Planet Fitness, Inc. Announces Third Quarter 2026 Results

Planet Fitness posts solid revenue growth but faces profit pressure amid expansion and capital outlays.

What the company is saying

Planet Fitness, Inc. (NYSE:PLNT) emphasizes a 9.0% year-over-year revenue increase to $360.0 million for Q3 2026, highlighting system-wide same club sales growth of 1.5% and the opening of 33 new clubs, bringing the total to 2,962. The company frames its acquisition of Be-Fit in Portugal as a strategic entry into its sixth international market, describing the 25-club, 80,000-member platform as profitable and scalable, with integration expected to drive future growth and accretion to earnings in 2027. CEO Colleen Keating stresses progress on member growth initiatives, affordability, and long-term value, while also announcing a strategic review of refranchising domestic corporate-owned clubs. The announcement spotlights a new $500 million share repurchase authorization, replacing the prior program, and details the recent $50 million buyback of 1.0 million shares. The tone is confident, focusing on international expansion, capital allocation, and operational momentum, but acknowledges near-term profit declines and increased capital expenditures.

What the data suggests

The company delivered Q3 2026 revenue of $360.0 million, up 9.0% year-over-year, with system-wide sales rising $53.4 million to $1.3 billion and same club sales up 1.5%. Adjusted EBITDA increased $5.4 million to $146.2 million, but net income fell by $6.9 million to $52.2 million (with a minor reporting discrepancy between $52.0 million and $52.2 million), and adjusted net income dropped $5.1 million to $61.9 million. Franchise segment revenue grew 14.0% to $129.6 million, mainly due to a $10.4 million boost from a National Advertising Fund rate hike, while corporate-owned clubs revenue rose 3.5% to $142.7 million, partially offset by a $2.5 million revenue loss from the sale of eight California clubs. Equipment segment revenue climbed 11.1% to $87.6 million, driven by $9.6 million in higher sales to existing franchisees. The Be-Fit acquisition in Portugal cost approximately $114.8 million, with $112.0 million paid at closing and up to $2.8 million in contingent consideration. Cash and marketable securities stood at $515.0 million as of September 30, 2026. The company authorized a new $500 million share repurchase program and expects 2026 revenue to grow 8%, adjusted EBITDA to rise 6.5%, and adjusted net income per share to increase 6%, though adjusted net income is forecast to decline 3%. The data shows robust top-line growth and international expansion, but margin and profit pressures persist, and the benefits of recent investments are not yet reflected in earnings.

Analysis

The announcement is generally positive in tone, highlighting revenue growth (+9%), adjusted EBITDA growth (+$5.4M), and the completion of the Be-Fit acquisition in Portugal. However, net income and adjusted net income both declined year-over-year, and the company is increasing capital intensity through a major acquisition ($114.8M for Be-Fit) and a new $500M share repurchase program. While the Be-Fit acquisition is completed and thus realised, many of the most optimistic claims (such as 2026 guidance for revenue, EBITDA, and club openings) are forward-looking and not yet realised. The company provides detailed segment results, but the mixed profitability (declining net income, only modest EBITDA growth) tempers the positive narrative. The capital outlays are significant, and the benefits from the acquisition are only expected to be accretive in 2027, indicating a lag before returns materialise. The language around international expansion and capital allocation is somewhat promotional relative to the modest realised profit growth and declining net income.

Risk flags

• ●Profitability risk is evident as net income and adjusted net income both declined year-over-year despite revenue and adjusted EBITDA growth. This suggests rising costs, margin compression, or integration expenses that could persist if not managed.
• ●Execution risk surrounds the integration of Be-Fit in Portugal, as the company must convert and scale the acquired clubs, deliver on synergy expectations, and manage cross-border operations. The accretion to earnings is only expected in 2027, leaving a window for integration challenges.
• ●Capital allocation risk is present with the launch of a new $500 million share repurchase program and increased capital expenditures (expected to rise 15% in 2026), which could strain liquidity or limit flexibility if operating performance weakens.
• ●Strategic uncertainty arises from the ongoing review of refranchising domestic corporate-owned clubs, as the outcome and timing are undefined. Proceeds and operational impacts from any refranchising are not quantified, and execution could disrupt segment performance.
• ●Disclosure risk is highlighted by inconsistent net income reporting ($52.0 million vs. $52.2 million for Q3 2026), which may undermine confidence in financial precision and comparability.

