Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $7.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.60
• Revenue Growth: 14.39%
• EPS Growth: 31.64%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.80
• Shares Outstanding: 82,983,160
• 10 Day Avg. Volume: 1,501,664
• 30 Day Avg. Volume: 1,578,316
• PEG Ratio: 2.11
• Price to Book (P/B): -39.30
• Price to Sales (P/S): 7.16
• P/FCF Ratio: 44.83
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 15.74
• Enterprise Value/Ebitda: 17.73
• 1Y Price Target: $132.46
• Price Target Upside: 44.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $110.00 ▲(20.05% Upside)

The score is held back primarily by balance-sheet risk (negative equity/high leverage) and weakening free-cash-flow trend, despite healthy margins and solid operating cash generation. Technical signals are modestly negative, and valuation is high at a 43.2 P/E, reducing upside vs. risk. Offsetting these, management’s latest call and recent updates point to strong membership, same-club sales momentum, expansion, and an improved outlook.

Positive Factors

Franchise model and unit expansion

Planet Fitness’s large franchise footprint and durable membership base (~20.8M) create recurring, low‑ticket subscription revenue and scalable royalty streams. Continued openings (181 clubs) lower corporate capital intensity while broadening network effects and long-term cash generation from fees and memberships.

High margins and operating cash generation

Sustained high gross and healthy net margins indicate an efficient cost structure for a low‑price membership model, supporting durable profitability. Operating cash flow covering net income implies strong cash conversion, enabling reinvestment in franchise support, club openings, or servicing leverage over the medium term.

Higher-value membership mix (Black Card)

Rising Black Card penetration increases average revenue per member and improves lifetime value. A growing premium-tier mix provides structural pricing flexibility and margin resilience, helping offset churn and support long-run revenue per-club economics as the business scales.

Negative Factors

Weak balance sheet / high leverage

Negative equity and significant leverage create persistent refinancing and interest-rate sensitivity. Structural reliance on securitized debt limits financial flexibility for growth or downturns, increasing the chance management must prioritize debt servicing over strategic reinvestment or franchise support.

Sharply declining free cash flow

A severe drop in FCF growth (-72.4% TTM) despite positive operating cash implies weaker cash available for capex, club funding, or debt reduction. Structurally lower FCF conversion raises questions about sustainability of share repurchases and aggressive unit growth without improving cash conversion rates.

Elevated attrition and click-to-cancel churn

Higher churn from click-to-cancel and persistently elevated attrition erode membership durability and increase required acquisition spend. If these behaviors persist, the company may face pressure on same-club revenue growth and margins, forcing ongoing marketing spend and weakening long-term lifetime value per member.

Planet Fitness Business Overview & Revenue Model

Company Description

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. It operates through Franchise, Corporate-Owned Stores, and Equipment segments. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States and Canada. As of December 31,2021, the company had 2,254 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.

How the Company Makes Money

Planet Fitness generates revenue primarily through its membership fees, which are structured as low monthly payments, often supplemented by annual fees. The company operates a franchise model, allowing it to expand its reach while generating franchise fees and ongoing royalties from franchisee operations. Additional revenue comes from the sale of fitness-related products and services, such as personal training sessions and branded merchandise. The brand also benefits from partnerships with various health and wellness organizations, which can enhance its market presence and attract new members. Seasonal promotions and referral programs further contribute to its earnings by incentivizing current members to bring in new clientele.

Planet Fitness Financial Statement Overview

Summary

Profitability is solid (59.78% gross margin, 15.97% net margin) and operating cash flow covers net income (1.19x). However, the balance sheet is a major risk with negative equity and significant leverage, and free cash flow growth is sharply negative (-72.4% TTM) alongside a declining EBIT margin (29.35% in 2024 to 22.50% TTM).

Income Statement

Planet Fitness has shown consistent revenue growth with a TTM revenue growth rate of 3.05%, indicating a positive trajectory. The gross profit margin of 59.78% and net profit margin of 15.97% are strong, reflecting efficient cost management and profitability. However, the EBIT margin has decreased from 29.35% in 2024 to 22.50% TTM, which could indicate rising operational costs or other challenges.

Balance Sheet

The balance sheet reveals significant leverage with a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -2.26 TTM. The return on equity is also negative, indicating that the company is not generating sufficient returns on its equity base. These factors suggest financial instability and potential risks if leverage is not managed effectively.

