Planet Fitness (PLNT) AI Stock Analysis

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Planet Fitness

(NYSE:PLNT)

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Neutral 55 (OpenAI - 4o)

Rating:55Neutral

Price Target:

$105.00

▲(9.48% Upside)

Planet Fitness's overall stock score reflects strong financial performance and strategic growth initiatives, tempered by significant leverage and valuation concerns. Technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation. The company's ability to manage leverage and sustain growth will be crucial for future performance.

Positive Factors

Membership Growth

Strong membership growth indicates robust consumer demand and effective marketing strategies, supporting long-term revenue expansion and brand loyalty.

International Expansion

Positive international expansion suggests potential for revenue diversification and growth, enhancing the company's global footprint and market reach.

High School Summer Pass Success

The success of the High School Summer Pass program fosters early brand engagement, potentially converting young participants into long-term members.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Elevated Attrition Rates

Increased attrition rates could impact revenue stability and growth, as maintaining a stable membership base is crucial for subscription-based models.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may hinder the company's ability to fund operations, pay down debt, or invest in strategic initiatives.

Planet Fitness (PLNT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.25B

Dividend YieldN/A

Average Volume (3M)1.12M

Price to Earnings (P/E)43.2

Beta (1Y)0.62

Revenue Growth12.47%

EPS Growth22.74%

CountryUS

Employees4,173

SectorConsumer Cyclical

Sector Strength84

IndustryLeisure

Share Statistics

EPS (TTM)0.86

Shares Outstanding83,917,430

10 Day Avg. Volume1,199,871

30 Day Avg. Volume1,118,985

Financial Highlights & Ratios

PEG Ratio2.11

Price to Book (P/B)-39.30

Price to Sales (P/S)7.16

P/FCF Ratio44.83

Enterprise Value/Market Cap1.37

Enterprise Value/Revenue9.03

Enterprise Value/Gross Profit17.29

Enterprise Value/Ebitda21.15

Forecast

1Y Price Target

$129.71

Price Target Upside35.24% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

Planet Fitness Business Overview & Revenue Model

Company DescriptionPlanet 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 MoneyPlanet Fitness generates revenue primarily through membership fees, which are structured as monthly subscriptions. The company offers a variety of membership tiers, including a low-cost basic membership and a more premium option that includes additional benefits. In addition to membership dues, Planet Fitness earns revenue from one-time fees, such as initiation fees and annual fees, which contribute to its overall income. The company's business model also capitalizes on franchise fees and royalties from its franchisees, which are a significant revenue stream as it expands its brand presence. Additionally, ancillary services, such as tanning and massage services, along with retail sales of fitness-related merchandise, provide further revenue opportunities. Planet Fitness emphasizes its low-cost, high-value proposition, which attracts a diverse customer base, contributing to its overall financial success.

Planet Fitness Key Performance Indicators (KPIs)

Any

Store Count by Type

Store Count by Type
Shows the number of different types of fitness centers, highlighting expansion strategy and market penetration, which are crucial for understanding growth potential and competitive positioning.

Chart InsightsPlanet Fitness continues its robust expansion, with franchisee-owned stores steadily increasing and corporate-owned locations showing a notable rise since 2022. The recent earnings call underscores this growth, with 19 new clubs opened in Q1 2025 and a target of 160-170 new clubs for the year. Despite challenges like tariff concerns and rising expenses, the company remains optimistic, driven by strong membership growth and strategic initiatives such as increased Black Card penetration. This expansion strategy is crucial for sustaining revenue and EBITDA growth targets.

Data provided by:

Main Street Data

Planet Fitness Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a strong performance in membership growth, international expansion, and financial results. However, challenges such as elevated attrition rates due to the click-to-cancel feature and a cautious outlook due to macroeconomic factors somewhat moderated the overall optimism.

Q2-2025 Updates

Positive Updates

Strong Membership Growth

Planet Fitness ended the quarter with approximately 20.8 million members, reflecting an 8.2% systemwide same club sales growth and the addition of 23 new clubs.

Increased Black Card Penetration

The Black Card penetration reached 65.8%, a 340 basis point increase from the previous year, indicating strong consumer recognition of value.

Positive International Expansion

Successful opening of the ninth club in Madrid, Spain, with unit economics aligning with domestic clubs, signaling positive international growth potential.

Strong Financial Performance

Total revenue increased by 13.3% to $340.9 million, driven by growth across all segments, with adjusted EBITDA rising by 15.8%.

High School Summer Pass Success

The High School Summer Pass initiative outpaced last year's sign-ups and workouts, indicating strong engagement with Gen Z.

Negative Updates

Elevated Attrition Rates

The national rollout of online membership management led to slightly higher attrition rates, impacting same club sales outlook.

California Clubs Sale Impact

The sale of corporate clubs in California is expected to reduce revenue by approximately $7 million and adjusted EBITDA by $2 million for the year.

Challenges with Click-to-Cancel Implementation

The implementation of online cancellation is associated with increased churn, though slightly higher than initially anticipated.

Macro-Economic Uncertainty

The ongoing volatile macroeconomic environment necessitates maintaining a level of conservatism in guidance projections.