Bottom line

Planet Fitness is delivering strong revenue and adjusted EBITDA growth, expanding its global footprint with the completed Be-Fit acquisition in Portugal, and actively deploying capital through share repurchases and new club openings. Despite these positives, net income and adjusted net income are declining, reflecting cost pressures and possibly integration or expansion-related expenses. The company is increasing capital intensity with a $114.8 million acquisition and a new $500 million buyback program, while also signaling further strategic changes through a review of its domestic corporate-owned clubs. The main benefits from the Be-Fit deal are not expected until 2027, so investors must weigh near-term profit pressure against longer-term international growth potential. Watch for clarity on refranchising outcomes, realisation of integration synergies, and whether margin pressures can be reversed. The most important takeaway is that while Planet Fitness is growing and investing for the future, short-term profitability is under strain and execution on new initiatives will be critical to justifying the current capital outlays.

Announcement summary

(NYSE:PLNT) Planet Fitness, Inc. reported financial results for the third quarter ended September 30, 2026. Total revenue for the quarter increased by 9.0% to $360.0 million compared to the prior year period. System-wide same club sales increased 1.5%. System-wide sales increased $53.4 million to $1.3 billion. Net income attributable to Planet Fitness, Inc. was $52.0 million, or $0.70 per diluted share, compared to $58.8 million, or $0.70 per diluted share, in the prior year period. Net income decreased $6.9 million to $52.2 million, compared to $59.2 million in the prior year period. Adjusted net income decreased $5.1 million to $61.9 million, or $0.83 per diluted share, compared to $67.0 million, or $0.80 per diluted share, in the prior year period. Adjusted EBITDA increased $5.4 million to $146.2 million from $140.8 million in the prior year period. 33 new Planet Fitness clubs were opened system-wide during the period, including 25 franchisee-owned and 8 corporate-owned clubs, bringing the total to 2,962 clubs as of September 30, 2026. The company repurchased and retired approximately 1.0 million shares of Class A common stock for $50.0 million. Cash and marketable securities totaled $515.0 million, including $310.2 million in cash and cash equivalents, $72.8 million in restricted cash, and $132.0 million in marketable securities as of September 30, 2026. Franchise segment revenue increased $16.0 million or 14.0% to $129.6 million, primarily due to a $10.4 million increase in National Advertising Fund revenue from a 1% rate increase and a $3.9 million increase in royalty revenue. Corporate-owned clubs segment revenue increased $4.9 million or 3.5% to $142.7 million, mainly from new clubs and a same club sales increase of 1.8%, partially offset by $2.5 million lower revenue from the sale of eight California clubs. Equipment segment revenue increased $8.8 million or 11.1% to $87.6 million, driven by $9.6 million higher revenue from equipment sales to existing franchisee-owned clubs. Franchise Segment Adjusted EBITDA increased $4.5 million or 5.4% to $86.8 million. Corporate-owned clubs Segment Adjusted EBITDA decreased $0.2 million or 0.4% to $53.5 million. Equipment Segment Adjusted EBITDA increased $1.8 million or 7.7% to $25.5 million. The company announced a strategic review of refranchising opportunities for its domestic corporate-owned clubs and expects to use any proceeds to further its capital allocation strategies. Planet Fitness completed the acquisition of Be-Fit in Portugal, a profitable collection of 25 clubs with approximately 80,000 members, for an aggregate purchase price of approximately €102.5 million (or approximately $114.8 million), including €100 million (or approximately $112.0 million) paid in cash at closing and up to an additional €2.5 million (or approximately $2.8 million) in contingent cash consideration. The acquisition marks entry into Portugal as the sixth international market and second country in Europe. The company announced a new share repurchase program of up to $500 million to replace the existing 2025 Share Repurchase Program. For the year ending December 31, 2026, the company expects system-wide same club sales growth of approximately 1.5% to 2%, revenue to increase approximately 8%, adjusted EBITDA to increase approximately 6.5%, new equipment placements of approximately 135 to 140 in franchisee-owned locations, system-wide new club openings of approximately 190 to 195 locations (including Be-Fit), capital expenditures to increase approximately 15%, depreciation and amortization to increase approximately 7%, adjusted net income per share, diluted to increase approximately 6% based on approximately 77.0 million adjusted diluted weighted-average shares outstanding, net interest expense of approximately $115.0 million, and adjusted net income to decrease approximately 3%. As of September 30, 2026, Planet Fitness had approximately 21.5 million members and 2,962 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain.

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