Planet Fitness (PLNT) Q4 2025 earnings review
Record Unit Openings, But Same-Club Momentum is Decelerating
Planet Fitness capped an impressive 2025 by vastly exceeding its initial unit development goals, opening 104 clubs in Q4 alone to bring the full-year total to 181. Revenue grew 10.5% in the quarter, and Adjusted EBITDA grew 11.8%, reflecting excellent execution on the bottom line. However, the top-line story is shifting. Net membership has flatlined at ~20.8 million since Q2, likely pressured by the 'click-to-cancel' rollout and lapping price hikes. Consequently, Same-Club Sales growth decelerated to 5.7% in Q4 (down from an 8.2% peak in Q2). FY26 guidance projects further deceleration across revenue (9%), adjusted EPS (9-10%), and Same-Club Sales (4-5%), placing heavy reliance on the upcoming $29.99 Black Card price increase to sustain rate-driven growth.
🐂 Bull Case
The company crushed its 160-170 new club target by opening 181 clubs in 2025, with a massive 104-club surge in Q4. FY26 guidance for 180-190 clubs proves the franchisee economic model improvements are working and pipeline health is robust.
The $15 Classic Card price hike successfully drove 2025 comps. Management previously signaled a planned 2026 increase for the Black Card to $29.99, providing a clear future catalyst to offset volume stagnation.
🐻 Bear Case
Despite adding 1.1 million members in 2025, the total member count peaked at 20.8 million in Q2 and has remained flat through Q4. This indicates virtually zero net-add growth in the second half of the year.
The FY26 outlook calls for ~9% revenue growth and 4-5% same-club sales—a clear deceleration from FY25's 12.1% and 6.7%, respectively. Profitability growth is also slowing, with Adjusted EPS guided to 9-10% vs. FY25's 18.5%.
⚖️ Verdict: ⚪
Neutral. The company is executing its asset-light expansion flawlessly, as evidenced by Q4 unit growth and surging equipment revenues. However, flatlining member growth and decelerating top-line guidance suggest the easy gains from the 2024 Classic Card price hike have been fully absorbed.
Key Themes
Massive Q4 Unit Development Surge
Accelerating. The heavy Q4 weighting of club openings played out spectacularly. Planet Fitness opened 104 system-wide clubs in Q4 (93 franchisee, 11 corporate), driving the full-year total to 181, easily beating the 160-170 guidance. The 2026 target of 180-190 clubs solidifies the narrative that franchisee ROI improvements (e.g., lower build costs, new formats) have successfully reignited the development pipeline.
Decelerating Same-Club Sales
Decelerating. System-wide same-club sales dropped to 5.7% in Q4 from 6.9% in Q3 and a peak of 8.2% in Q2. Management noted in previous quarters that roughly 80% of SSS growth was driven by rate (the $15 Classic Card). As this price increase laps in mid-2026, the SSS outlook drops to 4-5%, highlighting the risk of a rate-heavy, volume-light growth model.
Stagnant Member Volume
Stable but weak. The company ended 2025 with ~20.8 million members. While this is up 1.1 million YoY, the sequencing is a major concern: they hit 20.8 million in Q2, reported 20.7 million in Q3, and are back to 20.8 million in Q4. The system-wide rollout of the 'click-to-cancel' feature and price elasticity limits appear to have neutralized net member additions in the second half of the year.
Equipment Segment Driving High-Margin Returns
Accelerating. Equipment segment revenue grew 15.3% to $121.2M in Q4, but more impressively, segment Adjusted EBITDA grew 23.3% to $36.9M. This outsized profit growth stems from 96 new franchisee club placements in the quarter (up from 77 last year) combined with highly profitable re-equips as clubs update their mix to favor strength equipment. This segment provides excellent operating leverage.
The $29.99 Black Card Catalyst
With the Classic Card price hike fully baked into the 2025 run rate and volume growth stalling, the spotlight turns to the Black Card. Management confirmed in the Q3 call that a strategic price increase for the Black Card to $29.99 is planned for 2026. Given that SSS guidance is conservative (4-5%), the exact timing and member elasticity of this tier hike will dictate whether they beat 2026 estimates.
Interest Expense Drag on Net Income
Decelerating. While Adjusted EBITDA is guided to grow ~10% in FY26, Adjusted Net Income is only expected to grow 4-5%. A key culprit is rising debt service: FY26 net interest expense is guided to $114.0M, a noticeable step up from the $108.2M incurred in FY25. As the company continues to utilize debt and securitization strategies, the higher interest burden is suppressing bottom-line acceleration.
Marketing and Gen Z Engagement
The company successfully shifted 1 percentage point of marketing funds to the national level to leverage AI-driven, digital campaigns. This aligns with their continued focus on Gen Z, utilizing programs like the High School Summer Pass (3.7M participants) to build a low-cost, top-of-funnel pipeline to combat elevated adult churn rates.
Other KPIs
Grew 8.1% YoY, lagging behind Franchise (10.9%) and Equipment (23.3%) growth rates. Management noted this was partially offset by $0.4 million of lower Adjusted EBITDA from new clubs located in Spain, indicating the corporate-funded international expansion is acting as a slight near-term margin drag.
Operating Cash Flow was $418.4 million (up from $343.8 million in 24FY) and CapEx was $163.7 million. This robust free cash flow supported the aggressive repurchase of Class A common stock, which totaled $500.3 million in 2025 (up significantly from $300.2 million in 2024), demonstrating a massive commitment to capital return.
Guidance
Decelerating from FY25 actuals of 6.7%. Reflects the anniversary of the $15 Classic Card price increase in mid-2026 and incorporates cautious assumptions around net member volume growth amidst the 'click-to-cancel' normalisation.
Decelerating from the 12.1% growth achieved in FY25. This aligns with the lower SSS expectations, despite a robust pipeline of 180-190 new club openings.
Decelerating slightly from the 13.1% growth realized in FY25. Shows that margins will remain relatively stable, failing to deliver massive operating leverage as the company continues to invest in corporate infrastructure and marketing.
Decelerating heavily from the 18.5% EPS growth seen in FY25 ($3.07 vs $2.59). The slower growth is tied to higher projected net interest expense ($114M) and a 10% increase in D&A, despite an assumed share count reduction to 80.0 million.
Key Questions
Member Growth Stagnation
Net membership has hovered around 20.8 million since Q2 2025. Has the 'click-to-cancel' feature permanently elevated the baseline churn rate, or are you seeing price resistance from the $15 Classic Card preventing top-of-funnel joins from outpacing cancellations?
Black Card Pricing Rollout
With same-club sales guidance reflecting a deceleration to 4-5%, what is the exact planned timing for the $29.99 Black Card price increase in 2026, and is any benefit from that hike factored into the current guidance midpoint?
Corporate Margins and International Drag
Corporate-owned club adjusted EBITDA was slightly dragged by new clubs in Spain. As you look to open more corporate clubs internationally to seed new markets, how much margin compression should we model for the corporate segment in 2026?
Interest Expense Pressures
Net interest expense is guided to step up to $114 million in FY26. What is the assumed debt structure or refinancing activity driving this increase, and how does it impact your long-term capital allocation strategy?