Q4 2025 Planet Fitness Inc Earnings Call [BACKUP]

February 24, 2026

Colleen Keating: Workout support. We're also leaning into the evolving health landscape, specifically regarding GLP-1. As these treatments can lead to a loss of muscle mass, it's essential that users incorporate strength training to maintain their overall health. Our judgment-free environment makes us the natural partner for this growing demographic. A recent survey conducted by one of our franchisees indicated that roughly 50% of people who take a GLP-1 consider a gym membership. We see positive indicators for continued growth and demand for our offering as GLP-1s become more accessible through lower pricing and pill formats. To that end, we are seeing excellent early results from our perks partnership with Rho. While it is still early days and too soon to run a victory lap, we can share that this has been our most successful perks program yet, with high download and conversion.

Colleen Keating: Collaborations like this help to position us at the forefront of a major shift in consumer wellness. Beyond digital perks, we're focused on the physical member experience through format optimization. We believe in giving members the ideal equipment mix designed for them to complete their workout their way. Not only has member response been favorable, the response from our franchisees has been overwhelming. In 2025, 95% of those who opened or remodeled clubs chose an optimized format. We concluded the year with nearly 80% of our entire system featuring some version of a format-optimized layout or equipment offering. Finally, our efforts to accelerate new club growth. Our focus is on leveraging our collective size and scale to defend and expand our industry leadership position in the HVLP space.

Colleen Keating: Thanks to an incredible push by our total system, particularly in the last several weeks of the year, we opened 104 clubs during Q4, an all-time quarterly high, for a total of 181 openings in 2025. Let me say that again, because it bears repeating. This is the highest number of Q4 openings in our history. While the real estate market showed a few signs of easing in 2025, it remains highly competitive. We are navigating this by partnering with franchisees to demonstrate our unique value proposition to landlords, specifically how Planet Fitness drives foot traffic that benefits the entire retail center. Furthermore, we're leveraging industry relationships to capitalize on prime site opportunities emerging from retail bankruptcies.

Colleen Keating: We're also seeing success with franchisee-led acquisitions, where they purchase small portfolios of regional gyms and convert them to Planet Fitness locations, an effective way of expanding our footprint in high-demand, tight real estate markets. This can be beneficial from a build cost standpoint, as electrical and plumbing is already in place, and from a financial ramp standpoint, as we have seen a solid percentage of members convert to Planet Fitness, so the club has a member base and cash flows from day one. Our international expansion remains a key growth pillar. We are focused on scaling our presence in existing markets like Mexico, Australia, and Spain, while strategically entering one to two new markets annually. A prime example of this momentum is our recent entry into northern Mexico, with a new franchisee set to develop Tijuana and Mexicali.

Colleen Keating: We've also partnered with a bank to lead the Spain marketing process and have a number of interested investors as we look to convert that territory to a franchise market for accelerated growth. We are disciplined in our approach. We're building sustainable, healthy international market positions. This deliberate strategy is yielding results as we surpassed the 1 million member milestone across our international markets last year and have now crested 200 international clubs. Our Chief Development Officer, Chip Ohlsson, recently celebrated his 1-year anniversary, during which he has strengthened his leadership team with several key appointments. He recently added a franchise sales director to his team, with a focus on driving growth domestically to accelerate our outreach and expand our network of franchise partners. Finally, our commitment to member experience continues to earn prestigious third-party recognition.

Colleen Keating: We are especially proud to be named one of USA Today's America's Best Customer Service for 2026. Planet Fitness was the highest-rated fitness brand on a list of 750 companies across a wide number of industries, a distinction based on millions of reviews measuring friendliness, competence, and reliability. Exceptional service is a business imperative that builds trust and drives the loyalty essential to our long-term retention and top-line growth. Now I'll turn it over to Jay.

[Company Representative] (Planet Fitness): Thanks, Colleen. Our financial foundation remains exceptionally strong. I'd like to reiterate, we're extremely proud of what we delivered in 2025. Our highly franchised asset-light model continues to generate significant, predictable cash flow. This has allowed us to return nearly $800 million to shareholders through buybacks over the last two years, while also funding strategic investments for future growth. To our Q4 results. All of my comments regarding our quarter performance will be comparing Q4 of 2025 to Q4 of 2024, unless otherwise noted. We opened 104 new clubs compared to 86. We completed 96 new club placements this quarter, compared to 77 last year. We delivered system-wide same-club sales growth of 5.7%. Franchisee same-club sales increased 5.6%, corporate same-club sales increased 6%.

Jay Stasz: Thanks, Colleen. Our financial foundation remains exceptionally strong. I'd like to reiterate, we're extremely proud of what we delivered in 2025. Our highly franchised asset-light model continues to generate significant, predictable cash flow. This has allowed us to return nearly $800 million to shareholders through buybacks over the last two years, while also funding strategic investments for future growth. To our Q4 results. All of my comments regarding our quarter performance will be comparing Q4 of 2025 to Q4 of 2024, unless otherwise noted. We opened 104 new clubs compared to 86. We completed 96 new club placements this quarter, compared to 77 last year. We delivered system-wide same-club sales growth of 5.7%. Franchisee same-club sales increased 5.6%, corporate same-club sales increased 6%.

[Company Representative] (Planet Fitness): Approximately 80% of our Q4 comp increase was driven by rate growth, with the balance being net membership growth. Black Card penetration was 66.5% at the end of the quarter, an all-time high, and an increase of 260 basis points from the prior year. Our ending Q4 member count of approximately 20.8 million was in line with our expectations. For the Q4, total revenue was $376.3 million compared to $340.5 million. The increase was driven by revenue growth across all three segments, including a 9.6% increase in the franchise segment, a 7.4% increase in the corporate-owned club segment, and a 15.3% increase in the equipment segment.

Jay Stasz: Approximately 80% of our Q4 comp increase was driven by rate growth, with the balance being net membership growth. Black Card penetration was 66.5% at the end of the quarter, an all-time high, and an increase of 260 basis points from the prior year. Our ending Q4 member count of approximately 20.8 million was in line with our expectations. For the Q4, total revenue was $376.3 million compared to $340.5 million. The increase was driven by revenue growth across all three segments, including a 9.6% increase in the franchise segment, a 7.4% increase in the corporate-owned club segment, and a 15.3% increase in the equipment segment.

[Company Representative] (Planet Fitness): The increase in our equipment segment revenue was driven by higher revenue from equipment sales to franchisee-owned clubs. For Q4, replacement equipment accounted for approximately 60% of total equipment revenue, compared to 58%. For Q4, the average royalty rate was 6.7%, flat to the prior year. Our cost of revenue, which relates to the cost of equipment sales to franchisee-owned clubs, was $90.2 million, an increase of 12.1% compared to $80.5 million. Club operations expense increased 7.1% to $79.6 million from $74.4 million. SG&A for Q4 was $37.3 million compared to $35.7 million.

Jay Stasz: The increase in our equipment segment revenue was driven by higher revenue from equipment sales to franchisee-owned clubs. For Q4, replacement equipment accounted for approximately 60% of total equipment revenue, compared to 58%. For Q4, the average royalty rate was 6.7%, flat to the prior year. Our cost of revenue, which relates to the cost of equipment sales to franchisee-owned clubs, was $90.2 million, an increase of 12.1% compared to $80.5 million. Club operations expense increased 7.1% to $79.6 million from $74.4 million. SG&A for Q4 was $37.3 million compared to $35.7 million.

[Company Representative] (Planet Fitness): Adjusted SG&A was $36.8 million, or 9.8% of total revenue, compared to $34.4 million, or 10.1% of total revenue. National Advertising Fund expense was $21.4 million compared to $19.4 million, an increase of 10.5%. Net income was $60.7 million, adjusted net income was $69 million, and adjusted net income per diluted share was $0.83. Adjusted EBITDA was $146.3 million, and adjusted EBITDA margin was 38.9%, compared to $130.8 million, with adjusted EBITDA margin of 38.4%. For the full year, adjusted EBITDA margin increased to 41.7%, compared to 41.3% in the prior year. Now, turning to the balance sheet.

Jay Stasz: Adjusted SG&A was $36.8 million, or 9.8% of total revenue, compared to $34.4 million, or 10.1% of total revenue. National Advertising Fund expense was $21.4 million compared to $19.4 million, an increase of 10.5%. Net income was $60.7 million, adjusted net income was $69 million, and adjusted net income per diluted share was $0.83. Adjusted EBITDA was $146.3 million, and adjusted EBITDA margin was 38.9%, compared to $130.8 million, with adjusted EBITDA margin of 38.4%. For the full year, adjusted EBITDA margin increased to 41.7%, compared to 41.3% in the prior year. Now, turning to the balance sheet.

[Company Representative] (Planet Fitness): As of 31 December 2025, we had total cash equivalents, and marketable securities of $607 million, compared to $529.5 million on 31 December 2024, which included $66.3 million and $56.5 million of restricted cash, respectively, in each period. During the quarter, we refinanced approximately $400 million of our debt that was due next year and upsized the deal to $750 million at a blended coupon of 5.4% and executed a $350 million accelerated share repurchase. Now to our outlook. We knew this year would represent the lowest growth year in our 3-year algorithm for two primary reasons.

Jay Stasz: As of 31 December 2025, we had total cash equivalents, and marketable securities of $607 million, compared to $529.5 million on 31 December 2024, which included $66.3 million and $56.5 million of restricted cash, respectively, in each period. During the quarter, we refinanced approximately $400 million of our debt that was due next year and upsized the deal to $750 million at a blended coupon of 5.4% and executed a $350 million accelerated share repurchase. Now to our outlook. We knew this year would represent the lowest growth year in our 3-year algorithm for two primary reasons.

[Company Representative] (Planet Fitness): First, the extended replacement cycle for equipment as part of our new growth model that we rolled out in 2024. Second, in Q3 of last year, we sold 8 corporate-owned clubs in California. Transitioning these clubs from the corporate-owned segment to the franchise segment aligns with our asset-light strategy, yet reduces our revenue and profit year-over-year growth in 2026. We've seen strong join demand during the quarter, a clear signal that our brand, value, and offerings are resonating. We've also experienced 2 short-term transitory items quarter to date. Our join trends were impacted by the storms and cold weather in late January across many of our markets, and we experienced a slightly higher cancel rate last month than anticipated. Notably, recent attrition trends are returning in line with our expectations. Now to our guidance for 2026, which incorporates the factors described earlier.

Jay Stasz: First, the extended replacement cycle for equipment as part of our new growth model that we rolled out in 2024. Second, in Q3 of last year, we sold 8 corporate-owned clubs in California. Transitioning these clubs from the corporate-owned segment to the franchise segment aligns with our asset-light strategy, yet reduces our revenue and profit year-over-year growth in 2026. We've seen strong join demand during the quarter, a clear signal that our brand, value, and offerings are resonating. We've also experienced 2 short-term transitory items quarter to date. Our join trends were impacted by the storms and cold weather in late January across many of our markets, and we experienced a slightly higher cancel rate last month than anticipated. Notably, recent attrition trends are returning in line with our expectations. Now to our guidance for 2026, which incorporates the factors described earlier.

