Abstract

Planet Fitness will report quarterly results on February 24, 2026, Pre-Market, and the preview centers on whether the company can deliver revenue growth near consensus while converting early-year member momentum into earnings leverage.

Market Forecast

Consensus points to Planet Fitness delivering revenue of $362.94 million this quarter, an increase of 11.77% year over year, with adjusted EPS estimated at $0.79, up 27.90% year over year; EBIT is projected at $104.83 million, up 34.48% year over year. Margin forecasts are not explicitly provided in the current estimates framework, so investors will look to management’s commentary for gross profit and net margin directionality when results arrive.

The company’s core revenue streams—company-operated clubs, franchise royalties and fees, and equipment—are positioned to build on underlying momentum from net system growth and early-year member activity. Within that mix, franchise royalties and fees remain a promising contributor after last quarter’s $113.68 million, set against an expected 11.77% year-over-year rise in total revenue this quarter as club openings and system-wide sales flow through.

Last Quarter Review

Planet Fitness reported revenue of $330.35 million last quarter, gross profit margin of 55.34%, GAAP net income attributable to the parent company of $58.83 million, a net profit margin of 19.04%, and adjusted EPS of $0.80 (up 25.00% year over year). Adjusted EPS exceeded the prior consensus by $0.07 and revenue topped estimates by $6.54 million, with EBIT of $101.66 million growing 23.92% year over year. By business line, company-operated clubs contributed $137.83 million, franchise $113.68 million, and equipment $78.84 million, while total revenue increased 13.04% year over year, highlighting balanced contributions across the model.

Current Quarter Outlook (with major analytical insights)

Main revenue engine: club-level dues and system growth

The core of Planet Fitness’s revenue is driven by membership dues flowing through both company-operated clubs and the franchise system, augmented by periodic fees. This quarter overlaps the early-year period when new sign-ups and member reactivations typically set the tone for the next several months, translating into higher recurring dues from the installed base. With consensus revenue expected to rise 11.77% year over year to $362.94 million, the set-up implies that underlying member growth, net club additions, and pricing/mix should together support top-line expansion. The prior quarter’s gross margin of 55.34% and net margin of 19.04% offered a solid base; against that backdrop, investors will be sensitive to how cost-of-service inputs, occupancy, and marketing cadence shape this quarter’s profitability. Adjusted EPS is projected at $0.79, up 27.90% year over year, implying a degree of margin and scale benefit if revenue converts toward incremental profit in line with the EBIT estimate of $104.83 million. The key variable is how efficiently early-year member inflows translate to dues and how that mix interacts with corporate-store costs and system-wide royalty capture in the reported period.

Within company-operated clubs, last quarter’s $137.83 million revenue contribution provides a reference point for evaluating run-rate dynamics this quarter. If new joiner momentum sustains, corporate stores can capture both the dues uplift and any ancillary fee timing that may occur across the period. At the same time, the company-operated store margin profile will depend on labor, utilities, and local marketing trends, which can shift quarter to quarter. Another consideration is whether management highlights any calendar effects tied to the recognition of certain fees or changes in promotional activity that influence the revenue mix and margin flow-through. Since explicit margin guidance is not embedded in consensus forecasts, commentary on corporate-store flow-through will be closely watched as a real-time indicator of how efficiently the company is converting revenue into operating income and earnings this quarter.

Most promising segment: franchise royalties and fees

Franchise royalties and fees represent a recurring revenue stream tied to system-wide sales, which can scale as more clubs open and the network expands. Last quarter, franchise segment revenue was $113.68 million, a substantial share of the overall $330.35 million total. This quarter, as total revenue is expected to rise 11.77% year over year, the franchise line is positioned to benefit from unit additions and membership trends across the network, with royalties linked to gross sales at franchise locations. The early-year period can also reinforce franchise momentum as marketing reach and member activity lift franchisee sales, which in turn can help the royalty pool. Investors will look for indications of continued unit growth, any updates on the opening pipeline, and whether fee structures or promotional dynamics at the franchise level are supporting stronger throughput into royalties.

Another potential contributor to this segment’s trajectory is the cadence of franchise-related fees connected with openings or renewals, which, depending on timing, may produce quarter-to-quarter variability. The health of the franchise pipeline—both new openings and remodels—can set the tone for sequential performance in royalties and associated revenue streams. Management’s commentary on franchisee sentiment, access to capital for new-unit development, and the pace of planned openings can also shed light on forward visibility. This is especially relevant as the expected year-over-year growth in total revenue suggests an environment where franchise system sales can advance, provided churn remains contained and the franchise network continues building scale. Clarity on these items can help investors gauge the sustainability of royalty growth beyond the current quarter and how that may support consistent earnings progress.

