PLNTMEDIUM SIGNALFINANCIAL10-K

Planet Fitness delivered strong operational growth with revenue up 12.1% to $1.3B and expanded to 2,896 clubs, but stockholders' equity deteriorated significantly to -$482.8M due to aggressive share buybacks totaling $500.4M.

The company demonstrates solid business momentum with accelerating member growth to 20.8 million and system-wide sales reaching $5.3 billion, indicating healthy franchise operations. However, the doubling of negative stockholders' equity raises questions about capital allocation strategy and financial leverage sustainability despite strong cash generation.

Comparing 2026-02-25 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

Planet Fitness showed robust financial performance with revenue growing 12.1% to $1.3B, net income up 27.4% to $219.1M, and operating cash flow increasing 21.7% to $418.4M. However, the company's aggressive capital allocation strategy resulted in $500.4M in share buybacks (up 66.7%), contributing to stockholders' equity deteriorating to -$482.8M from -$215.4M, while total debt increased 14.4% to $2.5B. Despite the balance sheet concerns, strong cash generation and 17.9% growth in cash reserves to $345.7M suggest the business remains financially stable with solid operational fundamentals.

FINANCIAL STATEMENT CHANGES
Stockholders Equity
Balance Sheet
-124.2%
-$215.4M→-$482.8M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Share Buybacks
Cash Flow
+66.7%
$300.2M→$500.4M

Share repurchases increased 66.7% — management returning capital, signals confidence in intrinsic value.

Net Income
P&L
+27.4%
$172.0M→$219.1M

Net income grew 27.4% — bottom-line growth signals improving overall business health.

Inventory
Balance Sheet
+23.3%
$6.1M→$7.6M

Inventory built 23.3% — monitor whether demand supports this build or if write-downs may follow.

Operating Income
P&L
+21.7%
$324.2M→$394.7M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Operating Cash Flow
Cash Flow
+21.7%
$343.9M→$418.4M

Operating cash flow grew 21.7% — strong conversion of earnings to cash, healthy business fundamentals.

Cash & Equivalents
Balance Sheet
+17.9%
$293.1M→$345.7M

Cash grew 17.9% — improving liquidity position supports investment and shareholder returns.

Total Debt
Balance Sheet
+14.4%
$2.2B→$2.5B

Debt rose 14.4% — additional borrowing for investment or operations; monitor coverage ratios.

Revenue
P&L
+12.1%
$1.2B→$1.3B

Revenue growing 12.1% — solid top-line momentum, watch margins for quality of growth.

Current Assets
Balance Sheet
+12%
$588.0M→$658.4M

Current assets grew 12% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-25
ADDED
The number of outstanding shares of the registrant s Class A common stock, par value $0.0001 per share, and Class B common stock, par value $0.0001 per share, as of February 20, 2026, was 79,697,889 shares and 316,128 shares, respectively.
In 2025, we recorded revenues of $1.3 billion and had system-wide sales of $5.3 billion, which we define as monthly dues and annual fees billed by us and our franchisees.
We ended the year with approximately 20.8 million members and 2,896 clubs (2,604 franchisee-owned and 292 corporate-owned) located in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
System-wide sales for 2025 included $4.7 billion attributable to franchisee-owned clubs, from which we generate royalty revenue, and $552.2 million attributable to our corporate-owned clubs.
In 2025, our corporate-owned clubs had a Segment Adjusted EBITDA margin of 37.8% and clubs that have been in operation for more than 12 months had average unit volumes ( AUVs ) of approximately $2.0 million with four-wall Adjusted EBITDA margins (an assessment of club-level profitability which includes local and national advertising expense) of approximately 42.7%, or approximately 35.3% after applying the current 7% royalty rate.
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REMOVED
The number of outstanding shares of the registrant s Class A common stock, par value $0.0001 per share, and Class B common stock, par value $0.0001 per share, as of February 18, 2025, was 84,330,138 shares and 341,841 shares, respectively.
We create a non-intimidating environment where everyone is welcome.
In 2024, we recorded revenues of $1.2 billion and had system-wide sales of $4.8 billion, which we define as monthly dues and annual fees billed by us and our franchisees.
We ended the year with approximately 19.7 million members and 2,722 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
System-wide sales for 2024 included $4.3 billion attributable to franchisee-owned clubs, from which we generate royalty revenue, and $515.3 million attributable to our corporate-owned clubs.
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