Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $8.98B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.59
• 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: 898,853
• 30 Day Avg. Volume: 1,498,323
• 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: 1.20
• Enterprise Value/Revenue: 8.39
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 19.32
• 1Y Price Target: $133.55
• Price Target Upside: 24.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $121.00 ▲(12.52% Upside)

Planet Fitness's overall score is driven by strong technical indicators and positive earnings call sentiment, indicating growth potential. However, financial performance concerns, particularly high leverage and valuation challenges, weigh down the score.

Positive Factors

Membership Growth

Strong membership growth indicates effective customer acquisition and retention strategies, enhancing long-term revenue potential and market presence.

Strategic Growth Plans

Strategic growth plans aim to capitalize on global fitness demand, ensuring sustainable expansion and competitive positioning over the next few years.

Revenue Growth

Consistent revenue growth reflects strong business fundamentals and effective execution of strategic initiatives, supporting long-term financial health.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns.

Declining Free Cash Flow

Declining free cash flow growth could hinder future investments and debt repayments, impacting long-term financial stability and growth prospects.

Elevated Attrition Rates

High attrition rates can undermine membership growth efforts, affecting revenue stability and necessitating increased marketing and retention costs.

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

Planet Fitness shows strong revenue growth and profitability with solid margins. However, the balance sheet is concerning due to high leverage and negative equity, posing financial risks. Cash flow is strong, but declining free cash flow growth is a potential concern.

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	499.77M	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: Positive
• Last Price: 107.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLNT, the sentiment is Positive. The current price of 107.54 is below the 20-day moving average (MA) of 107.84, above the 50-day MA of 101.02, and above the 200-day MA of 101.88, indicating a neutral trend. The MACD of 2.24 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 14.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$5.64B	19.89	10.38%	―	15.77%	86.16%
PLNT	68 Neutral	$8.98B	43.96	―	―	14.39%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$333.50M	―	―	―	-3.55%	-111.90%
PTON	45 Neutral	$2.67B	―	―	―	-8.74%	74.66%

Planet Fitness Corporate Events

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.

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.

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.