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PF

Planet Fitness, Inc. (PLNT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered double‑digit revenue growth (+11.5% to $276.7M) and Adjusted EBITDA of $117.0M; system‑wide same club sales rose 6.1% and membership reached ~20.6M .
  • Versus Wall Street consensus (S&P Global), revenue and EBITDA were modest misses (est. $279.8M*, $120.3M*) while Primary EPS was slightly below estimates (est. $0.6155* vs. actual $0.59), despite healthy underlying demand and pricing mix .
  • Management reiterated FY25 growth targets across comps, revenue, EBITDA, adjusted EPS, openings, and placements; lowered CapEx growth to ~20% from ~25%—tariff exposure seen as limited and mitigated .
  • Call catalysts: strong Gen Z engagement (6.7 monthly visits), 65% Black Card penetration, click‑to‑cancel rollout by May 14, and Spain outperformance with medium‑term refranchising potential .

What Went Well and What Went Wrong

What Went Well

  • Strong demand and mix: system‑wide same club sales +6.1% and membership up ~900k since YE’24 to ~20.6M; Black Card penetration reached ~65% aided by March “first month free” promo .
  • Broad‑based revenue growth: all segments grew in Q1 (Franchise +10.7% to $115.2M; Corporate +9.2% to $133.7M; Equipment +28.7% to $27.8M), with Equipment benefiting from higher‑margin mix and replacement sales .
  • Engagement and brand momentum: 6.7 average monthly visits (highest in 5 years) and research indicating improved brand perceptions and perceived value with “We Are All Strong On This Planet” campaign .
    “Given the strength and durability of our model, we delivered this healthy growth against a backdrop of increasing volatility in the macro‑economic environment.” — CEO Colleen Keating .

What Went Wrong

  • Estimate misses: revenue ($276.7M vs. $279.8M*), EBITDA ($117.0M vs. $120.3M*), and Primary EPS ($0.59 vs. $0.6155*) came in modestly below consensus, reflecting investment and mix dynamics .
  • Margin mix pressure: adjusted EBITDA margin was ~42.3% vs. 42.9% prior year, with corporate costs and Spain ramp contributing; corporate club margin declined modestly (34.3% vs. 34.6%) .
  • Equipment placements to new clubs were lower YoY (10 vs. 14), and tariff/macro uncertainty lingered (albeit mitigated at current levels) .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$292.2 $340.5 $276.7
GAAP Diluted EPS ($)$0.50 $0.56 $0.50
Adjusted EPS ($)$0.64 $0.70 $0.59
Adjusted EBITDA ($USD Millions)$123.1 $130.8 $117.0
System-wide Same Club Sales Growth (%)4.3% 5.5% 6.1%
Total Membership (Millions)~19.6 ~19.7 ~20.6

Segment breakdown – Q1 2025:

SegmentRevenue ($USD Millions)YoY Growth (%)Segment Adjusted EBITDA ($USD Millions)Key Drivers
Franchise$115.2 +10.7% $84.9 Higher royalties (same club +6.2%), NAF revenue, franchise fees
Corporate-owned Clubs$133.7 +9.2% $45.8 Same club +5.1%, annual fee revenue, new clubs; Spain ramping (partial offset)
Equipment$27.8 +28.7% $7.4 Higher replacement sales; updated mix under growth model

KPIs and operating metrics:

KPIQ3 2024Q4 2024Q1 2025
System-wide Clubs (#)2,637 2,722 2,741
New Clubs Opened (Period)21 86 19
Black Card Penetration (%)—~64% ~65%
Avg Monthly Visits per Member——6.7x
Rejoin Rate (%)38% 37% Mid‑30s
Avg Royalty Rate (%)—6.7% 6.6%
Equipment Revenue Mix (% Replacement)—57.8% 78%

Comparison vs S&P Global consensus (quarterly):

MetricQ3 2024 Estimate*Q3 2024 ActualQ4 2024 Estimate*Q4 2024 ActualQ1 2025 Estimate*Q1 2025 Actual
Revenue ($USD Millions)$285.3*$292.2 $324.6*$340.5 $279.8*$276.7
Primary EPS ($)$0.577*$0.64 $0.618*$0.70 $0.6155*$0.59
EBITDA ($USD Millions)$117.0*$123.1 $119.2*$130.8 $120.3*$117.0

