Planet Fitness Reports $276.7 Million Revenue in Q1 2025, Up 11.5%

Planet Fitness, Inc. reported a total revenue of $276.7 million for the first quarter of 2025, marking an increase of 11.5% from $248.0 million in the same period of 2024. The company's net income attributable to Planet Fitness, Inc. was $41.9 million, or $0.50 per diluted share, compared to $34.3 million, or $0.39 per diluted share, in the prior year. This growth in revenue and profitability was driven by increases across all segments, particularly in franchise and corporate-owned clubs, which saw revenues rise to $115.2 million and $133.7 million, respectively.

The company experienced significant operational changes, with a total of 2,741 clubs in operation as of March 31, 2025, up from 2,599 clubs a year earlier. This includes 2,461 franchised clubs and 280 corporate-owned locations. The increase in club count reflects Planet Fitness's ongoing expansion strategy, with approximately 900 new clubs under contractual commitments to open in the future. The franchise segment's revenue growth was bolstered by a 6.2% increase in same-club sales, while corporate-owned clubs reported a 5.1% increase in same-club sales.

In terms of expenses, total operating costs rose to $197.5 million, up from $182.2 million in the previous year, primarily due to higher costs associated with club operations and selling, general, and administrative expenses. Notably, the company reported a 17.5% increase in selling, general, and administrative expenses, attributed to higher payroll costs and increased travel and consulting expenses. Despite these rising costs, the company managed to improve its operating income to $79.2 million, up from $65.8 million in the prior year.

Looking ahead, Planet Fitness remains optimistic about its growth trajectory, emphasizing its commitment to expanding its footprint and enhancing member engagement. The company plans to continue investing in its brand and operational capabilities to support its growth strategy. With a strong cash position of $343.9 million and a focus on increasing its market share, Planet Fitness is well-positioned to capitalize on the growing demand for fitness services. The company’s effective tax rate for the quarter was 27.4%, slightly lower than the previous year's rate of 28.4%, reflecting ongoing adjustments in its tax strategy.