Planet Fitness, Inc. (PLNT)·Q2 2025 Earnings Summary

Executive Summary

• Q2 revenue grew 13.3% year over year to $340.9M, with Adjusted EPS $0.86 and Adjusted EBITDA $147.6M; system-wide same club sales accelerated to 8.2% and membership reached ~20.8M .
• Versus S&P Global consensus, revenue beat ($340.9M vs $329.9M*) and Adjusted EPS beat ($0.86 vs $0.79*); GAAP diluted EPS was $0.69 . Values retrieved from S&P Global*.
• Management narrowed FY25 same club sales guidance to ~6% (from 5–6%) and reiterated growth targets (revenue ~10%, Adjusted EBITDA ~10%, Adjusted EPS +11–12%) despite slightly elevated churn from online cancellation rollout .
• Asset-light strategy advanced with a binding agreement to sell eight California corporate clubs (closing expected in Q3), refocusing corporate operations and recycling capital .

What Went Well and What Went Wrong

What Went Well

• Strong comp and profitability: Same club sales +8.2%; Adjusted EBITDA +15.8% YoY to $147.6M; Adjusted EPS $0.86 with margin expansion to 43.3% (from 42.4% YoY) .
• Strategic progress: CEO highlighted 10-year anniversary achievements and confidence in long-term opportunity; High School Summer Pass momentum is “outpacing prior-year sign-ups and workouts” .
• Asset-light execution: Agreement to sell eight California corporate clubs to a franchisee; “delivering on our commitment to recycle capital… and our asset-light model” .

Quotes

• “We delivered strong financial performance and remain confident in our full-year outlook for 2025…” — Colleen Keating, CEO .
• “We are well positioned… given the strength of our value proposition… and the proven resilience of our asset light business model.” — Jay Stasz, CFO .

What Went Wrong

• Elevated churn: Online cancellation rollout led to slightly higher attrition than modeled; management expects moderation over ~12 weeks, but maintained conservatism in H2 outlook .
• Macro variability: Guidance language cites ongoing economic volatility as a headwind to same club sales cadence in H2 .
• Spain near-term drag: Corporate segment Adjusted EBITDA was partially offset by ~$1.0M lower EBITDA from eight Spain clubs not yet in same club base (Q2 impact) .

Financial Results

Consolidated P&L and EPS

Notes: Q2 Adjusted EBITDA margin expanded to 43.3% (vs 42.4% prior-year quarter) per CFO .

Segment Revenue

Segment Adjusted EBITDA

KPIs

Q2 vs Consensus (S&P Global)

Values retrieved from S&P Global*.

Implications: Revenue and Adjusted EPS exceeded consensus; GAAP diluted EPS was $0.69 .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Prepared remarks emphasized decade-long scale-up and momentum in teen engagement: “High School Summer Pass… in its fifth year and outpacing prior-year sign-ups and workouts” .
• Asset-light recommitment: “Binding agreement to sell our eight corporate clubs in California to a franchisee… recycling capital… advancing our asset-light model” .
• Profit mix drivers: ~70% of Q2 comp increase from rate growth; BC penetration 65.8% (+340 bps YoY) .
• On online cancel: “We are seeing a slightly elevated cancel rate… impacts are included in our outlook” .
• On pricing: “It’s not a question of if, it’s a question of when we implement a Black Card price increase… we’ll evaluate… click to cancel before timing” .

Q&A Highlights

• Format optimization: >70% of clubs optimized; moving toward ~50/50 cardio-strength; higher stair climber utilization; functional training space expansion .
• Black Card price tests: No material churn difference between $27.99 and $29.99; penetration rising; limited geographies already at ~$30 (NY, Charlotte) .
• Online cancel impact: Slightly elevated attrition (tens of bps); expected moderation ~12 weeks; maintained conservatism in H2 comp guide .
• California club sale: Expected post-close revenue/$7M and Adjusted EBITDA/$2M headwind for remainder of FY (assuming August close) already contemplated in FY guide .
• Real estate backdrop: Negative absorption in Q1–Q2 and rent growth below inflation improving franchise unit economics .

Estimates Context

• Q2 revenue and Adjusted EPS exceeded S&P Global consensus; GAAP diluted EPS was $0.69 .
• S&P Global consensus values: Revenue $329.9M*, Adjusted EPS $0.79*; Actuals: Revenue $340.9M , Adjusted EPS $0.86 . Values retrieved from S&P Global*.
• FY25 street context: EBITDA consensus ~$546.4M*, target price consensus ~$127.8* on ~17 estimates*; company guide implies ~10% Adjusted EBITDA growth over 2024 . Values retrieved from S&P Global*.
• Expect analysts to modestly raise comp assumptions (to ~6%) and maintain topline/EBITDA trajectories given rate-driven comps and BC penetration, while embedding slightly higher churn from online cancel (as management did) .

Key Takeaways for Investors

• Rate-led comp strength and rising Black Card penetration are supporting margin expansion; Adjusted EBITDA margin improved to 43.3% .
• Asset-light repositioning (California sale; Spain refranchising to follow) should reduce capital intensity and improve corporate segment focus .
• Short-term churn from online cancel is manageable and likely to normalize within a few months; H2 comps include conservatism .
• Pricing power intact: BC price increase decision likely post-stabilization of churn; tests indicate limited churn sensitivity .
• Equipment revenue mix remains healthy with ~87% replacement in Q2, underpinning segment EBITDA growth and franchise unit economics .
• FY25 outlook reiterated (except comp narrowed up), signaling confidence despite macro variability .
• Near-term trading: Potential positive bias on beats and comp acceleration, tempered by churn headlines; medium term, thesis rests on asset-light growth, pricing power, and teen pipeline fueling membership and BC mix .