Planet Fitness, Inc. (NYSE:PLNT) shares traded lower on Wednesday after the company reported second-quarter adjusted earnings per share of 86 cents, beating the analyst consensus of 79 cents.
Quarterly sales of $340.88 million (+13.3% year over year) outpaced the Street view of $329.59 million.
System-wide sales increased to $1.4 billion from $1.2 billion in the prior year period, while system-wide same club sales increased 8.2%.
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Adjusted EBITDA increased to $147.6 million from $127.5 million in the prior-year period.
Franchise segment revenue increased 11% to $119.7 million, while corporate-owned clubs segment revenue increased 10.8% to $139.0 million. Equipment segment revenue increased 21.5% to $82.2 million from $67.7 million in the prior-year period.
The firm exited the quarter with cash and equivalents worth $335.723 million, higher than $293.150 million at the end of December 2024.
The company stated that it believes its exposure is limited by its tariff mitigation plans and the current tariff levels.
Outlook: Planet Fitness has raised its fiscal year 2025 sales outlook to $1.43 billion from $1.30 billion, surpassing the $1.30 billion consensus estimate.
For 2025, the company expects adjusted EBITDA to grow roughly 10%, adjusted net income to rise 8%–9%, and adjusted diluted EPS to increase 11%–12%, based on approximately 84.5 million adjusted diluted weighted-average shares outstanding (including planned repurchases).
The company continues to expect 2025 net interest expense to be approximately $86.0 million.
Price Action: PLNT shares are trading lower by 7.80% to $100.72 at last check on Wednesday.
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