Planet Fitness, Inc. Announces Third Quarter 2025 Results

___________________________

¹ Adjusted net income, Adjusted EBITDA and Adjusted net income per share, diluted are non-GAAP measures. For reconciliations of Adjusted EBITDA and Adjusted net income to U.S. GAAP ("GAAP") net income and a computation of Adjusted net income per share, diluted, see "Non-GAAP Financial Measures" accompanying this press release.

Planet Fitness, Inc. and subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share amounts)

2025

2024

2025

2024

Revenue:

Franchise

$        92,245

$        82,873

$      282,362

$      254,783

National advertising fund revenue

21,430

19,542

66,151

59,442

Franchise segment

113,675

102,415

348,513

314,225

Corporate-owned clubs

137,833

128,132

410,491

375,976

Equipment

78,837

61,699

188,882

151,003

Total revenue

330,345

292,246

947,886

841,204

Operating costs and expenses:

Cost of revenue

58,155

45,701

140,063

116,628

Club operations

79,792

71,614

238,909

216,119

Selling, general and administrative

30,525

32,647

100,343

93,453

National advertising fund expense

21,429

19,720

66,150

59,624

Depreciation and amortization

39,108

41,033

115,818

120,230

Other (gain) loss, net

(5,732)

280

(2,069)

698

Total operating costs and expenses

223,277

210,995

659,214

606,752

Income from operations

107,068

81,251

288,672

234,452

Other income (expense), net:

Interest income

5,936

5,610

17,438

16,687

Interest expense

(26,342)

(26,603)

(78,720)

(72,569)

Other income (expense), net

1,067

(558)

3,292

1,132

Total other (expense), net

(19,339)

(21,551)

(57,990)

(54,750)

Income before income taxes

87,729

59,700

230,682

179,702

Provision for income taxes

27,974

16,523

69,120

49,824

Loss from equity-method investments, net of tax

(572)

(782)

(2,005)

(3,198)

Net income

59,183

42,395

159,557

126,680

Less: net income attributable to non-controlling interests

354

386

842

1,722

Net income attributable to Planet Fitness, Inc.

$        58,829

$        42,009

$      158,715

$      124,958

Net income per share of Class A common stock:

Basic

$             0.70

$             0.50

$             1.89

$             1.45

Diluted

$             0.70

$             0.50

$             1.89

$             1.45

Weighted-average shares of Class A common stock outstanding:

Basic

83,517

84,570

83,847

86,090

Diluted

83,717

84,728

84,055

86,289

Planet Fitness, Inc. and subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share amounts)

September 30, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

$               329,020

$               293,150

Restricted cash

56,388

56,524

Short-term marketable securities

114,363

114,163

Accounts receivable, net of allowances for uncollectible amounts of $33 and $30 as of

September 30, 2025 and December 31, 2024, respectively

70,425

77,145

Inventory

6,982

6,146

Prepaid expenses

23,176

21,499

Other receivables

15,650

16,776

Income tax receivable and prepayments

9,646

2,616

Total current assets

625,650

588,019

Long-term marketable securities

78,177

65,668

Investments, net of allowance for expected credit losses of $23,923 and $18,834 as of

September 30, 2025 and December 31, 2024, respectively

70,431

75,650

Property and equipment, net of accumulated depreciation of $430,141 and $370,118, as of

September 30, 2025 and December 31, 2024, respectively

448,324

423,991

Right-of-use assets, net

403,314

395,174

Intangible assets, net

295,587

323,318

Goodwill

710,571

720,633

Deferred income taxes

415,673

470,197

Other assets, net

10,482

7,058

Total assets

$            3,058,209

$            3,069,708

Liabilities and stockholders' deficit

Current liabilities:

Current maturities of long-term debt

$                 22,500

$                 22,500

Accounts payable

48,013

32,887

Accrued expenses

61,159

67,895

Equipment deposits

11,177

1,851

Restricted liabilities - national advertising fund

2,613

—

Deferred revenue, current

65,219

62,111

Payable pursuant to tax benefit arrangements, current

49,672

55,556

Other current liabilities

40,091

39,695

Total current liabilities

300,444

282,495

Long-term debt, net of current maturities

2,135,129

2,148,029

Lease liabilities, net of current portion

417,624

405,324

Deferred revenue, net of current portion

30,167

31,990

Deferred tax liabilities

620

1,386

Payable pursuant to tax benefit arrangements, net of current portion

363,429

411,360

Other liabilities

5,153

4,497

Total noncurrent liabilities

2,952,122

3,002,586

Stockholders' equity (deficit):

