Planet Fitness announced Q2’22 earnings on August 9. Stacking wins, the budget gym chain has leveraged cheap monthly memberships, calculated franchising, and its relationship with teens as systemwide sales top $1B.
By the numbers:
- Q2 revenue rose 63.5% YoY, reaching $224.4M.
- Systemwide sales were $1.019B, up from $868M in Q2’21.
- Net income was $25.1M vs. $15M in the prior year period.
- It added 300K new members during the quarter, achieving 16.5M in total.
Between the lines: Boasting 0 permanent closures of its gyms, Planet Fitness used the end of pandemic restrictions as a slingshot, welcoming back millions of members and non-members who canceled their gym memberships.
With lower overhead than Life Time and more stable recurring revenue than F45 Training, the HVLP (high value, low price) operator and franchisor is pressing its advantage, with cash on hand and popularity with the next generation of members.
Calling Gen Z. Planet Fitness is winning with teens. After reviving its High School Summer Pass program (last offered in 2019), 3.3M Americans and Canadians aged 12–17 enrolled — a three-fold increase from its first go-round.
What’s more, the company estimates 15% of all high-school-aged kids in the US are either in the program or a paying PF member. Creating a lifestyle community space for Gen Z with an affordable price tag, Planet Fitness is likely to convert a large proportion of Summer Passers into paying members.
Smooth operator. It opened 34 new locations during the period, reaching 2,324 stores in total. On the year, Planet Fitness expects equipment placements in 170 new franchisee-owned locations, its largest segment, which earned $82.5M in Q2.
However, after acquiring 114 high-earning franchise locations from Sunshine Acquisition in January, its corporate-owned segment reached new heights, growing 150% YoY to $101.5M.
That means 10% of its ecosystem (or about 200 corporate-owned locations) outearned its entire franchise segment — a fact CEO Chris Rondeau says proves out its asset-light model.
Looking ahead: For 2022, Planet Fitness projects revenue to grow 50+% YoY, with net income increasing in the “low-90 percent range.” A graceful rebound. Not done yet, with debts paid and a $446M pile of cash on hand, it’ll likely push expansion even further, in the US and beyond.