Planet Fitness Cuts 2025 Same-Store Growth to 6% Amid Online Cancellations and Member Growth

Planet Fitness's Q2 2025 Earnings Call Highlights

Planet Fitness (PLNT) delivered a strong performance in the second quarter of 2025, with management highlighting key growth areas and strategic initiatives. CEO Colleen Keating emphasized the company’s decade-long commitment to its mission, noting the addition of nearly 14 million members, expansion of over 1,700 clubs, and presence in all 50 U.S. states and four additional countries. The company now operates 2,762 clubs with 20.8 million members, alongside an 8.2% systemwide same club sales growth and the opening of 23 new clubs during the quarter.

Keating also pointed to Gen Z as the fastest-growing demographic, citing the success of the High School Summer Pass, which has seen increased sign-ups and participation compared to previous years. Additionally, Black Card penetration reached 65.8%, reflecting a 340 basis point increase year-over-year. The company is currently evaluating potential future price increases for the Black Card membership.

In alignment with its asset-light model, Planet Fitness sold eight corporate clubs in California to a franchisee, focusing more on East Coast operations. CFO Jay Stasz expressed confidence in the company’s performance, stating that it remains on track to meet full-year growth targets. He highlighted the strength of the company’s value proposition and the resilience of its business model.

Outlook for 2025

Planet Fitness reiterated its expectation of opening between 160 and 170 new clubs in 2025, with a greater emphasis on the fourth quarter. Equipment placements in new franchise clubs are projected to be between 130 and 140, also back-end loaded. The company narrowed its systemwide same club sales growth guidance to approximately 6%, down from the previous range of 5% to 6%. However, revenue, adjusted EBITDA, adjusted net income, and adjusted net income per diluted share guidance remained unchanged.

Stasz explained that several factors influence this guidance, including the impact of the Classic Card price increase, an elevated attrition rate due to the national rollout of online cancellation, and ongoing macroeconomic volatility. Despite these challenges, the company remains optimistic about long-term growth and market expansion.

Financial Performance

The company reported strong financial results for the second quarter, with total revenue reaching $340.9 million, up from $300.9 million in the prior period. Franchise segment revenue increased by 11%, while corporate-owned club revenue grew by 10.8%. Equipment segment revenue rose significantly by 21.5%.

Net income was $58.3 million, with adjusted net income at $72.6 million and adjusted net income per diluted share at $0.86. Adjusted EBITDA reached $147.6 million, with a margin of 43.3%. Cash, cash equivalents, and marketable securities totaled $582.5 million as of June 30, 2025.

Q&A Highlights

During the earnings call, analysts raised questions about various aspects of the company’s operations. Randal J. Konik of Jefferies asked about club layout optimization and equipment mix, with Keating noting that over 70% of clubs will be on some version of format optimization by the end of the year. She also mentioned that new Black Card amenities are being piloted in select locations.

John Heinbockel of Guggenheim questioned how Planet Fitness plans to expand into densely populated areas and smaller markets. Keating noted that the company is testing smaller footprints and rural locations for growth. Maksim Rakhlenko of TD Cowen asked about churn normalization after the click-to-cancel rollout, with Stasz stating that the company has adjusted its expectations accordingly.

Analysts also discussed competition and international expansion, with Keating emphasizing the growth potential of Gen Z and mentioning that Spain clubs are performing comparably to domestic locations. The company is exploring options for refranchising its Spanish operations.

Sentiment and Strategic Focus

Analysts’ questions centered on churn, pricing, club format optimization, and international expansion, indicating a cautious but engaged tone. Management maintained a confident outlook, emphasizing strong results and resilience. Stasz used phrases such as “we feel good about where we’re at” and “it makes all the sense in the world” when discussing strategic initiatives.

Compared to the previous quarter, management’s tone remained confident, though with more focus on addressing elevated churn and the impact of online cancellations. Analysts showed interest in the sustainability of growth and the effects of operational changes, resulting in a neutral-to-slightly-positive sentiment.

Quarterly Comparison and Risks

Systemwide same club sales growth accelerated to 8.2% from 6.1% in the previous quarter, and Black Card penetration increased from 65% to 65.8%. Club openings rose to 23 from 19, and the global footprint continued to expand. The company shifted its same club sales growth guidance to a narrower 6% range, citing the impact of online cancellation and macroeconomic uncertainty.

Both quarters saw management reiterate or slightly adjust guidance while highlighting resilience and ongoing strategic initiatives. This quarter, however, saw more attention on churn management and digital membership features.

Final Takeaway

Planet Fitness demonstrated strong membership growth and revenue expansion in Q2 2025, with progress in club format optimization, new club openings, and Black Card penetration. The narrowing of same club sales growth guidance reflects anticipated impacts from elevated attrition due to the online cancellation rollout and macroeconomic uncertainty. Strategic initiatives, including the sale of California corporate clubs and continued international expansion, are designed to drive long-term value and sustain growth for franchisees and shareholders.