 or Q4. But to Sudhanshu's point, the comp will be driven entirely by rate -- and I'll also say, we increased our Black Card penetration again in Q2 by about 200 basis points over Q2 prior year. We're continuing to get price lift, organic price lift or I should say, average rate lift. -- because of the continuing increase in Black Card penetration. Operator: We have reached the end of the Q&A session. I will now turn the call back to Colleen Keating, CEO, for closing remarks. Colleen Keating: Thank you. In closing, I'd first like to thank our team members for the progress on our priorities to really reignite sustainable member growth and also our franchisees for their support of these endeavors. We're proud of our leadership position in the fitness industry and our highly profitable business model with durable cash flows. Throughout our history, we've demonstrated our ability to adapt to changing market conditions while remaining focused on long-term growth. We've differentiated ourselves through an accessible high-value offering that has broadened the appeal of fitness to millions of consumers. That same disciplined approach continues to drive our strategy today, and I am confident it will fuel the growth that this brand can deliver. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Planet Fitness. The Motley Fool has a disclosure policy. Planet Fitness (PLNT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Planet Fitness, Inc.? Here are five stocks we like better. 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. HSAs for Gym Memberships? These 3 Fitness Stocks Could Soar 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 gym stocks to cash in on dieters’ New Year's resolutions 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. 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%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MarketBeat Week in Review – 9/25 - 9/29 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. → No Hangover: Revisiting Microsoft One Week After Earnings 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. Chief Executive Officer Colleen Keating said the company is prioritizing member acquisition and affordability as it seeks to reach the roughly 70% of the U.S. population not paying for a fitness membership. Planet Fitness is updating its marketing to emphasize its welcoming, non-intimidating environment and its value proposition for fitness beginners and casual gym-goers. The company has refined existing advertising creative to show a broader range of fitness levels, reduce the emphasis on sweat and brighten imagery. Interim creative with a more lighthearted tone is expected to enter the market during the current quarter. Planet Fitness also plans to test a broader new campaign ahead of its key first-quarter acquisition period, with a planned launch in late December. Keating said the company believes its prior campaign successfully conveyed that members could get strong and use quality equipment at Planet Fitness, but it did not fully communicate the brand’s approachability to all target consumers. The company plans to conduct extensive consumer testing as it develops its next campaign. Planet Fitness is also conducting regional and local tests of different pricing structures, including tiers and price points. Later this quarter, it plans to run a limited-time national promotion offering the Classic Card at $10. Keating said the promotion is intended to measure regional price elasticity and demand, not to signal a permanent rollback from the current $15 Classic Card price. Members who join at the promotional price would retain that rate as long as they remain members, Keating said. She added that a prior localized $10 test did not show significant trading down from $15 memberships. Management is also evaluating regional variation in pricing and continues to assess future Black Card pricing opportunities, though it has paused a nationwide Black Card price increase while focusing on net member growth. The company is deploying a predictive artificial-intelligence churn model within its customer relationship management platform to identify early churn indicators. The model remains in an alpha phase, and Planet Fitness plans to add a “next-best-action” capability intended to provide retention offers. Planet Fitness also plans to work with franchisees on elements of a first 100-day member program, designed to improve engagement shortly after a member joins. Since many members enroll online, Keating said early outreach and club visits could help teams understand members’ goals and connect them with relevant equipment and services. In September, the company expects to launch a redesigned app featuring a personalized home screen, expanded workout activity tracking, progress metrics and improved Crowd Meter accuracy. Planet Fitness is also testing additional Black Card Spa recovery offerings at 100 clubs across multiple designated market areas. The test is intended to measure effects on joins, membership mix, upgrades and retention. Keating said the company’s Net Promoter Score was up nine percentage points year over year at the end of the second quarter, which she attributed in part to club-format optimization and equipment investments. Planet Fitness raised its outlook for adjusted earnings per diluted share to approximately 6% growth from its previous