Class A common stock, $0.0001 par value, 300,000 shares authorized, 82,982 and 84,323

shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

9

9

Class B common stock, $0.0001 par value, 100,000 shares authorized, 316 and 342 shares

issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

—

—

Accumulated other comprehensive income (loss)

1,121

(2,348)

Additional paid in capital

618,939

609,115

Accumulated deficit

(814,832)

(822,156)

Total stockholders' deficit attributable to Planet Fitness, Inc.

(194,763)

(215,380)

Non-controlling interests

406

7

Total stockholders' deficit

(194,357)

(215,373)

Total liabilities and stockholders' equity

$            3,058,209

$            3,069,708

Planet Fitness, Inc. and subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended September 30,

(in thousands)

2025

2024

Cash flows from operating activities:

Net income

$             159,557

$            126,680

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

115,818

120,230

Equity-based compensation expense

9,132

5,965

Deferred tax expense

54,408

40,077

Amortization of deferred financing costs

3,975

3,984

Loss on extinguishment of debt

—

2,285

Accretion of marketable securities discount

(1,109)

(2,658)

Losses from equity-method investments, net of tax

2,005

3,198

Dividends accrued on held-to-maturity investment

(1,733)

(1,618)

Credit loss on held-to-maturity investment

5,089

849

Gain on re-measurement of tax benefit arrangement liability

(1,769)

(774)

Gain on sale of corporate-owned clubs

(6,443)

—

Gain on insurance proceeds

(1,461)

—

Other

(150)

538

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

7,484

(7,443)

Inventory

(836)

(201)

Other assets and other current assets

1,581

1,735

Restricted assets - national advertising fund

2,613

(368)

Accounts payable and accrued expenses

(3,728)

8,818

Other liabilities and other current liabilities

327

(741)

Income taxes

(5,119)

(1,553)

Payments pursuant to tax benefit arrangements

(52,778)

(28,786)

Equipment deposits

9,324

5,835

Deferred revenue

3,862

9,552

Leases

9,312

9,138

Net cash provided by operating activities

309,361

294,742

Cash flows from investing activities:

Additions to property and equipment

(113,577)

(112,968)

Insurance proceeds for property and equipment

2,053

—

Payment of deferred consideration for acquired clubs

(1,524)

—

Proceeds from sale of corporate-owned clubs

21,626

—

Purchases of marketable securities

(118,401)

(116,833)

Maturities of marketable securities

106,309

80,922

Issuance of note receivable, related party

(2,639)

—

Other investing activity

112

568

Net cash used in investing activities

(106,041)

(148,311)

Cash flows from financing activities:

Proceeds from issuance of long-term debt

—

800,000

Repayment of long-term debt

(16,875)

(603,063)

Payment of deferred financing and other debt-related costs

—

(12,055)

Proceeds from issuance of Class A common stock

1,478

17,221

Repurchase and retirement of Class A common stock

(150,026)

(300,205)

Principal payments on capital lease obligations

(93)

(100)

Payment of share repurchase excise tax

(2,549)

—

Distributions paid to members of Pla-Fit Holdings

(1,521)

(3,345)

Net cash used in financing activities

(169,586)

(101,547)

Effects of exchange rate changes on cash and cash equivalents

2,000

(456)

Net increase in cash, cash equivalents and restricted cash

35,734

44,428

Cash, cash equivalents and restricted cash, beginning of period

349,674

322,121

Cash, cash equivalents and restricted cash, end of period

$             385,408

$            366,549

Supplemental cash flow information:

Cash paid for interest

$               75,004

$              53,718

Net cash paid for income taxes

$               19,414

$              11,248

Non-cash investing activities:

Non-cash additions to property and equipment included in accounts payable and accrued expenses

