Shares of Planet Fitness (PLNT) got crushed in the last session, plunging 31.2% after the gym operator delivered a stark warning that its most important growth engine, new member signups, is slowing far more than expected.
The company said demand during the crucial New Year fitness season came in weaker than anticipated, forcing management to slash its 2026 outlook, pause planned price hikes, and rethink its strategy as affordability pressures weigh on budget-conscious consumers.
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The selloff marks one of the sharpest declines in the stock’s history and raises the question of whether Planet Fitness will be able to reignite member growth.
About Planet Fitness Stock
Planet Fitness is one of the largest and fastest-growing fitness center franchisors in the world, operating a network of low-cost gyms primarily across the United States, with additional international locations. Known for its “Judgement Free Zone” branding and affordable membership model, the company serves through a mix of franchised and corporate-owned clubs. Planet Fitness is headquartered in Hampton, New Hampshire and currently has a market cap of $3.5 billion following the stock’s sharp post-earnings decline.
Planet Fitness stock has undergone a dramatic reversal in 2026, with shares collapsing as investor confidence in the company’s growth trajectory deteriorated. After trading as high as $114.47 in 2025, the stock has now plunged 57.59% year-to-date (YTD) and is down 60% from its 52-week high following Thursday’s historic selloff.
The most recent downturn came after Planet Fitness reported weaker-than-expected new member growth during the critical New Year sign-up season and sharply cut its full-year outlook. Investors reacted aggressively to management’s decision to pause planned membership price hikes and lower earnings expectations, sending the stock down 31.2% in a single session. The stock has declined 52.62% over the past year.
The weakness had already been building. Prior to the earnings, shares had repeatedly hit fresh 52-week lows amid concerns about slowing consumer spending and softer gym traffic.
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The stock is currently at 19.94 times forward earnings, which is a premium compared to industry peers.
Stable Top Line But Weak New Member Growth
Planet Fitness reported first-quarter fiscal 2026 results on May 7, for the quarter ended March 31.
Revenue rose 21.9% year-over-year (YOY) to $337.2 million, while adjusted EPS climbed to $0.74 from $0.59 a year earlier, above estimates. Net income attributable to Planet Fitness increased to $51.6 million, compared with $41.9 million in the first quarter of 2025. Adjusted EBITDA increased 19.5% YOY to $139.9 million.
System-wide same-club sales grew 3.5%, total system-wide sales reached $1.4 billion, and membership expanded to approximately 21.5 million members. The company also opened 15 new franchisee-owned clubs during the quarter, bringing total system-wide locations to 2,909.
Despite the strong headline financial performance, investors focused on the company’s disappointing member growth trends. Planet Fitness added more than 700,000 net new members during the quarter, but management acknowledged that signups came in well below expectations during the seasonally critical January and February fitness period.
CEO Colleen Keating said the company faced both “internal and external headwinds” that hurt member acquisition, including macroeconomic pressure on lower-income consumers, tougher regional competition, severe winter weather, and marketing initiatives that may have drifted too far from Planet Fitness’ traditional beginner-focused customer base.
Furthermore, management announced a major strategic shift by pausing the planned nationwide increase for its premium Black Card membership. The company had previously intended to roll out additional pricing increases, but higher prices could further pressure membership growth in an increasingly cost-sensitive consumer environment. Planet Fitness plans to refocus on affordability and driving member acquisition rather than maximizing pricing power.
In addition, Planet Fitness sharply reduced its 2026 guidance. The company now expects system-wide same-club sales growth of 1%, down from prior guidance of 4% to 5%. Revenue growth guidance was lowered to roughly 7% from around 9%, while adjusted EBITDA growth was cut to about 6% from 10%.
Most notably, adjusted net income is now expected to decline 2% YOY, compared with the company’s previous forecast calling for growth of 4% to 5%. Adjusted EPS growth expectations were also reduced to about 4%, down from the prior outlook of 9% to 10% growth.
Analysts forecast EPS of $3.19 for fiscal 2026, a 3.9% YOY jump, followed by a further 24.5% rise to $3.97 in 2027.
What Do Analysts Expect for Planet Fitness Stock?
Many analysts are opting for a more cautious tone on PLNT following the earnings release.
Most recently, TD Cowen downgraded Planet Fitness to “Hold” from “Buy” and slashed its price target to $50 from $90 after the stock’s steep collapse. The firm warned that Planet Fitness’ marketing missteps and slowing member growth will take longer to fix due to the company’s scale and maturity.
Also, BofA Securities downgraded Planet Fitness to “Neutral” from “Buy” and slashed its price target to $59 from $110.
However, PLNT has a consensus “Moderate Buy” rating overall. Of the 20 analysts covering the stock, 14 advise a “Strong Buy,” two suggest a “Moderate Buy,” three give it a “Hold” rating and one “Strong Sell.”
PLNT’s average analyst price target of $106.94 indicates an upside of 133.2%, while the Street-high target price of $175 suggests that the stock could rally as much as 281.6%.
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On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com