Is Planet Fitness a Buy as Low Valuation Meets Slower Member Growth?
Mrithunjoy Kaushik
Tue, August 25, 2026 at 9:42 PM GMT+5:30
3 min read
- PLNT
-3.53% - XPOF
+0.49% - LTH
-2.08%
Planet Fitness, Inc. PLNT offers investors a clear trade-off. The stock’s valuation has compressed sharply, while its franchise-heavy model still supports a long runway for unit growth
The operating picture is less settled. Membership was flat sequentially in the second quarter, same club sales growth came from higher rates and margins narrowed, leaving execution as the main question behind the discount
PLNT’s Valuation Discount Strengthens the Case
PLNT trades at 15.9X forward 12-month earnings, below the Zacks sub-industry’s 17.8X, the sector’s 16.6X and the S&P 500’s 20.4X. That gives the shares a discount to multiple benchmarks
The gap is wider against PLNT’s own history. Its current multiple is well below the five-year median of 31.1X, reinforcing the valuation discount
Planet Fitness, Inc. Price and Consensus
Planet Fitness, Inc. price-consensus-chart | Planet Fitness, Inc. Quote
Planet Fitness Needs a Member Growth Rebound
Planet Fitness ended the second quarter with 21.5 million members, up 3.6% year over year but unchanged from the first quarter. System-wide same club sales rose 1.7%, with the increase entirely driven by rate growth
Average monthly attrition was 3.5%, within management’s historical 3%-4% range. That points to member acquisition, rather than unusual churn, as the more important issue. Management is responding with pricing tests, refreshed marketing, a redesigned app and retention initiatives, but several efforts will take time to gain traction
PLNT’s Franchise Pipeline Adds Long-Term Support
Planet Fitness had 2,930 clubs at June 30, including 2,636 franchise-operated locations. It also had contractual commitments for approximately 800 additional clubs, giving the system a sizable development pipeline beyond 2026
Management continues to expect 180-190 system-wide openings and 150-160 equipment placements in franchisee-owned locations this year, with the remaining activity weighted toward the fourth quarter. Life Time Group Holdings, Inc. LTH is included in the industry’s peer group. Xponential Fitness, Inc. XPOF is another peer in the same comparison set
Planet Fitness Faces Margin and Financing Pressure
Adjusted earnings before interest, taxes, depreciation and amortization increased 3.5% in the second quarter to $152.8 million, but the adjusted margin narrowed to 41.8% from 43.3%. Franchise margin pressure largely reflected a higher National Advertising Fund contribution rate, while equipment margin was affected by the timing of replacement-equipment discounts
