Planet Fitness Inc. shares experienced their largest daily decline on record, plummeting as much as 42% and trading at their lowest point in six years, following the gym operator's revised full-year revenue outlook. The company attributed this lowered forecast to disappointing member sign-ups during the critical New Year period, which typically sees a surge in new memberships.
Specifically, Planet Fitness updated several 2026 growth expectations, lowering system-wide same-club sales growth to approximately 1% from a previous range of 4% to 5%. Revenue growth is now projected at approximately 7% (down from approximately 9%), adjusted EBITDA growth at approximately 6% (down from approximately 10%), and adjusted net income is expected to decrease by approximately 2% (previously an increase of 4% to 5%). Diluted adjusted net income per share is now forecast to increase by approximately 4% (down from 9% to 10%).
CEO Colleen Keating noted that while first-quarter results exceeded expectations, net member growth started slower than anticipated due to internal and external headwinds during the peak sign-up season. The company is responding by sharpening its marketing focus to drive net member growth and has paused a planned national Black Card price increase pending a broader pricing review. Analysts from Morgan Stanley and Bank of America downgraded Planet Fitness, citing disproven investment tenets, lack of pricing visibility, and concerns about the reliability of forward expectations.