expectation of approximately 4%, reflecting a lower expected share count following repurchases. The company now expects adjusted diluted weighted-average shares outstanding of approximately 77 million, compared with its prior expectation of approximately 79 million. Higher interest expense associated with the variable funding note drawdown partially offsets the share-count benefit. Planet Fitness now expects interest expense of approximately $115 million, up $4 million from prior guidance, and expects adjusted net income to decline approximately 3%, compared with its previous forecast for a 2% decline. The rest of the company’s outlook was unchanged. Planet Fitness continues to expect approximately 1% system-wide same-club sales growth, 7% revenue growth and 6% adjusted EBITDA growth for 2026. Management said it expects comparable-sales growth to moderate sequentially through the year but does not forecast negative same-club sales in either the third or fourth quarter. Planet Fitness, Inc is a franchisor and operator of fitness centers based in Hampton, New Hampshire. Established in 1992, the company designs and equips its clubs to offer a non-intimidating workout environment, often marketed under its “Judgment Free Zone” philosophy. Planet Fitness markets affordable membership plans and a variety of cardio and strength-training equipment, positioning itself to attract casual and first-time gym users. The company operates through a network of franchised and company-owned clubs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Planet Fitness Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Planet Fitness (PLNT) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.53%. A quarter ago, it was expected that this fitness center operator would post earnings of $0.63 per share when it actually produced earnings of $0.74, delivering a surprise of +17.46%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Planet Fitness, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $365.22 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $340.88 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Planet Fitness shares have lost about 47.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Planet Fitness has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Planet Fitness was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.78 on $351.62 million in revenues for the coming quarter and $3.17 on $1.41 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Viking Holdings (VIK), is yet to report results for the quarter ended June 2026. This cruise operator is expected to post quarterly earnings of $1.25 per share in its upcoming report, which represents a year-over-year change of +26.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Viking Holdings' revenues are expected to be $2.13 billion, up 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Planet Fitness Inc (NYSE:PLNT) reported a 3.6% increase in total members to 21.5 million, with system-wide same-club sales up 1.7% and adjusted EBITDA up 3.5% year-over-year. The company is executing a strategic marketing pivot to better target the 70% of the U.S. population without a gym membership, with new creative and a planned campaign for the critical Q1 acquisition period. Black Card penetration reached approximately 68%, up 210 basis points year-over-year, driving rate growth and enhancing average revenue per member. The company is expanding its Black Card Spa recovery offerings, testing new modalities in 100 clubs, which could improve member value and retention. Planet Fitness Inc (NYSE:PLNT) completed a $200 million share repurchase in Q2, bringing year-to-date buybacks to $250 million, and raised its adjusted EPS growth outlook to approximately 6%. The company welcomed a new franchisee, Ian McClure, to develop the west coast of Florida, signaling continued franchisee interest and system growth momentum. The High School Summer Pass program has generated over 12 million workouts, building brand affinity with younger consumers and supporting future member acquisition. System-wide same-club sales growth slowed to 1.7% in Q2, entirely driven by rate growth, with no contribution from member growth, indicating weak acquisition trends. The company's adjusted EBITDA margin declined to 41.8% from 43.3% year-over-year, pressured by higher National Ad Fund contributions and equipment segment margin compression. Planet Fitness Inc (NYSE:PLNT) is testing a $10 Classic Card promotion nationally, which could risk diluting the brand's pricing power and potentially lead to trade-down concerns, despite management's reassurances. The company's marketing initiatives are still in early stages, with management acknowledging that key efforts will take time to fully implement and gain traction, leaving near-term growth uncertain. Interest expense is expected to rise by $4 million to approximately $115 million for the year, partially offsetting the benefits of share repurchases and pressuring net income growth. The company's guidance implies a sequential moderation in same-club sales growth through the year, with no expectation of negative quarters but limited visibility on a rebound. The sale of its Australia stake and potential future divestitures (e.g., Spain) indicate a strategic shift away from international ownership, which may limit direct control over global