Planet Fitness Reports Q2 2026 Results: Full Earnings Call Transcript

Planet Fitness (NYSE: PLNT ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

The full earnings call is available at Summary Planet Fitness reported a 7% increase in total revenue for Q2 2026, reaching $365 million, driven by growth across all segments. 5 million and opened 23 new clubs, including five international locations. Strategic initiatives included a focus on marketing evolution, introducing a $10 Classic Card promotion, and enhancing the Planet Fitness app for a more personalized member experience. 5% to $153 million, with adjusted net income per diluted share projected to grow approximately 6% for the year.

Management highlighted efforts to drive sustainable member growth through targeted marketing and pricing strategies, while maintaining a focus on franchisee engagement and international expansion. Future outlook remains positive with expectations of a 1% system-wide same-club sales growth, 7% revenue growth, and 6% adjusted EBITDA growth for the full year. The company is testing regional pricing strategies and enhancing member retention efforts with AI-driven predictive models. Full Transcript OPERATOR Good morning and thank you for joining today's Planet Fitness second quarter earnings conference call.

After today's prepared remarks by management, there will be an opportunity to ask questions. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Please limit yourself to one question and one follow up.

If you have additional questions, please rejoin the queue. I would now like to hand the call over to Brendan Frey for opening remarks. Please go ahead. Brendan Frey, Investor Relations Thank you operator and good morning everyone.

Speaking on today's call will be Planet Fitness Chief Executive Officer Colleen Keating and Chief Financial Officer and President International Sudhanshu Priyadarshi. Colleen and Sudhanshu will be available for questions during the Q&A session following the prepared remarks. Today's call is being webcast live and recorded for replay. Before I turn the call over to Colleen, I'd like to remind everyone that the language on forward looking statements included in our earnings release also applies to our comments made during the call.

Our release can be found on our investor website along with any reconciliation of non GAAP financial measures mentioned on the call with their corresponding GAAP measures. With that, I'll now turn it over to Colleen. Colleen Keating, Chief Executive Officer Thank you Brendan and thank you everyone for joining us for the Planet Fitness second quarter earnings call. We are pleased to welcome Sudhanshu Priyadarshi to Planet Fitness, a proven global leader with more than 25 years of experience driving enterprise value creation across consumer facing businesses.

His deep CFO expertise, vast international operating experience and disciplined approach to strategy, execution, margin expansion and capital allocation align closely with our strategic growth priorities. I look forward to partnering with him to deliver meaningful value for our members, franchisees and shareholders. I also want to thank and recognize Tom Fitzgerald for pausing his retirement to shepherd our finance organization through our period of leadership transition. Tom provided a knowledgeable and steady hand as interim CFO, enabling us to complete a thorough search and he will remain with us in an advisory capacity through early September.

Given this, Tom is joining us on today's call and will be available to provide additional perspective during the Q&A. Now let me turn to our second quarter performance. During the quarter, we furthered the important work to reignite sustainable member growth and we are confident that the actions we outlined on our first quarter call are the right ones to achieve this overarching goal. While we are encouraged by our initial progress, several of our key initiatives, particularly with marketing, will take time to fully implement and gain traction.

6% to last year. 5% over Q2 2025 and we opened 23 new clubs. The fitness industry is supported by strong long term tailwinds as more people recognize the critical role movement plays in physical and mental well being, disease prevention and living longer, healthier lives. Against that backdrop, our focus remains clear.

Broaden our reach to the approximately 70% of the US population not currently paying for a fitness membership, strengthen the relevance of our brand messaging with our core audience and reinforce why Planet Fitness is uniquely positioned to bring people into the category. We appeal to fitness beginners, more casual gym goers or those progressing on their fitness journey who appreciate our strong value proposition and judgment free environment. One of the reasons why people don't join a gym is intimidation and Planet Fitness is ideally and uniquely positioned for this population.

We know proximity and convenience are also factors and with a Planet Fitness club within an approximate 12 minute drive of 170 million of the US population, our reach and accessibility are unmatched. As we shared on our Q1 earnings call, we are concentrating our efforts this year on two priorities that are central to reigniting net member growth: driving acquisition and reinforcing affordability. I'll discuss our progress to date in key areas supporting these priorities including our marketing evolution, net member growth trends, pricing architecture and in club member experience enhancements.

