#United States #financial results #Planet Fitness #club openings #Hampton, New Hampshire

Planet Fitness Reports Strong Financial Performance for 2024

Planet Fitness, Inc. has announced stellar financial results for the fourth quarter and the full year ending December 31, 2024. The company reported a whopping 19.4% increase in total revenue for the fourth quarter, reaching $340.5 million, compared to $285.1 million in the same period the previous year. This impressive growth can be attributed to several key factors.

Key Highlights from Q4 2024

During the fourth quarter, the system-wide same club sales increased by 5.5% year-on-year. In terms of system-wide sales, the company reported a rise to $1.2 billion, up from $1.1 billion. Additionally, net income attributable to Planet Fitness increased significantly, reaching $47.1 million, or $0.56 per diluted share, in comparison to $35.3 million, or $0.41 per diluted share, during the previous year. Adjusted net income rose to $59.7 million, which translates to $0.70 per diluted share.

Adding to these remarkable figures, adjusted EBITDA also saw a solid increase of 16.5%, totaling $130.8 million, up from $114.3 million in Q4 of the previous year. The company opened 86 new Planet Fitness clubs during this quarter, bringing the total number of clubs to 2,722.

Full Year 2024 Performance

Looking at the full fiscal year 2024, Planet Fitness reported a total revenue increase of 10.3% to $1.2 billion compared to $1.1 billion in 2023. Like the quarterly results, the system-wide same club sales raised by 5.0%. Net income attributable to Planet Fitness rose to $172.0 million ($2.00 per diluted share), increasing from $138.3 million ($1.62 per diluted share) the previous year. Adjusted net income for the fiscal year reached $223.8 million, or $2.59 per diluted share.

The adjusted EBITDA for the full year rose to $487.7 million, exceeding the previous year’s $435.4 million.

As part of its ongoing strategy, the company opened a remarkable 150 new clubs throughout 2024, including 129 franchisee-owned and 21 corporate-owned, significantly contributing to its growth.

A Strong Outlook for 2025

As Planet Fitness moves into 2025, the company set ambitious goals including around 130 to 140 new equipment placements in franchisee-owned locations and the opening of approximately 160 to 170 new clubs. They forecast system-wide same club sales growth in the 5% to 6% range, with expectations for total revenue and adjusted EBITDA to increase by roughly 10%.

In a recent statement, Colleen Keating, the Chief Executive Officer, expressed her enthusiasm about the performance, stating that the company is well positioned to take advantage of the growing consumer focus on health and wellness. Keating highlighted their commitment to enhancing franchisee returns through a new economic model while also increasing member engagement.

With a current membership base of approximately 19.7 million members and global club presence that includes locations in the United States, Canada, and beyond, Planet Fitness appears ready to maintain its leading position in the fitness industry.

Despite facing challenges, including competition and market fluctuations, Planet Fitness shows a promising trajectory that aims to enhance shareholder value consistently. The company’s strategy to continually refine its product offerings, improve member experiences, and accelerate club openings reflects their commitment to capturing growth opportunities in the increasingly health-conscious market.