Planet Fitness Q4 2024 earnings demonstrated strong growth in both financial performance and network expansion. With net membership rising by one million and 150 new clubs opened during the year, the company reinforced its leadership in the value fitness space. Moreover, it executed on strategic initiatives aimed at modernizing club formats and enhancing the member experience, setting a robust foundation for future growth.
Key Financial Highlights
In Q4 2024, Planet Fitness delivered substantial improvements across key performance metrics:
Total revenue grew 19.4% year-over-year to $340.5 million.
Net income attributable to Planet Fitness, Inc. reached $47.1 million (or $0.56 per diluted share), up from $35.3 million in Q4 2023.
Adjusted net income increased 12.4% to $59.7 million, or $0.70 per diluted share.
Adjusted EBITDA rose 14.4% to $130.8 million.
System-wide same club sales advanced 5.5%, and full-year growth stood at 5.0%.
For the year, total revenue rose 10.3% to $1.2 billion, while system-wide sales increased to $4.8 billion.
The company ended the year with $529.5 million in cash and marketable securities.
These results underscore Planet Fitness’ strong financial foundation and sustained profitability.
Strategic Initiatives and Market Performance
Throughout 2024, Planet Fitness focused on refining its growth model and delivering enhanced value to franchisees and members.
The company rolled out a new economic model for opening and operating clubs, improving return potential for franchisees.
For the first time in over 25 years, it raised the Classic Card membership price, helping to drive higher average revenue per member.
Planet Fitness opened 150 new clubs, including 129 franchisee-owned and 21 corporate-owned locations, bringing the system-wide total to 2,722 clubs across 50 states and several international markets.
Equipment sales surged in Q4, with a 49.2% increase driven by strong demand from franchisee-owned clubs and updated strength equipment offerings.
By segment:
Franchise revenue grew 11.0% in Q4 to $109.0 million, benefiting from higher royalties, new club openings, and fee income.
Corporate-owned club revenue increased 8.5% to $126.3 million, supported by rising same-store sales and new locations.
Equipment revenue jumped to $105.1 million, fueled by strong installation volume and product mix enhancements.
Challenges and Outlook
Despite its solid performance, Planet Fitness continues to navigate several headwinds:
Rising interest expense, which grew to $100 million for the year.
Modest declines in equipment sales to new clubs year-over-year, though offset by growth in sales to existing clubs.
A need for continued investment in club upgrades and technology, contributing to a projected 25% increase in 2025 capital expenditures.
Nevertheless, the outlook remains strong. In 2025, Planet Fitness expects:
System-wide same club sales growth between 5% and 6%.
Revenue growth of approximately 10%.
Adjusted EBITDA growth around 10%.
Adjusted net income per diluted share growth in the 11% to 12% range.
Between 160 and 170 new club openings, further expanding the brand’s footprint.
Conclusion
Planet Fitness’ Q4 2024 earnings reflect a company in growth mode—financially strong, operationally disciplined, and strategically aligned. With nearly 20 million members and thousands of clubs worldwide, the brand continues to capitalize on health and wellness trends. As it invests in innovation and expansion, Planet Fitness is well-positioned to drive value for members, franchisees, and shareholders in the years ahead.