I'll also provide an update on global club expansion and franchisee engagement before turning the call over to Sudhanshu. Let me start with our marketing updates. As we continue to evolve our marketing strategy, our goal is to both target and speak more effectively to the roughly 70% of the US population that doesn't have a gym membership while reinforcing what makes Planet Fitness differentiated: our welcoming, non-intimidating environment. We are approaching this work in phases with our newly engaged creative agency.

To date, we made intentional refinements to our existing creative so it feels a bit more approachable and supportive, depicting more variety of fitness levels, dialing down sweat levels and brightening the imagery. We will launch interim new creative that takes this a few steps further, featuring a more light hearted tone aligned to our brand DNA, with an intentional emphasis on our unique value proposition and brand differentiation within the HVLP landscape. You will see this new interim creative in market this quarter.

At the same time, we will begin testing creative for an entirely new marketing campaign for our critical Q1 acquisition period, giving us time to read results and make adjustments before the campaign goes live in late December. We are continuing to advance our media optimization efforts. As we refine our creative and optimize our media mix, our goal is to better reach our target audience across social platforms and multiple media channels. To support that work, our dynamic creative optimization engine remains on track for a rolling launch beginning in September.

This will allow us to better tailor creative and our messaging over time as we reach prospective members with greater relevance. Also in September, we will launch a redesigned Planet Fitness app with updates to make the member experience more personalized, engaging and easier to navigate. This will include a dynamic home screen tailored to in club workout, enhanced activity tracking including weight, reps and sets, a redesigned fitness profile with progress metrics and improved crowd meter accuracy. Additional updates are planned for the balance of the year and into 2027, underscoring our commitment to continually enhancing member experience and supporting retention.

Finally, on the marketing front, we kicked off our High School Summer Pass program in June, which continues to be an important way for us to introduce younger consumers to our brand and reinforce our commitment to making fitness accessible. We're continuing to build momentum with High School Summer Pass with more than 12 million workouts completed to date. This program remains especially valuable as it builds awareness and brand affinity with the next generation of potential members, including Gen Alpha, as they become old enough to join. Now let me turn to our second quarter net member growth.

6% to last year and flat to Q1. 5%, the midpoint of our historical range of 3 to 4%. While we expect it to remain within that range going forward, there will be some fluctuation in future quarters due to seasonality. In an effort to improve this metric, we are deepening our member retention efforts with our predictive AI churn model integrated in our CRM platform, which is designed to identify early churn indicators.

The model is currently in an alpha phase and continues to learn from member behavior. The next capability will be a next best action engine to serve up retention offers. Also related to our retention efforts, we will kick off components of our first hundred day program with franchisees at our September conference. This will strengthen engagement both inside and outside our clubs during the critical early period of a member's journey.

As most members join online, an opportunity to engage with them shortly after joining can encourage a club visit. During the visit, our teams can proactively engage, understand a member's goals, and connect them with the most relevant areas of the club to provide support and meet their needs. We also recently implemented a mystery shop program to support consistent brand standards, enhanced member satisfaction and operational excellence across our clubs in the US and Canada. The program supplements last year's system wide NPS rollout to enhance member experience and service delivery in our clubs.

Now moving to our pricing architecture, we have launched several regional and local price tests to better understand consumer responses across different markets. As part of our continued focus on reinforcing affordability and driving member acquisition, we will also test a $10 classic card promotion nationally later this quarter. Offering the classic card at $10 for a limited time promotion nationally will help us better understand regional impacts. We are not running this test to inform a rollback of the Classic Card price.

We want to understand its impact for use in limited promo windows as well as read the impacts by region. Turning to Member Experience, we know from industry data and member feedback that recovery is an important part of fitness. To this end, we expanded our test of new Black Card spa modalities to 100 clubs across multiple DMAs and began marketing the upgraded features this summer. The broader test is designed to help us understand how these offerings influence total joins, join mix, upgrades, and retention.

Additionally, based on strong member preference and franchisee enthusiasm, we offered the opportunity to our franchisees to order the red light sauna and the LED red light booth early. We're excited for the test results for the other modalities as we endeavor to make recovery more accessible, just as we democratized fitness access more than 30 years ago. Lastly, turning to development and franchisee engagement, during the second quarter we opened 23 clubs, five of which were international, and included 21 franchise locations and two corporate-owned clubs. We announced this morning that we welcomed a new franchisee to Planet Fitness.

