Planet Fitness CEO Colleen Keating Talks Earnings

Summary

Podcast Summary: Planet Fitness CEO Colleen Keating Talks Earnings

Podcast: Bloomberg Talks
Episode Title: Planet Fitness CEO Colleen Keating Talks Earnings
Date: February 24, 2026
Host: Bloomberg
Guest: Colleen Keating, CEO of Planet Fitness

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Episode Overview

This episode centers on Planet Fitness' recent earnings announcement and the broader growth strategy, as discussed by CEO Colleen Keating. The discussion analyzes the company's forecast, the business model adjustments (notably pricing and club upgrades), ongoing membership growth, and positioning within the competitive fitness industry landscape.

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Key Discussion Points and Insights

1. Earnings Results & Forecast Reaction

• Performance Recap:
  Planet Fitness exceeded expectations in Q4 2025 for both revenue and net income. However, their forecasted EBITDA growth of roughly 10% was below market expectations, attributed to strategic investments and changes.
  (00:37)
• Market Reaction:
  The host notes a disconnect between strong reported numbers and tepid market response, driven by forward guidance concerns.

2. Strategic Imperatives and Business Momentum

• Brand Promise and Marketing:
  Colleen highlights the importance of reinforcing the company’s brand promise through marketing, leading to the addition of 1.1 million net new members—a 10% lift over the prior year despite an increase in the entry-level price point from $10 to $15.
  Quote:

  "Our first imperative was our brand promise ... that resulted in 1.1 million net new members for 2025, a 10% lift versus the prior year. And that was on top of a 50% lift in our entry price point ... from $10 to $15."
  – Colleen Keating (01:26)

• Club Utilization and Member Experience:
  Usage rates and rejoin rates are up, with a 30–35% rejoin rate, reflecting improved member engagement.
  Quote:

  "We're seeing members utilizing our clubs more frequently. Utilization is up, as is the percentage of members who are rejoining. We're seeing a mid 30% rejoin rate."
  – Colleen Keating (01:55)

• Club Format Optimization:
  Nearly 80% of Planet Fitness locations now feature updated layouts and new equipment, driving both growth and member satisfaction.
  Quote:

  "We finished the year with 80% or nearly 80% of our estate with some version of an optimized format and new equipment package..."
  – Colleen Keating (02:15)

• Expansion:
  Planet Fitness had its most robust Q4 for unit openings ever, ending the year with 181 new clubs.
  Quote:

  "...we had our highest fourth quarter unit openings number in the history of the company ... finished the year with 181 units."
  – Colleen Keating (02:30)

3. Investments, Costs, and Franchisee Support

• Investment in Growth Model:
  In 2024, the company launched a "new growth model" designed to improve franchisee unit economics and investment returns.
  • This includes intentional delaying (or "push out") of some equipment revenue in the short term, impacting 2026 guidance but aligning with long-term projections.
    Quote:

  "That is one of the things that's influencing our guidance for 2026. This is the first year we'll see a little bit of a push out in, in equipment revenue. That was intentional and again that was anticipated in, in the three year projections that we rolled out."
  – Colleen Keating (03:17)

4. Membership Growth Prospects

• Expanding Total Membership:
  The company now boasts more than 20.8 million members. Keating emphasizes that Planet Fitness locations are within 12 minutes of 170 million Americans—a unique position for expansion.
  Quote:

  "Our reach is unparalleled. We have a club within 12 minutes of 170 million of the US population."
  – Colleen Keating (04:21)

• Market Opportunity:
  She identifies two key pools for growth:
  • 50–60 million adults in the U.S. interested in joining a gym
  • 50–60 million existing gym users who could be converted to Planet Fitness
    Quote:

  "There are about 50 to 60 million people, adults in the US that think about a gym membership, express a willingness to pay. And ... also about 50 to 60 million people ... who have a gym membership ... we could convert to Planet Fitness as well."
  – Colleen Keating (04:35)

5. Competitive Positioning

• Unique Value Proposition:
  The company is “solidly the industry leader in the high value, low price space,” focusing on accessibility and a non-intimidating environment, which is central to Planet Fitness’ brand identity.
  Quote:

  "We democratized access to fitness while bringing to bear a great offering of top shelf equipment. And what makes us unique is that we have a judgment-free, no-gym intimidation environment that's welcoming to all fitness levels."
  – Colleen Keating (05:30)

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Notable Quotes

• "Our first imperative was our brand promise ... that resulted in 1.1 million net new members for 2025, a 10% lift versus the prior year. And that was on top of a 50% lift in our entry price point ... from $10 to $15."
  – Colleen Keating (01:26)

• "We're seeing members utilizing our clubs more frequently. Utilization is up, as is the percentage of members who are rejoining. We're seeing a mid 30% rejoin rate."
  – Colleen Keating (01:55)

• "We finished the year with 80% or nearly 80% of our estate with some version of an optimized format and new equipment package..."
  – Colleen Keating (02:15)

• "...we had our highest fourth quarter unit openings number in the history of the company ... finished the year with 181 units."
  – Colleen Keating (02:30)

