Q1 revenue rose nearly 22 percent, but the world’s largest budget gym chain fell short on new-member acquisition during its seasonally critical first quarter — triggering a sharp guidance revision, a pricing retreat and the steepest single-day stock decline in company history.
Shares of Planet Fitness fell more than 31 percent on May 7, marking the steepest one-day drop since the company went public in 2015, after the gym chain reported weaker-than-expected first-quarter membership growth and cut its full-year outlook across key metrics.
The New Hampshire-based operator ended the quarter with about 21.5 million members and 2,909 clubs worldwide, after adding 15 net locations, all franchisee-owned. Revenue rose 21.9 percent from a year earlier to $337.2 million, and adjusted EBITDA increased by $22.9 million to $139.9 million. Management said new-member acquisition fell short during the seasonally important first quarter, prompting a broad reset of expectations.
| Planet Fitness — Income statement | |||
| Q1, ended March 31 (€ millions)* | |||
| 2026 | 2025 | Change | |
| Revenue | |||
| Franchise | 94.1 | 85.8 | +9.7% |
| National advertising fund revenue | 29.6 | 20.2 | +47.0% |
| Franchise segment | 123.7 | 106.0 | +16.7% |
| Corporate-owned clubs | 129.4 | 123.0 | +5.2% |
| Equipment | 57.2 | 25.6 | +123.4% |
| Total revenue | 310.3 | 254.5 | +21.9% |
| Operating costs and expenses | |||
| Cost of revenue | 41.7 | 20.7 | +101.6% |
| Club operations | 81.1 | 75.1 | +8.0% |
| Selling, general and administrative | 31.4 | 31.6 | -0.5% |
| National advertising fund expense | 29.6 | 20.2 | +46.8% |
| Depreciation and amortization | 37.0 | 35.2 | +5.1% |
| Other gains, net | -1.5 | -1.1 | – |
| Total operating costs and expenses | 219.5 | 181.7 | +20.8% |
| Income from operations | 90.8 | 72.9 | +24.6% |
| Other income (expense), net | |||
| Interest income | 5.2 | 5.3 | -2.6% |
| Interest expense | -30.3 | -24.1 | +25.8% |
| Other income, net | 0.6 | 0.3 | – |
| Total other expense, net | -24.6 | -18.5 | +32.8% |
| Income before income taxes | 66.2 | 54.4 | +21.8% |
| Provision for income taxes | 17.8 | 14.9 | +19.1% |
| Losses from equity-method investments, net of tax | -0.8 | -0.7 | – |
| Net income | 47.7 | 38.7 | +23.1% |
Source: Planet Fitness, Inc. Q1 2026 earnings release, May 7, 2026. *Converted from USD (reported in thousands) at approx. 1 USD = 0.92 EUR – verify rate at publication date.
Marketing pivot misses core audience
Chief Executive Officer Colleen Keating cited four drivers of the membership shortfall: a marketing shift that reached fitness-committed consumers but did not connect with first-time and casual gym-goers; a regional pricing disadvantage versus rivals in the high-volume, low-price gym segment in South Central and Southeast US markets; severe winter weather that disrupted Monday sign-ups in January and February, the chain’s highest-volume joining days; and increased financial strain on lower-income households.
The company also said its “format optimised” club layout, which adds strength equipment, appears to have appealed to existing members while potentially deterring prospective joiners who perceived the environment as intimidating. Planet Fitness hired a new creative agency in Q1 and said it is refocusing messaging on its accessible, judgment-free positioning. “We are making immediate and near-term adjustments to broaden our reach and ensure our messaging is both visible and resonates with the fitness beginner and more casual gym-goer,” Keating said on the earnings call.
2026 guidance revised lower
Planet Fitness cut its 2026 forecast sharply. It now expects system-wide same-club sales growth of about 1 percent. The company lowered its revenue growth outlook to roughly 7 percent from 9 percent, and reduced its adjusted EBITDA growth expectation to about 6 percent from around 10 percent.
AI tools, retention focus
For the second half of the year, the company said it is rolling out AI-enabled churn prediction and dynamic content tools to improve retention and targeting. Monthly attrition is expected to remain in the upper half of the historical 3–4 percent range, which management attributed in part to the nationwide rollout of online member-management capabilities and a larger share of Gen Z members, a cohort it said historically churns more.
Planet Fitness maintained its unit-growth target of 180–190 new clubs and 150–160 equipment placements for the year, with equipment deliveries weighted toward the fourth quarter.
About Planet Fitness
Founded in 1992 in Dover, New Hampshire, Planet Fitness is one of the world’s largest gym franchisors and operators by membership and location count. As of March 31, 2026, it operated 2,909 clubs across all 50 US states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. About 90 percent of locations are franchisee-owned. The company listed on the New York Stock Exchange in 2015.
