Planet Fitness Announces First Quarter 2025 Results
System-wide same club sales increased 6.1%
Ended first quarter with total membership of approximately 20.6 million
$50.0 million in shares repurchased in first quarter
Today, Planet Fitness, Inc. (NYSE: PLNT) presented its financial results for the quarter, showcasing significant growth and resilience in the current market landscape.
First Quarter Fiscal 2025 Highlights
- Total revenue saw an increase of 11.5% from the previous year, totaling $276.7 million.
- System-wide sales rose to $1.3 billion, marking an increase from $1.2 billion in the prior year period.
- Net income attributable to Planet Fitness increased to $41.9 million, equating to $0.50 per diluted share, compared to $34.3 million or $0.39 per diluted share in the same period last year.
- Adjusted net income climbed to $50.0 million or $0.59 per diluted share.
- Adjusted EBITDA increased to $117.0 million, reflecting a growth of $10.7 million from the previous year.
- The company opened 19 new Planet Fitness clubs, with the total number of clubs reaching 2,741.
- Cash and marketable securities stood at $586.3 million, including cash and cash equivalents of $343.9 million.
"We concluded the first quarter with about 20.6 million members, an increase of around 900,000 from the end of the previous year," stated Colleen Keating, Chief Executive Officer. "Our growth in same club sales demonstrates the strength of our model, even amidst economic volatility. Our marketing strategies have improved brand perception and the value of our memberships, making us a leader in the High Value Low Price segment of the fitness industry for over three decades. We continue to lead with our Judgement Free atmosphere providing exceptional value to our members."
Operating Results Overview
For the first quarter of 2025, the revenue breakdown was as follows:
- Franchise revenue rose by 10.7% to $115.2 million, driven by higher royalty revenue and the opening of new clubs.
- Revenue from corporate-owned clubs increased 9.2%, totaling $133.7 million due to successful same club sales and annual fee revenue.
- Revenue from equipment sales increased significantly at 28.7%, reaching $27.8 million.
Segment Adjusted EBITDA displayed a favorable performance as follows:
- Franchise Segment Adjusted EBITDA rose 11.5% to $84.9 million.
- Corporate-owned clubs Segment Adjusted EBITDA increased by 8.1% to $45.8 million.
- Equipment Segment Adjusted EBITDA showed a significant boost of 55.1%, reaching $7.4 million.
2025 Financial Outlook
Looking ahead, the Company has maintained its guidance for the year on several fronts. This guidance is particular to existing tariff regulations and does not forecast any impacts beyond them.
- New equipment placements in franchisee-owned locations are projected to be approximately 130 to 140.
- System-wide new club openings are expected to range between 160 to 170 locations.
- Same club sales growth is anticipated to be in the 5% to 6% range, with overall revenue growth of about 10% expected.
- Adjusted EBITDA is forecasted to increase by 10% and adjusted net income to rise in the 8% to 9% range.
- Adjusted net income per share is expected to grow by 11% to 12% based on anticipated share repurchases.
About Planet Fitness
Founded in 1992, Planet Fitness has rapidly established itself as one of the largest and fastest-growing fitness center franchises globally, boasting approximately 20.6 million members across 2,741 locations. The brand’s mission emphasizes a welcoming and non-intimidating fitness environment, commonly referred to as the Judgement Free Zone®. More than 90% of its clubs are run by independent operators.
Frequently Asked Questions
1. What are the recent achievements reported by Planet Fitness?
Planet Fitness reported a 6.1% increase in same club sales and reached a membership of approximately 20.6 million, showcasing strong growth in the first quarter of 2025.
2. How did the company's revenue perform compared to last year?
Revenue increased by 11.5% compared to the previous year, totaling $276.7 million during the first quarter of 2025.
3. What is the future outlook for Planet Fitness in 2025?
The company expects to continue growing, with projected revenue increases of around 10% and new club openings between 160 to 170 locations.
4. How did the net income change from last year?
Net income increased to $41.9 million from $34.3 million in the same period last year, indicating robust growth.
5. Where can I find more information about Planet Fitness?
For more detailed updates about Planet Fitness, please refer to their official communications or visit their investor relations page.
