NYSE:PLNT
Planet Fitness, Inc.
A rapidly growing franchisee of Planet Fitness offering affordable gym memberships with a unique 'Judgement Free Zone' brand identity.
Key Metrics
Investment Thesis
Bull Case
The stock offers compelling value given its consistent revenue growth from $936.8M in 2022 to $1.32B in 2025 and expanding net income margins. The franchise model provides a scalable engine for growth with limited downside risk due to the company's strong cash reserves of over $400M. Investors can capitalize on the secular trend towards affordable fitness options as inflation pressures consumers to seek cost-effective alternatives.
Bear Case
The balance sheet shows shareholders' equity at -$483.4M, indicating significant accumulated losses that could limit future flexibility or dividend potential. High levels of long-term debt at $2.46B create interest rate sensitivity and leverage risks in a rising cost-of-capital environment. The reliance on franchisees means the company has limited direct control over service quality and member retention at individual locations.
About Planet Fitness, Inc.
Planet Fitness operates as a franchise-based fitness center provider serving over 2,100 locations primarily in the United States. The company focuses on low-cost membership models and creates a non-intimidating environment to attract budget-conscious consumers. Key revenue streams include monthly memberships, annual dues, and ancillary services like tanning and massage.
Analysis
Management Discussion
Planet Fitness demonstrated robust financial performance in 2025, reporting revenue of $1.32B and net income of $220.3M, reflecting a successful expansion strategy. Operating profit reached $394.7M, indicating strong cost control despite significant capital expenditures of $163.7M for new club development. The company maintained a healthy cash position with $412.0M in ending cash, funding growth while returning capital to shareholders through $500.4M in share repurchases.
Industry Overview
The global fitness industry is experiencing rapid growth driven by post-pandemic health awareness and a shift towards accessible, community-focused workout environments. Planet Fitness distinguishes itself through a mass-market positioning that contrasts with premium competitors like Equinox or Orangetheory Fitness. Industry consolidation continues as operators seek to optimize unit density and leverage technology for member retention.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $936.8M | $1.07B | $1.18B | $1.32B |
| Cost of Revenue | $177.2M | $190.0M | $197.1M | $230.3M |
| Gross Profit | $759.6M | $881.3M | $984.5M | $1.09B |
| Operating Expenses | $529.5M | $608.4M | $660.3M | $699.2M |
| Operating Income | $230.1M | $272.9M | $324.2M | $394.7M |
| G&A | $114.9M | $124.9M | $129.1M | $137.6M |
| Stock-Based Comp | $8.1M | $7.9M | $8.9M | $12.3M |
| D&A | $124.0M | $149.4M | $160.3M | $155.8M |
| Depreciation | $83.3M | $97.9M | $111.1M | $119.0M |
| Amortization | $40.3M | $51.5M | $49.2M | $36.8M |
| Other OpEx | $414.6M | $483.5M | $531.2M | $561.5M |
| Non-Operating Income | $-68.6M | $-65.3M | $-77.5M | $-85.7M |
| Interest Expense | $88.6M | $86.6M | — | — |
| Interest Income | $5.0M | $17.7M | $23.1M | $23.0M |
| Pre-Tax Income | $161.4M | $207.5M | $246.7M | $309.0M |
| Income Tax | $50.5M | $58.5M | $68.4M | $85.9M |
| Continuing Ops | $110.9M | $149.0M | $178.3M | $223.1M |
| Discontinued Ops | $-467.0K | $-2.0M | $-4.0M | $-2.8M |
| Net Income | $110.5M | $147.0M | $174.2M | $220.3M |
| Minority Interest | $11.1M | $8.7M | $2.2M | $1.2M |
| Net to Common | $99.4M | $138.3M | $172.0M | $219.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $555.5M | $471.8M | $588.0M | $658.4M |