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
System-wide New Club OpeningsFY2025~160–170 ~160–170 Maintained
New Equipment PlacementsFY2025~130–140 ~130–140 Maintained
System-wide Same Club Sales Growth (%)FY2025 vs FY20245%–6% 5%–6% Maintained
Revenue Growth (%)FY2025 vs FY2024~10% ~10% Maintained
Adjusted EBITDA Growth (%)FY2025 vs FY2024~10% ~10% Maintained
Adjusted Net Income Growth (%)FY2025 vs FY20248%–9% 8%–9% Maintained
Adjusted Diluted EPS Growth (%)FY2025 vs FY202411%–12% (Adj diluted shares ~84.5M) 11%–12% (Adj diluted shares ~84.5M) Maintained
Net Interest Expense ($USD Millions)FY2025~$86 ~$86 Maintained
Capital Expenditures Growth (%)FY2025 vs FY2024~25% ~20% Lowered
Depreciation & AmortizationFY2025 vs FY2024Flat Flat Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Brand/MarketingClassic Card price raised to $15 (first time in 25+ years); enthusiasm among franchisees .Campaign launched late 2024; early positive social sentiment .Research shows improved brand perceptions and value; flash promos (Black Card first month free) successful .Strengthening
Pricing StrategyClassic $15 implemented June 2024 .Black Card tests ($27.99/$29.99) in flight .Will decide Black Card price post anniversary; narrowed $10 gap supports trade‑up .Optimizing mix
Member Engagement—~6.5x monthly visits in 2024; strong retention signal .6.7x monthly visits (5‑year high); Gen Z fastest‑growing cohort .Improving
Click‑to‑Cancel—Planning; ~35% of system already enabled (incl. all corporate) .National rollout by May 14; near‑term churn uptick then normalization; may aid joins conversion .Operational rollout
Tariffs/Macro——Exposure limited at current levels; mitigation via scale/vendor negotiations/alternative markets; outlook reiterated .Monitored, limited impact
International Expansion—Entered Spain; 5 clubs by YE’24 .8 clubs; strong ramps; medium‑term refranchising planned .Expanding
Product Format/Equipment Mix—Plate‑loaded strength added across ~65% of estate; format optimization underway .~1,800 clubs with balanced mix; all 2025 new builds choosing rebalanced equipment .Broadening strength
Real Estate Availability—Working with franchisees; ~4% retail vacancy; site selection support .Geographic variation; closures may ease availability; big‑box tailwinds possible .Potential tailwinds
Trade‑Down Potential——Value proposition may benefit from trade‑down vs higher‑priced gyms .Supportive

Management Commentary

  • Strategic imperatives: “Redefining our brand… enhancing member experience… refining our product and optimizing our format… and accelerating new club growth.” — CEO .
  • Brand/value: “We are a resilient brand… offering consumers a place to get a high‑quality workout at an incredible value in our Judgement Free atmosphere.” — CEO .
  • Tariffs: “We have mitigated a sizable portion of our system‑wide exposure… at today’s levels.” — CFO .
  • Click‑to‑cancel: “Largest impact… occurs in the first couple of months and diminishes as time goes on.” — CFO .
  • International: “Spain clubs continue to have strong ramps… position to refranchise… in the medium term.” — CEO .

Q&A Highlights

  • Black Card penetration and pricing: Penetration rose to ~65% aided by March promotion; management will hold system‑wide price decision until after classic anniversary; $27.99 vs $29.99 tests showed no material difference .
  • Click‑to‑cancel impact: ~50% of U.S. clubs enabled as of call; near‑term churn elevation normalizes; small tests showed improved join conversion when cancellation optionality is visible .
  • Tariffs and unit economics: Vendor negotiations and alternative sourcing mitigate equipment costs; monitoring build‑out materials (HVAC, etc.) to offset potential GC impacts .
  • Openings cadence: FY25 openings back‑half weighted, especially Q4; franchisee sentiment healthy post price increase and revenue growth .
  • Member rejoin: Mid‑30s rejoin rate persisted; strong brand loyalty even amid cancellations .

Estimates Context

  • Q1 2025 results modestly missed S&P consensus: revenue $276.7M vs $279.8M*, EBITDA $117.0M vs $120.3M*, and Primary EPS $0.59 vs $0.6155* .
  • Prior quarters (Q3/Q4 2024) were broad beats on revenue/EPS/EBITDA relative to consensus, underscoring momentum into Q1 .
  • Estimate revisions: With guidance reiterated and CapEx lowered, sell‑side may trim near‑term EBITDA/EPS for Q2 on click‑to‑cancel normalization while maintaining FY25 top‑line growth assumptions.
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Healthy demand, pricing mix, and brand momentum continue; comps accelerated to 6.1% and engagement hit a 5‑year high, supporting retention and lifetime value .
  • Modest Q1 consensus misses reflect investment cadence and segment mix; FY25 growth algorithm intact with reiterated guidance and lowered CapEx .
  • Black Card penetration near record levels and narrowed price gap to classic enhance ARPU potential; timing of next Black Card price action is a medium‑term lever .
  • Click‑to‑cancel rollout is a known, short‑duration churn headwind that may be offset by higher join conversion and strong value proposition post‑implementation .
  • Spain outperformance and refranchising plan highlight asset‑light global runway; back‑half openings cadence sets up Q4 skew similar to 2024 .
  • Tariff exposure limited at current levels with multi‑pronged mitigation; watch vendor negotiations and build‑out inputs for potential unit‑economic impacts .
  • Near‑term: shares may be sensitive to Q2 churn optics and Black Card pricing signals; medium‑term: thesis hinges on sustained comp growth, format optimization, and accelerated unit growth with improving franchisee IRRs .