Planet Fitness, Inc. 10-Q Summary: Quarter Ended September 30, 2025
Business Context and Reporting Period
This report covers the quarterly period ended September 30, 2025. Planet Fitness, Inc. operates as a franchisor and operator of fitness centers with approximately 20.7 million members and 2,795 clubs (2,514 franchised, 281 corporate-owned) across the U.S., Canada, Puerto Rico, Panama, Mexico, Australia, and Spain. The company operates three segments: Franchise, Corporate-owned clubs, and Equipment.
Key Financial Metrics
| Metric | Q3 2025 | Q3 2024 | YTD 9M 2025 | YTD 9M 2024 |
|---|---|---|---|---|
| Total Revenue | $330.3 million | $292.2 million | $947.9 million | $841.2 million |
| Net Income (GAAP) | $59.2 million | $42.4 million | $159.6 million | $126.7 million |
| Net Income Attributable to PF | $58.8 million | $42.0 million | $158.7 million | $125.0 million |
| Diluted EPS | $0.70 | $0.50 | $1.89 | $1.45 |
| Adjusted EBITDA | $140.8 million | $123.1 million | $405.4 million | $356.9 million |
| Operating Cash Flow (9M) | $309.4 million | $294.7 million | N/A | N/A |
| Cash & Equivalents | $329.0 million | $293.2 million | N/A | N/A |
| Total Debt (Net) | $2.16 billion | $2.17 billion | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 13.0% in Q3 and 12.7% YTD compared to the prior year.
- Franchise: Revenue up 11.0% (Q3) driven by a 7.1% same-club sales increase and new club openings.
- Corporate-owned: Revenue up 7.6% (Q3) driven by a 6.0% same-club sales increase.
- Equipment: Revenue surged 27.8% (Q3) due to higher sales to existing and new franchisee-owned clubs.
- Profitability: Operating income rose 31.8% in Q3 to $107.1 million. Net income increased 39.6% in Q3.
- One-Time Gains: Q3 results included a $6.4 million gain from the sale of 8 corporate-owned clubs in California to a franchisee.
- Club Count: Total clubs increased to 2,795, with 35 new clubs opened in Q3 (29 franchise, 6 corporate).
- Share Repurchases: The company repurchased 936,666 shares in Q3 for approximately $97.9 million. As of period end, $350 million remains under the 2024 repurchase program.
Guidance, Outlook, and Risks
Management Commentary: Management highlighted strong same-club sales growth across both franchise and corporate segments. The company continues to execute its growth strategy with over 800 new clubs under contractual commitment. The sale of corporate-owned clubs to franchisees is part of a strategy to optimize the asset base.
Risks and Contingencies:
- Tax Benefit Arrangements: The company has a liability of approximately $413.1 million related to tax receivable agreements, with significant payments due in future years.
- Debt Obligations: The company carries significant long-term debt ($2.18 billion principal) and must service interest and principal payments.
- Operational Risks: Risks include franchisee bankruptcies, rising construction costs, cybersecurity threats, and the ability to attract and retain members in a competitive market.
- International Exposure: Operations in Spain and other international markets introduce currency and regulatory risks.
Investor Verification Checklist
- Same-Club Sales Sustainability: Verify if the 6.0% (corporate) and 7.1% (franchise) same-club sales growth rates are sustainable given inflation and competitive pressures.
- Equipment Segment Volatility: Assess the cyclicality of the Equipment segment, which saw a 27.8% revenue spike, and its impact on future margins.
- Tax Liability Payments: Review the schedule of payments for the $413.1 million tax benefit arrangement liability to ensure liquidity coverage.
- Debt Covenants: Confirm continued compliance with debt covenants, particularly regarding the securitized senior notes.
- Share Repurchase Impact: Evaluate the remaining $350 million repurchase authorization and its potential impact on future cash flow and EPS.