Planet Fitness (NYSE:PLNT) shares gained 1.2% in premarket trading on Thursday after the gym operator reported third-quarter earnings and revenue above analysts’ expectations, increased several of its full-year financial forecasts and announced a new $500 million share repurchase programme.
The company reported adjusted earnings of $0.83 per share, exceeding the analyst consensus of $0.80. Quarterly revenue reached $360 million, compared with expectations of $347.68 million.
Planet Fitness also raised its forecasts for annual revenue growth, comparable-club sales and adjusted EBITDA, while increasing its target for new club openings.
Planet Fitness generated revenue of $360 million during the third quarter, exceeding analysts’ expectations by approximately $12.3 million.
Adjusted earnings per share reached $0.83, compared with the consensus estimate of $0.80.
The company reported revenue growth across its franchise, equipment and corporate-owned club businesses.
Adjusted EBITDA increased 3.9% to $146.2 million.
The results were accompanied by an increase in the company’s full-year outlook for several operating and financial measures.
Planet Fitness shares were up 1.2% in premarket trading as of 07:37 ET on Thursday.
Revenue from Planet Fitness’ franchise operations increased 14% to $129.6 million during the quarter.
Equipment revenue rose 11% to $87.6 million.
Revenue from corporate-owned clubs increased 3.5% to $142.7 million.
The figures showed growth across all three reported revenue categories, although the rates of increase varied between business segments.
Franchise revenue recorded the largest percentage increase, followed by equipment sales and corporate-owned club revenue.
Adjusted EBITDA reached $146.2 million, representing a 3.9% increase.
Planet Fitness reported system-wide same-club sales growth of 1.5% during the third quarter.
Comparable sales at franchised clubs also increased 1.5%, while corporate-owned locations recorded growth of 1.8%.
The company’s total network reached 2,962 clubs, representing a 6% increase from the previous year.
The expansion of the club network contributed to the company’s operating scale, alongside positive comparable-club sales growth.
Same-club sales measure performance at existing locations, providing a separate indicator from revenue generated through new club openings.
Following the third-quarter results, Planet Fitness increased several elements of its 2026 financial outlook.
The company now expects system-wide same-club sales growth of approximately 1.5% to 2%, compared with its previous forecast of around 1%.
Full-year revenue growth is projected at approximately 8%, up from the earlier estimate of 7%.
Planet Fitness also raised its adjusted EBITDA growth forecast to approximately 6.5%, compared with the previous outlook of 6%.
The revisions reflect updated expectations for sales and operating performance during the remainder of the year.
The company maintained its other previously announced earnings and financing assumptions.
Planet Fitness raised its target for new club openings during 2026.
The company now expects approximately 190 to 195 new locations, including the acquisition of Be-Fit.
Its previous forecast called for between 180 and 190 openings.
The revised outlook indicates a higher anticipated number of additions to the company’s club network during the year.
However, Planet Fitness lowered its forecast for new equipment placements at franchisee-owned locations.
The company now expects approximately 135 to 140 equipment placements, compared with its previous estimate of 150 to 160.
The changes reflect revised expectations for club development and equipment-related activity.
Planet Fitness also updated its expectations for capital expenditure and depreciation.
Capital expenditure is now expected to increase approximately 15% during 2026, compared with the previous forecast of 10% to 15% growth.
The company reduced its expected increase in depreciation and amortization to approximately 7%, down from its earlier projection of 10%.
These adjustments accompany the company’s updated club opening and operating plans.
The revised capital expenditure outlook indicates that spending is expected to reach the upper end of the previously projected growth range.
While Planet Fitness increased several of its annual forecasts, it reiterated its expectations for adjusted earnings and financing costs.
The company continues to anticipate adjusted diluted earnings per share growth of approximately 6% for 2026.
Net interest expense is expected to total approximately $115 million.
Planet Fitness also maintained its forecast for adjusted net income to decline approximately 3% compared with the previous year.
These unchanged projections accompany the higher revenue and adjusted EBITDA growth expectations announced following the third-quarter results.
Planet Fitness announced that its Board of Directors authorized a new share repurchase programme of up to $500 million.
The new authorization replaces the company’s 2025 repurchase programme.
The arrangement permits Planet Fitness to repurchase shares within the authorized amount, although the announcement does not establish a specific number of shares to be acquired.
The company did not disclose a timetable for completing repurchases under the new programme.
The authorization represents an additional element of Planet Fitness’ capital allocation plans alongside its club expansion and investment activities.
Planet Fitness reported third-quarter revenue of $360 million and adjusted earnings of $0.83 per share, both exceeding analyst expectations.
Franchise revenue increased 14%, equipment revenue rose 11% and corporate-owned club revenue advanced 3.5%, while adjusted EBITDA grew 3.9% to $146.2 million.
The company raised its 2026 revenue growth forecast to approximately 8% and its adjusted EBITDA growth outlook to around 6.5%.
It also increased its target for new club openings to approximately 190 to 195 locations, while lowering expectations for new equipment placements at franchised clubs.
Planet Fitness maintained its adjusted earnings per share growth forecast of approximately 6% and announced a new share repurchase authorization of up to $500 million.
Investors will continue to monitor comparable-club sales, franchise development, capital expenditure and the execution of the company’s updated financial and operating plans.
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