Inclusive gym franchise company (NYSE: PLNT) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 7.1% year on year to $365.2 million. Its non-GAAP profit of $0.88 per share was 3.7% above analysts’ consensus estimates.

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StockStory’s Take

Planet Fitness’s second quarter saw revenue and profit exceed Wall Street expectations, but the market reacted negatively given the sharp slowdown in same-store sales growth and muted net new member additions. Management pointed to a period of transition as the company rolls out new marketing campaigns and adjusts pricing strategies. CEO Colleen Keating cited ongoing efforts to reignite member growth, explaining that “several of our key initiatives, particularly with marketing, will take time to fully implement and gain traction.”

Looking ahead, Planet Fitness’s outlook is shaped by ongoing tests of promotional pricing, a redesigned app, and evolving marketing strategies targeting the large segment of U.S. consumers not currently paying for a gym membership. Management emphasized their focus on both acquisition and retention, with Keating noting, “our goal is to better reach our target audience across social platforms and multiple media channels.” New creative campaigns and enhanced recovery offerings are expected to play a role in supporting future member growth and engagement.

Key Insights from Management’s Remarks

Management attributed quarterly performance to rate-driven same-store sales, stable member churn, and a deliberate marketing shift aimed at attracting new members while reinforcing value for existing ones.

• Pricing tests underway: Planet Fitness ran regional and national price tests, including a $10 Classic Card promotion, to evaluate price sensitivity and support member acquisition. Management stressed these are limited-time offers and not intended as permanent price reductions, aiming to understand regional nuances and potential impacts on franchisees’ unit economics.
• Marketing strategy evolution: The company is shifting its marketing to highlight approachability and inclusiveness, moving away from imagery that focused on fitness enthusiasts. Interim creative campaigns this quarter will be followed by a fully new campaign targeting the critical Q1 join period, with ongoing tests to ensure messaging resonates with the broader 70% of Americans who don’t have a gym membership.
• Stable member churn: Management reported that member attrition rates remain within historical norms (3% to 4%), with no significant differences between Classic and Black Card tiers. CEO Keating noted that generational differences exist, but churn is not materially different across membership levels.
• Enhanced member experience: Investments in the Planet Fitness app and new Black Card Spa offerings are designed to drive engagement and retention. The app’s upcoming redesign will include personalized features and improved workout tracking, while the expanded spa test covers 100 clubs with new recovery modalities.
• Franchisee engagement and network growth: The company opened 23 new clubs, including five internationally, and welcomed a new franchisee in Florida. Management highlighted ongoing dialogue with franchisees regarding strategic pivots in pricing and marketing, as well as the sale of the Australia stake to accelerate international expansion.

Drivers of Future Performance

Management’s guidance is driven by efforts to balance promotional activity, enhance digital engagement, and maintain disciplined cost management as they seek to reignite sustainable member growth.

• Marketing and digital initiatives: The rollout of a redesigned app and dynamic creative optimization in advertising is expected to improve member engagement and acquisition. Management is also testing new marketing campaigns to avoid last year’s missteps, aiming for a more approachable and tailored message to potential members.
• Pricing architecture experimentation: Ongoing tests of promotional pricing, such as the national $10 Classic Card offer, are designed to gauge regional demand elasticity without undermining the established price structure. Management emphasized that future pricing changes will consider both franchisee economics and sustainable member growth.
• Operational and franchisee alignment: The company continues to prioritize franchisee engagement and disciplined capital allocation, including selective recycling of corporate-owned clubs and careful evaluation of international expansion opportunities. Management believes these actions will support long-term profitability and growth.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will focus on (1) the effectiveness of new marketing campaigns and whether they boost member acquisition, (2) the impact of promotional pricing on both new join rates and franchisee economics, and (3) the adoption rate of the redesigned Planet Fitness app and expanded Black Card Spa features. Further, management’s ability to maintain stable churn and execute disciplined capital allocation will be crucial for tracking long-term growth potential.

Planet Fitness currently trades at $51.90, down from $56.59 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).

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