For 26 years, Planet Fitness charged $10 a month and became America’s largest gym chain. In 2024 they bumped it to $15. Now, new sign-ups have collapsed 36%.
The stock lost a third of its value in a single session on Thursday - the worst day in the company’s history. Management gutted the 2026 outlook, shelved the next round of price hikes, and pulled the entire three-year plan they’d shared with investors just months ago. Same-store sales guidance went from 4-5% down to roughly 1%.
Here’s the twist: the quarter itself was fine. Revenue grew 22% to $337 million, earnings topped estimates, and there are still 21.5 million members paying monthly dues at 2,909 locations. CEO Colleen Keating pointed the finger at a marketing pivot that chased “premium fitness” customers and lost the budget-conscious crowd that made Planet Fitness what it is. Now they’re reversing course, but at $43 a share (down from $114), the market isn’t waiting around to see if it works.
Here's how the community voted
This is a marketing problem, not a business problem. Revenue still grew 22%, EPS topped estimates at $0.74, adjusted EBITDA hit $140M, and roughly 90% of Planet Fitness locations are franchisee-owned, meaning the company collects fees without carrying the operating cost of most gyms. The underlying model prints cash even in a down quarter.
The 2024 Classic Card hike from $10 to $15 drove 6.7% same-store sales growth in 2025 with minimal churn, proving the brand can raise prices when the messaging stays on-brand. At ~$43, the stock is trading at less than half its 52-week high while Wall Street’s average target sits at ~$108. If management fixes the marketing misstep, the gap closes fast.
Recessions are good for Planet Fitness. When consumers tighten up, they trade down from $50-80/month boutique studios to $15/month basics. With inflation and $4 gas squeezing household budgets, the value proposition gets sharper, not weaker. The 21.5 million member base is a floor, not a ceiling.
Only 700,000 net new members in Q1, down from over 1 million a year ago. Keating blamed the marketing pivot, but the 2024 Classic Card hike from $10 to $15 may be the deeper issue. At $15, Planet Fitness is still cheap, but the “no-brainer” factor that drove impulse sign-ups at $10 has eroded.
The company didn’t just trim guidance - it torched the whole forward outlook. Same-store sales: 4-5% down to 1%. Revenue growth: 9% down to 7%. Adjusted net income: expected to grow 4-5%, now expected to shrink 2%. And the three-year roadmap from Investor Day? Withdrawn entirely. That’s not a speed bump; that’s a company admitting it doesn’t know what comes next.
Without the Black Card price hike, Planet Fitness has one fewer lever to pull. The franchise model means the company doesn’t directly control the member experience, and franchisees who invested based on the old growth plan are now staring at weaker economics.
This is a marketing problem, not a business problem. Revenue still grew 22%, EPS topped estimates at $0.74, adjusted EBITDA hit $140M, and roughly 90% of Planet Fitness locations are franchisee-owned, meaning the company collects fees without carrying the operating cost of most gyms. The underlying model prints cash even in a down quarter.
The 2024 Classic Card hike from $10 to $15 drove 6.7% same-store sales growth in 2025 with minimal churn, proving the brand can raise prices when the messaging stays on-brand. At ~$43, the stock is trading at less than half its 52-week high while Wall Street’s average target sits at ~$108. If management fixes the marketing misstep, the gap closes fast.
Recessions are good for Planet Fitness. When consumers tighten up, they trade down from $50-80/month boutique studios to $15/month basics. With inflation and $4 gas squeezing household budgets, the value proposition gets sharper, not weaker. The 21.5 million member base is a floor, not a ceiling.
Only 700,000 net new members in Q1, down from over 1 million a year ago. Keating blamed the marketing pivot, but the 2024 Classic Card hike from $10 to $15 may be the deeper issue. At $15, Planet Fitness is still cheap, but the “no-brainer” factor that drove impulse sign-ups at $10 has eroded.
The company didn’t just trim guidance - it torched the whole forward outlook. Same-store sales: 4-5% down to 1%. Revenue growth: 9% down to 7%. Adjusted net income: expected to grow 4-5%, now expected to shrink 2%. And the three-year roadmap from Investor Day? Withdrawn entirely. That’s not a speed bump; that’s a company admitting it doesn’t know what comes next.
Without the Black Card price hike, Planet Fitness has one fewer lever to pull. The franchise model means the company doesn’t directly control the member experience, and franchisees who invested based on the old growth plan are now staring at weaker economics.
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I must be an absolute sucker for a value trap. But imho health and wellness is a long term structural trend in the west, and what’s gone on here could be a good entry point. Particularly at a time when businesses with a real world presence are having a bit of a popular moment, being less susceptible to AI disruption. I’ve added this to my research list.
I agree with this. They may have pushed the pricing lever too much, but the core "need" of those who want a low priced gym membership will remain. I personally enjoy PF because it's casual enough that if I don't go for a while, the low monthly fee doesn't hurt too much, and their equipment is "just enough" for a great workout. I don't think other gyms can easily adopt this model, maybe providing a bit of a competitive advantage, because low prices with high volume is a big transition from the typical higher monthly prices and lower volume that other gyms seem to operate on. Maybe this is a bit of the Aldi or Walmart approach for gyms, and that can work for a long time. Need to do a bit more digging into their business model before I buy, but I like the setup.