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Planet Fitness, Inc. (PLNT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered broad-based beats vs S&P Global consensus: Primary EPS $0.80 vs $0.74*, revenue $330.3M vs $323.4M*, and Adjusted EBITDA $140.8M vs $137.2M*; comps +6.9% and Black Card penetration rose to 66.1% . Values retrieved from S&P Global.*
  • Management raised 2025 guidance: revenue +~11% (prior ~10%), Adjusted EBITDA +~12% (prior ~10%), Adjusted NI +13–14% (prior 8–9%), and Adjusted EPS +16–17% (prior 11–12%); SSS now ~6.5% (prior ~6.0%) .
  • Mix and marketing tailwinds: ~80% of Q3 comp from rate, with ongoing strength in equipment placements and franchise re-equips; SG&A leverage aided margin; NAF shift of 1% from local begins 2026 to fund more efficient national, AI-enabled demand gen .
  • Capital allocation: 950k shares repurchased ($100M) in Q3; cash and marketable securities at $577.9M; 35 club openings (29 franchise, 6 corporate), ending with 2,795 clubs and ~20.7M members .
  • Potential catalysts: confirmed 2026 Black Card price to $29.99 following peak season; Investor Day unveiled 2026–2028 long-term algorithm (low-dd revenue CAGR; mid-teens Adjusted EBITDA CAGR; mid-to-high teens Adjusted EPS CAGR) .

What Went Well and What Went Wrong

What Went Well

  • Broad beat and guidance raise: EPS, revenue, and Adjusted EBITDA exceeded consensus; FY25 outlook raised across SSS, revenue, Adjusted EBITDA, Adjusted NI, and Adjusted EPS . Values retrieved from S&P Global.*
  • Mix, margins, and marketing: ~80% of comp from rate, improving SG&A ratio; NAF shift enables AI/CRM/digital content optimization and more efficient national media buying .
  • Equipment and format momentum: Equipment revenue +27.8% (re-equips 82% of total); franchisees leaning into new formats; 27 new-club placements vs 15 YoY .

What Went Wrong

  • Elevated churn: Click-to-cancel continued to lift attrition YoY, though it moderated late in Q3; Q4 outlook embeds continued elevation (tens of bps) .
  • Corporate Spain headwind: Corporate-owned clubs Segment Adjusted EBITDA was partially offset by lower contribution from Spain as new units opened since mid-2024 .
  • Q3 seasonal membership: Ending member count ~20.7M was “in line” with expectations, as Q3 is typically not a net add quarter; membership down vs Q2’s 20.8M .

Financial Results

Headline P&L and vs Estimates

MetricQ1 2025 ActualQ1 2025 Consensus*Q2 2025 ActualQ2 2025 Consensus*Q3 2025 ActualQ3 2025 Consensus*
Revenue ($USD Millions)$276.7 $279.8*$340.9 $329.9*$330.3 $323.4*
Primary EPS ($)—$0.615*—$0.791*—$0.739*
GAAP Diluted EPS ($)$0.50 —$0.69 —$0.70 —
Adjusted EPS ($)$0.59 —$0.86 —$0.80 —
Adjusted EBITDA ($USD Millions)$117.0 $120.3*$147.6 $141.3*$140.8 $137.2*
Adjusted EBITDA Margin (%)——43.3% —42.6% —

Values retrieved from S&P Global.*

Notes:

  • Primary EPS consensus refers to S&P Global’s “Primary EPS Consensus Mean,” which aligns with adjusted EPS for this issuer; actuals from filings use Adjusted EPS where applicable . Values retrieved from S&P Global.*

Segment Revenue ($USD Millions)

SegmentQ1 2025Q2 2025Q3 2025
Franchise$115.2 $119.7 $113.7
Corporate-owned Clubs$133.7 $139.0 $137.8
Equipment$27.8 $82.2 $78.8
Total Revenue$276.7 $340.9 $330.3

KPIs

KPIQ1 2025Q2 2025Q3 2025
System-wide Same Club Sales (%)6.1% 8.2% 6.9%
Black Card Penetration (%)—65.8% 66.1%
Members (Millions)~20.6 ~20.8 ~20.7
New Clubs Opened (System-wide)19 23 35
System-wide Total Clubs2,741 2,762 2,795
Equipment Sales to New Franchise Clubs (Count)10 19 27

