Planet Fitness (PLNT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 5.1% year-over-year to $300.9 million, with system-wide same-store sales up 4.2% and 18 new stores opened, bringing the total to 2,617 locations and 19.7 million members as of June 30, 2024.

• Net income attributable to the company was $48.6 million ($0.56 per diluted share), up from $41.1 million ($0.48 per diluted share) a year ago.

• Adjusted net income increased to $62.2 million ($0.71 per diluted share), and adjusted EBITDA grew 7.2% to $127.5 million.

• New CEO Colleen Keating prioritizes growth ambition, member experience, brand messaging evolution, and franchisee profitability.

• International expansion underway, with the first European club opened in Barcelona, Spain, and acquisition of a small operating entity in Spain.

Financial highlights

• Franchise segment revenue rose 9.1% to $107.8 million; corporate-owned stores revenue increased 10.3% to $125.5 million; equipment segment revenue declined 8.4% to $67.7 million.

• Adjusted EBITDA for Q2 2024 was $127.5 million (42.4% margin), up from $118.9 million (41.5% margin) year-over-year.

• Diluted EPS was $0.56, compared to $0.48 in the prior year quarter; adjusted diluted EPS was $0.71, up from $0.65.

• System-wide sales reached $1.2 billion for the quarter.

• Cash and marketable securities totaled $447.7 million as of June 30, 2024.

Outlook and guidance

• 2024 guidance reiterated: system-wide same-store sales growth of 3–5%, revenue growth of 4–6%, adjusted EBITDA growth of 7–9%, and adjusted net income growth of 4–6%.

• Plans for 140–150 new store openings and 120–130 new equipment placements in franchisee-owned locations.

• CapEx expected to rise ~25%, D&A up 11–12%, and net interest expense around $75 million.