expansion. Warning! GuruFocus has detected 1 Warning Sign with PLNT. Is PLNT fairly valued? Test your thesis with our free DCF calculator. Q: Can you share initial findings from your pricing tests, and is a third pricing tier being considered? Also, would any change to the Classic Card pricing come without a review of Black Card pricing?A: Colleen Keating (CEO): We have several regional and local price tests in flight to understand consumer response across different pricing architectures and markets. Due to the subscription nature of our business, tests run for a longer period. We have tested tiers and different price points in different regions. Any pricing decisions, including on Black Card, will be evaluated holistically based on price elasticity, join mix, and impact on sustainable net member growth and churn. Q: Can you expand on the national $10 Classic Card promotion test, including its scope and duration? Also, what is the initial feedback from franchisees regarding your pricing strategies?A: Colleen Keating (CEO): The $10 Classic Card is a limited-time promotion we intend to run this quarter, though we won't disclose exact dates for competitive reasons. We communicated with franchisees about the test, which aims to read regional nuances and demand indicators. While some franchisees are fully on board, others are more reticent, but they understand the outputs we seek to evaluate from running this test nationally. Q: If someone joins at the $10 Classic Card test price, is that a temporary rate or their go-forward rate? How do you ensure it doesn't drive trade-down from $15 members, and what are the impacts on franchisee unit economics?A: Colleen Keating (CEO): The $10 price is a limited-time offer, but the rate is legacy-protected for the member's lifetime. We know the lift from $10 to $15 was accretive to franchisee AUVs. Some franchisees encouraged the test. We ran a concentrated regional test earlier this summer and did not see significant trade-down from $15 to $10. We are not running this test to inform a rollback of the Classic Card price. Q: Is the marketing pivot a shift back to the historical Planet Fitness playbook? Are you testing new ways to drive incremental value or monetize members beyond pricing?A: Colleen Keating (CEO): The new campaign will have a lighter, more approachable tone to resonate with the 70% of the population that doesn't have a gym membership. We are enhancing the value proposition through investments in equipment and Black Card Spa modalities. Net promoter scores are up 9 percentage points year-over-year. With over two-thirds of members on Black Card, we are testing five new recovery modalities in 100 clubs to add value across both tiers. Q: How should we view capital allocation given the significant buyback, and are there broader thoughts on the corporate-owned club structure?A: Sudhanshu Priyadarshi (CFO & President International): Capital allocation remains focused on being cash-flow generative. We will continue to look at international growth opportunities, like the Australia model, and buy back shares when we see value. We want to maintain an asset-light model with less than 10% corporate-owned clubs. Colleen Keating (CEO) added that we will use the balance sheet to fuel growth and recycle capital, as seen with the sale of California clubs and exiting Australia. We may consider other portfolio transactions with corporate stores if the right opportunity presents itself. Q: Are you testing weekly membership plans in the U.S., and what is the impact of the upcoming app enhancements on wellness partnerships?A: Colleen Keating (CEO): We have not tested and are not currently contemplating a weekly billing test in the U.S., as monthly billing is the most typical structure. Regarding the app, we have had successful partnerships with Factor Meals and ROE, which provides nutrition and wellness counseling and GLP-1 access. We are always exploring additional perks and partnerships to provide a more holistic wellness offering through the member relationship. Q: What is the historical mix of joins during promotion versus non-promotion periods? How do you prevent $15 Classic Card members from downgrading to the $10 promo?A: Colleen Keating (CEO): We don't deconstruct promo versus non-promo joins publicly. The national promo is a test to read regional performance, not a new pricing structure. In a localized test earlier this summer, we did not see significant trade-down from $15 to $10. Tom Fitzgerald (Interim CFO) added that in 2024 tests, very few people who bought at $15 came back to downgrade to $10. The limited-time nature of the offer prevents it from becoming "shadow pricing." Q: Could the $10 Classic Card test lead to different regional pricing? Is the plan still to go to $30 nationally on Black Card?A: Colleen Keating (CEO): We are reading regional nuances from the national $10 promo to understand price elasticity by market. We won't discuss forward-looking pricing architecture decisions until tests are complete. Regarding Black Card, pausing the nationwide rollout to $30 was appropriate given our focus on net member growth. We are adding new modalities to the Black Card Spa to add value. At some point, there will be an opportunity to move on Black Card pricing, but the exact approach is still under evaluation. Q: What changes have been made to the creative