| Cash & Equivalents | $409.8M | $275.8M | $293.1M | $345.7M |
| Marketable Securities | — | $74.9M | $114.2M | $106.8M |
| Accounts Receivable | $46.2M | $41.9M | $77.1M | $70.4M |
| Inventory | $5.3M | $4.7M | $6.1M | $7.6M |
| Other Current Assets | $94.2M | $74.5M | $97.4M | $128.0M |
| Long-Term Assets | $2.30B | $2.50B | $2.48B | $2.45B |
| Intangibles | $417.1M | $372.5M | $323.3M | $286.4M |
| Goodwill | $702.7M | $717.5M | $720.6M | $712.5M |
| Operating Leases | $346.9M | $381.0M | $395.2M | $409.3M |
| LT Securities | — | $50.9M | $65.7M | $88.3M |
| Other LT Assets | $832.4M | $976.0M | $976.9M | $948.6M |
| Total Assets | $2.85B | $2.97B | $3.07B | $3.10B |
| Current Liabilities | $244.5M | $251.3M | $282.5M | $312.5M |
| Accounts Payable | $20.6M | $23.8M | $32.9M | $39.7M |
| Current Debt | $20.8M | $20.8M | $22.5M | $23.9M |
| Current Leases | $33.2M | $33.8M | $37.0M | $44.4M |
| Deferred Revenue | $53.8M | $59.6M | $62.1M | $58.6M |
| Other Current Liab | $49.2M | $47.1M | $60.1M | $70.6M |
| Long-Term Liabilities | $2.82B | $2.84B | $3.00B | $3.27B |
| Long-Term Debt | $1.98B | $1.96B | $2.15B | $2.46B |
| LT Operating Leases | $341.8M | $381.6M | $405.3M | $419.1M |
| Other LT Liab | $468.5M | $460.8M | $417.2M | $367.1M |
| Total Liabilities | $3.07B | $3.09B | $3.29B | $3.59B |
| Shareholders' Equity | $-211.6M | $-119.0M | $-215.4M | $-483.4M |
| Retained Earnings | $-703.7M | $-691.5M | $-822.2M | $-1.11B |
| AOCI | $-448.0K | $172.0K | $-2.3M | $1.3M |
| Total L&E | $2.85B | $2.97B | $3.07B | $3.10B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $110.5M | $147.0M | $174.2M | $220.3M |
| Non-Cash Adjustments | $125.1M | $219.8M | $132.1M | $226.7M |
| Working Capital Changes | $4.6M | $-36.6M | $37.5M | $-28.5M |
| Cash from Operations | $240.2M | $330.3M | $343.9M | $418.4M |
| Capital Expenditures | $100.1M | $136.0M | $155.1M | $163.7M |
| Cash from Investing | $-506.6M | $-340.0M | $-208.7M | $-160.2M |
| Debt Repayments | $724.8M | $20.7M | $608.7M | $431.6M |
| Share Buybacks | — | $125.0M | $300.2M | $500.4M |
| Cash from Financing | $135.7M | $-141.4M | $-105.0M | $-198.1M |
| FX Effect | $-808.0K | $776.0K | $-2.6M | $2.1M |
| Net Change in Cash | $-131.4M | $-150.4M | $27.6M | $62.3M |
| Beginning Cash | $603.9M | $472.5M | $322.1M | $349.7M |
| Ending Cash | $472.5M | $322.1M | $349.7M | $412.0M |
Frequently Asked Questions
How does Planet Fitness, Inc. make money?
Core revenue is driven by domestic and international franchise membership fees, supplemented by corporate club revenues from company-owned locations. Additional streams include ancillary product sales such as tanning, massage therapy, and retail merchandise sold within clubs.
What are the main risks for PLNT?
Franchise agreement expirations or failures could lead to significant membership churn and revenue volatility in specific markets. Rising labor costs and energy prices pose pressure on the low-margin, high-volume operational model. Regulatory changes regarding data privacy or health club licensing could increase compliance costs. Economic downturns may disproportionately affect discretionary spending on gym memberships.
What is PLNT's competitive advantage?
The company benefits from a proprietary 'Judgement Free Zone' brand that successfully attracts price-sensitive demographics. Its high-volume, low-cost operational model allows for rapid expansion with lower capital requirements compared to luxury fitness competitors. Strong franchisee support systems and consistent unit economics drive organic growth and same-store sales stability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.