Planet Fitness, Inc. Q1 FY2025 earnings call

• Redefining brand: New creative campaign improved brand perception, 30+% rejoin rate, net member growth in line with expectations.
• Member experience: Enhanced equipment mix, functional training spaces; research showed members believe they can get strong at Planet Fitness.
• Product refinement: Augmented strength equipment, 1,800 clubs with balanced equipment mix, remainder to be done by end of year.
• New club growth: Opened 19 new clubs globally, total club count 27.41; Spain clubs performing well, focus on unit economics.

Franchise segment: Revenue increased 10.7% due to higher royalty revenue, national ad funds, and franchise fees. Adjusted EBITDA was $84.9 million with a margin of 73.7%. Corporate and club segment: Revenue increased 9.2% from same club sales and new clubs. Adjusted EBITDA was $45.8 million with a margin of 34.3%. Equipment segment: Revenue increased 28.7% from replacement equipment sales, offset by lower new club placement sales. Adjusted EBITDA was $7.4 million with a margin of 26.8%.

• System-wide same club sales growth expected to be between 5% and 6%.
• Revenue to grow approximately 10%.
• Adjusted EBITDA to grow approximately 10%.
• Adjusted net income to increase in the 8% to 9% range.
• Adjusted net income per diluted share to grow in the 11% to 12% range.
• Expect 160-170 new clubs, 130-140 equipment placements in new franchise clubs, reequip sales ~70% of equipment revenue, CapEx up ~20%, D&A flat to 2024, net interest expense ~$86 million.

• Macro-economic volatility, including consumer sentiment and tariff uncertainty.
• Teams working on tariffs but monitoring impact to ensure no material effect on 2025 targets.

Q: 65% Black Card penetration, any one-time factors?

A: March had a Black Card first month free promotion, tested in Q4 last year.

Q: Macro volatility impact?

A: Resilient business, fitness is a lifestyle for Gen Z and millennials, trade-down from higher priced clubs possible.

Q: How think about Black Card pricing?

A: Will punt on decision until after classic card price anniversary; seen significant Black Card penetration with narrowed gap.

Q: Click to cancel rollout impact?

A: Rollout in progress, contemplated in outlook; largest impact in first months then normalizes; small test saw uptick in join conversion.

Q: International development?

A: Spain and Australia clubs performing well, international part of growth roadmap.