$               22,159

$              18,446

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2025

2024

2025

2024

Net income

$           59,183

$           42,395

$         159,557

$         126,680

Interest income

(5,936)

(5,610)

(17,438)

(16,687)

Interest expense

26,342

26,603

78,720

72,569

Provision for income taxes

27,974

16,523

69,120

49,824

Depreciation and amortization

39,108

41,033

115,818

120,230

EBITDA

146,671

120,944

405,777

352,616

Severance costs⁽¹⁾

—

—

649

1,602

Executive transition costs⁽²⁾

408

1,342

2,855

2,973

Loss on adjustment of allowance for credit losses on held-to-maturity investment

486

292

5,089

849

Dividend income on held-to-maturity investment

(594)

(553)

(1,733)

(1,618)

Insurance recovery⁽³⁾

—

—

(1,636)

—

Lease closure expenses, net⁽⁴⁾

261

—

1,328

—

Tax benefit arrangement remeasurement⁽⁵⁾

(475)

575

(1,769)

(774)

Gain on sale of corporate-owned clubs⁽⁶⁾

(6,443)

—

(6,443)

—

Amortization of basis difference of equity-method investments⁽⁷⁾

240

240

720

709

Other⁽⁸⁾

212

231

543

528

Adjusted EBITDA

$         140,766

$         123,071

$         405,380

$         356,885

⁽¹⁾ Represents severance related expenses recorded in connection with a reduction in force.

⁽²⁾ Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and equity-based compensation associated with certain equity awards granted to, the Company's new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

⁽³⁾ Represents insurance recoveries, net of costs incurred.

⁽⁴⁾ Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.

⁽⁵⁾ Represents a (gain) loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

⁽⁶⁾ Represents a gain on the sale of eight corporate-owned clubs to a franchisee.

⁽⁷⁾ Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.

⁽⁸⁾ Represents certain other gains and charges that we do not believe reflect our underlying business performance.

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2025

2024

2025

2024

Adjusted EBITDA

Franchise segment

$          82,367

$          72,786

$         253,734

$         226,378

Corporate-owned clubs segment

53,737

50,391

156,184

142,354

Equipment segment

23,724

18,487

57,601

41,860

Segment Adjusted EBITDA

159,828

141,664

467,519

410,592

Corporate and other Adjusted EBITDA⁽¹⁾

(19,062)

(18,593)

(62,139)

(53,707)

Adjusted EBITDA⁽²⁾

$        140,766

$        123,071

$         405,380

$         356,885

⁽¹⁾ Corporate and other Adjusted EBITDA includes adjusted corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment and thus are unallocated.

⁽²⁾ Segment Adjusted EBITDA plus the Adjusted EBITDA of corporate and other is equal to Adjusted EBITDA. Adjusted EBITDA is a metric that is not presented in accordance with GAAP. Refer to "—Non-GAAP Financial Measures" for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share amounts)

2025

2024

2025

2024

Net income

$           59,183

$           42,395

$         159,557

$         126,680

Provision for income taxes

27,974

16,523

69,120

49,824

Severance costs⁽¹⁾

—

—

649

1,602

Executive transition costs⁽²⁾

408

1,342

2,855

2,973

Loss on adjustment of allowance for credit losses on held-to-maturity investment

486

292

5,089

849

Dividend income on held-to-maturity investment

(594)

(553)

(1,733)

(1,618)

Insurance recovery⁽³⁾

—

—

(1,636)

—

Lease closure expenses, net⁽⁴⁾

261

—

1,328

—

Tax benefit arrangement remeasurement⁽⁵⁾

(475)

575

(1,769)

(774)

Gain on sale of corporate-owned clubs⁽⁶⁾

(6,443)

—

(6,443)

—

Amortization of basis difference of equity-method investments⁽⁷⁾

240

240

720

709

Loss on extinguishment of debt⁽⁸⁾

—

—

—

2,285

Other⁽⁹⁾

212

231

543

528

Purchase accounting amortization⁽¹⁰⁾

9,178

12,757

27,534

38,272

Adjusted income before income taxes

90,430

73,802

255,814

221,330

Adjusted income taxes⁽¹¹⁾

23,421

19,060

66,256

57,161

Adjusted net income

$           67,009

$           54,742

$         189,558

$         164,169

Adjusted net income per share, diluted

$               0.80

$                0.64

$               2.25

$               1.88

Adjusted weighted-average shares outstanding, diluted⁽¹²⁾

84,033

85,260

84,385

87,101

⁽¹⁾ Represents severance related expenses recorded in connection with a reduction in force.