development process to ensure it resonates with the target customer after the last campaign underperformed?A: Colleen Keating (CEO): The last campaign did drive a 10% lift in net member growth in 2025, but we "over-torqued" the sweat level and muscle size, alienating our core audience. The new interim creative and full campaign will feature a lighter, more humorous tone and talent that represents the 70% target audience. We will test the creative extensively with consumers, and the interim creative launching this quarter will inform the full campaign for the critical Q1 acquisition period. Q: How is the High School Summer Pass program tracking compared to last year, and is the marketing shift impacting acquisition of younger consumers?A: Colleen Keating (CEO): High School Summer Pass participation is tracking within a couple of percent of last year's numbers, which saw a 30% increase in participation. We've had 12 million workouts completed. Gen Z is the fastest-growing proportion of our membership and the largest proportion of joins. The dynamic creative optimization engine launching in September will allow us to tailor messaging to different audiences, and we've seen influencer use resonate well with younger consumers. Q: Can you provide For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Planet Fitness (PLNT) reported revenue of $365.22 million, up 7.1% over the same period last year. EPS came in at $0.88, compared to $0.86 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $355.81 million, representing a surprise of +2.65%. The company delivered an EPS surprise of +3.53%, with the consensus EPS estimate being $0.85. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Planet Fitness performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Stores - End of period: 2,930 compared to the 2,932 average estimate based on four analysts. Same-store sales: 1.7% compared to the 0.9% average estimate based on three analysts. Total Stores - New stores opened: 23 versus the three-analyst average estimate of 24. Corporate-owned same store sales: 1.7% compared to the 0.6% average estimate based on two analysts. Franchisee-owned same store sales: 1.7% compared to the 0.6% average estimate based on two analysts. Corporate-owned stores - New stores opened: 2 compared to the 4 average estimate based on two analysts. Franchisee-owned stores - New stores opened: 21 versus the two-analyst average estimate of 20. Revenue- Franchise segment: $135.78 million versus $137.31 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +13.5% change. Revenue- Corporate-owned clubs: $143.86 million compared to the $146.13 million average estimate based on six analysts. The reported number represents a change of +3.5% year over year. Revenue- Equipment segment: $85.58 million compared to the $76.3 million average estimate based on six analysts. The reported number represents a change of +4.1% year over year. Revenue- Franchise: $102.86 million compared to the $102.99 million average estimate based on four analysts. The reported number represents a change of +6.2% year over year. Revenue- National advertising fund revenue: $32.92 million versus $32.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +44.5% change. View all Key Company Metrics for Planet Fitness here>>> Shares of Planet Fitness have returned +9.5% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance in Q2 was characterized by a 1.7% increase in system-wide same-club sales, driven entirely by rate growth as the company works to reignite net member acquisition. Management is pivoting marketing creative to be more 'approachable' and 'light-hearted,' intentionally dialing down 'sweat levels' to better resonate with the 70% of the U.S. population that does not currently hold a gym membership. The company is leveraging a 'test and learn' approach to pricing, including regional tests of various architectures and a national $10 Classic Card promotion to evaluate price elasticity and regional demand nuances. Black Card penetration increased 210 basis points year-over-year to 68%, demonstrating continued success in migrating members to higher-value tiers despite broader acquisition headwinds. Operational focus has shifted toward member retention through the alpha-phase launch of a predictive AI churn model and a 'first 100-day' engagement program to encourage early club visits. The sale of the ownership stake in the Australia franchise validates a disciplined capital recycling strategy, allowing the company to accelerate international expansion via experienced franchise partners. Full-year adjusted net income per diluted share guidance was raised to approximately 6% growth, primarily reflecting aggressive share repurchase activity in the second quarter. Management anticipates quarterly same-club sales growth will moderate sequentially through the second half of the year but explicitly stated they do not forecast negative comps in Q3 or Q4. A new marketing campaign is being developed for the critical Q1 acquisition period, with interim creative launching in Q3 to bridge the transition and test messaging effectiveness. The rollout of a Dynamic Creative Optimization (DCO) engine in September is expected to allow for more personalized, platform-specific targeting to improve acquisition efficiency. Unit growth remains weighted toward the fourth quarter as franchisees aim to open new locations in time for the peak New Year fitness season. The company repurchased $200 million of shares in Q2, utilizing a $75 million drawdown on a variable funding note (VFN) which increased projected annual interest expense by $4 million. A national $10 Classic Card promotion is being tested to understand regional impacts, though management clarified this is not intended as a permanent rollback of the $15 price point. The transition to a new CFO, Sudhanshu Priyadarshi, is being supported by outgoing interim CFO Tom Fitzgerald through early September to ensure continuity in capital allocation strategies. Expansion of Black Card Spa modalities to 100 clubs serves as a strategic test to determine if enhanced recovery offerings can drive higher join mix and improved retention. