Planet Fitness, Inc.

Planet Fitness franchises and operates fitness clubs, earning membership revenue from company-owned locations, royalties and fees from franchisees, and revenue from equipment sales. Its shares trade on the New York Stock Exchange under PLNT. It reports on a calendar-year basis.

Financial results

Adjusted earnings assume the exchange of remaining partnership units and remove specified executive transition costs, acquisition-related amortization, investment and disposal gains or losses and other adjustments, with normalized taxes. Adjusted EBITDA also removes interest, taxes, depreciation and amortization. The prior-year quarter included a $6.4 million gain on the sale of eight California clubs that was excluded from adjusted results.

Quarterly same-club sales rose 1.5%, compared with 1.7% in the preceding quarter. Franchise revenue excluding the national advertising fund rose to $97.8 million from $92.2 million. Advertising fund revenue increased to $31.8 million from $21.4 million after the contribution rate rose from 2% to 3%, with almost identical expenses.

Company-owned clubs generated $142.7 million in sales and $53.5 million of adjusted EBITDA. Equipment revenue was $87.6 million and adjusted EBITDA $25.5 million, helped by replacement equipment. Group adjusted net income declined even as adjusted earnings per share increased, with adjusted diluted shares falling to 75.0 million from 84.0 million.

Outlook and the club network

The November forecast raised 2026 same-club sales growth to 1.5% to 2% from about 1%, revenue growth to 8% from 7% and adjusted EBITDA growth to 6.5% from 6%. Adjusted net income is still expected to decline about 3%, with adjusted earnings per share increasing about 6% on approximately 77 million adjusted diluted shares.

The forecast for system-wide club openings increased to 190 to 195 from August's 180 to 190, including 25 acquired Be-Fit clubs. Removing those clubs leaves 165 to 170 other openings in the revised range. Equipment placements in new franchise locations are now expected to be 135 to 140, down from 150 to 160. Expected capital expenditure growth is about 15%, compared with 10% to 15% previously.

At September 30, the network had 2,962 clubs and approximately 21.5 million members. Franchisees owned 2,660 locations and Planet Fitness owned 302, including clubs outside the U.S. The company opened 33 clubs in the third quarter, including 25 franchise locations and eight company-owned locations.

Completed acquisitions and club sales

Planet Fitness completed its acquisition of Be-Fit in Portugal on October 30, 2026. The 25-club business had approximately 80,000 members. Consideration was €100 million in cash at closing plus up to €2.5 million contingent on performance targets, or approximately $112 million and $2.8 million using the company's stated equivalents.

Management plans to operate and integrate Be-Fit, with potential refranchising over time, and expects it to add to earnings in 2027. Portugal is the company's sixth international market and second European country, alongside Spain.

Separately, Planet Fitness announced a review of domestic company-owned clubs for possible refranchising. It has not identified agreed sales, club counts or expected proceeds. Eight California clubs were sold to a franchisee in August 2025. The company sold its 22% interest in Australian franchise operator Bravo Fit in June 2026 for $24.9 million, recognizing a $12.5 million gain excluded from adjusted earnings. It retained a 33.2% interest in its Mexican franchise operator at September 30.

Cash, borrowing and buybacks

Nine-month operating cash flow was $303.9 million, compared with $309.4 million. Cash spending on property and equipment was $148.9 million, compared with $113.6 million, leaving about $155 million and $196 million respectively after that spending. Payments under tax benefit arrangements of $54.4 million were already included in current operating cash flow.

At September 30, cash and cash equivalents were $310.2 million. Marketable securities totaled $132.0 million and restricted cash was $72.8 million. These balances precede the Be-Fit purchase. Fixed-note principal was $2.497 billion, with $75 million drawn on variable funding notes. Combined balance-sheet carrying debt was $2.544 billion; leases and tax benefit arrangement liabilities were separate.

A further $75 million of variable funding capacity was undrawn. Expected 2027 principal payments of $100.8 million include repayment of the $75 million already drawn. The company reported compliance with its debt covenants at September 30.

Share repurchase cash outflow was $302.4 million in the first nine months. A new authorization of up to $500 million, approved November 4 and announced November 5, replaces the old program. The prior program had $200 million remaining at September 30.