[Company Representative] (Planet Fitness): We expect system-wide same-club sales growth of 4% to 5%. We expect to open 180 to 190 new clubs system-wide. Like last year, we anticipate the cadence of these openings and the related 150 to 160 equipment placements to be weighted toward the second half of the year and especially Q4. We expect reequipment sales to represent approximately 70% of total segment revenue, and we expect an equipment margin rate of approximately 30%. We expect total revenue growth of approximately 9% over 2025. We expect adjusted EBITDA to grow approximately 10% over 2025. We project adjusted net income growth in the 4% to 5% range. On a per-share basis, we expect adjusted diluted EPS to increase between 9% to 10%.

Jay Stasz: We expect system-wide same-club sales growth of 4% to 5%. We expect to open 180 to 190 new clubs system-wide. Like last year, we anticipate the cadence of these openings and the related 150 to 160 equipment placements to be weighted toward the second half of the year and especially Q4. We expect reequipment sales to represent approximately 70% of total segment revenue, and we expect an equipment margin rate of approximately 30%. We expect total revenue growth of approximately 9% over 2025. We expect adjusted EBITDA to grow approximately 10% over 2025. We project adjusted net income growth in the 4% to 5% range. On a per-share basis, we expect adjusted diluted EPS to increase between 9% to 10%.

Specifically regarding G. L P. One.

These treatments can lead to a loss of muscle mass, it's essential that users incorporate strength training to maintain their overall health.

Our judgement free environment makes us the natural partner for this growing demographic.

A recent survey conducted by one of our franchisees indicated that roughly 50% of people who take a G. L. P. One consider a gym membership we see positive indicators for continued growth in demand for our offering as G. O P ones become more accessible through lower pricing and pill formats.

[Company Representative] (Planet Fitness): This is based on approximately 80 million adjusted diluted weighted average shares outstanding, which includes the impact from our ASR entered into at the end of last year, and our plan to repurchase approximately $150 million worth of shares in 2026. We anticipate 2026 net interest expense of approximately $114 million, reflecting the annualized impact of our 2025 refinancing. Lastly, we expect capital expenditures to be up between 10% and 15% and D&A to be up approximately 10%. We reiterate our 3-year growth algorithm that we outlined at last year's Investor Day.

Jay Stasz: This is based on approximately 80 million adjusted diluted weighted average shares outstanding, which includes the impact from our ASR entered into at the end of last year, and our plan to repurchase approximately $150 million worth of shares in 2026. We anticipate 2026 net interest expense of approximately $114 million, reflecting the annualized impact of our 2025 refinancing. Lastly, we expect capital expenditures to be up between 10% and 15% and D&A to be up approximately 10%. We reiterate our 3-year growth algorithm that we outlined at last year's Investor Day.

To that end, we are seeing excellent early results from our perks partnership with ROE. While it is still early days and too soon to run a victory lap. We can share that this has been our most successful perks program, yet with high download and conversion.

Collaborations like this help to position us at the forefront of a major shift in consumer wellness.

Beyond digital perks, we're focused on the physical member experience through format optimization, we believe in giving members the ideal equipment mix designed for them to complete their work out their way.

[Company Representative] (Planet Fitness): The strategic imperatives and growth initiatives we outlined continue to build momentum, positioning us well to deliver against our long-term objectives. The fundamentals of our business are strong, the model is resilient, and we continue to generate significant cash flow that enables us to return value to shareholders. Now, I'll turn the call back to the operator to open it up for Q&A.

Jay Stasz: The strategic imperatives and growth initiatives we outlined continue to build momentum, positioning us well to deliver against our long-term objectives. The fundamentals of our business are strong, the model is resilient, and we continue to generate significant cash flow that enables us to return value to shareholders. Now, I'll turn the call back to the operator to open it up for Q&A.

Not only has member response been favorable the response from our franchisees has been overwhelming in 2025, 95% of those who opened or remodeled clubs chosen optimized format.

Operator: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Randy Konik with Jefferies. Your line is open. Please go ahead.

We concluded the year with nearly 80% of our entire system, featuring some version of a format optimize layout or equipment offering.

And finally, our efforts to accelerate new club growth our focus is on leveraging our collective size and scale to defend and expand our industry leadership position in the H B L. P space.

Thanks to an incredible push by our total system, particularly in the last several weeks of the year. We opened 104 clubs during the fourth quarter and all time quarterly high for a total of 181 openings in 2025.

Randy Konik: Thanks a lot, good morning. I guess, Jay, question for you is, when you look at the 26 guide, and you think about, you just reiterated your 3-year growth algo that you gave at the Analyst Day. Give us some perspective on what does that mean for the 2 out years in terms of shaping the revenue growth, unit expansion, and EBITDA dollar growth? How are we supposed to think about that as we think, you know, further from 26 into 27 and 28? Thanks.

Let me say that again.

Because it bears repeating this is the highest number of Q4 openings in our history.

While the real estate market showed a few signs of easing in 2025, it remains highly competitive.

We are navigating this by partnering with franchisees to demonstrate our unique value proposition to landlords, specifically, how planet fitness drive foot traffic that benefit the entire retail center.

[Company Representative] (Planet Fitness): Hey, Randy, good morning, and thanks for the question. As we said, right, we knew that this year would represent the lowest growth year in the 3-year algo because of the reequip cycle and because of the sale of the California clubs. So those impacts, if we think about that on the year-over-year growth for this year, is about a 300 basis point impact to top line and about a 200 basis point, slightly north of that, on the EBITDA. Obviously, that was contemplated and known.

Jay Stasz: Hey, Randy, good morning, and thanks for the question. As we said, right, we knew that this year would represent the lowest growth year in the 3-year algo because of the reequip cycle and because of the sale of the California clubs. So those impacts, if we think about that on the year-over-year growth for this year, is about a 300 basis point impact to top line and about a 200 basis point, slightly north of that, on the EBITDA. Obviously, that was contemplated and known.

Are there more we're leveraging industry relationships to capitalize on prime site opportunities emerging from retail bankruptcies.

We're also seeing success with franchisee led acquisition.

They purchased small portfolios of regional gym, and convert them to planet fitness locations and effective way of expanding our footprint in high demand tight real estate market.

[Company Representative] (Planet Fitness): Also included in our guidance this year are, like we mentioned, just some transitory, to a much lesser extent, transitory headwinds related to the weather impact on joins, which we can talk more about, as well as a slight elevation in attrition versus our expectations that we saw in January, which is now normalized. To your point, right, we have reiterated our commitment to the 3-year algorithm, and we expect to get back to those targets that we laid out, both for revenue and EBITDA over the 3-year period. To your point, there's a bit of a step up in the out years. I think you guys can probably all calculate and do the math. We expected, and this is not dissimilar to what we rolled out with our 3-year algo at Investor Day.

Jay Stasz: Also included in our guidance this year are, like we mentioned, just some transitory, to a much lesser extent, transitory headwinds related to the weather impact on joins, which we can talk more about, as well as a slight elevation in attrition versus our expectations that we saw in January, which is now normalized. To your point, right, we have reiterated our commitment to the 3-year algorithm, and we expect to get back to those targets that we laid out, both for revenue and EBITDA over the 3-year period. To your point, there's a bit of a step up in the out years. I think you guys can probably all calculate and do the math. We expected, and this is not dissimilar to what we rolled out with our 3-year algo at Investor Day.

This can be beneficial from a build cocked endpoint as electrical and plumbing is already in place and from a financial ramp standpoint, as we have seen a solid percentage of members convert for planet fitness. So the club has a member base and cash flows from day one.

Our international expansion remains a key growth pillar, we are focused on scaling our presence in existing markets like Mexico, Australia, and Spain, while strategically entering one to two new markets annually.

A prime example of this momentum is our recent entry into northern Mexico with a new franchisee set to develop Tijuana in Mexicali. We've also partnered with a bank to lead this being marketing process and have a number of interested investors as we look to convert that territory to a franchise market for accelerated.

[Company Representative] (Planet Fitness): We didn't indicate that the algo was gonna be a annual growth rate. Certainly, the strategic imperatives, we see the traction, and they are building. The beauty of this model is that once we start to continue to drive revenue and net member growth, there's significant flow-through to the bottom line. We see increases in both year 2 and year 3 of that growth algo to get back to the targets we laid out.

Jay Stasz: We didn't indicate that the algo was gonna be a annual growth rate. Certainly, the strategic imperatives, we see the traction, and they are building. The beauty of this model is that once we start to continue to drive revenue and net member growth, there's significant flow-through to the bottom line. We see increases in both year 2 and year 3 of that growth algo to get back to the targets we laid out.

Growth.

We are disciplined in our approach we're building sustainable healthy international market positions.

This deliberate strategy is yielding results as we surpassed the 1 million member milestone across our international markets last year and have now crested 200 international clubs.

Our Chief Development Officer Chip Olson recently celebrated his one year anniversary during which he has strengthened his leadership team with several key appointments. He recently out of the franchise sales director to his team with a focus on driving growth domestically to accelerate our outreach and expand our network of franchise partners.

Randy Konik: Got it. Since you brought it up, can we then follow up with trying to get a little bit more granular about the month of January, then?

[Company Representative] (Planet Fitness): Yeah. In terms of January, a couple points that I'll talk about. From a join standpoint, we saw nice, healthy join trends leading in, you know, for the first few weeks of January, leading into the storm that started late in January. As we worked through that storm, we had a significant impact across many of our markets. About 2,000 clubs, based on our data, had some form of impact, and we saw a marked difference in the relative join volumes during the storm period, you know, the storms period in late January. Since that time, for the markets that were impacted, we've seen a nice rebound, and then we've seen some very healthy join rates related to promotions we've run in February.

Jay Stasz: Yeah. In terms of January, a couple points that I'll talk about. From a join standpoint, we saw nice, healthy join trends leading in, you know, for the first few weeks of January, leading into the storm that started late in January. As we worked through that storm, we had a significant impact across many of our markets. About 2,000 clubs, based on our data, had some form of impact, and we saw a marked difference in the relative join volumes during the storm period, you know, the storms period in late January. Since that time, for the markets that were impacted, we've seen a nice rebound, and then we've seen some very healthy join rates related to promotions we've run in February.

Lee our commitment to member experience continues to earn prestigious third party recognition, we are especially proud to be named one of USA today's best customer service companies for 'twenty 'twenty sex.

Planet fitness was the highest rated fitness brand on a list of 750 companies across a wide number of industries, a distinction based on millions of refuse measuring friendliness competence and reliability.

Exceptional service is a business imperative that builds trust and drives the loyalty are central to our long term retention and topline growth.

[Company Representative] (Planet Fitness): You know, I think those things are temporary in nature. Obviously, with this subscription model, a join that happens earlier in the year is more economically impactful and beneficial to a join that happens later in the year. We've reflected that as part of this guidance. It's certainly, the impact is much less than the other impacts that we've discussed. From an attrition standpoint, slight elevation in January, right? This was the first year of a high volume period with the ability to manage your membership with our messaging around cancel anytime. Maybe in January, it's more top of mind, just like fitness is.

