Planet Fitness' Strong Q4 and Full-Year 2024 Results: A Bullish Outlook for 2025

Planet Fitness, Inc. (NYSE: PLNT) reported robust financial results for the fourth quarter and full year 2024, setting a positive outlook for 2025. The company's strong performance was driven by its high-value, low-price business model, which continues to resonate with consumers seeking affordable fitness options. Here's a closer look at Planet Fitness' impressive results and its bullish outlook for the coming year.

Fourth Quarter and Full-Year 2024 Highlights

* Total revenue increased 19.4% to $340.5 million in Q4 2024, significantly outpacing the 5.5% system-wide same club sales growth.
* Net income attributable to Planet Fitness, Inc. was $47.1 million, or $0.56 per diluted share, compared to $35.3 million, or $0.41 per diluted share, in the prior year period.
* Adjusted net income increased $6.6 million to $59.7 million, or $0.70 per diluted share, compared to $53.1 million, or $0.60 per diluted share, in the prior year period.
* Adjusted EBITDA increased $16.5 million to $130.8 million from $114.3 million in the prior year period.
* The company opened 86 new clubs during Q4 2024, bringing the system-wide total to 2,722 as of December 31, 2024.
* For the full year 2024, total revenue increased 10.3% to $1.2 billion, with Adjusted EBITDA growing 12% to $487.7 million. Planet Fitness opened 150 new clubs in 2024.

Strategic Shift and Membership Growth

Planet Fitness implemented a new economic model for club operations and raised the new member Classic Card price for the first time in over 25 years. This strategic shift has optimized unit economics for franchisees while maintaining the brand's accessibility, potentially accelerating franchise development and improving profitability across the system. The company added 1 million net new members in 2024, bringing total membership to 19.7 million – a critical metric as membership growth typically precedes revenue growth in the fitness club model.

International Expansion and Growth Opportunities

Planet Fitness' international expansion strategy is gaining momentum, with the opening of five clubs in Spain during 2024. Although there was a $3.4 million drag on corporate-owned club segment EBITDA in the near term, this investment positions PLNT for long-term growth in the European market. For 2025, management's guidance of 10% revenue and adjusted EBITDA growth aligns with their historical performance trajectory, suggesting continued strong member acquisition and retention, while the planned 160-170 new locations demonstrate confidence in their expansion strategy.

Financial Flexibility and Shareholder Value

With $529.5 million in cash and marketable securities, Planet Fitness maintains substantial financial flexibility to fund growth initiatives and return capital to shareholders through the anticipated share repurchases mentioned in their 2025 outlook. As consumers continue prioritizing affordable fitness options, PLNT's value proposition and expanding footprint position it well for sustained growth.

In conclusion, Planet Fitness' strong Q4 and full-year 2024 results, coupled with its bullish outlook for 2025, demonstrate the company's resilience and growth potential in the competitive fitness landscape. By maintaining its high-value, low-price business model, optimizing unit economics for franchisees, and expanding its global footprint, Planet Fitness is well-positioned to deliver increased shareholder value in the coming years.