Planet Fitness, Inc. is reporting that total revenue for the fourth quarter of 2024 increased 19.4 percent to $340.5 million from $285.1 million in the prior-year Q4 period, including system-wide same-club sales growth of 5.5 percent.

Segment Summary

Franchise segment revenue increased $10.8 million or 11.0 percent to $109.0 million from $98.2 million in the prior-year Q4 period. Of the increase, $5.6 million was due to higher royalty revenue, of which $3.5 million was attributable to a franchise same club sales increase of 5.7 percent, $1.3 million was attributable to new clubs opened since October 1, 2023 before they move into the same club sales base and $0.7 million was from higher royalties on annual fees. There was also a $3.1 million increase in placement revenue and a $1.7 million increase in franchise and other fees, partially offset by a $1.3 million decrease in revenue associated with the sale of HVAC units to franchisees.

Franchise segment revenue also included $1.9 million of higher National Advertising Fund, or NAF revenue.

Franchise segment Adjusted EBITDA increased $6.7 million or 9.8 percent to $74.7 million. The increase was primarily the result of $10.8 million of higher franchise segment revenue as described above, partially offset by $1.8 million of higher NAF expense, $1.6 million of higher cost of revenue and $0.4 million of higher selling, general and administrative expense.

Corporate-Owned Clubs segment revenue increased $9.9 million or 8.5 percent to $126.3 million from $116.4 million in the prior-year Q4 period. Of the increase, $3.6 million was attributable to corporate-owned clubs included in the same club sales base, of which $1.5 million was attributable to a same club sales increase of 4.4 percent, $0.9 million was attributable to higher annual fee revenue and $1.2 million was attributable to higher other fees. Additionally, $6.4 million was from new clubs opened since October 1, 2023 before they move into the same club sales base.

Corporate-Owned Clubs Segment Adjusted EBITDA increased $0.8 million or 1.8 percent to $46.4 million. The increase was primarily attributable to $0.8 million from new clubs opened since October 1, 2023 before they move into the same club sales base.

Equipment segment revenue increased $34.7 million or 49.2 percent to $105.1 million from $70.4 million in the prior-year Q4 period. Of the increase, $30.4 million was due to higher revenue from equipment sales to existing franchisee-owned clubs, including additional strength equipment sold in the fourth quarter of 2024, and $4.3 million was due to higher revenue from equipment sales to new franchisee-owned clubs. In the fourth quarter of 2024, we had equipment sales to 77 new franchisee-owned clubs compared to 67 in the prior-year Q4 period.

Equipment Segment Adjusted EBITDA increased $13.1 million or 78.3 percent to $29.9 million. The increase was primarily driven by higher equipment sales to existing and new franchisee-owned clubs, including additional strength equipment sold to existing franchisee-owned clubs in the fourth quarter of 2024, and higher margin equipment sales related to an updated equipment mix as a result of the adoption of the new growth model.

Segment Adjusted EBITDA represents the company’s Adjusted EBITDA broken out by its reportable segments. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the company’s core operations, see “Non-GAAP Financial Measures” accompanying this press release.

For the fourth quarter of 2024, net income attributable to Planet Fitness, Inc. was $47.1 million, or 56 cents per diluted share, compared to $35.3 million, or 41 cents per diluted share, in the prior-year Q4 period.

Net income was $47.6 million in the fourth quarter of 2024 compared to $36.8 million in the prior-year Q4 period. Adjusted net income increased 12.4 percent to $59.7 million, or 70 cents per diluted share, compared to $53.1 million, or 60 cents per diluted share, in the prior-year Q4 period.

Adjusted net income has been adjusted to reflect a normalized income tax rate of 25.9 percent for both the fourth quarters of 2024 and 2023, respectively, and excludes certain non-cash and other items that we do not consider in the evaluation of ongoing operational performance.

Fiscal Year 2024 Highlights

  • Total full-year 2024 revenue increased from the prior year period by 10.3 percent to $1.2 billion.
    • System-wide same club sales increased 5.0 percent.
    • System-wide sales increased to $4.8 billion from $4.5 billion in the prior year.
  • Net income attributable to Planet Fitness, Inc. was $172.0 million, or $2.00 per diluted share, compared to $138.3 million, or $1.62 per diluted share, in the prior year.
  • Net income increased $27.2 million to $174.2 million, compared to $147.0 million in the prior year.
  • Adjusted net income increased $24.7 million to $223.8 million, or $2.59 per diluted share, compared to $199.0 million, or $2.24 per diluted share, in the prior year.
  • Adjusted EBITDA increased $52.3 million to $487.7 million from $435.4 million in the prior year.

The company said 150 new Planet Fitness clubs were opened system-wide during 2024, which included 129 franchisee-owned and 21 corporate-owned clubs, bringing system-wide total clubs to 2,722 as of December 31, 2024.

Image courtesy Planet Fitness, Inc.