Seasoned hospitality developer Ian McClure, CEO of Gulf Coast Hotel Management, acquired growth territory on the west coast of Florida. Ian brings extensive experience in multi-unit real estate development, operations, and asset management. This is an important milestone and a clear signal of the momentum we are building behind disciplined long-term system growth. S.

by continuing to grow our footprint in markets where our accessible, high-value offering can reach more consumers. Turning to International, in July we completed the sale of our ownership stake in our Australia franchise. The strong progress we've seen in Australia demonstrates we can deploy capital in a disciplined, focused manner to accelerate Planet Fitness's international expansion. The sale of our stake to Franchise Equity Partners validates this approach, and we appreciate FEP's ambition to scale the Planet Fitness brand and accelerate growth across Australia.

We remain steadfastly focused on unit economics and, to that end, continued our active engagement with our franchisees during the quarter, including holding several small-group luncheons and dinners to hear directly from them. We look forward to furthering this engagement at our Franchisee Conference in September. Before I turn it over to Sudhanshu, I want to again thank Tom for stepping in as our interim CFO and for graciously extending his time with us to support a smooth transition. His experience, leadership, and partnership have been invaluable.

We're grateful for his contributions and wish him the very best as he returns to the Everyday Is Saturday Club. Now I'll turn it over to Sudhanshu. Sudhanshu Priyadarshi, Chief Financial Officer & President, International Thanks, Colleen, and good morning, everyone. It's a privilege to be with you today for my first earnings call as CFO of Planet Fitness.

Before I walk through our second quarter results, I want to take a moment to share why I was drawn to this role. Over the course of my career, I have had the opportunity to work across a number of great consumer businesses. S. and internationally.

I have spent my career focused on turning strategy into disciplined execution, driving margin expansion, capital efficiency, and shareholder value, and I see tremendous opportunity to do exactly that here, working alongside Colleen and this leadership team while also helping lead our international expansion. I also want to take a moment to thank Tom. Tom stepped back in at a critical moment for this company and did an excellent job stabilizing the finance organization, all while helping set me up for a smooth start. Tom, thank you for your partnership, and I'm glad you will remain available to us as an advisor while we complete this transition.

Now to our second quarter results. All of my comments regarding our second quarter performance will be comparing Q2 2026 to Q2 of last year unless otherwise noted. We opened 23 new clubs in Q2 this year, consistent with the number of openings in the year-ago period. 7%.

Our Q2 comp increase was entirely driven by rate growth. Black Card penetration was approximately 68% at the end of the quarter, an increase of 210 basis points from the prior year. For the second quarter, total revenue was 365 million compared to 341 million, an increase of 7%. The increase was driven by revenue growth across all three segments.

A 13% increase in franchisee segment revenue was primarily due to an increase in National Ad Fund, or NAF, higher royalty revenue from increased same-club sales as well as new clubs, and franchisee and other fees. The increase in NAF revenue was primarily due to a 1 percentage point increase in NAF contributions from 2% to 3% for 2026. 7%, which is flat compared to prior year. The 4% increase in revenue in the corporate-owned club segment was driven by the sales from new clubs as well as increased same-club sales.

As a reminder, we opened 19 new corporate clubs since the end of Q2 last year, 11 of which occurred in the fourth quarter of 2025. Equipment segment revenue increased 4%. The increase was driven by higher revenue from new franchisee-owned club placement sales and higher revenue from replacement equipment sales. We completed 21 new club placements this quarter compared to 19 last year.

For the quarter, replacement equipment accounted for 85% of total equipment revenue compared to 87%. Our cost of revenue, which primarily relates to the cost of equipment sales to franchisee-owned clubs, amounted to 64 million compared to 59 million. Club operations expense, which relates to our corporate-owned club segment, increased 6% to 82 million compared to 77 million. This increase was primarily due to operating expense from 19 new clubs opened since the end of Q2 last year, partially offset by the sale of eight clubs in California.

SG&A decreased 3% to 34 million compared to 36 million, while adjusted SG&A was 33 million, a decrease of 2%.