Jay Stasz: You know, I think those things are temporary in nature. Obviously, with this subscription model, a join that happens earlier in the year is more economically impactful and beneficial to a join that happens later in the year. We've reflected that as part of this guidance. It's certainly, the impact is much less than the other impacts that we've discussed. From an attrition standpoint, slight elevation in January, right? This was the first year of a high volume period with the ability to manage your membership with our messaging around cancel anytime. Maybe in January, it's more top of mind, just like fitness is.

Now I'll turn it over to Jay.

Thanks Colleen.

Our financial Foundation remains exceptionally strong.

I'd like to reiterate we're extremely proud of what we delivered in 2025.

Our highly franchised asset light model continues to generate significant predictable cash flow.

This has allowed us to return nearly $800 million to shareholders through buybacks over the last two years, while also funding strategic investments for future growth.

Now to our fourth quarter results.

All of my comments regarding our quarter performance will be comparing Q4 of 2025 for Q4 of 2024, unless otherwise noted.

[Company Representative] (Planet Fitness): We have made some tweaks to our messaging in our digital platform around cancellation, and we have seen that the attrition rate has come in line in February with our expectations.

Jay Stasz: We have made some tweaks to our messaging in our digital platform around cancellation, and we have seen that the attrition rate has come in line in February with our expectations.

We opened 104, new clubs compared to 86, we completed 96, New club placements this quarter compared to 77 last year.

We delivered system wide same club sales growth of five 7% franchisee same club sales increased five 6% and corporate same club sales increased 6%.

Randy Konik: Great. Thanks a lot.

Operator: Your next question comes from the line of Simeon Siegel with Guggenheim Securities. Your line is open. Please go ahead.

Approximately 80% of our fourth quarter comp increase was driven by rate growth with the balance being net membership growth.

Simeon Siegel: Thanks. Hey, everyone. Good morning. Jay, just for the guidance, how are you thinking about Black Card penetration and then price versus member growth embedded within those revenues? Just because we're talking about January, I guess, Colleen, we've been talking about smoothing out the seasonality of your joins. How do you think about the significance of a challenging weather January now for Planet Fitness versus maybe how we would have thought about it historically? Thanks, guys.

My card penetration was 66, 5% at the end of the quarter, an all time high and an increase of 260 basis points from the prior year.

Our ending fourth quarter member count of approximately $20 8 million was in line with our expectations.

For the fourth quarter total revenue was $376 $3 million compared to $345 million.

[Company Representative] (Planet Fitness): Yeah, I can start with that. I mean, obviously from a join standpoint, right? We've talked about in the past, I think historically, they talked about 60% or so of joins coming in Q1. Obviously, you know, in the past couple of years, it's been higher than that. We've talked about consistently the ability to get net member growth across several quarters. And I'll let Colleen speak to it more, but we've got, you know, lots of things that we can do, and you know, we're seeing traction on the strategic imperatives to drive joins. In terms of your question on Black Card penetration, I mean, we are seeing in Q4, we continue to see, you know, highest ever Black Card penetration at 66.5%.

Jay Stasz: Yeah, I can start with that. I mean, obviously from a join standpoint, right? We've talked about in the past, I think historically, they talked about 60% or so of joins coming in Q1. Obviously, you know, in the past couple of years, it's been higher than that. We've talked about consistently the ability to get net member growth across several quarters. And I'll let Colleen speak to it more, but we've got, you know, lots of things that we can do, and you know, we're seeing traction on the strategic imperatives to drive joins. In terms of your question on Black Card penetration, I mean, we are seeing in Q4, we continue to see, you know, highest ever Black Card penetration at 66.5%.

The increase was driven by revenue growth across all three segments, including a nine 6% increase in the franchise segment.

Seven 4% increase in the corporate on club segment, and a 15, 3% increase in the equipment segment.

The increase in our equipment segment revenue was driven by higher revenue from equipment sales to franchisee owned clubs.

For the quarter replacement equipment accounted for approximately 60% of total equipment revenue compared to 58%.

For the fourth quarter, the average royalty rate was six 7% flat to the prior year.

Our cost of revenue, which relates to the cost of equipment sales to franchisee owned clubs with $90 $2 million, an increase of 12, 1% compared to $85 million.

[Company Representative] (Planet Fitness): That is a benefit to rate. As we think about the guide and the comp, we're expecting about a 75, 25 split, 75% being rate, 25% being volume or membership growth.

Jay Stasz: That is a benefit to rate. As we think about the guide and the comp, we're expecting about a 75, 25 split, 75% being rate, 25% being volume or membership growth.

Club operations expense increased seven 1% to $79 $6 million from $74 4 million.

SG&A for the quarter was 37 $3 compared to $35 $7 million adjusted SG&A was $36 8 million or nine 8% of total revenue compared to $34 4 million or 10, 1% of total revenue.

Colleen Keating: Yeah, I'll just maybe build a little bit on, you know, what you said about the January joins. Simeon, as you've seen, we've been successfully running promotions and experiencing net member growth in quarters outside of Q1. This past year, Q4, we had net member growth. Prior year, in the back half, we also had net member growth. You'll continue to see us deploy marketing in quarters outside of Q1. I think, you know, a couple things important to note. Coming through 2025, with 1.1 million net new members, that was a 10% increase on net new members versus the prior year, 2024.

National advertising fund expense was $21 $4 million compared to $19 4 million an increase of 10, 5%.

Net income was $67 million adjusted it in the $9 million and adjusted net income per diluted share was <unk> 83.

Adjusted EBITDA was $146 $3 million and adjusted EBITDA margin was 38, 9%.

<unk> to $138 million with adjusted EBITDA margin of 38, 4%.

For the full year adjusted EBITDA margin increased to 41, 7% compared to 41, 3% in the prior year.

Colleen Keating: It was our first full year of the elevated Classic Card pricing, as well as the first year that we rolled out nationwide online member management. That coupled with, as Jay mentioned, we were seeing strong join trends coming through January prior to the storm impact. I think all of those things together give us real confidence in the momentum that we're seeing in the business.

Now turning to the balance sheet.

As of December 31, 2025, we had total cash cash equivalents and marketable securities of $607 million compared to $529 5 million on December 31 of 24.

Which included $66 3 million and $56 $5 million of restricted cash respectively in each period.

Simeon Siegel: That's great. Thanks, guys. Best of luck for the year ahead.

During the quarter, we refinanced approximately $400 million of our debt that was due next year and upsize the deal to $750 million at a blended coupon of five 4% and executed a $350 million accelerated share repurchase.

Colleen Keating: Thank you.

Operator: Your next question comes from the line of Max Rakhlenko with TD Cowen. Your line is open. Please go ahead.

Max Rakhlenko [Director and Consumer: Great. First, just on the lower EBITDA and the EPS guide for 2026, can you maybe talk about the shape of the year and how we should think about both for 1H versus 2H?

Max Rakhlenko: Great. First, just on the lower EBITDA and the EPS guide for 2026, can you maybe talk about the shape of the year and how we should think about both for 1H versus 2H?

Now to our outlook.

We knew this year would represent the lowest growth year in our three year algorithm for two primary reasons.

The extended replacement cycle for equipment as part of our new growth model that we rolled out in 'twenty four.

Second in Q3 of last year, we sold eight corporate owned clubs in California.

[Company Representative] (Planet Fitness): Yeah, Max, this is Jay, and I will speak to that. When we think about our comp guide of the 4% to 5%, a couple things to point out, right? We are gonna be lapping the nationwide rollout of member management in Q2. When we think about the comps, we think about lower comps in the first half, and we think about higher comps in the back half as a result of that. Of course, as we've called out, with the equipment revenue, that is notoriously backloaded. I think last year, we had 57% of our openings in Q4. This year, I would tell you, it's, you know, it's around that. It might be a few points higher, so maybe closer to 60%.

Jay Stasz: Yeah, Max, this is Jay, and I will speak to that. When we think about our comp guide of the 4% to 5%, a couple things to point out, right? We are gonna be lapping the nationwide rollout of member management in Q2. When we think about the comps, we think about lower comps in the first half, and we think about higher comps in the back half as a result of that. Of course, as we've called out, with the equipment revenue, that is notoriously backloaded. I think last year, we had 57% of our openings in Q4. This year, I would tell you, it's, you know, it's around that. It might be a few points higher, so maybe closer to 60%.

Transitioning these clubs from the corporate and segment to the franchise segment aligns with our asset light strategy.

It reduces our revenue and profit year over year growth in 2006.

We've seen strong joined demand during the quarter, a clear signal that our brand value and offerings are resonating well.

We've also experienced two short term transitory items quarter to date.

Our joined trends were impacted by the storms and cold weather in late January across many of our markets.

And we experienced a slightly higher cancel rate last month than anticipated.

Notably recent attrition trends are returning in line with our expectations.

Now for our guidance for 2006, which incorporates the factors described earlier.

[Company Representative] (Planet Fitness): Otherwise, I think, you know, if you, if you model consistently, otherwise from an equipment standpoint, obviously we're gonna have an increase this year in the NAF revenue. I think Brian Povinelli gave you a ballpark amount for that in on the Investor Day. Otherwise, yeah, it's pretty. You know, the comps are gonna be the drivers. Obviously, we don't guide the membership. We've talked a little bit about the cadence of our membership and our ability to add members throughout the course of the year. We're probably not gonna get more granular on that, but I think that should help you shape and form the model.

Jay Stasz: Otherwise, I think, you know, if you, if you model consistently, otherwise from an equipment standpoint, obviously we're gonna have an increase this year in the NAF revenue. I think Brian Povinelli gave you a ballpark amount for that in on the Investor Day. Otherwise, yeah, it's pretty. You know, the comps are gonna be the drivers. Obviously, we don't guide the membership. We've talked a little bit about the cadence of our membership and our ability to add members throughout the course of the year. We're probably not gonna get more granular on that, but I think that should help you shape and form the model.

We expect system wide same pump sales growth of 4% to 5%.

We expect to open 180 to 190, New club system wide like last year, we anticipate the cadence of these openings and the related 150 to 160 equipment placements to be weighted towards the second half of the year and especially the fourth quarter.

We expect to re equipment sales to represent approximately 17% of total segment revenue and we expect in equipment margin rate of approximately 30%.

We expect total revenue growth of approximately 9% over 2025.

Max Rakhlenko [Director and Consumer: Just two quick follow-ups. Just what about on the margin side? Anything that we should think about, you know, first half versus second half? Because the guide does embed, obviously, some margin pressure, and you touched on some of the drivers. How should we think about the year progressing?

We expect adjusted EBITDA to grow approximately 10% over 2025.

Max Rakhlenko: Just two quick follow-ups. Just what about on the margin side? Anything that we should think about, you know, first half versus second half? Because the guide does embed, obviously, some margin pressure, and you touched on some of the drivers. How should we think about the year progressing?

We project adjusted net income growth in the 4% to 5% range.

On a per share basis, we expect adjusted diluted EPS to increase between 9% to 10%.

This is based on approximately 80 million adjusted diluted weighted average shares outstanding which includes the impact from our ASR entered into at the end of last year and our plan to repurchase approximately $150 million worth of shares in 2026.

