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 net income attributable to Planet Fitness, Inc. at $48.6 million.

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

• System-wide sales reached $1.2 billion, with 2,617 stores and 19.7 million members as of June 30, 2024.

• Strategic focus includes growth ambition, member experience, brand messaging, and franchisee profitability.

• Leadership changes include a new CEO, ongoing CFO transition, and searches for Chief Development and Marketing Officers.

Financial highlights

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

• Net income was $48.6 million; adjusted net income was $62.2 million; adjusted EPS was $0.71.

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

• Diluted EPS was $0.56, up from $0.48 in the prior year quarter.

• 18 new stores opened in Q2, compared to 26 in the prior year.

Outlook and guidance

• 2024 guidance reiterated: 140–150 new stores, 120–130 new franchise equipment placements.

• Full-year same-store sales growth expected at 3–5%, revenue growth at 4–6%, adjusted EBITDA growth at 7–9%.

• Adjusted net income and EPS both expected to grow 4–6% and 7–9%, respectively.

• CapEx projected up 25%, D&A up 11–12%, net interest expense around $75 million.