It has been about a month since the last earnings report for Planet Fitness (PLNT). Shares have lost about 6.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Planet Fitness due for a breakout? Well, first let’s take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Planet Fitness, Inc. before we dive into how investors and analysts have reacted as of late.
Planet Fitness reported fourth-quarter 2025 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate. Also, both metrics increased on a year-over-year basis.
Growth was fueled by solid franchise growth, higher equipment sales, and robust corporate-owned club performance. System-wide same-club sales grew 5.7%, while total system-wide sales climbed to $1.3 billion from $1.2 billion a year ago.
The company reported adjusted earnings per share (EPS) of 83 cents, surpassing the Zacks Consensus Estimate of 79 cents by 5.1%. In the prior-year quarter, it reported adjusted EPS of 70 cents.
Quarterly revenues of $376.3 million topped the consensus mark of $366 million by 3.1%. The top line grew 10.5% year over year, driven by higher royalty revenues, equipment sales and new club openings.
Planet Fitness opened 104 new clubs during the quarter (93 franchisee-owned and 11 corporate-owned), ending the period with 2,896 clubs and approximately 20.8 million members.
During the fourth quarter, adjusted EBITDA rose 11.8% year over year to $146.3 million, while the adjusted EBITDA margin expanded 50 basis points to 38.9%.
Adjusted operating profit increased 18.1% to $106 million, reflecting operational efficiency and sustained demand across segments.
Franchise segment revenues advanced 9.6% to $119.4 million, benefiting from a 5.6% rise in franchise same-club sales and higher advertising fund contributions. Segment Adjusted EBITDA grew 10.9% to $82.9 million.
Corporate-owned clubs’ revenues increased 7.4% to $135.6 million, supported by 6% same-club sales growth and new club additions. Segment Adjusted EBITDA rose 8.1% to $50.2 million.
Equipment revenues jumped 15.3% to $121.2 million, driven by higher replacement and new club equipment sales. Segment Adjusted EBITDA surged 23.3% to $36.9 million.
Planet Fitness closed the quarter with $607 million in cash and marketable securities, including $345.7 million in cash and equivalents and $195 million in marketable securities. Long-term debt was $2.46 billion.
For 2026, the company expects to place new equipment in approximately 150-160 franchisee-owned locations, with total system-wide new club openings projected at 180-190 units.
System-wide same-club sales are anticipated to grow in the 5-6% range, while total revenues are projected to increase roughly 9% year over year. Adjusted EBITDA is now expected to rise approximately 10%, and adjusted net income is forecast to grow 4-5%.
Adjusted earnings per share are projected to advance 9-10%, based on adjusted diluted weighted-average shares outstanding of approximately 80 million. The company continues to expect net interest expense of about $114 million in 2026. Capital expenditures are projected to increase 10-15%, primarily reflecting incremental investments in corporate-owned clubs.
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.48% due to these changes.
At this time, Planet Fitness has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren’t focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It’s no surprise Planet Fitness has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Planet Fitness is part of the Zacks Leisure and Recreation Services industry. Over the past month, Caesars Entertainment (CZR), a stock from the same industry, has gained 29.1%. The company reported its results for the quarter ended December 2025 more than a month ago.
Caesars Entertainment reported revenues of $2.92 billion in the last reported quarter, representing a year-over-year change of +4.2%. EPS of -$0.33 for the same period compares with $0.05 a year ago.
Caesars Entertainment is expected to post a loss of $0.19 per share for the current quarter, representing a year-over-year change of +64.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -17.6%.
Caesars Entertainment has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