• "Our reach is unparalleled. We have a club within 12 minutes of 170 million of the US population."
  – Colleen Keating (04:21)

• "We democratized access to fitness while bringing to bear a great offering of top shelf equipment. And what makes us unique is that we have a judgment-free, no-gym intimidation environment that's welcoming to all fitness levels."
  – Colleen Keating (05:30)

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Important Timestamps

• 00:37 – Introduction to Planet Fitness’ Q4 results and concerns about forward guidance
• 01:26 – Keating on membership growth and impact of pricing
• 01:55 – Discussion of improvement in member utilization and rejoin rates
• 02:15 – Club modernization and new openings
• 03:17 – Franchisee investments and growth model changes
• 04:21 – Addressable market and future membership growth opportunities
• 05:30 – Competitive positioning and unique company ethos

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Tone & Style

Colleen Keating is optimistic and direct, providing detailed company data and strategic reasoning. She frames Planet Fitness as both a leader and disruptor within the fitness space, emphasizing accessibility and inclusivity.

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This summary distills the main points and critical details for an informed understanding of the episode’s content.

Transcript

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[B]

now for our Stock of the Hour. Taking a look at shares of Planet Fitness. They've been under pressure all day long. The biggest drop going back to 2023 fourth quarter results for the company actually did come in above estimates both on a revenue basis and on the bottom line. But the forecast that the company gave going forward here implies maybe slightly below what the street was looking for. Joining us right now to talk about the health of the business and where it goes next is Colleen King. She' CEO over at Planet Fitness. All right, Colleen, I got to start with the forecast here because that seems to be what the market's reacting to. The EBITDA growth number, about 10% growth on an adjusted basis, but that's below what the street was expecting. There seemed to be this expectation that with some of the pricing changes that you've made, the rollout of the black card program, that we would maybe see a little bit more meaningful growth on the bottom line. What's going on?

[C]

Well, remain we we landed a very strong 2025 and think that's much reflective of the momentum in the business and evidence that our strategic imperatives are delivering. You know, our first imperative was our brand promise and pulling it through our marketing and that resulted in 1.1 million net new members for 2025, a 10% lift versus the prior year. And that was on top of a 50% lift in our entry price point the class from $10 to $15 for the full year. 2025. From a member experience standpoint, we're seeing members utilizing our clubs more frequently. Utilization is up, as is the percentage of members who are rejoining. We're seeing a mid 30% rejoin rate. Our format optimization is resonating. We finished the year with 80% or nearly 80% of our estate with some version of an optimized format and new equipment package. And all of this culminates in growth. And we had our highest fourth quarter unit openings number in the history of the company in the fourth quarter of 2025 and finished the year with with 181 units. So strong, strong growth and we remain confident in the three year CAGR that we outlined at our investor day in November. So, you know, strong momentum.

[B]

Well, that's what I'm curious about. I mean, you were obviously going through a bit of a transition here, kind of reimag space of what meaning the physical space and just really the ethos of what Planet Fitness is. I assume there are costs associated with that. Are those costs permanent or is this just kind of a temporary thing with regards to the revamping of those of the locations and any marketing costs associated with it?

[C]

Yeah, one of the beautiful things about our model is its high efficiency and our franchisees have invested, have made the investments in, in the equipment packages to optimize the format. That said, one of the things that we rol out in 2024 was our new growth model and this was to help our franchisees with their unit economics and their IRRs. That is one of the things that's influencing our guidance for 2026. This is the first year we'll see a little bit of a push out in, in equipment, in equipment revenue. That was intentional and again that was anticipated in, in the three year projections that we rolled out.

[D]

Now Colleen, I also want to dig into your membership growth a little bit. You did mention an uplift there. 20 million user, more than 20 million members at the moment. Where do you think the next leg of membership growth comes from? Is it a matter of improving the pricing or perhaps finding new customer segments to penetrate, maybe adding more units?

[C]

So a couple of things. So we've, we finished at 20.8 million members or nearly 21 million members. And our, you know, our reach is unparalleled. We have a club within 12 minutes of 170 million of the US population. And at the same time, we are in the golden age of fitness. I mean, you can't open a newsfeed without reading about the importance of fitness and wellness and how it contributes to mental health as well. So interest in working out and fitness and wellness has never been higher. We know that there are about 50 to 60 million people, adults in the US that think about a gym membership, express a willingness to pay. And there are also about 50 to 60 million people in the US who, who have a gym membership who you know, are in the TM that, that you know, we could convert to Planet Fitness as well. So a tremendous opportunity to continue growing membership.

[B]

Colleen, only about a minute left, but I am curious as to who you're positioning yourself against here? Like, who are your competitors? Are you going up against the big globe gyms, the boutique kind of fitness craze that's popped up?

[C]

Who we, you know, we are solidly the industry leader in the high value, low price space at a very approachable price point. We democratized access to fitness while bringing to bear a great offering of top shelf equipment. And what makes us unique is that we have a judgment free no, you know, no gym intimidation environment that's welcoming to all fitness levels.

[B]

All right, Colleen, have to leave it there. Really appreciate you joining us today. Colleen Keating, CEO over at Planet Fitness.

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