Cash Flow

Operating cash flow is strong with a coverage ratio of 1.19 TTM, indicating good cash generation relative to net income. However, free cash flow growth is negative at -72.4% TTM, which could impact future investments and debt repayments. The free cash flow to net income ratio of 56.58% suggests moderate efficiency in converting net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.18B	1.07B	936.77M	587.02M	406.62M
Gross Profit	629.84M	615.02M	557.59M	474.03M	315.87M	186.61M
EBITDA	559.26M	507.11M	443.53M	374.09M	195.97M	121.43M
Net Income	205.80M	172.04M	138.31M	99.40M	42.77M	-14.99M
Balance Sheet
Total Assets	3.06B	3.07B	2.97B	2.85B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	443.38M	407.31M	350.74M	409.84M	545.91M	439.48M
Total Debt	2.58B	2.58B	2.37B	2.34B	1.96B	1.94B
Total Liabilities	3.25B	3.29B	3.09B	3.07B	2.66B	2.56B
Stockholders Equity	-194.76M	-215.38M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow
Free Cash Flow	202.82M	188.81M	194.27M	140.15M	135.22M	-21.42M
Operating Cash Flow	358.49M	343.87M	330.25M	240.21M	189.29M	31.14M
Investing Cash Flow	-166.44M	-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
Financing Cash Flow	-173.03M	-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLNT, the sentiment is Negative. The current price of 91.63 is below the 20-day moving average (MA) of 99.07, below the 50-day MA of 105.13, and below the 200-day MA of 103.15, indicating a bearish trend. The MACD of -4.05 indicates Positive momentum. The RSI at 23.31 is Positive, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLNT.

Planet Fitness Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTH	71 Outperform	$6.43B	22.75	10.38%	―	15.77%	86.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	58 Neutral	$7.58B	37.21	―	―	14.39%	31.64%
XPOF	54 Neutral	$387.13M	-4.82	―	―	-3.55%	-111.90%
PTON	45 Neutral	$2.34B	-20.39	―	―	-8.74%	74.66%

Planet Fitness Corporate Events

Planet Fitness highlights strong 2025 growth and expansion

Planet Fitness reported strong operational results for 2025, announcing on January 12, 2026 that year-end membership reached roughly 20.8 million and system-wide same club sales grew 6.7%. Over the year, the chain opened 181 new clubs, including 23 corporate-owned locations, and supplied equipment to 152 new franchised sites, underscoring continued expansion of its footprint to 2,896 locations worldwide. Management highlighted that franchisees boosted strength equipment to improve the member experience, the company signed a record number of participants to its High School Summer Pass Program, and it reached an agreement with franchisees to reallocate a portion of local advertising contributions to the national advertising fund for 2026, a move aimed at sharpening marketing leverage and supporting future membership growth. Planet Fitness plans to release detailed full-year 2025 financial results and its 2026 outlook on February 24, 2026, while using a January 13, 2026 fireside chat at the ICR Conference to discuss the operating metrics, reinforcing its message of solid performance and efforts to consolidate its leadership in the global fitness market.

The most recent analyst rating on (PLNT) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Planet Fitness Completes $750M Refinancing Transaction

On December 15, 2025, Planet Fitness completed a refinancing transaction involving the issuance of $750 million in senior secured notes, which includes $400 million in Class A-2-I Notes and $350 million in Class A-2-II Notes, to refinance existing debt and fund general corporate purposes, including share repurchases. Additionally, the company entered into a $350 million accelerated share repurchase agreement with Citibank, N.A., as part of a $500 million share repurchase authorization, which will initially provide approximately 2.5 million shares of Class A common stock, with final settlement expected in the first quarter of 2026.

The most recent analyst rating on (PLNT) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Planet Fitness Prices $750M Senior Secured Notes

On December 5, 2025, Planet Fitness, Inc. announced the pricing of $750 million in Series 2025-1 Class A-2 Fixed Rate Senior Secured Notes, consisting of two tranches with repayment terms of five and seven years. The proceeds from this securitized debt will be used to repay existing notes, cover transaction costs, and for general corporate purposes, including potential share repurchases, with the transaction expected to close around December 15, 2025.

The most recent analyst rating on (PLNT) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Planet Fitness Announces Major Refinancing Plan

On December 1, 2025, Planet Fitness announced plans for a refinancing transaction involving the issuance of a new series of securitized notes and repayment of existing notes. The company intends to issue $750 million in new notes, potentially increasing to $850 million, and will use the proceeds to repay existing debt, cover transaction costs, and for general corporate purposes. This move is expected to impact the company’s financial operations and market positioning, although the completion of the transaction is subject to market conditions.

The most recent analyst rating on (PLNT) stock is a Buy with a $139.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Planet Fitness Unveils Strategic Growth Plans at Investor Day

On November 13, 2025, Planet Fitness held its Investor Day in Boston, where the leadership team outlined strategic imperatives to drive global growth, modernize the member experience, and enhance franchisee value. The company announced long-term financial targets for 2026-2028, including revenue growth in the low-double digits and new club unit growth of 6% to 7%, aiming to capitalize on the rising global demand for fitness and favorable real estate conditions.

The most recent analyst rating on (PLNT) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.