Planet Fitness’s Q1 2025 results showed strong momentum, reporting double-digit revenue growth and continued member expansion despite economic uncertainty. As one of the most recognized brands in the High Value, Low Price fitness segment, Planet Fitness remains focused on accessible fitness and operational resilience. According to CEO Colleen Keating, strategic marketing and a value-driven proposition helped boost brand perception and drive member growth in the first quarter.
Key Financial Highlights
During Q1 2025, Planet Fitness achieved several financial milestones:
Total revenue increased 11.5% year-over-year, reaching $276.7 million.
System-wide same club sales rose 6.1%, highlighting the model’s consistency and appeal.
Net income attributable to Planet Fitness rose to $41.9 million, up from $34.3 million in Q1 2024.
Adjusted EBITDA grew 10%, totaling $117.0 million.
Adjusted net income climbed to $50.0 million, or $0.59 per diluted share, compared to $0.53 per share in the prior year.
Planet Fitness ended the quarter with 20.6 million members, up approximately 900,000 since the end of 2024.
The company also returned capital to shareholders by repurchasing $50 million in Class A common stock and maintained a strong cash position with $586.3 million in cash and marketable securities.
Strategic Initiatives and Market Performance
Strategically, Planet Fitness continues to expand its global footprint:
19 new clubs opened, including 16 franchise-owned and 3 corporate-owned locations, bringing the total to 2,741 clubs worldwide.
The franchise segment experienced a revenue increase of 10.7% year-over-year, driven by higher royalty fees, new club openings, and national advertising contributions.
Corporate-owned club revenue rose 9.2%, benefiting from increased annual fees and same club sales growth of 5.1%.
Equipment segment revenue surged 28.7%, primarily due to increased sales to existing franchise locations and a more profitable equipment mix.
Moreover, the company launched a new U.S. marketing campaign to emphasize strength training offerings and its supportive community. Early results suggest improved brand perception across all fitness levels and enhanced perceived value among current and potential members.
Challenges and Outlook
Despite a volatile economic environment and potential tariff-related cost pressures, Planet Fitness remains confident in its model. The company reaffirmed its 2025 guidance, including:
System-wide same club sales growth of 5–6%
Revenue growth of approximately 10%
Adjusted EBITDA growth of approximately 10%
Adjusted net income growth of 8–9%
However, rising interest expenses (expected at $86 million for the year) and capital expenditure increases (now forecasted at +20%) could impact near-term margin performance. The company continues to monitor tariff exposure and is preparing mitigation strategies if conditions change.
