Planet Fitness, Inc. Q1 FY2026 earnings call

First quarter saw net new members over 700,000, system-wide same club sales growth of 3.5%, adjusted EBITDA up 19.5%, and 15 new clubs opened. Member growth was impacted by marketing not resonating with fitness beginners/casual gym-goers, competitive impacts in certain markets, unfavorable weather, and macroeconomic pressures. Actions taken include refining marketing messaging, reinvigorating member acquisition, reinforcing affordability, testing new marketing initiatives, selecting a new creative agency, and investing in data-driven marketing tools. Also, updated 2026 guidance considering net member growth shortfall and pause in black card price increase.

In the first quarter, total revenue was $337 million compared to $277 million, an increase of 22%. Franchise segment revenue increased 17% primarily due to growth in National Ad Fund, higher royalty revenue from increased same-club sales and new clubs, and placement and franchise fees. Corporate owned club segment revenue increased 5% driven by sales from new clubs and increased same club sales. Equipment segment revenue increased 123% mainly from higher replacement equipment sales and new franchisee-owned club placement sales. Franchisee adjusted EBITDA was $95 million with a margin decrease from 73.7% to 70.4%. Corporate club adjusted EBITDA was $46 million with a margin decrease from 34.3% to 33.1%. Equipment adjusted EBITDA was $19 million with a margin increase from 26.8% to 31.3%.

2026 guidance adjusted: system-wide same club sales growth expected at ~1%, revenue growth ~7%, adjusted EBITDA growth ~6%, net interest expense ~$111 million, adjusted net income decrease ~2%, adjusted net income per diluted share growth ~4% based on adjusted diluted weighted average shares outstanding of ~$79 million. Unit growth unchanged, still expect 180-190 new clubs system-wide with equipment revenue ~70% from re-equipped sales and equipment margin ~30%. Capital expenditures up 10-15% and depreciation and amortization up ~10%.

Marketing not resonating with target audience, competitive impacts in certain regions, unfavorable weather conditions, macroeconomic pressures weighing on consumers, higher than expected attrition in Q1.

Q: Any color on conversations with franchisees amid current performance and guidance cut?

A: Aligned on overarching strategy, will have town hall with franchisees next week to share go-forward plan.

Q: Are trends stable from Q1 into Q2 in terms of net member basis?

A: Marketing redirected to target beginner/first-timer pool, which is a larger pool, and projections for rest of year based on seen trends.

Q: Color on black card pricing review and pause?

A: Increased black card penetration narrowed delta with classic card price, but paused nationwide rollout of black card price increase to avoid headwind on member growth while testing different price scenarios.

Q: How to build to 1% comp and member vs rate contribution?

A: Member growth is key, rate volume split in Q1 was 90-10, need to rebalance, and comp build based on lack of black card price increase and seen trends in March.

Q: Any risk of trends creeping into less willingness from franchisees to build units?

A: Confidence in marketing shift and initiatives to drive top line in future, with investments in tools moving forward.