[Company Representative] (Planet Fitness): Max, you're talking about EBITDA margin standpoint?

Jay Stasz: Max, you're talking about EBITDA margin standpoint?

Max Rakhlenko [Director and Consumer: Right.

Max Rakhlenko: Right.

[Company Representative] (Planet Fitness): Yeah. I, you know, I think when you think about it, we've got to look at it ex NAF. We're expecting to get, you know, significant margin leverage on an ex NAF basis, even with NAF, you know, because that is obviously impactful to the EBITDA margin mix. We're expecting to be pretty consistent year-over-year. I think as we think about our guidance and the way we've approached this, we think the guidance is appropriate given some of the puts and takes we've talked about. I think what that helps us do is really set our expense structure below that. I mean, certainly, we're gonna do all we can to continue to work hard and drive that top line and drive joins.

Jay Stasz: Yeah. I, you know, I think when you think about it, we've got to look at it ex NAF. We're expecting to get, you know, significant margin leverage on an ex NAF basis, even with NAF, you know, because that is obviously impactful to the EBITDA margin mix. We're expecting to be pretty consistent year-over-year. I think as we think about our guidance and the way we've approached this, we think the guidance is appropriate given some of the puts and takes we've talked about. I think what that helps us do is really set our expense structure below that. I mean, certainly, we're gonna do all we can to continue to work hard and drive that top line and drive joins.

We anticipate 2026 net interest expense of approximately $114 million, reflecting the annualized impact of our 2025 refinancing lastly, we expect capital expenditures to be up between 10, and 15% and DNA to be up approximately 10%.

We reiterate our three year growth algorithm that we outlined at last year's investors day, the strategic imperatives and growth initiatives, we outlined continued to build momentum positioning us well to deliver against our long term objectives.

<unk> of our business are strong the model is resilient and we continue to generate significant cash flow that enables us to return value to shareholders.

[Company Representative] (Planet Fitness): We've set our expense structure with this, and if you think about where we've got leverage in the model, it's really on the SG&A.

Jay Stasz: We've set our expense structure with this, and if you think about where we've got leverage in the model, it's really on the SG&A.

Now I'll turn the call back to the operator to open it up for Q&A.

Max Rakhlenko [Director and Consumer: Got it. That's helpful. Then, Colleen, what's the latest thinking around the timing of the Black Card price increase, and how do you think that it'll change the complexion of the comp build as well as the Black Card mix? Then is it already embedded in the guide, or are we gonna get an update once you do roll out the Black Card price increase?

Max Rakhlenko: Got it. That's helpful. Then, Colleen, what's the latest thinking around the timing of the Black Card price increase, and how do you think that it'll change the complexion of the comp build as well as the Black Card mix? Then is it already embedded in the guide, or are we gonna get an update once you do roll out the Black Card price increase?

We will now begin the question and answer session. Please limit yourself to one question and one follow up if you would like to ask a question. Please press star one on your telephone keypad to withdraw your question Press Star One again, please pickup your handset when asking a question.

Colleen Keating: Yes, great question. We indicated that we would roll out Black Card, the Black Card price increase after our peak join season. For competitive reasons, we're not being overly specific, but you know our business well, and you know when our peak join season is. I think where we took the Classic Card price increase 2 years ago is kind of a directional indication. Q3 obviously is our lower join quarter. That will give you an indication of when we're anticipating to roll that out.

If you are muted locally please remember to mute your device. Please standby now while we compile the Q&A roster.

Your first question comes from the line of Randy <unk> with Jefferies. Your line is open. Please go ahead.

Yeah, Thanks, a lot and good morning.

Jay a question for you is when you look at the 26 guide.

And you think about you just reiterated your are your three year.

Growth Algo that you gave at the analyst day.

Give us some perspective on what does that means for the two out years in terms of shaping the the revenue growth.

Colleen Keating: As we've said, as we've increased our Black Card penetration over the past couple of years, we know we have gotten some organic rate lift out of the increased penetration, and we expect to continue to get to be able to take impact from pricing in the comp from the Black Card price lift. I think we've given directionally, anticipated in the comp about 75%-ish coming from rate, 25%-ish coming from volume.

Unit expansion in EBITDA dollar growth how are we supposed to think about that as well.

A further from 26 into 27 and 28.

Yeah, Hey, Randy good morning, and thanks for the question.

As we said right we knew that this year would represent the lowest growth here in the three year round, though because of the re equip cycle and because of the sale of the California clubs.

So those impacts if we think about that on a year over year growth for this year is about a three.

Chris O'Cull: Awesome. Thanks a lot, and best regards for the rest of the quarter.

300 basis point impact to top line and about a 200 basis point slightly north of that on the EBITDA. So obviously that was contemplated a known also included in our guidance for this year are like we mentioned just some transitory to a much lesser extent transitory headwinds related to the weather impact and joins which we can.

Operator: Your next question comes from the line of Joseph Altobello with Raymond James. Your line is open. Please go ahead.

Joseph Altobello: Thanks. Hey, guys. Good morning. First question on attrition rates. You mentioned them a couple of times this morning. I'm curious, you know, back when you implemented click to cancel, are they back to where you thought they'd be in February?

Joe Altobello: Thanks. Hey, guys. Good morning. First question on attrition rates. You mentioned them a couple of times this morning. I'm curious, you know, back when you implemented click to cancel, are they back to where you thought they'd be in February?

Talk more about as well as a slight elevation in nutrition.

Versus our expectations that we saw in January which is now normalized.

But to your point right, we have reiterated our.

[Company Representative] (Planet Fitness): Joe, this is Jay, I'll start with that. I mean, yeah, from an expectation standpoint, they are back in line with their expectations for February. Like we've talked about historically, while there was an elevation after click to cancel last year, still, those rates have been within historical norms. That's when we think about the full year and how we expect it, we would expect the attrition rate to be within the historical norms. Again, we're anniversarying the national rollout of click to cancel in Q2 of this year. Again, you know, from a stepping back perspective, right, there's a lot of reasons why this is the right approach strategically for a member experience. We're continuing to see an increase in our conversion rates.

Jay Stasz: Joe, this is Jay, I'll start with that. I mean, yeah, from an expectation standpoint, they are back in line with their expectations for February. Like we've talked about historically, while there was an elevation after click to cancel last year, still, those rates have been within historical norms. That's when we think about the full year and how we expect it, we would expect the attrition rate to be within the historical norms. Again, we're anniversarying the national rollout of click to cancel in Q2 of this year. Again, you know, from a stepping back perspective, right, there's a lot of reasons why this is the right approach strategically for a member experience. We're continuing to see an increase in our conversion rates.

Our commitment to the three year algorithm and we expect to get back to those targets.

<unk> targets that we laid out both the revenue and EBITDA over the three year period and to your point, so theres a bit of a step up in the out years.

I think you guys can probably I'll calculate and do the math, we expected and this is not dissimilar to what we rolled out with our three year I'll go at Investor Day, we didn't indicate that the algo was going to be a annual growth rate.

But certainly the strategic imperatives, we see the traction and they are building and the beauty of this model is at once.

We start to continue to drive revenue and net member growth Theres significant flow through to the bottom line. So we see.

[Company Representative] (Planet Fitness): They're up 6% in the digital join flow. Obviously, this is still a focus of the FTC and at the state level. We think this is absolutely the right direction and place to be, and the rate has gotten back in line with their expectations.

Jay Stasz: They're up 6% in the digital join flow. Obviously, this is still a focus of the FTC and at the state level. We think this is absolutely the right direction and place to be, and the rate has gotten back in line with their expectations.

Increases in both year, two and year three of that growth I'm going to get back to the targets we laid out.

Got it and then since you brought it up can we then follow up with trying to get a little more granular about the month of January.

Colleen Keating: Yeah, I think important to also point out that for the full year 2025, we were, you know, still well within historical norms on an annualized basis. We've shared, you know, it's been a three-handle average attrition rate on an annualized basis, and that's where we landed 2025 as well.

Yes. So in terms of January a couple points that I'll talk about on a from a joined standpoint, we saw a nice healthy joined trends leading in for the first few weeks of January leading into the storm that started late in January and then as we are.

Joseph Altobello: Okay, that's helpful.

Joe Altobello: Okay, that's helpful.

<unk> worked through that storm, we had a significant impact across many of our markets about two.

Colleen Keating: I'll also just add to that, we also are continuing to see, you know, mid 30% of our joins are rejoins. We know that when we're treating our members well and giving them the opportunity to manage their membership, they're coming back to us. I think Jay also indicated that in the join flow, we've seen about a 6% increase in conversion in the join flow since noting the ability to, you know, the ability to manage your membership in the join flow as well.

2000 clubs based on our data had some form of impact and we saw a marked difference in the relative joined volumes during the storm period storms period in late January and then since that time for the markets that were impacted we've seen a nice rebound and then we've seen some very.

Healthy joined rates related to promotions, we run in February so.

I think I think those things are are temporary in nature, obviously with the subscription model or join that happens earlier in the year is more economically impactful and beneficial to enjoying that happens later in the year.

Joseph Altobello: Got it. Thank you. Just to shift gears to interest expense, this is probably the biggest delta, at least from my model, was not expecting a $29 million increase year-over-year. I understand the, you know, the debt levels are up because of the upsized refi, and you've got the buyback here in 2026, but I still can't get the $29 million of incremental interest expense.

Joe Altobello: Got it. Thank you. Just to shift gears to interest expense, this is probably the biggest delta, at least from my model, was not expecting a $29 million increase year-over-year. I understand the, you know, the debt levels are up because of the upsized refi, and you've got the buyback here in 2026, but I still can't get the $29 million of incremental interest expense.

And so we've reflected that as part of this guidance. It certainly the impact is much less than the other impacts that we've discussed and then from nutrition standpoint.

Slight elevation in January right. This was the first year.

[Company Representative] (Planet Fitness): Yeah, Joe, and we can take it offline if needed. But absolutely, it's just a function of the blend. You know, we were giving up a coupon in the 3s, and the coupon on the new tranche of debt is about 5.4. It includes the $400 million that was refied, plus the $350 million incremental that allowed us to do the ASR. That's probably one component. The only other component, obviously, there's an interest income component embedded in that, but you should be able to get pretty close.

Jay Stasz: Yeah, Joe, and we can take it offline if needed. But absolutely, it's just a function of the blend. You know, we were giving up a coupon in the 3s, and the coupon on the new tranche of debt is about 5.4. It includes the $400 million that was refied, plus the $350 million incremental that allowed us to do the ASR. That's probably one component. The only other component, obviously, there's an interest income component embedded in that, but you should be able to get pretty close.

Of a high volume period with the ability to manage your membership with our messaging around cancel anytime.

So maybe in January it's more top of mind, just like fitness is so.

So we have made some tweaks to our messaging in our our digital platform.

Platform around cancellation, and we have seen that the attrition rate has come in line in February with our expectations.

Okay.

Great. Thanks, a lot.

Your next question comes from the line of Simeon Siegel with Guggenheim Securities. Your line is open. Please go ahead.

Joseph Altobello: Got it. Okay, helpful. Thank you.

Joe Altobello: Got it. Okay, helpful. Thank you.

