Planet Fitness Q3 2026 Earnings: Revenue Rises as GAAP Profit Falls

Planet Fitness (NYSE: PLNT) reported Q3 fiscal 2026 revenue of $360.0 million, up 9.0% from $330.3 million a year earlier, while diluted GAAP EPS was unchanged at $0.70. Net income attributable to Planet Fitness fell 11.6% to $52.0 million, but adjusted EBITDA rose 3.9% to $146.2 million as franchise and equipment growth offset nearly flat corporate-owned club segment earnings. System-wide same-club sales increased 1.5%, and the company raised its full-year revenue and adjusted EBITDA growth outlooks.

Core Earnings Data

Revenue increased across all three operating segments, but expenses grew faster than the top line. Operating costs rose 15.8%, contributing to a 5.2% decline in operating income and an approximately 4.2-percentage-point contraction in GAAP operating margin.

The adjusted EBITDA margin was about 40.6%, compared with 42.6% a year earlier. A lower diluted share count helped keep GAAP EPS flat and lifted adjusted EPS despite declines in both GAAP and adjusted net income.

Adjusted net income, adjusted EPS, and adjusted EBITDA are non-GAAP measures.

Business and Segment Performance

System-wide sales increased by $53.4 million to $1.3 billion, while system-wide same-club sales grew 1.5%. Planet Fitness opened 33 clubs during the quarter—25 franchisee-owned and eight corporate-owned—bringing the system to 2,962 clubs and approximately 21.5 million members as of September 30.

Franchise revenue grew fastest, although most of its dollar increase came from higher National Advertising Fund revenue. Equipment revenue benefited from replacement purchases by existing franchisees, while corporate-owned club EBITDA was nearly unchanged despite higher revenue.

Franchise revenue included a $10.4 million increase in National Advertising Fund revenue caused by the 2026 contribution rate rising from 2% to 3%. Royalty revenue increased by $3.9 million, including $2.4 million from newer clubs and $1.5 million from 1.5% franchise same-club sales growth.

Corporate-owned club revenue benefited from $4.1 million contributed by newer clubs and $3.4 million from clubs in the same-club base, where sales rose 1.8%. These gains were partly offset by $2.5 million of lost revenue following the August 2025 sale of eight California clubs. Segment EBITDA was pressured by operating costs at newer clubs and the earnings no longer contributed by those sold locations.

Equipment revenue rose as sales to existing franchisee-owned clubs increased by $9.6 million. Revenue from equipment sold to new franchise clubs fell by $0.8 million, with placements at 21 new clubs versus 27 a year earlier.

Advertising Pass-Through Revenue and Interest Expense Weighed on GAAP Profit

The National Advertising Fund increase added approximately $10.4 million to both revenue and advertising expense. It therefore boosted reported revenue growth without providing a comparable increase in profit, helping explain why revenue rose 9.0% while adjusted EBITDA increased only 3.9%.

Other operating pressures included higher selling, general and administrative costs and an unfavorable change in other gains and losses. The prior-year quarter included a $6.4 million gain from selling corporate-owned clubs, while Q3 2026 recorded a small net loss in that line. Interest expense also increased 29.6% to $34.1 million from $26.3 million, further weighing on GAAP earnings.

Diluted weighted-average shares declined approximately 10.7% to 74.7 million. That reduction allowed GAAP EPS to remain at $0.70 even though attributable net income declined, while adjusted EPS increased to $0.83 despite lower adjusted net income.

Nine-Month Cash Flow and Balance Sheet

For the first nine months of 2026, operating cash flow was $303.9 million, compared with $309.4 million a year earlier. Capital spending increased to $148.9 million from $113.6 million, leaving operating cash flow less property and equipment additions of approximately $155.0 million, down from $195.8 million.

Planet Fitness ended September with $515.0 million of cash and marketable securities, including $310.2 million of cash and equivalents, $72.8 million of restricted cash, and $132.0 million of marketable securities. The balance sheet also included $2.44 billion of long-term debt, $25.8 million of current maturities, and $75.0 million borrowed under Variable Funding Notes.

Refranchising Review and Portugal Acquisition Reshape Capital Allocation

Planet Fitness repurchased and retired approximately 1.0 million Class A shares for $50.0 million during Q3. Repurchases totaled $302.4 million during the first nine months, and the board authorized a new program of up to $500 million to replace the 2025 authorization. The program does not require the company to repurchase a fixed amount.

The company also began a strategic review of potential refranchising opportunities for its domestic corporate-owned clubs. Management said any proceeds would be used to support its capital allocation strategies, but it did not disclose the number of clubs that could be involved or a timetable.

After the quarter ended, Planet Fitness acquired Be-Fit, a Portuguese operator with 25 clubs and approximately 80,000 members. The total potential purchase price is approximately €102.5 million, or $114.8 million, including about €100 million paid in cash at closing and up to €2.5 million of contingent consideration. The acquisition gives Planet Fitness a presence in its sixth international market and is expected by the company to add to earnings in 2027.

CEO Colleen Keating said same-club sales exceeded the company’s expectations and highlighted the opportunity to convert Be-Fit locations to the Planet Fitness brand, improve operating efficiency, and expand in Portugal. Planet Fitness plans to operate and integrate the acquired clubs initially, with potential refranchising over time.

2026 Guidance

Planet Fitness raised its full-year expectations for same-club sales, revenue, adjusted EBITDA, and club additions. However, it lowered expected equipment placements, while its adjusted net income, adjusted EPS, and interest expense outlooks were unchanged.

The adjusted EPS outlook assumes approximately 77.0 million adjusted diluted weighted-average shares. The combination of an expected 3% decline in adjusted net income and 6% EPS growth shows that the lower share count remains important to the per-share outlook.

Recent Insider Transactions

The supplied insider transaction data showed 152,823 shares categorized as acquired across 27 transactions and 7,000 shares sold in one transaction during the prior six months, resulting in net acquisitions of 145,823 shares. Because the transaction list includes zero-price stock grants, the aggregate should not be interpreted as entirely open-market buying.

The ten most recent entries consisted of six director grants and four other transactions, summarized below.

These transactions describe reported activity only and do not by themselves establish insiders’ views about the company’s outlook.

Risks Investors Need to Watch

• Same-club sales remain modest: Q3 same-club sales increased 1.5%, and the updated full-year range is 1.5% to 2%. Royalty revenue and mature corporate club performance remain sensitive to member acquisition and retention.
• Revenue growth is outpacing profit growth: Higher advertising fund contributions increase both revenue and expense, while SG&A, new-club costs, and interest expense are limiting earnings conversion.
• Equipment placements were reduced: Full-year placement guidance fell to 135-140 from 150-160, indicating that equipment demand and the timing of franchisee openings or replacements can remain uneven.
• Debt and capital commitments require cash: Higher interest expense, rising capital expenditures, share repurchases, and the cash-funded Be-Fit acquisition compete for liquidity despite the company’s cash and securities balance.
• Portfolio changes introduce execution risk: The results of the domestic refranchising review remain uncertain, while the expected benefits from Be-Fit depend on successful integration, brand conversion, and expansion in Portugal.

Summary

Planet Fitness delivered 9.0% revenue growth and higher adjusted EBITDA in Q3 2026, supported by franchise, equipment, and new-club contributions. Profitability was less favorable because advertising pass-through revenue, higher operating costs, a tougher comparison with a prior-year club-sale gain, and rising interest expense reduced GAAP profit. The main issues to monitor are the updated equipment outlook, margin conversion, cash allocation, the domestic refranchising review, and execution of the Be-Fit expansion.