Highlights

  • Planet Fitness shows 31.14% basic EPS growth, a P/E of 17.87 and PEG of 0.19.
  • Second quarter revenue was $365.2 million against $340.9 million; basic EPS was $0.87 against $0.69.
  • Planet Fitness repurchased shares for $250.0 million in six months; $250.0 million remains authorized.
  • The company raised its 2026 adjusted net income per diluted share outlook to approximately 6%.

Growth, P/E and PEG sit side by side at Planet Fitness (NYSE:PLNT), an undervalued growth stock: basic earnings per share grew 31.14% over one year, the trailing twelve-month P/E ratio is 17.87 and the PEG ratio, on an expected basis, is 0.19, with shares trading at USD 53.35 on October 28, 2026, up 2.08%. Alongside those figures, the fitness franchisor and club operator began a $500.0 million share repurchase program in January, sold its 22.0% interest in Bravo Fit Holdings Pty Ltd in the second quarter, and reported second quarter 2026 net income of $67,404 thousand in early August.

Planet Fitness is based in Hampton, New Hampshire, and incorporated in Delaware. It describes itself as one of the largest franchisors and operators of fitness centers in the world by number of members and locations. As of June 30, 2026, it had approximately 21.5 million members and 2,930 clubs, of which 2,636 are franchised and 294 are corporate-owned, in the United States, Canada, Panama, Mexico, Australia, Spain and other markets. The company reports three segments: Franchise, Corporate-owned clubs and Equipment.

Growth: Second Quarter Earnings, Revenue and Same Club Sales

Net income attributable to Planet Fitness was $67,082 thousand in the second quarter against $58,019 thousand a year earlier, and $118,636 thousand for the first six months against $99,886 thousand. Basic earnings per share were $0.87 against $0.69 for the quarter and $1.52 against $1.19 for the six months.

Total revenue was $365.2 million against $340.9 million, an increase of 7.1%. Franchise segment revenue was $135.8 million, up 13.5%, with national advertising fund revenue of $32.9 million, up 44.5%, which the company attributed mainly to a contribution rate increase from 2% to 3%. Corporate-owned clubs segment revenue was $143.9 million, up 3.5%, and Equipment segment revenue was $85.6 million, up 4.1%. The company opened 23 clubs, and system-wide same club sales growth was 1.7% against 8.2%. Net income included a $12.5 million gain on the Bravo Fit Holdings sale.

Valuation: P/E of 17.87, PEG of 0.19 and Cash Generation

The P/E ratio of 17.87 is measured on trailing twelve-month earnings, and the PEG ratio of 0.19 on expected growth. Adjusted net income per share, diluted, a non-GAAP measure, was $0.88 for the quarter against $0.86. Net cash provided by operating activities was $193.4 million for the six months against $177.9 million.

On the second quarter call, Chief Financial Officer Sudhanshu Priyadarshi said the business combines a highly franchised, capital-efficient operating model with a long runway for growth. Chief Executive Officer Colleen Keating said several marketing initiatives will take time to gain traction.

Capital Returns, Debt and Liquidity

Planet Fitness repurchased 3,965,298 shares of Class A common stock for $200.0 million in the second quarter at an average price of $50.44, and 4,579,023 shares for $250.0 million in the six months. The $500.0 million program became effective January 12, 2026, with $250.0 million remaining at June 30, 2026.

Cash and cash equivalents were $298.3 million. Total long-term debt, excluding deferred financing costs, was $2,503,188 thousand. The 2025 Variable Funding Notes, which allow drawings up to $75 million, are fully drawn and partly funded the repurchases; management said it plans to repay the $75 million with cash by year-end. The company stated that it was in compliance with its debt covenants.

Disclosed Risks and Outlook

Interest expense was $33,401 thousand against $26,181 thousand, and Equipment segment Adjusted EBITDA was $24,326 thousand against $26,435 thousand. Total stockholders' deficit was $614,738 thousand, and payments under tax benefit arrangements were $54,424 thousand in the six months. The company noted that repurchases are subject to the indenture governing its securitized senior notes. It is party to ordinary-course claims and is not aware of other proceedings it believes would have a material adverse effect. Management said on the call that second quarter same club sales growth was driven entirely by rate.

For 2026, management said on the call that it raised its outlook for adjusted net income per diluted share growth to approximately 6% from approximately 4%. It maintained revenue growth of approximately 7%, adjusted EBITDA growth of approximately 6% and system-wide same club sales growth of approximately 1%, and expects adjusted net income to decline approximately 3% against a prior decline of 2%. Interest expense is expected at approximately $115 million against $111 million. Management expects 180 to 190 new clubs and 150 to 160 equipment placements, weighted to the fourth quarter.