Operator: Your next question comes from the line of Chris O'Cull with Stifel Financial Corporation. Your line is open. Please go ahead.

Thanks, everyone. Good morning.

So J J for the guidance how are you thinking about black card penetration and then price versus member growth embedded within those revenues.

Chris O'Cull: Yeah, thanks. Good morning. Colleen, I'm trying to understand the 4% to 5% comp guide. You know, the company should have the coming benefit of the Black Card pricing, you know, a 25% increase, I think, in media impressions from the additional ad dollars, and then just the residual benefit of the Classic Card pricing. I mean, in Q4, comps were up almost 6%. Can you help us understand why comps are expected to slow? I mean, is this conservatism or the higher cancellation rate? I'm just trying to understand how to think about this guidance.

Then just because we're talking about January just I guess Colleen we've been talking about smoothing out the seasonality of your joined so how do you think about the significance of a challenging weather January now for planet fitness versus maybe how we would have thought about it historically thanks guys.

Yes, so I can start with that I mean, obviously from a from them.

I joined standpoint, right we've talked about.

In the past I think historically, they talked about 60% or so of joins coming in the first quarter obviously.

Colleen Keating: Yeah. Do you want to start, or?

[Company Representative] (Planet Fitness): Yeah. Chris, this is Jay, and I can start with that. I mean, a couple of things, right? You've got a... I mean, this is a subscription model. When we think about our comp base, obviously, I mean, one small factor is the fact that stores enter the comp base after the, you know, the 13th month. When we opened 150 clubs in 2024, those are gonna largely impact 2026, and that was a low club opening year compared, like, if you think about the 181 that we just opened, which will impact 2027, really. That's a component of it. The other piece is just we've got a large installed base of clubs that generate a ton of cash flow.

Jay Stasz: Yeah. Chris, this is Jay, and I can start with that. I mean, a couple of things, right? You've got a... I mean, this is a subscription model. When we think about our comp base, obviously, I mean, one small factor is the fact that stores enter the comp base after the, you know, the 13th month. When we opened 150 clubs in 2024, those are gonna largely impact 2026, and that was a low club opening year compared, like, if you think about the 181 that we just opened, which will impact 2027, really. That's a component of it. The other piece is just we've got a large installed base of clubs that generate a ton of cash flow.

You know in the past couple of years, it's been higher than that we've talked about consistently the ability to get net member growth across several quarters. So.

And I'll, let <unk> speak to a member, but we've got you know.

Lots of things that we can do and we're seeing traction on the strategic imperatives to drive joins.

In terms of your question Black on Black card penetration I mean, we are seeing in the fourth quarter, we continue to see.

Highest ever Black card penetration to 66, 5%. So that is a benefit to rate as we think about the guide in the comp.

We're expecting about a 70, 525 split 75% being rate, 25% being volume or or membership growth.

[Company Representative] (Planet Fitness): Even to your point, with the lift that we will see from rate, it just takes a lot to move that needle from a comp standpoint. Obviously, embedded in that comp guide is the fact that we've had a little bit higher attrition than typically, you know, certainly year-over-year, since we did the national rollout. Again, we would expect that to moderate as we lap that in Q2.

Jay Stasz: Even to your point, with the lift that we will see from rate, it just takes a lot to move that needle from a comp standpoint. Obviously, embedded in that comp guide is the fact that we've had a little bit higher attrition than typically, you know, certainly year-over-year, since we did the national rollout. Again, we would expect that to moderate as we lap that in Q2.

Yeah.

Yeah, and I'll, just maybe build a little bit on what you said about the January joins in semi and as you've seen.

We've been successfully running promotions and experiencing net member growth in quarters outside of Q1.

Colleen Keating: Yeah.

Chris O'Cull: Okay. Go ahead.

This past year Q4, we had net member growth prior year in the back half. We also had net member growth. So you'll see you'll continue to see us deploy our marketing in quarter. It's outside of the first quarter and I think a couple of things important to note.

Colleen Keating: I was just gonna say, I could, you know, I could build on that a little bit. I do think, you know, our openings are back-end loaded. We had a very, very strong unit opening year for 2025. You know, more than 20% lift in openings in 25 versus 24. However, as Jay said, you know, those clubs will come into the comp base on the thirteenth draft, and because the openings were so back-end loaded, we had over 100 clubs opened in Q4. We'll start to experience the benefit of those in the comp base much later in the year, this year.

Coming through 2025 with $1 1 million net new members that was a 10% increase on net new members versus the prior year of 2024 and it was our first full year of the elevated classic card pricing as well as the first year that we rolled out.

Nationwide online member management, so that coupled with as Jay mentioned, we were seeing strong joined trends coming through January prior to the storm impact I think all of those things together give us real confidence in the momentum that we're seeing in the business.

Colleen Keating: As Jay mentioned, you know, we're also back-end loaded in 2024 openings, but it was a, you know, a significantly lower opening year with only 150 clubs, you know, opening and again, back-end loaded. Those things certainly factored into our guide, and we also were coming up on the second anniversary of the Classic Card price lift that we took in June 2024. The most pronounced impact of that pricing, you know, has been experienced. Then we've, you know, we do have the PF Black Card price lift modeled in to our guidance, you know, as you know, we're gonna take that after the peak join season.

That's great. Thanks, guys best of luck for the Euro.

Thank you.

Your next question comes from the line of Max <unk> with TD Cohen.

Your line is open. Please go ahead.

Great. Thanks, a lot. So first just on the lower EBITDA and the EPS Guide for 2026 can you maybe talk about the shape of the year and how we should think about.

Colleen Keating: It'll, you know, will be impactful, but not as impactful if we were taking it on the peak join season.

Both for <unk> versus <unk>.

Chris O'Cull: Okay. Then just a question on the Rho partnership. Are there any plans to jointly market the benefit to consumers? Is the partnership designed to encourage membership retention? Meaning, is the perks discount a one-time upfront benefit, or is it structured to be an ongoing benefit?

Yes, Matt this is Jay and I will.

Because of that and when we think about our comp guide of the four to five.

A couple of things to point out right, we are going to be lapping.

The nationwide rollout of member management in Q2, so when we think about the comps we think about lower comps in the first half and we think about higher comps in the back half as as a result of that.

Colleen Keating: Yeah. I, the perks partnership, we just, you know, we just launched in late Q4. The intent really is to give, is mutually beneficial, right? To give Rho the opportunity to promote in front of 20.8 million fitness-minded members, at the same time, give our members an added benefit through discounts and the ability to convert with Rho as a complement to their commitment to health and wellness. We've seen a number of studies on the GLP-1 impact in our business. One in particular that one of our franchisees commissioned and shared with us, indicated that 50% of people who take a GLP-1 consider a gym membership. You know, those are very compelling, you know, customer market indicators.

Also of course, as we've called out with the equipment revenue that is notoriously back loaded I think last year, we had 57% of our openings in the fourth quarter. This year I would tell you.

It's around that it might be a few points higher so it may be closer to 60%.

And then otherwise I think if you model consistently.

Otherwise from an equipment standpoint, and then.

Obviously, we're going to have an increase this year in the naff revenue.

And I think Brian POW Vanilla gave you a ballpark amount for that and on the Investor day.

And then otherwise yeah, it's pretty other you know the comps are going to be the drivers. Obviously, we don't guide to membership we've talked a little bit about the cadence of our membership and our ability to add members throughout the course of the year, we're probably not going to get more granular on that.

But I think that should help you.

Colleen Keating: This is our first attempt to really partner with a provider, a GLP-1 provider, and make the offering available to our members. As I said, we've seen quite high click-through and quite high conversion, but early days. We think there's a, you know, more opportunity in our partnership with Rho, but again, for competitive reasons, we won't speak to, you know, what our go-forward intentions are, other than to say, you know, both we and Rho have been pleased with the early results from the perks partnership.

Shape and form of the model.

Just two quick follow ups, just what about on the margin side anything that we should think about.

First half versus second half because the guide does embed obviously some margin pressure and you touched on some of the drivers. So how should we think about the year progressing.

And Max Youre talking about EBITDA margin standpoint.

Right.

Yes.

I think when you think about it we've got to look at it ex mass.

We're expecting to get.

Chris O'Cull: Okay, thanks.

Significant margin leverage on an ex <unk> basis, even with nap.

Colleen Keating: Sure.

Operator: Your next question comes from the line of Rahul Krotthapalli with JP Morgan.

Because that is obviously impactful to the EBITDA margin that we're expecting it to be pretty consistent year over year.

Rahul Krotthapalli: Guys, I just wanted to revisit the comps waterfall and the member joint waterfall for the clubs. Can you remind us how this currently tracks, and especially for the classes of the clubs that opened in the last 2 years, and then also that entered the comp base? Curious to see how this is tracking after the Classic Card pricing. As a follow-up, do you expect to see any tailwinds if rest of the industry and your competition is forced to adopt click to cancel at some point? Any color there would be helpful. Thank you.

So I think as we think about our guidance and the way. We've approached this we think the guidance is appropriate given some of the puts and takes we've talked about and I think what that helps us do is really set our expense structure below that.

Certainly we're going to do all we can to continue to work hard to drive that top line and drive joined.

But we've set our expense structure with this and if you think about where we can where we've got leverage in the model, it's really on the SG&A.

Got it that's helpful and then choline, what's the latest thinking around the timing of the black card price increase and how do you think that it will change the complexion of the comp build as well as the black card mix and then is that already embedded in the guide or are we going to get an update once you do rollout the black card price increase.

[Company Representative] (Planet Fitness): Rahul, this is Jay, in regards to the comp trends, you broke up a little bit on the question, right. We talk about when those new clubs enter in the first year of comp, they typically are comping in the 40%+ range. Year 2 is in the low to mid-teens. Year 3, generally speaking, is in mid-single digits, and then beyond that, low to mid-single digits. If that, I think that was your question. Then what was the second part of the question?

Jay Stasz: Rahul, this is Jay, in regards to the comp trends, you broke up a little bit on the question, right. We talk about when those new clubs enter in the first year of comp, they typically are comping in the 40%+ range. Year 2 is in the low to mid-teens. Year 3, generally speaking, is in mid-single digits, and then beyond that, low to mid-single digits. If that, I think that was your question. Then what was the second part of the question?

Hum.

Great question so.

We indicated that we would rollout flap card the black card price increase after our peak join season for competitive reasons, we're not being overly specific but.

Our business well.

Colleen Keating: Click to cancel in regards to the industry and its impact on us. Yeah, I mean-

When our peak join season is and I think where we took the classic card price increase two years ago is kind of a directional indication.

[Company Representative] (Planet Fitness): Yeah, I mean, I'll start and Colleen may chime in. Again, I think strategically, we think this is the right thing to do from a member experience standpoint and from a de-risking the business standpoint, and from, you know, we are seeing lift in our digital conversions with the ability to cancel anytime. You know, we think that sets us at a, you know, sets us up well, strategically and going forward to have an advantage.

