d side, RBC pointed to weather-weakened January sign-ups and slightly higher churn, a concern because Q1 typically delivers most of the year’s net member adds.
Why should I care?
For markets: Debt costs can flip a growth narrative.
When rates stay high, consumer brands with leverage can disappoint on earnings even if sales look fine. Planet Fitness’ gap between revenue growth (9%) and profit growth (9%–10% EPS) versus consensus (10.8% and 16.8%) is a reminder that financing can be as important as foot traffic. RBC still rates the stock outperform, but it cut its price target to 120 from 130 and trimmed 2026 estimates – a pattern you’ll also see in other debt-heavy discretionary names.
Zooming out: Early-year sign-ups set the tone.
Gyms bank on New Year’s resolutions, so small Q1 wobbles can echo all year in sentiment. If weather and churn keep net adds soft, investors may wait for clearer membership momentum before rewarding the stock. That dynamic matters beyond Planet Fitness – subscription businesses often live or die by what happens in their biggest acquisition quarter.