Company Guidance

During the Planet Fitness second-quarter earnings call for the fiscal year 2025, key metrics and guidance were shared, highlighting strong financial performance and strategic initiatives. The company reported an 8.2% systemwide same-club sales growth and added 23 new clubs, bringing the total to 2,762 clubs globally with 20.8 million members. The Black Card membership penetration increased to 65.8%, marking a 340 basis point rise from the previous year. Total revenue for the quarter was $340.9 million, a 13.3% increase from the prior year, with adjusted EBITDA reaching $147.6 million. The company maintained its full-year outlook, expecting revenue and adjusted EBITDA to grow approximately 10% compared to fiscal year 2024. Strategic priorities include redefining brand promise, enhancing member experience, and accelerating club growth, both domestically and internationally. Despite slightly elevated attrition due to the rollout of online membership management, the company remains confident in its projected same-club sales growth of approximately 6% for the year.

Planet Fitness Financial Statement Overview

Summary

Planet Fitness shows strong revenue growth and profitability with a solid gross profit margin of 72.68% and net profit margin of 14.84%. However, high leverage with a negative equity and declining free cash flow growth pose significant risks.

Income Statement

Positive

Planet Fitness shows a solid revenue growth trajectory with a 3.3% increase in TTM, although this is a slowdown compared to previous years. The company maintains healthy profit margins, with a TTM gross profit margin of 72.68% and a net profit margin of 14.84%. However, the EBIT and EBITDA margins have slightly decreased, indicating potential cost pressures.

Balance Sheet

Negative

The balance sheet reveals significant leverage, with a negative equity and a debt-to-equity ratio of -2.07 in TTM. This high leverage poses a risk, although the company has managed to maintain operations. The negative return on equity indicates challenges in generating returns for shareholders.

Cash Flow

Positive

Cash flow analysis shows a decline in free cash flow growth by 13.53% in TTM, which is concerning. However, the operating cash flow to net income ratio of 1.35 suggests strong cash generation relative to net income. The free cash flow to net income ratio of 0.61 indicates reasonable cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.18B	1.07B	936.77M	587.02M	406.62M
Gross Profit	653.19M	615.02M	557.59M	474.03M	315.87M	186.61M
EBITDA	533.99M	507.11M	443.53M	374.09M	195.97M	121.43M
Net Income	188.98M	172.04M	138.31M	99.40M	42.77M	-14.99M
Balance Sheet
Total Assets	3.12B	3.07B	2.97B	2.85B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	442.72M	407.31M	350.74M	409.84M	545.91M	439.48M
Total Debt	2.59B	2.58B	2.37B	2.34B	1.96B	1.94B
Total Liabilities	3.28B	3.29B	3.09B	3.07B	2.66B	2.56B
Stockholders Equity	-158.69M	-215.38M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow
Free Cash Flow	204.30M	188.81M	194.27M	140.15M	135.22M	-21.42M
Operating Cash Flow	353.82M	343.87M	330.25M	240.21M	189.29M	31.14M
Investing Cash Flow	-189.24M	-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
Financing Cash Flow	-67.39M	-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

Technical Analysis Sentiment

Negative

Last Price95.91

Price Trends

50DMA

104.11

Negative

100DMA

105.42

Negative

200DMA

102.24

Negative

Market Momentum

MACD

-1.52

Positive

RSI

33.02

Neutral

STOCH

2.93

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 95.91 is below the 20-day moving average (MA) of 101.20, below the 50-day MA of 104.11, and below the 200-day MA of 102.24, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 2.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLNT.

Planet Fitness Risk Analysis

Planet Fitness disclosed 50 risk factors in its most recent earnings report. Planet Fitness reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Planet Fitness Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	68 Neutral	$2.18B	31.23	13.16%	0.76%	8.51%	31.24%
LTH	64 Neutral	$5.73B	25.39	8.66%	―	17.25%	93.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	55 Neutral	$8.25B	43.22	-79.88%	―	12.47%	22.74%
MODG	51 Neutral	$1.73B	―	-46.53%	―	-2.35%	-7104.57%
PTON	48 Neutral	$2.98B	―	58.47%	―	-7.76%	79.66%
XPOF	44 Neutral	$386.07M	―	22.27%	―	-3.02%	-517.53%

* Consumer Cyclical Sector Average

Performance Comparison

PLNT

Planet Fitness

95.91

15.46

19.22%

MODG

Topgolf Callaway Brands

9.07

-0.93

-9.30%

OSW

OneSpaWorld Holdings

21.26

4.40

26.10%

PTON

Peloton Interactive

7.34

2.62

55.51%

XPOF

Xponential Fitness

7.89

-4.42

-35.91%

LTH

Life Time Group Holdings

25.94

0.97

3.88%

Planet Fitness Corporate Events

Executive/Board ChangesShareholder Meetings

Planet Fitness Approves Key Amendments at Annual Meeting

Neutral

May 12, 2025

On May 6, 2025, Planet Fitness held its Annual Meeting where stockholders approved several significant amendments to the company’s Second Restated Certificate of Incorporation. These amendments included the removal of supermajority voting requirements, the elimination of obsolete provisions, and the limitation of liability for certain officers. Additionally, stockholders elected three directors, ratified KPMG LLP as the independent registered public accounting firm for 2025, and approved the 2025 Omnibus Incentive Plan. However, a stockholder proposal regarding the adoption of an EEO-1 report disclosure policy was not approved.

The most recent analyst rating on (PLNT) stock is a Hold with a $99.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 03, 2025