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized the $10 offer is a limited-time promotion intended to read regional price elasticity, not a permanent price rollback. Historical testing showed minimal 'trade-down' risk from members who joined at the $15 rate, as most members do not actively seek to downgrade during short promo windows. Management admitted previous campaigns may have 'over-torqued' on fit talent and high-intensity imagery, potentially intimidating casual beginners. The new strategy focuses on 'approachability' and 'judgment-free' messaging to lower the barrier to entry for the brand's core target audience. The company remains committed to an asset-light model, maintaining corporate ownership at approximately 10% of the system to serve as an 'R&D lab' for new initiatives. Management indicated a willingness to recycle capital by selling corporate portfolios, as seen in California and Australia, if the right strategic opportunity arises. A partnership with Ro providing GLP-1 access and physician support has been one of the most successful 'Perks' programs to date. The company plans to use its redesigned app to further integrate wellness, nutrition, and recovery partnerships into the member experience.

Planet Fitness, Inc. PLNT is scheduled to report second-quarter 2026 results on Aug. 6.PLNT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.6%. The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 85 cents, indicating a fall of 1.2% from 86 cents reported in the year-ago quarter. Planet Fitness, Inc. price-consensus-chart | Planet Fitness, Inc. Quote For revenues, the consensus mark is pegged at nearly $355.8 million, suggesting growth of 4.4% from the prior-year quarter’s figure.Let's look at how things have shaped up in the quarter. Planet Fitness’ second-quarter performance is likely to have benefited from existing membership pricing, a favorable Black Card mix, recently opened clubs and replacement equipment sales. This and contributions from the corporate clubs are likely to have aided the company’s top line in the quarter to be reported. The Zacks Consensus Estimate for corporate-owned club revenues is pegged at $146.1 million compared with $138.9 million reported in the prior-year quarter.Emphasis on equipment mix is likely to have aided the company’s performance in the second quarter. Planet Fitness expects the quarter to account for approximately 30% of its full-year replacement equipment revenues. Continued re-equipment demand across the franchise system is likely to have supported quarterly performance.However, softer join trends, continued attrition pressure and the decision to pause the nationwide Black Card price increase are likely to have weighed on quarterly performance. Member joins remained below expectations through March and early April, while monthly attrition is expected to remain in the upper half of 3-4% range.Competitive pressure in the South Central and Southeast regions, along with financial strain among lower-income consumers, may have presented additional challenges. The absence of the planned Black Card price increase and weaker net member growth are likely to have constrained same-club sales growth in the quarter under review. Our proven model does not conclusively predict an earnings beat for Planet Fitness this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.PLNT’s Earnings ESP: Planet Fitness has an Earnings ESP of +1.36 %. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Planet Fitness’ Zacks Rank: The company currently has a Zacks Rank #4 (Sell). Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat.Six Flags Entertainment Corporation FUN currently has an Earnings ESP of +6.90% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here. FUN’s earnings for the to-be-reported quarter are expected to increase 11.5%. FUN’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions, the average surprise being 48.9%.Marriott Vacations Worldwide Corporation VAC currently has an Earnings ESP of +5.26% and a Zacks Rank of 2. Marriott Vacations’ earnings for the to-be-reported quarter are expected to increase 1%. VAC reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 0.7%. Expedia Group, Inc. EXPE currently has an Earnings ESP of +2.52% and a Zacks Rank of 3. In the to-be-reported quarter, Expedia’s earnings are expected to surge 28.5%. Expedia’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.9%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Six Flags Entertainment Corporation (FUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research