Planet Fitness is weighing U.S. club sales. Why buy in Portugal?

Planet Fitness is considering selling some of its U.S. company-owned gyms to franchisees just as it has bought a chain of 25 clubs in Portugal. The two moves point to a broader question: where does owning the gym itself add the most value?

The company announced a review of domestic refranchising opportunities alongside stronger annual sales expectations and a new $500 million share-buyback authorization. Overseas, it has paid €100 million in cash for Be-Fit, with further payments possible if performance targets are met.

In the U.S., an established franchise network offers a way to earn royalties while other owners operate the clubs. In Portugal, Planet Fitness plans to run and integrate the acquired business before potentially bringing in franchise owners over time.

Our Planet Fitness company profile tracks its financial results, club network, financing and completed acquisitions.

Owning clubs and earning royalties use capital differently

Most Planet Fitness locations already belong to independent operators. At September 30, franchisees owned 2,660 of its 2,962 clubs; the company owned 302 across its markets. The new review concerns its domestic clubs, with the locations and scale of any sales still to be determined.

Direct ownership brings membership revenue but also rent, staffing, equipment and investment needs. Franchising leaves the local operator with those costs while Planet Fitness collects royalties and sells equipment.

The company-owned division generated $142.7 million of quarterly revenue and $53.5 million of adjusted EBITDA, a measure of earnings before interest, tax, depreciation, amortization and specified adjustments. That earnings figure was slightly below the prior year, partly because eight California clubs had already been sold to a franchisee in August 2025.

The current plan has a precedent. Planet Fitness sold its 22% interest in Australian franchise operator Bravo Fit in June for $24.9 million. Portugal is at an earlier stage: Be-Fit adds approximately 80,000 members and a foothold alongside the company's existing Spanish clubs. Management expects the acquisition to add to earnings in 2027.

The higher club forecast contains a surprise

Planet Fitness raised its 2026 forecast to 190 to 195 system-wide club openings, from 180 to 190. The new figure includes the 25 existing Be-Fit clubs acquired on October 30.

Research by Ticker Byline shows that subtracting those acquired clubs leaves 165 to 170 other openings in the revised forecast, below August's 180 to 190 range. We compared the two outlooks after separating the acquired Portuguese clubs. The higher headline total therefore masks a lower number for the rest of the network.

The equipment outlook also softened. Planet Fitness now expects equipment placements in 135 to 140 new franchise locations this year, down from 150 to 160. Replacement-equipment demand at existing clubs helped third-quarter equipment revenue rise despite fewer placements at new locations.

Better sales, with a different profit picture

The operating outlook improved in other respects. Annual same-club sales growth is now expected to be 1.5% to 2%, up from about 1%. That measure tracks monthly membership dues at clubs open long enough to make a year-over-year comparison.

Management raised expected revenue growth to 8% from 7%, and adjusted EBITDA growth to 6.5% from 6%. It held its forecast for adjusted net income to fall about 3%, with adjusted earnings per share rising about 6% as the share count shrinks.

That distinction is already visible in the quarter. Adjusted net income fell to $61.9 million from $67.0 million, while adjusted earnings per share rose to $0.83 from $0.80. Fewer shares helped the per-share result.

Reported revenue rose 9% to $360 million. Of the $29.6 million increase, $10.4 million came from higher contributions to the national advertising fund, with a matching expense. The rest of the growth came through the franchise, company-owned and equipment businesses.

Cash will determine what comes next

Cash from operations was $303.9 million in the first nine months, compared with $309.4 million a year earlier. Cash investment in property and equipment rose to $148.9 million from $113.6 million, leaving about $155 million after that spending, versus about $196 million previously.

Cash spent on share repurchases was $302.4 million over the same period. The new $500 million authorization replaces the old program. At September 30, cash and cash equivalents were $310.2 million, with another $132 million in marketable securities and $72.8 million of restricted cash shown separately. Those balances predate the Portuguese purchase.

The review could release capital from established U.S. clubs while the company builds its newer overseas market. Investors will get a clearer picture when Planet Fitness identifies which clubs it intends to sell, the proceeds it expects and how it plans to use them.