Jay Stasz: Yeah, I mean, I'll start and Colleen may chime in. Again, I think strategically, we think this is the right thing to do from a member experience standpoint and from a de-risking the business standpoint, and from, you know, we are seeing lift in our digital conversions with the ability to cancel anytime. You know, we think that sets us at a, you know, sets us up well, strategically and going forward to have an advantage.

Q3, obviously as our lower joined quarter so.

That will give you an indication of when we're anticipating.

To roll that out and as we've said as we've increased our black card penetration over the past couple of years. We know we have gotten some organic rate lift out of the the increased penetration and we expect to continue to get to be able to take impact from pricing in the comp.

Colleen Keating: I'll just say, I, you know, again, we're, as Jay said, focused on doing the right thing by our members. We're seeing, you know, more and more municipalities, whether at the state level or local municipal level, focused on giving consumers and subscription models the ability to manage their subscription or manage their membership. We believe we did the right thing and also, you know, de-risked our business by kind of getting ahead of that. At the end of the day, you know, I touched on the mid-30% rejoin rate. We think that's probably the biggest impact, you know, favorable impact, is when we've empowered our members to manage their membership, they feel good about their relationship with us.

From the Black card price lift and I think we've given directionally anticipate on the comp about 75% ish coming from rate 25 ish coming from volume.

Awesome, Thanks, a lot and best regards rest of the quarter.

Okay.

Your next question comes from the line of Joe Ulta Bello with Raymond James Your line is open. Please go ahead.

Thanks, Hey, guys. Good morning first question on attrition rates, you mentioned them a couple of times. This morning, I'm curious back when you implemented the cancel.

Colleen Keating: You know, the top two reasons why we see people cite a cancellation reason, are they're moving or lack of time. It's nothing to do with experience or lack of desire, and when they consider rejoining a gym or a club, a large proportion of them come back to Planet Fitness.

Are they back to where you thought they'd be.

In February.

It's.

Joe This is Jay and I'll start with that I mean, yes from a from an expectation standpoint. They are back in line with our expectations for February and like we've talked about historically.

While there was an elevation after click cancel last year, there's still those rates have been within historical norms.

Rahul Krotthapalli: Thank you.

Operator: Your next question comes from the line of Jonathan Komp with Baird. Your line is open. Please go ahead.

And that's when we think about the full year and how we expect that we would expect the attrition rate can be within their historical norms and again, we're anniversarying the national rollout of quick to cancel in Q2 of this year and again.

Jonathan Komp: Yeah. Hi, good morning. Could you share a little bit more on the join trends that you're seeing? Do you see opportunity to make up for some of the pockets of weakness that you mentioned and still, you know, still add close to the number of members that you added in 2025? Is there any reason that that's not realistic at this stage?

From a stepping back perspective, right. There's a lot of reasons why this is the right approach strategically for a member experience, we're continuing to see an increase in our conversion rates are up 6% in the digital joined flow. Obviously this is still a focus of the FTC and at the state level.

Colleen Keating: ... Yeah, I'll start maybe and just say, you know, we were seeing very strong joint trends, coming, you know, through the tail end of 2024 and tail end of 2025 and coming into 2026 prior to prior to the weather impact. You know, that gives us a lot of confidence around the fact that, you know, we've got great secular tailwinds, and, you know, people are more fitness-minded than ever before. To your point, John, you know, we're confident in our ability to drive strong member growth through the balance of the year.

So we think this is absolutely in the right direction in place to be in and the.

The rate has gotten back in line with our expectations and I think important to also point out that for the full year 2025, we were still well within historical norms on an annualized basis.

And we've shared.

It's been a three handle average attrition rate on an annualized basis, and that's where we landed in 2025 as well.

Okay, that's helpful and just.

Also just also add to that we also are continuing to see.

Colleen Keating: Again, I'll cite the results that we had in 2025, which were a 10% lift in net member growth over the prior year, despite the fact that we rolled out online member management and had full year impact of the Classic Card price lift. I think, you know, the other thing is, as we look at consumer data, in addition to, you know, our lapsed members and the strong results we're seeing with rejoins, as we shared at the Investor Day, you know, active adults in the US likely to pay is somewhere in the neighborhood of 50 to 60 million people. fitness paying members, you know, who could have the opportunity to convert to Planet, also in the 60 million people.

Of our joins.

Mid 30 mid 30%.

<unk> of our joins our rejoins so.

No that one we are treating our members well and giving them the opportunity to manage their membership they're coming back to us and I think Jay you also indicated that in the in the July inflow, we've seen about a 6% increase in conversion in the joint flow since noting the ability to the ability to manage their membership and they joined <unk> as well.

Yes.

Yeah.

Got it thank you and just to shift gears to interest expense. This is probably the biggest delta at least from my model was.

I was not expecting the $29 million increase year over year. So maybe could you I understand that you have.

Debt levels are up because of the Upsized refi, you've got the buyback here in 'twenty six but.

Can I get the 29 million of incremental interest expense.

Colleen Keating: The opportunity to continue to drive joins, have our marketing reach this broad fitness-minded audience, is something that we feel really confident about.

Yes, Joe we can we can take it offline if needed but absolutely is just a function of the blend we were giving up a coupon in the threes and the coupon on the new tranche of debt is about five four so it includes the.

Jonathan Komp: Okay, great. Jay, one follow-up on the full year outlook for adjusted EBITDA. You guided to 10% growth. I think explained 200 basis points of the difference versus the, you know, the mid-teens three-year average that you highlighted in November. Could you just maybe bridge the gap, the remainder of the difference there, the other 300 basis points or maybe 200 to 300 basis points? Are there any other investments up front in the first year or opportunities the next two years after to drive greater leverage? Just any color there. Thank you.

$400 million it was refi plus the $350 million incremental debt.

Allowed us to do.

Do the ASR, so thats, probably one component the only other component obviously there is an interest income component embedded in that.

But you should be able to get pretty close.

Got it okay helpful. Thank you.

Yeah.

Your next question comes from the line of Chris <unk> with Stifel Financial Corporation. Your line is open. Please go ahead.

Yes, thanks, good morning Collin.

I'm trying to understand the 4% to 5% comp guide.

[Company Representative] (Planet Fitness): Yeah, John, for sure. Again, you know, we knew about the headwinds coming in. We knew that this year would be the lowest growth year in our three-year algo. The intent was not that that three-year algo was an annual growth rate for each year. There's a ton of good things happening, like Colleen mentioned in her prepared remarks, around the strategic imperatives, and those things will build and gain traction and gain momentum. You know, we talk about the first one hundred days, we talk about the Black Card spa amenities, we talk about improving the app in terms of training. There's, there's lots of good things going on. Obviously, we're focused on joins, we're focused on retention. As we think about that, the power of this model is that...

Jay Stasz: Yeah, John, for sure. Again, you know, we knew about the headwinds coming in. We knew that this year would be the lowest growth year in our three-year algo. The intent was not that that three-year algo was an annual growth rate for each year. There's a ton of good things happening, like Colleen mentioned in her prepared remarks, around the strategic imperatives, and those things will build and gain traction and gain momentum. You know, we talk about the first one hundred days, we talk about the Black Card spa amenities, we talk about improving the app in terms of training. There's, there's lots of good things going on. Obviously, we're focused on joins, we're focused on retention. As we think about that, the power of this model is that...

The company should have becoming benefited the black card pricing at.

25% increase I think in media impressions from the additional AD dollars and then just the residual benefit of the classic card pricing. So I mean in the fourth quarter comps were up almost 6%. So can you help us understand why comps are expected to slow I mean is this conservatism or the higher cancellation rate I'm just trying to understand.

How to think about this guidance.

Yeah, I'm going to start on yes, Chris This is Jay and I can start with that I mean, a couple of things right you've got.

I mean this is a subscription model.

And when we think about our comp base, obviously I mean, one small factor is the fact that.

Stores enter the comp base after the 13th month. So when we opened 150 clubs and in 24 of those are going to largely impact 'twenty six and that was a low club opening year compared like if you think about the 181 that we just opened which will impact.

[Company Representative] (Planet Fitness): Again, we think the guidance is appropriate. That has helped us set the expense structure, you know, in a very good way. Once we start to have this flywheel continue to compound, which we expect in the future years, you know, there's significant opportunity from flow through and growth perspective.

Jay Stasz: Again, we think the guidance is appropriate. That has helped us set the expense structure, you know, in a very good way. Once we start to have this flywheel continue to compound, which we expect in the future years, you know, there's significant opportunity from flow through and growth perspective.

27, really so that's a component of it and then the other piece is just we've got a large installed base of clubs that generate a ton of cash flow. So even to your point with the lift that we will see from rate.

Jonathan Komp: Okay, thank you.

Colleen Keating: I might add to that, too, just the, you know, the momentum we're seeing with the younger consumer as well. As we think about the potential for lifetime value, High School Summer Pass, you know, we were just shy of 3 million participants last year, 3.7 million this year, and an increased conversion rate to paying members at the conclusion of that. You know, I think lots of, lots of strong momentum from a join volume and the fact that, you know, one of the big drivers is obviously unit openings. We came off an incredibly strong year of unit openings in 2025, with more than 20% lift in unit openings year-on-year, 25 versus 24.

It just takes a lot to move that needle from a comp standpoint, obviously embedded in that comp guide is the fact that we've had a little bit higher attrition than typically you know certainly year over year. Since we did the national rollout and again, we would expect that moderate.

As we lap that in Q2.

Yeah.

Okay and then.

Oh go ahead.

I was just going to say I could I could build on that a little bit I do think.

We're back and our openings are backend loaded we had a very very strong unit opening year for 2025.

More than 20% lift in openings and 25 versus 24, however, as Jay said.

Those clubs will come into the comp base on the 13th draft and because the openings were so back end loaded.

At over 100 clubs opened in the fourth quarter, we will start to experience the benefit benefit of those in the comp base. Much later in the year this year.

Sharon Zackfia: Your next question comes from the line of Sharon Zackfia with William Blair. Your line is open. Please go ahead.

[Company Representative] (Planet Fitness): Hi, thanks for taking the question. You know, I think one of the big wild cards you had entering this year was the increase to the NAF fund. I know there's been a lot of, it sounds like, noise in the first couple of months of the quarter for various reasons, but how do you think about that wild card in terms of increased impressions and kind of more shots on goal as we go throughout the rest of the year as it relates to member growth?

Sharon Zackfia: Hi, thanks for taking the question. You know, I think one of the big wild cards you had entering this year was the increase to the NAF fund. I know there's been a lot of, it sounds like, noise in the first couple of months of the quarter for various reasons, but how do you think about that wild card in terms of increased impressions and kind of more shots on goal as we go throughout the rest of the year as it relates to member growth?

As Jay mentioned, we're also backend loaded in 2024 openings, but it was a significantly lower opening year with only 150 clubs.

Opening and again back end loaded so yeah, those those things certainly factored into our guide and we also we're coming up on the.

The second anniversary of the classic card price lift.

Colleen Keating: I'll start, and then Jay, if you want to chime in, you're welcome to. You're right in that we had the 1% shift from the LAF coming into the NAF for 2026. However, we asked our franchisees to keep their LAF spending whole for Q1, and we're anticipating that shift to have the most impact in Q2, Q3, and Q4. Some of the new capabilities that we'll enable are things like the dynamic content optimization and the enhanced AI-enabled CRM, as well as helping to fund the predictive churn model that we've got under development and will have in, you know, in pilot in the fairly near term.