⁽²⁾ Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and equity-based compensation associated with certain equity awards granted to, the Company's new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

⁽³⁾ Represents insurance recoveries, net of costs incurred.

⁽⁴⁾ Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.

⁽⁵⁾ Represents a (gain) loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

⁽⁶⁾ Represents a gain on the sale of eight corporate-owned clubs to a franchisee.

⁽⁷⁾ Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.

⁽⁸⁾ Represents the write-off of deferred financing costs associated with the repayment of the 2018-1 Class A-2-II notes prior to the anticipated repayment date.

⁽⁹⁾ Represents certain other gains and charges that we do not believe reflect our underlying business performance.

⁽¹⁰⁾ Includes $3.1 million and $9.3 million for the three and nine months ended September 30, 2024, respectively, of amortization for intangible assets recorded in connection with investment funds affiliated with TSG Consumer Products, LLC purchasing interests in Pla-Fit Holdings in 2012 (the "2012 Acquisition"), other than favorable leases. During the fourth quarter of 2024, the intangible assets recorded in connection with the 2012 Acquisition became fully amortized. Also includes $9.2 million and $9.7 million for the three months ended September 30, 2025 and 2024, respectively, and $27.5 million and $29.0 million for the nine months ended September 30, 2025 and 2024, respectively, of amortization for intangible assets created in connection with historical acquisitions of franchisee-owned clubs. The adjustment represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, in each period.

⁽¹¹⁾ Represents corporate income taxes at an assumed effective tax rate of 25.9% and 25.8% for the three months ended September 30, 2025 and 2024, respectively, and 25.9% and 25.8% for the nine months ended September 30, 2025 and 2024, respectively, applied to adjusted income before income taxes.

⁽¹²⁾ Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

(in thousands, except per share amounts)

Net income

Weighted

Average Shares

Net income per

share, diluted

Net income

Weighted

Average Shares

Net income per

share, diluted

Net income attributable to Planet Fitness, Inc.⁽¹⁾

$       58,829

83,717

$              0.70

$       42,009

84,728

$              0.50

Net income attributable to non-controlling interests⁽²⁾

354

316

386

532

Net income

59,183

42,395

Adjustments to arrive at adjusted income before income taxes⁽³⁾

31,247

31,407

Adjusted income before income taxes

90,430

73,802

Adjusted income taxes⁽⁴⁾

23,421

19,060

Adjusted net income

$       67,009

84,033

$              0.80

$       54,742

85,260

$              0.64

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

(in thousands, except per share amounts)

Net income

Weighted

Average Shares

Net income per

share, diluted

Net income

Weighted

Average Shares

Net income per

share, diluted

Net income attributable to Planet Fitness, Inc.⁽¹⁾

$     158,715

84,055

$              1.89

$     124,958

86,289

$              1.45

Net income attributable to non-controlling interests⁽²⁾

842

330

1,722

812

Net income

159,557

126,680

Adjustments to arrive at adjusted income before income taxes⁽³⁾

96,257

94,650

Adjusted income before income taxes

255,814

221,330

Adjusted income taxes⁽⁴⁾

66,256

57,161

Adjusted net income

$     189,558

84,385

$              2.25

$     164,169

87,101

$              1.88

⁽¹⁾ Represents net income attributable to Planet Fitness, Inc. and the associated weighted average shares of Class A common stock outstanding.

⁽²⁾ Represents net income attributable to non-controlling interests and the assumed exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. as of the beginning of the period presented.

⁽³⁾ Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes.

⁽⁴⁾ Represents corporate income taxes at an assumed effective tax rate of 25.9% and 25.8% for the three months ended September 30, 2025 and 2024, respectively, and 25.9% and 25.8% for the nine months ended September 30, 2025 and 2024, respectively, applied to adjusted income before income taxes.