PLNT — Planet Fitness, Inc.

Summary of Planet Fitness Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: $337 million, up 22% from $277 million in Q1 2025.
• Adjusted EBITDA: $140 million, a 20% increase year-over-year, with an adjusted EBITDA margin of 41.5%.
• Net Income: $52 million; adjusted net income was $59 million, translating to $0.74 per diluted share.
• Member Growth: Added over 700,000 net new members, but fell short of expectations.
• Same Club Sales Growth: 3.5%, driven primarily by rate growth (90% of the increase).
• Black Card Membership: Penetration increased to 67%, up 240 basis points from the prior year.
• Club Openings: 15 new clubs opened, compared to 19 in Q1 2025.

2. Strategic Updates and Business Highlights:

• Marketing Strategy Shift: The company plans to refine marketing to better resonate with fitness beginners and casual gym-goers, moving away from a focus on fitness-minded consumers.
• New Marketing Initiatives: A new creative agency has been selected to support upcoming campaigns aimed at broadening appeal.
• Investment in Technology: Continued investment in data-driven marketing tools and AI-enabled systems to enhance member acquisition and retention.
• Affordability Commitment: Decision to pause the national rollout of a Black Card price increase to prioritize member growth amidst macroeconomic pressures.

3. Forward Guidance and Outlook:

• Revised 2026 Guidance:
  • System-wide same club sales growth expected to be approximately 1%.
  • Revenue growth anticipated at around 7%.
  • Adjusted EBITDA growth projected at about 6%.
  • Adjusted net income expected to decrease by approximately 2%.
• Unit Growth: Still expecting to open 180-190 new clubs in 2026, with a heavier concentration in the second half of the year.

4. Bad News, Challenges, or Points of Concern:

• Member Growth Shortfall: The addition of 700,000 members was below expectations, attributed to marketing misalignment and increased competition in certain regions.
• Elevated Churn Rates: Monthly attrition averaged 3.8%, slightly above historical norms, influenced by marketing messaging and external factors like weather.
• Competitive Pressures: Notable competition in specific markets (Southeast and South Central U.S.) is impacting member acquisition.
• Economic Headwinds: Macroeconomic pressures are affecting consumer spending and gym memberships.

5. Notable Q&A Insights:

• Franchisee Conversations: Management expressed alignment with franchisees on strategic shifts, with plans for further discussions to share updated strategies.
• Confidence in Guidance: Management believes the revised guidance reflects realistic expectations based on Q1 performance and strategic pivots, with no further cuts anticipated.
• Marketing Focus: There is a clear intent to return to messaging that appeals to the 70% of the population not currently gym members, emphasizing a welcoming environment.
• Testing and Learning: The company is actively testing new pricing structures and marketing messages, with an emphasis on agility in responding to market conditions.

Overall, while Planet Fitness reported solid financial growth, challenges in member acquisition and competitive pressures prompted a strategic reevaluation and a more conservative outlook for the remainder of 2026.