Planet Fitness, Inc. reported total revenue increased 13.3 percent in the second quarter ended June 30 to $340.9 million from $300.9 million in the prior year period, including system-wide same club sales growth of 8.2 percent.

Segment Summary

Franchise segment revenue increased $11.9 million or 11.0 percent to $119.7 million from $107.8 million in the prior year period. Of the increase, $8.0 million was due to higher royalty revenue, of which $5.0 million was attributable to a franchise same club sales increase of 8.3 percent, $1.6 million was attributable to new clubs opened since April 1, 2024, before moving into the same club sales base and $1.4 million was from higher royalties on annual fees.

Franchise segment revenue also includes $2.7 million of higher National Advertising Fund (NAF) revenue and $1.5 million of higher franchise and other fees.

Franchise Segment adjusted EBITDA increased $9.0 million or 11.7 percent to $86.5 million. This increase was primarily attributable to higher franchise segment revenue of $11.9 million, as described above, partially offset by $2.7 million of higher NAF expense.

Corporate-owned clubs segment revenue increased $13.5 million or 10.8 percent to $139.0 million from $125.5 million in the prior year period. Of the increase, $8.1 million was attributable to corporate-owned clubs included in the same club sales base, of which $5.6 million was attributed to a 7.0 percent same-club sales increase, $0.8 million to higher annual fee revenue, and $1.7 million to other fees. Additionally, $5.4 million was from new clubs opened since April 1, 2024, before they were integrated into the existing club sales base.

Corporate-owned clubs Segment adjusted EBITDA increased $7.0 million or 14.2 percent to $56.6 million. This increase was primarily attributable to $5.8 million from the corporate-owned same clubs’ sales increase of 7.0 percent and $1.5 million in lower selling, general, and administrative expenses. This increase was partially offset by $1.0 million of lower adjusted EBITDA from the eight clubs open and operating in Spain, all of which are yet to be included in the same club sales base.

Equipment segment revenue increased $14.5 million or 21.5 percent to $82.2 million from $67.7 million in the prior year period. Of the increase, $14.3 million was attributed to higher revenue from equipment sales to existing franchisee-owned clubs, and $0.3 million was attributed to higher revenue from equipment sales to new franchisee-owned clubs. In the second quarter of 2025, we had equipment sales to 19 new franchisee-owned clubs compared to 18 in the prior year period.

Equipment Segment adjusted EBITDA increased $7.9 million or 42.3 percent to $26.4 million. This increase was primarily attributable to higher equipment sales to new and existing franchisee-owned clubs, as described above, and to higher-margin equipment sales resulting from an updated equipment mix following the adoption of the franchise growth model.

Net Income
For the second quarter, net income attributable to Planet Fitness, Inc. was $58.0 million, or 69 cents per diluted share, compared to $48.6 million, or 56 cents per diluted share, in the prior year period.

Net income increased $9.0 million to $58.3 million, compared to $49.3 million in the prior year period.

Adjusted net income increased $10.4 million to $72.6 million, or $0.86 per diluted share, compared to $62.2 million, or $0.71 per diluted share, in the prior year period.

Adjusted EBITDA increased $20.1 million to $147.6 million from $127.5 million in the prior year period.

“Today marks the 10-year anniversary for Planet Fitness as a public company. Over the past decade, through a steadfast commitment to our mission and strategy, we’ve added nearly 14 million members, expanded our global footprint by more than 1,700 clubs, and established a presence in all 50 states and four additional countries. While we are proud of our accomplishments, we believe there is an even greater opportunity ahead. As consumers increasingly prioritize health and well-being, Planet Fitness is well-positioned to meet this demand with our judgment-free, high-quality, and affordable fitness experience. Early momentum in programs like our High School Summer Pass – which is now in its fifth year and outpacing prior-year sign-ups and workouts – underscores our potential,” said Colleen Keating, Chief Executive Officer. “In the second quarter, we delivered strong financial performance and remain confident in our full-year outlook for 2025, even amid near-term economic variability. We recently signed a binding agreement to sell our eight corporate clubs in California to a franchisee in the market, delivering on our commitment to recycle capital where appropriate and demonstrating our commitment to our asset-light model.”

Balance Sheet Summary
Cash and marketable securities of $582.5 million, which includes cash and cash equivalents of $335.7 million, restricted cash of $56.5 million and marketable securities of $190.3 million as of June 30, 2025.

Subsequent Event
On August 4, 2025, the company signed a binding agreement to sell eight corporate-owned clubs located in California to a franchisee. The transaction is expected to close in the third quarter, subject to customary closing contingencies.

2025 Outlook
The company continues to believe that between its tariff mitigation plans and the current tariff levels, its exposure is limited. This guidance does not include estimates or assumptions regarding the impact of tariffs beyond those currently in place.

For the year ending December 31, 2025, the company is narrowing and reiterating the following expectations:

  • New equipment placements of approximately 130 to 140 in franchisee-owned locations;
  • System-wide new club openings of approximately 160 to 170 locations; and
  • System-wide same club sales growth of approximately 6 percent (previously 5 percent to 6 percent.)

The company is reiterating the following growth expectations over its 2024 results:

  • Revenue is expected to increase in the 10 percent range;
  • Adjusted EBITDA to increase in the 10 percent range;
  • Adjusted net income is expected to increase in the 8 percent to 9 percent range; and
  • Adjusted net income per share, diluted, is expected to increase in the 11 percent to 12 percent range, based on adjusted diluted weighted-average shares outstanding of approximately 84.5 million, inclusive of the shares expected to be repurchased in 2025.

The company continues to expect 2025 net interest expense to be approximately $86.0 million. It also continues to expect capital expenditures to increase by approximately 20 percent, driven by the addition of new clubs in its corporate-owned portfolio, and depreciation and amortization to remain flat compared to 2024.

Image courtesy Planet Fitness