<unk> that we took in June of 2024, so the most pronounced impact of that pricing.

Has been experienced and then we've we do have the black card price lift modeled in to our guidance, but as you know we're going to take that after the peak drilling season, so well.

<unk> will be impactful, but not as impactful if we were taking it on the peak season.

Okay, and then just a question on the ROE partnership or are there any plans to jointly market the benefit to consumers and as a as a partnership designed to encourage membership retention, meaning is the purchase discount of one time upfront benefit or is it structured to be an ongoing benefit.

Yeah, So I.

So.

The perks partnership we just we just launched in late Q4.

Colleen Keating: It's funding the building of some of those capabilities that will make our marketing even more effective over the longer term. When you think about DCO, dynamic content optimization, or dynamic creative optimization. It will enable us to customize our marketing messaging and better tailor it to the consumer that we're attempting to reach based on kind of the shopping behavior that we see from that consumer. The same with AI-enabled CRM. It will give us greater insights into consumers and consumer motivation and enable us to be more precise in how we target those prospective customers, particularly as we're looking to reach those active, likely to pay or fitness paying members that are using, you know, other brands or other modalities.

And the intent really is to give.

Is mutually beneficial rate to get ROE.

The opportunity to promote.

In front of $20 8 million fitness minded members and at the same time.

Give our members and an added benefit.

Through discounts and the ability to convert.

With Roe.

As a complement to their commitment to health and wellness.

Done we've seen a number of studies on the <unk> impact in our business. One in particular that one of our franchisees commissioned and shared with US indicated that 50% of people who take a G. L. P. One consider a gym membership.

Those are those are very very compelling.

Market customer market indicators so.

Stephen Grambling: Colleen, how do we think about your use of $1 down? I know it's up a bit year-over-year through February. Is that something that is more of a lever that you'll use as well after you take the Black Card price increase to kind of bolster the Classic Card membership joins?

Sharon Zackfia: Colleen, how do we think about your use of $1 down? I know it's up a bit year-over-year through February. Is that something that is more of a lever that you'll use as well after you take the Black Card price increase to kind of bolster the Classic Card membership joins?

This is this is our first attempt to to really partner with a provider of G. L. P. One provider they make the offering available to our members.

And as I said, we've seem okay quite high click through and quite high conversion.

Early days, we think there's more opportunity in our partnership with ROE, but again for competitive reasons, we won't we won't speak to what are our go forward intentions or other to say other than to say.

Colleen Keating: We've talked a little bit about, you know, the advertising that we want a compelling message that showcases the value of Planet Fitness, and then that you can get strong at Planet Fitness. You know, we call that kind of the Why PF, Why Planet Fitness messaging. We use an offer as a compelling kind of reason to join now. The brand building is Why Planet Fitness, and then a compelling financial offer, you know, is kind of why, Why Planet Fitness Now or the call to action to drive joins and conversions within a specific timeline. We'll continue to use a balance of brand building messaging, as well as landing on a, you know, on a call to action that may include a financial inducement.

Both we and Roche have been pleased with the early results from the Perks partners.

Okay. Thanks.

Sure.

Your next question comes from the line of Rahul <unk> with J P. Morgan.

Guys I just wanted to.

Revisit the comps waterfall under member joined waterfall for the clubs can you remind us how this currently tracks on especially for the class itself the clubs opened.

In the last two years something also that entered the comp base.

Curious to see how this is tracking after the white card pricing and then as a follow up do you expect to see any tailwind if the rest of the industry on your competition is split up click to cancel at some point.

Stephen Grambling: Thank you.

Sharon Zackfia: Thank you.

Operator: Your next question comes from the line of Jian Xu with BNP Paribas. Your line is open. Please go ahead.

Any color there would be helpful. Thank you.

So Rob this is Jay and in regards to the comp.

Jian Xu: Hi, guys. Thanks for the question. I wanted to follow up about the 30% or 30% rejoin rate. Can you maybe talk about the time between maybe members are leaving the system and coming back? Maybe is that time away from the system getting shorter as you're seeing kind of more of this trend? Curious to hear about that.

Xian Siew: Hi, guys. Thanks for the question. I wanted to follow up about the 30% or 30% rejoin rate. Can you maybe talk about the time between maybe members are leaving the system and coming back? Maybe is that time away from the system getting shorter as you're seeing kind of more of this trend? Curious to hear about that.

Trends you broke up a little bit on the question, but right.

We talk about when those new clubs enter in the first year of comp. They typically are comping in the.

40, plus percent range year, two is in the low to mid teens.

Three generally speaking is in mid single digits, and then beyond that low to mid single digits.

If that.

Colleen Keating: We continue to market to former members on a very consistent basis. We're continuing to test different timelines. You know, as of, for example, you know, again, for competitive reasons, I won't be super specific, but, you know, we used to perhaps wait a little bit longer before we would come back to them with a rejoin offer. We're testing marketing that approaches them during a narrower lapsed period. You know, again, evaluating the effectiveness of each of the different marketing offers to our former lapsed members. I think, you know, the most important thing that we are seeing is this increase in rejoin rate, and it's really in the mid-thirties. I think we finished the Q 34.5%. Am I right, Craig?

That was your question.

And then what was the second part of my question Cliff.

Click to cancel.

And its impact on us.

Yes.

I'll start and Kelly may chime in but again I think strategically we think this is the right thing to do from a member experience standpoint, and from a derisking the business standpoint, and from we are seeing lift in our digital conversions with the ability to cancel anytime.

So we think that sets us sets us up well strategically going forward to have an advantage.

I'll just say again, we're as Jay said focused on doing the right thing by our members, where we're seeing more and more municipalities.

Whether at the state level or local municipal level are focused on giving consumers and subscription models the ability to manage their subscription or managed their membership. So we believe we did the right thing and also de risk our business Bye bye.

Joseph Altobello: 34.8.

Craig Benson: 34.8.

Colleen Keating: 34.8% for Q4, you know, rejoin rate. It's really solidly mid-30s, slightly more than a third of our joins, you know, lapsed members returning to our system.

But kind of getting ahead of that.

And at the end of the day I touched on the mid 30% regional and rate, we think that's probably the biggest impact favorable.

Jian Xu: Okay, thanks. Maybe just on the GLP-1s, is there any other way to think about what you're seeing so far? I know it's early days, but are you starting to see members on GLP-1s join the system? I know that the growth partnership, but yeah, maybe just kind of what you're seeing so far in terms of the GLP-1 member trends and what the potential could be.

Xian Siew: Okay, thanks. Maybe just on the GLP-1s, is there any other way to think about what you're seeing so far? I know it's early days, but are you starting to see members on GLP-1s join the system? I know that the growth partnership, but yeah, maybe just kind of what you're seeing so far in terms of the GLP-1 member trends and what the potential could be.

Favorable impact is when.

We have empowered our members to manage their membership they feel good about their relationship with us and the top two reasons why we see people site.

Cancellation reason or they're moving or lack of time so.

It has nothing to do with experience or a lack of desire and when they consider rejoining a gym or a club a large proportion of them I'll come back to planet fitness.

Colleen Keating: Yeah. You know, again, While we don't track specifically the proportion of our members on GLP-1s, given the size of our member population, and, you know, we believe it's representative of, you know, kind of the nationwide utilization, which is roughly about 13% today. I think importantly, when you think about a GLP-1 user and the fact that they're embarking on a journey of health and wellness for themselves, and perhaps, you know, were not a gym member before, might be a first-time gym goer, and, you know, we know that gym intimidation is real.

Thank you.

Your next question comes from the line of.

Jonathan Komp with Baird.

Your line is open. Please go ahead.

Yes, hi, good morning, sure could you share a little bit more on the joined trends that youre seeing and do you see opportunity to make up for some of the pockets of weakness that you mentioned.

And still.

Still at close to the number of members that you added in 2025 is there any reason that that's not realistic at this stage.

Colleen Keating: We feel like for the GLP-1 user, our brand, Planet Fitness, we are perfectly positioned to meet that customer, and, you know, support them as they look to combat loss of muscle mass with strength training, and also be in an environment that's welcoming and, you know, without gym intimidation, judgment-free, as they embark on their fitness journey. We see this as an opportunity for us to continue to expand our reach.

Yeah, I'll start maybe and just say we were we were seeing very strong joined trends.

Coming to the tail end of 2020 for incoming tail end of 2025 and coming into.

Into 2026 prior to prior to the weather impact so you.

That gives us a lot of confidence around the fact that we've got great secular tailwind.

And people are more fitness minded than ever before.

Jian Xu: Great. Thank you.

Xian Siew: Great. Thank you.

So to your point John.

Operator: Your next question comes from the line of Stephen Grambling with Morgan Stanley. Your line is open. Please go ahead.

Sure.

Confident in our ability to drive strong member growth through that.

Balance of the year and again I'll say the results that we had in 2025, which were 10% lift in.

Stephen Grambling: Hi, thanks. Just wanted to go back to kind of marrying up the 26 guide versus the longer-term guide, but actually focus more on cash and specifically CapEx. Looks like you've got that growing or expected to grow 10% to 15% this year. Last year was kind of in a similar range. I know you mentioned this is more around corporate-owned clubs. Is that something that we should be thinking could be front-loaded in that, or should we be thinking that there's consistent kind of growth there? Any thoughts around potentially selling additional corporate-owned properties or clubs?

Net member growth over the prior year. Despite the fact that we rolled out online member management and had full year impact of the classic card price lift I think the other thing is as we look at consumer data.

In addition to our lapsed members on the strong results, we're seeing with rejoins.

As we shared at the Investor day.

Active active adults in the U S likely to pay is somewhere in the neighborhood of 50 to 60 million people and fitness paying members.

[Company Representative] (Planet Fitness): I can start with that. The CapEx, I think, was a little bit lower, in the last year, maybe around 6% growth. You know, to your point, we may be always a little conservative in the way we think about that CapEx, and the driver of that are a couple things. It is our corporate-owned clubs, of course, we've got the new clubs. This year, we are undertaking a fair amount of relocations and remodels, or at least planned. From a modeling standpoint, obviously, we've talked about Spain and recycling, you know, recycling that capital and getting that in the hands of a franchisee to develop that. We have, from a CapEx standpoint, modeled continued development in Spain on our balance sheet this year.

Jay Stasz: I can start with that. The CapEx, I think, was a little bit lower, in the last year, maybe around 6% growth. You know, to your point, we may be always a little conservative in the way we think about that CapEx, and the driver of that are a couple things. It is our corporate-owned clubs, of course, we've got the new clubs. This year, we are undertaking a fair amount of relocations and remodels, or at least planned. From a modeling standpoint, obviously, we've talked about Spain and recycling, you know, recycling that capital and getting that in the hands of a franchisee to develop that. We have, from a CapEx standpoint, modeled continued development in Spain on our balance sheet this year.

Who could have the opportunity to convert to planet are also in the $60 million 60 million people. So the opportunity to continue to drive Chileans have our marketing reach this broad fitness minded audience is something that we feel really confident about.

