Planet Fitness Inc. (NYSE:PLNT) reported first-quarter results that came in ahead of analyst expectations, but the stock moved lower after the company reduced its outlook for the full year due to softer-than-expected membership growth during its busiest enrollment season.
The fitness operator posted adjusted earnings of $0.74 per share, exceeding the analyst consensus estimate of $0.63 by $0.11.
Revenue growth beats expectations
Quarterly revenue increased 21.9% year-over-year to $337.2 million, topping analyst expectations of $299.25 million.
System-wide same club sales rose 3.5% during the quarter, while total membership expanded to approximately 21.5 million members.
Despite the earnings beat, shares fell 3.8% after investors reacted to the company’s weaker guidance.
Company cuts 2026 guidance
Planet Fitness now expects system-wide same club sales growth of roughly 1% for 2026, down from its prior forecast of 4% to 5%.
The company also reduced its revenue growth outlook to approximately 7%, compared with its previous estimate of 9%.
Adjusted EBITDA growth guidance was lowered to about 6% from an earlier expectation of 10%.
“In the first quarter, our top and bottom line results exceeded expectations. However, 2026 is off to a slower-than-expected start from a net member growth perspective as we faced internal and external headwinds during our peak sign-up period,” said Colleen Keating, Chief Executive Officer.
Planet Fitness also said it is pausing its planned nationwide Black Card membership price increase while it conducts a broader review of pricing strategy.
Expansion plans remain in place
During the quarter, the company opened 15 new franchise-owned clubs, bringing its total system-wide footprint to 2,909 locations.
Planet Fitness expects to open approximately 180 to 190 new clubs across the system during 2026.
The company also plans to install around 150 to 160 new equipment units at franchise-owned locations this year.
Earnings growth outlook reduced
For full-year 2026, Planet Fitness now expects adjusted net income per share growth of approximately 4%, below its previous projection of 9% to 10%.
More about Planet Fitness
Planet Fitness operates one of the largest fitness center chains in the world, focused on offering low-cost gym memberships through a franchise-based model. The company is known for its value-oriented approach, nationwide footprint, and Black Card membership program, which provides additional perks and access across locations.