Shares of Planet Fitness crashed $19.95, or 31.2 percent, on Thursday to $44.01 after the fitness chain significantly cut its growth projections and canceled plans to raise prices due to weak membership signups since the start of the year.

Based on lower net joins than planned in the first quarter, which has an outsized impact on full-year results due to the seasonal nature of the company’s subscription revenue model and the decision to pause the Black Card price increase, updates to 2026 growth expectations over 2025 results included:

  • System-wide same club sales growth of approximately 1 percent (previously 4 percent to 5 percent).
  • Revenue to increase approximately 7 percent (previously approximately 9 percent).
  • Adjusted EBITDA to increase approximately 6 percent (previously approximately 10 percent).
  • Adjusted net income to decrease approximately 2 percent (previously an increase of 4 percent to 5 percent).
  • Adjusted net income per share, diluted to increase approximately 4 percent (previously 9 percent to 10 percent), based on adjusted diluted weighted-average shares outstanding of approximately 79.0 million (previously 80.0 million), inclusive of shares expected to be repurchased.

“In the first quarter, our top and bottom line results exceeded expectations. However, 2026 is off to a slower-than-expected start from a net member growth perspective as we faced internal and external headwinds during our peak sign-up period. As a result, we are sharpening our marketing to prioritize capturing demand and driving net member growth. Additionally, we are pausing the planned national Black Card price increase pending a broader pricing review,” said Colleen Keating, chief executive officer. “While we are resetting near-term expectations, we expect that these actions will help set the stage for enhanced top and bottom-line results in 2027. The fitness industry continues to benefit from a number of secular tailwinds given the growing awareness of the vital role movement plays in health and well-being. Long-term, our thesis remains intact and as the leader in the high-value, low-price segment, Planet Fitness is well positioned to capitalize on our industry leadership.”

Planet Fitness reiterated plans for new equipment placements of approximately 150 to 160 in franchisee-owned locations. It also continues to expect to have system-wide new club openings of approximately 180 to 190 locations.

Operating Results for the First Quarter Ended March 31, 2026

For the first quarter of 2026, total revenue increased $60.6 million or 21.9 percent to $337.2 million from $276.7 million in the prior year period. System-wide same club sales increased 3.5 percent. System-wide sales increased $88.0 million to $1.4 billion, from $1.3 billion in the prior year period.

Net income attributable to Planet Fitness, Inc. was $51.6 million, or $0.65 per diluted share, compared to $41.9 million, or $0.50 per diluted share, in the prior year period. Adjusted net income increased $9.4 million to $59.4 million, or $0.74 per diluted share, compared to $50.0 million, or $0.59 per diluted share, in the prior year period.

Adjusted EBITDA increased $22.9 million to $139.9 million from $117.0 million in the prior year period.

By segment:

  • Franchise segment revenue increased $19.3 million or 16.7 percent to $134.5 million from $115.2 million in the prior year period. The increase was primarily attributable to a $10.3 million increase in National Advertising Fund (“NAF”) revenue from a 1 percent rate increase to NAF contributions from 2 percent to 3 percent for fiscal year 2026. There was also $6.0 million of higher royalty revenue, of which $2.8 million was attributable to a franchise same club sales increase of 3.5 percent, $2.2 million was attributable to new clubs opened since January 1, 2025 before they move into the same club sales base and $1.0 million was due to higher royalties on annual fees, and a $1.4 million increase in franchise and other fees.
  • Corporate-owned clubs segment revenue increased $7.0 million or 5.2 percent to $140.6 million from $133.7 million in the prior year period. This increase was primarily attributable to $6.9 million from the corporate-owned clubs in the same club sales base, of which of $4.3 million was attributable to a same clubs sales increase of 3.5 percent and $2.6 million was attributable to higher other fees, and $4.9 million was from new clubs opened since January 1, 2025 before they move into the same club sales base. This increase was partially offset by $4.8 million of lower revenue attributable to the 8 clubs located in California that the company sold to a franchisee in August 2025.
  • Equipment segment revenue increased $34.3 million or 123.4 percent to $62.1 million from $27.8 million in the prior year period. This increase was primarily attributable to $32.0 million of higher revenue from equipment sales to existing franchisee-owned clubs and $2.3 million of higher revenue from equipment sales to new franchisee-owned clubs. In the first quarter of 2026, we had equipment sales to 14 new franchisee-owned clubs compared to 10 in the prior year period.

Planet Fitness opened 15 new clubs during the period, all of which were franchisee-owned, bringing system-wide total clubs to 2,909 as of March 31.