ers tend to quit more often. That’s a problem for a subscription model: slower sign-ups and more cancellations can dent steady fee revenue, while costs like staffing and rent don’t fall much. RBC also warned that holding Black Card prices steady could weigh on 2026 same-store sales and make franchisees more cautious about opening new gyms, even as it kept an Outperform rating for the long-term story.
Why should I care?
For markets: Churn is becoming the key variable in the valuation debate.
RBC didn’t just call out a weak quarter – it reset expectations for what Planet Fitness can deliver over the next couple of years. When momentum fades, fewer net member adds and higher churn can pressure same-store sales and profitability because many costs are fixed. With Black Card pricing paused, there’s less lift from higher fees, so the focus shifts to whether marketing can stabilize sign-ups and cancellations.
For you: More churn can mean more deals and fewer clean price increases.
When cancellations rise, gyms often spend more on ads and promotions to replace people who leave. That can show up as more frequent sign-up offers or shifting plan perks, rather than straightforward list-price hikes. RBC’s note also shows how keeping a premium tier’s price unchanged can be used to protect demand, even if it slows revenue growth.