Franchise segment - Revenue growth was driven by a 13.5% increase in franchise segment revenue, mainly from a higher NAF contribution rate and increased royalty revenue from new and existing clubs.
Corporate-owned clubs - Revenue from corporate-owned clubs rose 3.5%, mainly due to new club openings and higher same club sales, partially offset by the sale of eight California clubs.
Equipment sales - Equipment segment revenue increased 4.1%, driven by higher sales to new and existing franchisee-owned clubs.
Q2 results beat expectations
US fitness center operator's Q2 revenue rose 7.1%, beating analyst expectations.
Adjusted EPS for Q2 also beat analyst expectations.
The company repurchased and retired $200 million of Class A common stock.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell". The average consensus recommendation for the leisure & recreation peer group is "buy".
Wall Street's median 12-month price target for Planet Fitness Inc is $65.00, about 14.9% above its August 5 closing price of $56.59. The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago.
2026 outlook reiterated
The company reiterated 2026 revenue growth of about 7%.
It expects 2026 adjusted EBITDA to rise about 6%.
The company raised its 2026 adjusted net income per share, diluted growth outlook to about 6%.
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