Equipment sales to franchisees: volatility with leverage to development

Equipment revenue, at $78.84 million last quarter, is typically influenced by the timing of new club openings, remodel cycles, and replacement cycles across the franchise system. This line can be more variable than royalties because orders often cluster around development milestones and scheduled refreshes. In a quarter where the company’s total revenue is expected to grow 11.77% year over year, equipment demand is a swing factor that can either amplify the top-line or act as a moderating influence, depending on how orders line up against the reporting period. Investors will look for signals on the equipment order book, delivery schedules, and the balance between new-unit outfitting and replacements, as these elements frame near-term revenue recognition.

If franchise unit growth continues to track positively, equipment deliveries tend to follow, supporting both revenue and, at times, mixed margin dynamics depending on the product mix and logistics costs. The cadence of installations and the ability to execute orders efficiently can influence gross margin outcomes, though the aggregate quarter margin is also shaped by the higher-margin royalty stream and the expenses associated with corporate-operated clubs. Management’s color on lead times, vendor dynamics, and any pricing commentary related to equipment will help the market refine expectations on the equipment contribution in the current quarter. Given the relatively higher variability, even modest shifts in equipment timing can affect reported revenue, so a detailed update can reduce uncertainty and help investors frame the magnitude of this segment’s potential impact.

Key stock price factors this quarter

This quarter’s stock reaction will likely hinge on the revenue and EPS outcome relative to consensus ($362.94 million and $0.79, respectively) and the tone of forward-looking commentary on unit growth and membership trends. Guidance or qualitative direction for the year—especially around club openings, membership trajectory, and capital allocation—can reset expectations for the revenue and earnings path beyond the immediate quarter. With EBIT projected to grow 34.48% year over year to $104.83 million, the market will parse whether operating leverage is improving across company-operated clubs, and whether franchise royalties are scaling in line with system-wide sales.

Margin commentary will be critical, given last quarter’s gross margin of 55.34% and net margin of 19.04%. Investors will seek insight into cost lines that could influence gross margin stability, such as service delivery costs and logistics (notably in the equipment stream), and into SG&A discipline as the company supports marketing and development. Any details on equipment order timing and the development pipeline may influence expectations for intra-year revenue sequencing, which has valuation implications when investors model quarterly momentum. Capital allocation updates, including any adjustments to debt management or the potential for buybacks, can also affect sentiment if management signals confidence in cash generation and balance sheet flexibility. Finally, clarity on the sustainability of early-year membership momentum—and how it translates into recurring dues for the remainder of the year—can frame how investors weigh this quarter’s print against full-year growth potential.

Analyst Opinions

Across the views gathered between January 1, 2026 and February 17, 2026, the balance of directional opinions skews decisively positive, with bullish versus bearish at 100% to 0% among ratings that expressed a stance. The majority perspective expects Planet Fitness to convert unit expansion and seasonal member momentum into revenue growth and to sustain an earnings trajectory that supports valuation. Stifel Nicolaus reiterated a Buy rating with a $130.00 target, citing confidence in the company’s ability to translate system growth and membership trends into recurring revenue and profit expansion. TD Cowen maintained a Buy rating, emphasizing a constructive outlook on unit growth cadence and the durability of the company’s recurring revenue model as a base for ongoing earnings development. UBS kept a Buy rating with a $125.00 target, underscoring the resilience of the franchise-driven engine and the potential for rising royalties as the system adds units and scales sales.

These bullish assessments align with current-quarter estimates that embed 11.77% year-over-year revenue growth to $362.94 million and 27.90% year-over-year growth in adjusted EPS to $0.79. The analysts’ arguments consistently point to the value of the recurring royalty stream, paired with the upside option inherent in additional equipment deliveries as development advances. They also highlight the potential for operating leverage as the company manages corporate-store costs and the network delivers higher system-wide sales, supporting the EBIT projection of $104.83 million, up 34.48% year over year. The prevailing view is that, while quarter-to-quarter variability in equipment can occur, the combination of recurring royalties and a growing installed base of clubs offers visibility that compares favorably with consensus expectations.

The core of the bullish case hinges on a few testable items in the print and call: the trajectory of net club additions and the detail on the opening pipeline; commentary on membership trends in the early-year period; and the degree to which management frames margin direction for the year. Should the company reaffirm or improve visibility on these vectors, the bullish cohort sees scope for sustained momentum in earnings and potential upward revisions to outer-period estimates. On the other hand, if equipment timing proves softer than modeled or if margin commentary signals heavier investment near term, the argument from these analysts is that the recurring royalty base can cushion volatility, preserving the broader path to earnings compounding. As a result, the consensus among the majority of analysts is that this quarter can showcase balanced progress in both top-line and earnings metrics, while offering a clearer read-through to development and membership trends for the remainder of the year.