Guidance Changes

MetricPeriodPrevious Guidance (Aug 6, 2025)Current Guidance (Nov 6, 2025)Change
System-wide Same Club Sales GrowthFY 2025~6% ~6.5% Raised
Revenue Growth vs 2024FY 2025~10% ~11% Raised
Adjusted EBITDA Growth vs 2024FY 2025~10% ~12% Raised
Adjusted Net Income Growth vs 2024FY 20258–9% 13–14% Raised
Adjusted EPS Growth vs 2024FY 202511–12% (84.5M shares) 16–17% (84.2M shares) Raised
Net Interest ExpenseFY 2025~$86M ~$86M Maintained
CapexFY 2025+~20% +~20% Maintained
Depreciation & AmortizationFY 2025Flat vs 2024 ~$155M Updated higher
New Franchise Equipment PlacementsFY 2025~130–140 ~130–140 Maintained
System-wide New Club OpeningsFY 2025~160–170 ~160–170 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Black Card pricing“Not if, but when”; testing indicated accretive AUV, minimal churn impact; narrowed Classic–Black gap to $10; penetration rising (65.8%) .Decision to raise Black Card to $29.99 after peak join season in 2026; continued testing of new amenities (cold plunge, red light) .More explicit timing and confidence
Click-to-cancel / AttritionNational rollout completed in May; modeled elevated attrition in H2; magnitude “tens of bps” vs initial modeling; moderation typically ~12 weeks .Attrition elevated YoY but moderated late in Q3; outlook embeds continued elevation .Stabilizing vs Q2
Equipment/format optimizationFranchisees adopting balanced strength/cardio; re-equips ~70% of equipment revenue; new formats improving unit economics .Equipment revenue +27.8%; re-equips 82% of Q3 equipment revenue; franchisees leaning into new formats .Accelerating adoption
Gen Z & High School Summer PassProgram participation and utilization outpacing prior year; conversion typically in fall .Record participation ~3.7M, 19M+ workouts; conversion update expected post-Q4 .Stronger engagement
Real estateEarly signs of easing: negative absorption in shopping centers, slower rent growth .Continued view of better site availability; retail shifts and demises supportive .Improving
International/Spain9th club opened; Spain ramp mirrors U.S.; intention to refranchise to recycle capital .Spain continues to be successful; more detail at Investor Day .Positive validation
Marketing/NAFNew campaign effective; considering more efficient national buying, influencer mix .Franchisees voted 1% shift from Local to National Ad Fund in 2026; plan to use AI/CRM, digital content optimization .Scaling national and AI

Management Commentary

  • “We are making significant progress in executing on our long-term strategy…which enabled us to raise certain growth targets for our 2025 outlook.” — CEO Colleen Keating .
  • “Approximately 80% of our Q3 comp increase was driven by rate…Black Card penetration was 66.1%…join trends were strong; attrition…moderation late in the quarter.” — CFO Jay Stasz .
  • “We’ve made the decision to raise the Black Card price to $29.99 after our peak join season in 2026…testing and data analysis support it.” — CEO .
  • “This [1% shift from local to national ad fund] will enable us to…use AI, augment our CRM, digital content optimization…buy media more efficiently on a national basis.” — CEO .

Q&A Highlights

  • Churn dynamics: Elevated attrition tied to click-to-cancel (tail effect) but moderated late in Q3; outlook assumes continued YoY elevation; rejoin rates mid-30% with marketing retargeting lapsed members .
  • Pricing pathway: Black Card to $29.99 after peak 2026; tests showed accretive AUV and limited churn impact; penetration tends to rebound within a year historically .
  • Comp composition: ~80% of Q3 comp from rate; Q4 comps expected “relatively consistent” with diminishing rate benefit as Classic price anniversary rolls through tenure .
  • Real estate and unit growth: Negative absorption and rent moderation supportive; confidence in 160–170 openings in 2025, albeit back-end loaded .
  • AI and app roadmap: AI-enabled CRM, digital content, and personalized in-app experiences targeted to improve engagement and retention .

Estimates Context

  • Q3 beats vs S&P Global consensus: Primary EPS $0.80 vs $0.739*, revenue $330.3M vs $323.4M*, Adjusted EBITDA $140.8M vs $137.2M*. Q2 also beat across EPS, revenue, and EBITDA; Q1 missed on EPS/revenue/EBITDA vs consensus . Values retrieved from S&P Global.*
  • Estimate revisions likely higher post-guide raise, particularly for FY25 Adjusted EPS and EBITDA, with mix support from rate, re-equip momentum, and SG&A leverage; Q4 modeled with continued attrition elevation (tens of bps) .

Consensus vs Actuals (S&P Global)

MetricQ1 2025 Estimate*Q1 2025 ActualQ2 2025 Estimate*Q2 2025 ActualQ3 2025 Estimate*Q3 2025 Actual
Primary EPS ($)0.615*0.59 0.791*0.86 0.739*0.80
Revenue ($M)279.8*276.7 329.9*340.9 323.4*330.3
EBITDA ($M)120.3*117.0 141.3*147.6 137.2*140.8

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Momentum inflecting: Two straight quarterly beats and a broad FY25 guidance raise imply upward estimate revisions, with near-term mix supported by rate, re-equips, and SG&A leverage .
  • Near-term watch items: Attrition normalization trajectory (post click-to-cancel) and Q4 comp cadence as Classic price anniversary rate benefit decays through member tenure .
  • 2026 pricing catalyst: Black Card move to $29.99 post-peak join season—historically accretive with limited churn impact; monitor Black Card mix durability .
  • Marketing efficiency unlock: 2026 NAF shift to fund national, AI-enabled demand gen should enhance consideration, conversion, and ROAS; expect incremental join efficiency .
  • Unit growth runway: Improving retail availability and franchisee enthusiasm for new formats support sustained openings (160–170 FY25) and longer-term 6–7% unit growth target (FY26–28) .
  • International optionality: Spain proof-of-concept ramp mirrors U.S., with refranchising potential to recycle capital .
  • Capital returns: Strong liquidity and buybacks (~$100M in Q3) provide a floor and optionality alongside growth investments .

Appendix: Additional Details and Non-GAAP Notes

  • Non-GAAP adjustments in Q3 included executive transition costs, gains on sale of corporate-owned clubs, tax benefit arrangement remeasurement, and purchase accounting amortization. See reconciliations for Adjusted EBITDA and Adjusted EPS .
  • Long-term algorithm FY26–28: low-double-digit revenue CAGR, mid-teens Adjusted EBITDA CAGR, mid-to-high teens Adjusted EPS CAGR (off 2025 base) .

Citations:
Q3 2025 8-K and press release ; Q3 2025 earnings call transcript ; Q2 2025 8-K and call ; Q1 2025 8-K ; Investor Day releases . Values retrieved from S&P Global.*