Planet Fitness (NYSE:PLNT) reported second-quarter revenue growth of 7% as the fitness chain continued efforts to rebuild sustainable membership growth through changes to its marketing, pricing tests and member experience.
Total revenue rose to $365 million in the second quarter from $341 million a year earlier. System-wide same-club sales increased 1.7%, with both franchisee and corporate-owned club same-club sales up 1.7%. Chief Financial Officer and President International Sudhanshu Priyadarshi said the comparable-sales increase was entirely driven by rate growth.
Profitability and capital allocation
Net income was $67 million, while adjusted net income was $68 million. Adjusted earnings per diluted share were $0.88. Adjusted EBITDA increased 3.5% year over year to $153 million, though adjusted EBITDA margin declined to 41.8% from 43.3%.
Franchisee segment revenue increased 13%, driven primarily by higher national advertising fund revenue, royalty revenue tied to same-club sales and new clubs, and franchise and other fees. The company increased national advertising fund contributions to 3% from 2% for 2026. Excluding the national advertising fund, franchisee adjusted EBITDA margins were consistent with the prior year, Priyadarshi said.
Corporate-owned club revenue increased 4%, aided by new clubs and same-club sales growth. Equipment segment revenue also rose 4%, reflecting higher sales for new franchisee club placements and replacement equipment. Replacement equipment accounted for 85% of total equipment revenue during the quarter.
Planet Fitness opened 23 clubs in the quarter, including 21 franchise locations and two corporate-owned clubs. Five of the openings were international. The company said it remains on track to open 180 to 190 clubs system-wide during 2026, with openings and equipment placements weighted toward the fourth quarter.
During the quarter, the company repurchased approximately 4 million shares at an average price of $50.44, spending $200 million. Year-to-date repurchases totaled $250 million, leaving $250 million available under its $500 million authorization. Planet Fitness used cash on hand and a $75 million drawdown on a variable funding note to support the repurchases and said it plans to repay the drawdown by year-end.
Marketing and pricing initiatives
Chief Executive Officer Colleen Keating said the company is prioritizing member acquisition and affordability as it seeks to reach the roughly 70% of the U.S. population not paying for a fitness membership. Planet Fitness is updating its marketing to emphasize its welcoming, non-intimidating environment and its value proposition for fitness beginners and casual gym-goers.
The company has refined existing advertising creative to show a broader range of fitness levels, reduce the emphasis on sweat and brighten imagery. Interim creative with a more lighthearted tone is expected to enter the market during the current quarter. Planet Fitness also plans to test a broader new campaign ahead of its key first-quarter acquisition period, with a planned launch in late December.
Keating said the company believes its prior campaign successfully conveyed that members could get strong and use quality equipment at Planet Fitness, but it did not fully communicate the brand’s approachability to all target consumers. The company plans to conduct extensive consumer testing as it develops its next campaign.
Planet Fitness is also conducting regional and local tests of different pricing structures, including tiers and price points. Later this quarter, it plans to run a limited-time national promotion offering the Classic Card at $10. Keating said the promotion is intended to measure regional price elasticity and demand, not to signal a permanent rollback from the current $15 Classic Card price.
Members who join at the promotional price would retain that rate as long as they remain members, Keating said. She added that a prior localized $10 test did not show significant trading down from $15 memberships. Management is also evaluating regional variation in pricing and continues to assess future Black Card pricing opportunities, though it has paused a nationwide Black Card price increase while focusing on net member growth.
Member retention and experience
The company is deploying a predictive artificial-intelligence churn model within its customer relationship management platform to identify early churn indicators. The model remains in an alpha phase, and Planet Fitness plans to add a “next-best-action” capability intended to provide retention offers.
Planet Fitness also plans to work with franchisees on elements of a first 100-day member program, designed to improve engagement shortly after a member joins. Since many members enroll online, Keating said early outreach and club visits could help teams understand members’ goals and connect them with relevant equipment and services.
In September, the company expects to launch a redesigned app featuring a personalized home screen, expanded workout activity tracking, progress metrics and improved Crowd Meter accuracy. Planet Fitness is also testing additional Black Card Spa recovery offerings at 100 clubs across multiple designated market areas. The test is intended to measure effects on joins, membership mix, upgrades and retention.
Keating said the company’s Net Promoter Score was up nine percentage points year over year at the end of the second quarter, which she attributed in part to club-format optimization and equipment investments.
Outlook remains largely unchanged
Planet Fitness raised its outlook for adjusted earnings per diluted share to approximately 6% growth from its previous expectation of approximately 4%, reflecting a lower expected share count following repurchases. The company now expects adjusted diluted weighted-average shares outstanding of approximately 77 million, compared with its prior expectation of approximately 79 million.
Higher interest expense associated with the variable funding note drawdown partially offsets the share-count benefit. Planet Fitness now expects interest expense of approximately $115 million, up $4 million from prior guidance, and expects adjusted net income to decline approximately 3%, compared with its previous forecast for a 2% decline.
The rest of the company’s outlook was unchanged. Planet Fitness continues to expect approximately 1% system-wide same-club sales growth, 7% revenue growth and 6% adjusted EBITDA growth for 2026. Management said it expects comparable-sales growth to moderate sequentially through the year but does not forecast negative same-club sales in either the third or fourth quarter.
About Planet Fitness (NYSE:PLNT)
Planet Fitness, Inc is a franchisor and operator of fitness centers based in Hampton, New Hampshire. Established in 1992, the company designs and equips its clubs to offer a non-intimidating workout environment, often marketed under its “Judgment Free Zone” philosophy. Planet Fitness markets affordable membership plans and a variety of cardio and strength-training equipment, positioning itself to attract casual and first-time gym users.
The company operates through a network of franchised and company-owned clubs.
