Planet Fitness Inc. Reports Strong Q3 Growth Amid Challenges

Planet Fitness Inc ((PLNT)) has held its Q3 earnings call. Read on for the main highlights of the call.

During the recent earnings call, Planet Fitness Inc. expressed a generally positive sentiment, highlighting robust growth in both membership and revenue. The company celebrated successful marketing campaigns and strategic achievements, though it acknowledged challenges such as elevated attrition and the impact of the newly introduced click-to-cancel feature.

Record Membership Growth

Planet Fitness reported a significant milestone, ending the quarter with approximately 20.7 million members. This achievement was accompanied by a 6.9% system-wide same club sales growth. The company also expanded its footprint by adding 35 new clubs, bringing the global total to 2,795.

Successful High School Summer Pass Program

The High School Summer Pass program was a notable success, with a 30% increase in participation compared to the previous year. Over 3.7 million teens completed more than 19 million workouts, and historically, a mid-single-digit percentage of these participants convert to paying members.

Strong Financial Performance

Planet Fitness reported total revenue of $330.3 million for Q3, marking a 13% increase from the previous year. The adjusted EBITDA also saw a significant rise, reaching $140.8 million, which is a 14.4% increase.

Increased Black Card Penetration

The company achieved a notable increase in Black Card membership, which reached 66.1%, representing a 300 basis point increase from the previous year.

Recognition and Awards

Planet Fitness received accolades for its growth and innovation, being named to Fortune’s 2025 100 Fastest-Growing Companies list and ranking #22 in Franchise Times Top 400 as the top-rated fitness concept.

Elevated Attrition Rates

Despite the positive growth, Planet Fitness faced challenges with elevated attrition rates on a year-over-year basis. However, these rates began to moderate towards the end of the quarter.

Impact of Click-to-Cancel

The introduction of the click-to-cancel feature led to higher churn rates. Nevertheless, it also positively influenced join rates, indicating a mixed impact on membership dynamics.

Forward-Looking Guidance

Looking ahead, Planet Fitness raised its full-year outlook, now expecting a 6.5% same club sales growth, 11% revenue growth, and an adjusted net income increase in the 13% to 14% range. The company plans to increase the Black Card price to $29.99 post-peak season in 2026 and continues to explore new amenities. Additionally, it aims to open between 160 and 170 new clubs by the end of the year and shift marketing strategies to further enhance member growth.

In summary, Planet Fitness Inc.’s earnings call reflected a positive outlook with strong membership and revenue growth, successful strategic initiatives, and recognition for its achievements. While challenges such as elevated attrition and the impact of click-to-cancel were noted, the company’s forward-looking guidance remains optimistic, with plans for expansion and enhanced member offerings.