Planet Fitness's Q2 Earnings Call: Our Top 5 Analyst Questions

Planet Fitness reported better-than-expected Q2 results, with management crediting strong Black Card membership growth and higher systemwide same-store sales for the outperformance. CEO Colleen Keating highlighted the company's ongoing focus on expanding its value proposition through strategic marketing campaigns and a more balanced mix of cardio and strength equipment. However, the market's negative response reflected investor concerns about the impact of the nationwide rollout of online cancellation, which led to a modest increase in member attrition. CFO Jay Stasz acknowledged this elevated churn was “slightly higher than initially modeled” but emphasized it was incorporated into the company’s outlook.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Planet Fitness’s Q2 Earnings Call

• Randal J. Konik (Jefferies): Asked about the performance differences between clubs with the new strength-focused layout and older formats. CEO Colleen Keating explained over 70% of clubs now have a balanced equipment mix, leading to higher member engagement and utilization.
• John Edward Heinbockel (Guggenheim): Inquired about expansion strategies in dense urban versus rural markets. Keating said smaller club formats are being piloted in less dense locations, while urban densification and suburban growth remain priorities.
• Maksim Rakhlenko (TD Cowen): Sought clarification on the elevated churn from online cancellation and its impact on guidance. CFO Jay Stasz confirmed the increased attrition is built into the outlook and expects it to moderate after several months.
• Rahul Krotthapalli (JPMorgan): Asked about competition from local high-value, low-price (HVLP) gyms and the ramp-up of new international markets. Keating emphasized Gen Z adoption and noted Spanish locations are ramping at similar rates to domestic clubs.
• Christopher Thomas O'Cull (Stifel): Queried about efforts to reduce new unit investment costs. Keating detailed structural changes like smaller lobbies and locker rooms to lower build costs, with a focus on driving top-line growth through product and marketing innovation.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will watch (1) whether churn rates from the online cancellation rollout return to historic norms, (2) ongoing increases in Black Card penetration and any resulting price adjustments, and (3) the pace of new club openings—particularly as the company tests smaller formats and expands internationally. The impact of Gen Z-focused marketing and the introduction of new amenities will be additional indicators of execution.

Planet Fitness currently trades at $105.62, down from $109.42 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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