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

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.

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)

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)

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

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.

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