Planet Fitness Inc PLNT reported fourth-quarter FY24 sales growth of 19.4% year-on-year to $340.45 million, beating the analyst consensus estimate of $324.57 million.

Franchise segment revenue increased 11% Y/Y, corporate-owned stores gained 8.5%, and the equipment segment jumped 49.2%.

System-wide same club sales increased 5.5% and sales increased to $1.2 billion from $1.1 billion last year.

Adjusted EPS of $0.70 beat the analyst consensus of $0.62.

Operating expenses increased 17.3% Y/Y to $250.7 million. The operating margin was 26.3%. Operating income for the quarter was $89.7 million.

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86 new Planet Fitness clubs were opened system-wide during the period, which included 78 franchisee-owned and 8 corporate-owned clubs, bringing system-wide total clubs to 2,722 as of December 31, 2024.

The company held $349.67 million in cash and equivalents as of December 31, 2024.

Net cash provided by operating activities for the twelve months amounted to $343.8 million. Adjusted EBITDA increased to $130.8 million from $114.3 million last year.

“To further enhance the attractiveness of our returns for our franchisees, we rolled out a new economic model for opening and operating a Planet Fitness club and raised the new member Classic Card price for the first time in more than 25 years,” said CEO Colleen Keating.

Outlook: Planet Fitness sees FY25 revenue to increase approximately 10%. System-wide same club sales growth of 5% to 6%.

The company expects FY25 adjusted EBITDA to increase approximately 10%.

PLNT sees System-wide new club openings of approximately 160 to 170 locations.

Price action: PLNT shares traded lower by 6.57% at $93.11 on Tuesday.

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