Okay, Great and then Jay one.

Follow up on the full year outlook for adjusted EBITDA.

You guided to 10% growth I think explained 200 basis points of the difference versus the.

The mid teens three year average that you highlighted in November.

[Company Representative] (Planet Fitness): I, you know, I think that rate of growth is a reasonable way to think about it in the model going forward. We will continue to, you know, build cash throughout the model. Of course, we've talked about continuing to invest in buybacks, to return value to shareholders. In terms of, you know, recycling capital and looking at other corporate clubs, I mean, we're always gonna look at opportunities and options as they come up. We're, you know, we're right around the 90%, 10% split between franchise and corporate-owned, and we think in this business, you know, that's a good balance, especially given the four-wall profitability.

Jay Stasz: I, you know, I think that rate of growth is a reasonable way to think about it in the model going forward. We will continue to, you know, build cash throughout the model. Of course, we've talked about continuing to invest in buybacks, to return value to shareholders. In terms of, you know, recycling capital and looking at other corporate clubs, I mean, we're always gonna look at opportunities and options as they come up. We're, you know, we're right around the 90%, 10% split between franchise and corporate-owned, and we think in this business, you know, that's a good balance, especially given the four-wall profitability.

Could you just maybe bridge the gap to the remainder of the difference there are the other 300 basis points or two to 300 basis points are there any other investments upfront.

And then in the first year or opportunities. The next two years after two to drive greater leverage just any color there. Thank you.

Yes, John for sure. So again, we knew about the headwinds coming in we knew that this year would be the lowest growth year in our three year round, though the intent was not that that three year algo was an annual growth rate for each year.

So there is a ton of good things happening that my colleague mentioned in her prepared remarks around the strategic imperatives, and those things will build and gain traction and gain momentum.

Colleen Keating: Yeah. I think it's important to say we are out to market, or we've engaged a banker to go to market for Spain. Yeah, we'd love to bring in a great franchise partner to help us accelerate growth in Spain because those clubs are performing very well. You know, seeing ramps in a new market like Spain that are akin to our ramp, new club ramps, member ramps that we see domestically. Just on the California close, I think it's important to note, you know, that was a bit of a geographic outlier for us.

We're talking about the first 100 days, we talk about the black card Spa amenities, we talk about.

Improving the App in terms of training.

So there's lots of good things going on obviously, we're focused on joins we're focused on retention.

So as we think about that the power of this model is that and again, we think the guidance is appropriate that is help us set the expense structure.

Colleen Keating: This was an efficiency play, as well as the opportunity to put that market in the hands of a well-capitalized franchisee who had a good operational infrastructure on the West Coast, because majority of our corporate clubs are on the East, Northeast, Southeast. This was an efficiency play as well as an opportunity to recycle capital with that sale.

And a very good way. So once we start to have this flywheel continue to compound, which we expect in the future years.

There is significant opportunity from flow through and growth perspective.

[Company Representative] (Planet Fitness): Great. Thank you.

Jay Stasz: Great. Thank you.

Okay. Thank you.

I might have just added I might add to that too just the.

Operator: There are no further questions at this time. I would now like to turn the call back to Colleen Keating, CEO, for closing remarks. Go ahead.

The momentum, we're seeing with the younger consumer as well and as we think about the potential for lifetime value.

Colleen Keating: Thank you. Thank you for all the thoughtful questions. In closing, I'll just reiterate our performance in 2025 demonstrates the immense power of our model. We remain laser-focused on our four strategic imperatives, which do serve as the foundation for our next chapter of growth and our unwavering commitment to delivering long-term shareholder value. Thank you.

High School Summer pass we were just shy of three three.

3 million participants last year $3 $7 million this year and an increased conversion rate too.

Paying members at the conclusion of that so I think lots of lots of strong momentum from the joint volume and the fact that you know one of the Big drivers is obviously unit openings and we came off an incredibly strong year.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Unit openings in 2025 with more than 20% lift in unit openings year on year at 25 versus 24.

Yeah.

Your next question comes from the line of Sharon Zackfia with William Blair. Your line is open. Please go ahead.

Hi, Thanks for taking the question.

I think one of the Wildcards you had entering this year was the increase of the amount.

Yes.

There's been a lot of it sounds like noise in the first couple of months of the quarter for various reasons.

How do you think about that wildcard in terms of increased impressions and kind of more shots on goal as we go throughout the rest of the year as it relates to that paragraph.

Yeah. So I'll start and then Jay if you want to chime in you're welcome to but.

So youre right in that we had a 1% shift from the laugh coming into the <unk> for 2026.

However, we asked our franchisees to keep their last spending whole for Q1 and were anticipating that shift to have the most impact in Qs two three and four and some of the new capabilities that that that shift in dollars to the to the <unk> some of the new capability.

That will enable our things like the dynamic content optimization and the enhanced AI.

AI enabled CRM.

As well as helping to find the predictive churn model that.

That we've got under development and we will have in in pilot in the fairly near term. So it's funding the building of some of those capabilities that will make our marketing even more effective over the longer term when you think about <unk> 10.

On the content optimization, our dynamic creative optimization, it will enable us to customize our marketing messaging and better tailor it to the consumer that we're that we're attempting to reach based on kind of the shopping behavior that we see from not consumer.

And the same with AI enabled CRM, it will give us greater insights into consumers and consumer motivation and enable us to be more precise in how we target those prospective customers are particularly as we're looking to reach those active likely to pay or fitness paying members that are using.

Other brands or our other modalities.

Thank you Holly and how do we think about use of $1 a gallon I know that's a thought.

That year over year.

And in February is that something that is more of a lever that you will use as mall. After you take the black card price increase to kind of bolster the.

The classic card membership trends.

So.

We've talked a little bit about the advertising that we want a compelling message that showcases the value of planet fitness and then that you can get strong a planet fitness. So we called out kind of the Y P. F Y planet fitness messaging and then we use.

<unk> and offer a compelling kind of reason to join now so the.

The brand building is why planet fitness and then a compelling financial offer is kind of why why planet fitness now or the call to action to drive joins in conversions with us within a specific timeline. So we'll continue to use our balance of brand building messaging as well.

<unk> landing on a on a call to action that may include a financial inducement.

Thank you.

Your next question comes from the line of Sean <unk> with BNP Paribas.

Your line is open. Please go ahead.

Hi, guys. Thanks for the question I wanted to follow up about the 30% or 30% rejoin rate can you maybe talk about the time between maybe members are leaving the system coming back or is there any.

Is that time away from the system getting shorter as youre seeing kind of more of this trend.

I'm curious to hear about that.

We continue to market two former members on a on a very consistent basis.

We're continuing to test different timelines so.

For example.

And again for competitive reasons I won't be super specific, but we used to perhaps wait a little bit longer before we would come back to them with a rejoin offer we're testing marketing that approaches them.

During a narrow or lapsed period.

And again evaluating.

The effectiveness of each of the different marketing offers two.

Two our former lapsed members I think.

The most important thing that we are seeing is this increase in rejoin rate and it's really in the mid thirties. I think we finished the quarter 34, 5% right credit and a $34 834, 8% for Q4 rejoin rate. So it is really solidly mid thirties slightly more than <unk>.

Third of our joins lapsed.

Lapsed members returning to our system.

Okay. Thanks, and then maybe just on the <unk> is there any other way to think about what youre seeing so far I know, it's early days, but are.

Are you starting to see.

Members on <unk> joined the system I know that the ROE partnership, but maybe just kind of what youre seeing so far in terms of the gel one.

Remember trends and what the potential could be.

Yeah. So.

Again, we we don't while we don't track specifically the proportion of our members on <unk> given the size of our member population.

We believe its representative of kind.

Kind of the the nationwide utilization, which is roughly about 13%.

Today, I think importantly, when you think about a G. L. P. One user and the fact that they are embarking on a journey of health and wellness for themselves.

And perhaps we're.

We're not.

Jim remember before might be a first time gym goer.

And we know that Jim termination is real we feel like for the <unk>. One use are our brand planet fitness, we are perfectly positioned to meet that customer and support them as they look to come back.

<unk> loss of muscle mass with strength training and also being an environment that is welcoming and without intimidation judgement free as they as they embark on their fitness journey. So we see this as a as an opportunity for us to continue to expand our reach.

Great. Thank you.

Your next question comes from the line of Stephen Grambling with Morgan Stanley. Your line is open. Please go ahead.

Hi, Thanks, I just wanted to.

I'll go back to kind of marrying up the 26 sky versus the longer term guide, but actually focus more on.

Cash and specifically Capex looks like you've got that growing.

I expect it to grow 10% to 15% this year.

Last year was kind of in a similar range.

You mentioned this is more around corporate owned clubs. So is that something that we should be thinking could be front loaded in that or should we be thinking that there is a consistent kind of growth there and any thoughts around.

<unk> selling additional corporate owned <unk>.

Properties for clubs.

Yes so.

I can start with the Capex I think was a little bit lower in the last year, maybe around 6% growth. So.

To your point, we may be always a little conservative in the way, we think about that capex and that the driver of that there are a couple of things. It is our corporate owned clubs of course, we've got the new clubs and then this year. We are undertaking a fair amount of relocations and remodels or at least planned also from a modeling standpoint.

Obviously, we've talked about Spain and recycling.

Recycling that capital and getting that in the hands of a of a.

A franchisee to develop that but we have from a capex standpoint, Modelled continued development in Spain on our balance sheet. This year.

So I think I think that rate of growth is a reasonable way to think about it in the model going forward. We will continue to you know bill.

Build cash throughout the model and of course, we've talked about continuing to invest in buybacks to return value to shareholders and in terms of.

Recycling capital and looking at other corporate clubs I mean, we're always going to look at and opportunities and options as they come up.

We're right around the 90%.

10% split between franchise and corporate owned and we think in this business.

That's a good balance, especially given the four wall profitability, Yes, I think it's important to say we are out to market or we've engaged a banker to go to market for Spain.

We'd love to bring in a great franchise partner to help us accelerate growth in.

In Spain, because those clubs are performing very well and we're seeing ramps in a new market like Spain that are akin to our new club ramps remember ramps that we see domestically and then just on the California clubs I think it's important to note.

That was a bit of a geographic outlier for US. This was an efficiency play as well as the opportunity to put that market in the hands of a well capitalized franchisees, who had a good operational infrastructure on the west coast because majority of our corporate clubs or are on the east East northeast Southeast.

So this was an efficiency play as well as an opportunity to recycle capital with that sale.

Great. Thank you.

There are no further questions at this time I would now like to turn the call back to Colleen Keating CEO for closing remarks go ahead.

Thank you.

Thank you for thank you for all the thoughtful questions.

In closing I'll, just reiterate our performance in 2025 demonstrates the immense power of our model we remain laser focused on our four strategic imperatives, which do serve as the foundation for our next chapter of growth and our unwavering commitment to delivering.

Long term shareholder value. Thank you.

This concludes today's call. Thank you for attending you may now disconnect.

Okay.

Q4 2025 Planet Fitness Inc Earnings Call [BACKUP]

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