Summary of Planet Fitness Q2 2026 Earnings Call

1Key Financial Results and Metrics

Membership: Ended the quarter with 21.5 million members, a 3.6% increase year-over-year but flat compared to Q1 2026.

Same Club Sales: Increased by 1.7%, driven entirely by rate growth.

Revenue: Total revenue reached $365 million, up 7% from $341 million in Q2 2025.

Adjusted EBITDA: Increased by 3.5% to $153 million, with an adjusted EBITDA margin of 41.8%, down from 43.3% year-over-year.

Net Income: Reported net income of $67 million, with adjusted net income per diluted share at $0.88.

Share Repurchase: Approximately 4 million shares repurchased at an average price of $50.44, totaling $200 million.

2Strategic Updates and Business Highlights

Leadership Transition: Welcomed Sudhanshu Priyadarshi as CFO, emphasizing his experience in driving value creation.

Marketing Strategy: Evolving marketing to better target the 70% of the U.S. population without gym memberships, focusing on approachability and inclusivity.

Member Retention: Implementing a predictive AI churn model and enhancing member engagement through a 100-day program with franchisees.

Pricing Tests: Testing a $10 Classic Card promotion nationally to assess regional pricing elasticity without intending to roll back the standard price.

High School Summer Pass Program: Over 12 million workouts completed, aimed at attracting younger consumers.

3Forward Guidance and Outlook

Adjusted Net Income Guidance: Raised to approximately 6% growth, up from 4%, despite higher interest expenses.

Revenue Growth: Expected to grow approximately 7% for the year, with system-wide same club sales growth projected at around 1%.

Unit Openings: Anticipating 180 to 190 new clubs to open in 2026, with a focus on Q4 for the majority of openings.

Capital Expenditures: Expected to increase by 10% to 15%.

4Bad News, Challenges, or Points of Concern

Churn Rates: Average monthly attrition rate remains steady at 3.5%, with potential fluctuations due to seasonality.

Adjusted EBITDA Margin Decline: Margins decreased across segments, particularly in franchisee and equipment segments, raising concerns about cost management.

Interest Expense Increase: Higher interest expense due to a $75 million drawdown on variable funding notes, impacting adjusted net income guidance slightly.

Competitive Pressures: Need to effectively communicate value to existing members while attracting new ones, especially with potential pricing changes.

5Notable Q&A Insights

Pricing Strategy: Discussions on the potential for different pricing across regions based on the $10 Classic Card test results, but no immediate plans to change the Black Card pricing.

Franchisee Feedback: Mixed responses from franchisees regarding new pricing tests, with ongoing communication to ensure alignment.

Marketing Effectiveness: Acknowledgment of past marketing missteps, with a commitment to more extensive consumer testing for new campaigns.

Member Experience Enhancements: Plans to integrate nutrition and wellness features into the app, alongside existing partnerships for meal planning and wellness counseling. This summary encapsulates the key financial highlights, strategic initiatives, forward-looking guidance, and challenges faced by Planet Fitness as discussed in the Q2 2026 earnings call.