Planet Fitness Q2 2026 Earnings: Revenue Rises 7.1% as Buybacks Support EPS

Planet Fitness (NYSE: PLNT) reported fiscal Q2 2026 revenue of $365.2 million, up 7.1% year over year, and GAAP diluted EPS of $0.87, compared with $0.69, for the quarter ended June 30, 2026. Revenue increased across all three segments, but system-wide same-club sales grew only 1.7%, while a $12.5 million investment-sale gain made GAAP profit growth stronger than the adjusted results. A $200 million quarterly share repurchase also reduced the share count and supported per-share earnings.

Core Earnings Data

Part of the revenue increase came from a higher National Advertising Fund contribution rate, which rose from 2% to 3% in 2026. This added $10.1 million to both advertising fund revenue and expense, increasing reported revenue without providing a corresponding profit contribution.

GAAP operating income and net income rose at double-digit rates, helped by the $12.5 million gain on the sale of an equity-method investment. After excluding that gain and other adjustments, adjusted EBITDA increased 3.5%, while adjusted net income declined 5.7%.

Adjusted EBITDA margin was approximately 41.8%, down from 43.3% a year earlier. The advertising fund pass-through was one factor affecting the reported margin comparison because it increased revenue and expense by similar amounts.

Business and Segment Performance

All three operating segments generated higher revenue, but their adjusted EBITDA results diverged. Franchise remained the largest profit contributor, while the equipment segment reported lower adjusted EBITDA despite increased sales.

Franchise revenue benefited from the $10.1 million advertising fund increase, $4.7 million of additional royalty revenue and $1.3 million of higher franchise and other fees. Because the advertising fund revenue was matched by higher expense, franchise adjusted EBITDA grew more slowly than segment revenue.

Corporate-owned club revenue gained $5.0 million from newer locations and $4.8 million from clubs in the same-club sales base. These increases were partly offset by $4.9 million of lost revenue from eight California clubs sold to a franchisee in August 2025.

Equipment revenue rose as Planet Fitness supplied 21 new franchisee-owned clubs, compared with 19 a year earlier, and recorded higher sales to existing locations. Adjusted EBITDA nevertheless declined because of the timing of replacement-equipment discounts.

Planet Fitness opened 23 clubs during the quarter, including 21 franchise locations and two corporate-owned clubs. The system ended June with 2,930 clubs and approximately 21.5 million members.

Profitability, Cash Flow and Balance Sheet

Cash-flow figures were provided for the first six months rather than Q2 alone. First-half operating cash flow increased to $193.4 million from $177.9 million, while additions to property and equipment rose to $67.4 million from $58.8 million.

Planet Fitness spent $251.3 million on share repurchases during the first half, including $200.0 million for approximately four million shares in Q2. Cash and cash equivalents stood at $298.3 million at June 30, down from $345.7 million at the end of 2025. The company’s reported $544.4 million of cash and marketable securities also included $72.9 million of restricted cash and $173.2 million of marketable securities.

The balance sheet included $2.45 billion of long-term debt, excluding current maturities, plus $25.8 million of current debt maturities and $75.0 million borrowed under variable funding notes. Quarterly interest expense rose to $33.4 million from $26.2 million.

Lower Share Count Offset Weaker Adjusted Net Income

The contrast between adjusted net income and adjusted EPS is central to the quarter. Adjusted net income declined 5.7%, but adjusted diluted EPS increased 2.3% because adjusted weighted-average diluted shares fell to 77.5 million from 84.4 million, a reduction of about 8.2%.

The same mechanism appears in the updated full-year outlook. Planet Fitness now expects adjusted net income to decline approximately 3%, but adjusted diluted EPS to increase about 6%, based on approximately 77 million adjusted diluted shares. The previous EPS outlook assumed roughly 79 million shares and growth of about 4%.

2026 Guidance

Planet Fitness reiterated most of its operating outlook, including revenue, adjusted EBITDA, same-club sales and club openings. It raised adjusted EPS growth guidance following the repurchases, but also projected a slightly larger adjusted net income decline and higher net interest expense.

The company also maintained its expectation for depreciation and amortization to increase approximately 10%.

Management’s View

CEO Colleen Keating said the company is working to “reignite sustainable member growth.” Management is developing a new marketing campaign intended to reach a broader audience while testing changes to pricing, member experience and retention.

Planet Fitness also appointed Sudhanshu Priyadarshi as Chief Financial Officer and President, International. Management did not provide quantified results from the pricing or retention tests in the earnings release.

Recent Insider Transactions

The transaction-level insider data supplied for Planet Fitness lists two purchases in May 2026. These transactions are presented without drawing conclusions about management’s view of the company’s prospects.

Risks Investors Should Watch

• Modest same-club sales growth: Q2 same-club sales increased 1.7%, while the full-year outlook remains approximately 1%. Slower member acquisition or retention could limit royalty and corporate-club growth.
• Adjusted profit pressure: Adjusted net income declined even as revenue rose, and equipment adjusted EBITDA fell 8.0% because of replacement-equipment discount timing. Continued pressure could keep profit growth below revenue growth.
• Higher interest costs: Quarterly interest expense increased, and full-year net interest expense guidance was raised by $4 million to approximately $115 million. Higher financing costs directly reduce earnings and cash available for other uses.
• Capital allocation and liquidity: The large repurchase program reduced the share count and supported EPS, but it also consumed $251.3 million during the first half. Future repurchases must be considered alongside the company’s debt and cash requirements.
• Execution of member-growth initiatives: Management is testing pricing, marketing, member experience and retention changes, but the release did not quantify their results. The effectiveness of these initiatives will be important to improving same-club sales.

Summary

Planet Fitness produced higher Q2 revenue across every segment, but the 1.7% same-club sales increase and advertising fund pass-through indicate more moderate underlying growth than the headline revenue figure alone suggests. GAAP earnings benefited from an investment-sale gain, while adjusted net income declined and buybacks supported EPS. Investors’ next focus will be whether the company’s marketing and retention initiatives accelerate member growth, whether equipment profitability stabilizes and how rising interest costs affect the full-year earnings profile.