Planet Fitness, Inc. (PLNT): BCG Matrix [Dec-2025 Updated]

You need the straight facts on Planet Fitness, Inc. (PLNT)'s portfolio right now, so let's map their business units using the BCG Matrix as of late 2025. It's a story of 66.1% penetration Black Card members driving Star growth, while the massive domestic franchise base keeps printing reliable Cash Cow revenue, even as the company prunes legacy Dogs and pours capital into risky international Question Marks. See the full breakdown below to understand exactly where the next dollar is coming from and where the capital is going.

Background of Planet Fitness, Inc. (PLNT)

You're looking at Planet Fitness, Inc. (PLNT) as of late 2025, and honestly, the numbers from the recent quarters show a company that's still aggressively expanding its footprint. Planet Fitness, Inc. (PLNT), founded way back in 1992 in Dover, NH, has evolved into one of the world's largest fitness center franchisors by member count. As of September 30, 2025, the company reported having approximately 20.7 million members across 2,795 clubs globally, which includes locations in the US, Canada, Mexico, Panama, Australia, and Spain.

The core of the Planet Fitness model, which you know well, is its high-value, low-cost offering within the welcoming, non-intimidating Judgement Free Zone®. What's key to its financial structure is that about 90% of these locations are independently owned and operated by franchisees. This asset-light approach is central to its strategy, which is why we look at the three main revenue segments: Franchise, Corporate-owned Stores, and Equipment.

The momentum coming out of the third quarter of 2025 was strong. Total revenue for that period hit $330.3 million, marking a 13.0% increase year-over-year, and system-wide same club sales grew by 6.9%. For the trailing twelve months ending September 30, 2025, the total revenue was approximately $1.288 billion. Because of this performance, Planet Fitness, Inc. (PLNT) raised its full-year 2025 revenue growth guidance to approximately 11%.

Looking further out, the leadership team laid out ambitious targets at their 2025 Investor Day. They are targeting a low-double digit percent Compound Annual Growth Rate for revenue for fiscal years 2026-2028, alongside a new club unit growth target in the 6% to 7% range. The near-term risk you should keep in mind, however, is managing member retention while planning for the 2026 Black Card price increase, even with a strong 66.1% Black Card penetration rate as of late 2025.

Planet Fitness, Inc. (PLNT) - BCG Matrix: Stars

You're looking at the engine room of Planet Fitness, Inc. (PLNT) right now-the Stars. These are the business units and growth vectors that command high market share in markets that are still expanding rapidly. Honestly, they suck up cash because you have to keep feeding the growth machine, but the return on investment is clear.

The Black Card Membership is definitely leading the charge here. This premium tier is where the real value capture is happening. As of the end of Q3 2025, we saw Black Card penetration hit 66.1% of the total membership base. That's a 300 basis point increase year-over-year, showing members are consistently trading up for the extra perks like guest privileges and access to amenities. This success directly fueled the decision to plan a price increase to $29.99 after the 2026 peak join season.

Demand in existing locations remains robust, which is a classic Star trait. For the full Fiscal Year 2025, Planet Fitness, Inc. is projecting approximately 6.5% System-Wide Same Club Sales (SSS) growth, which they recently raised from the initial 6.0% expectation. To be fair, the actual Q3 SSS growth came in a bit hotter at 6.9% year-over-year. This growth is what keeps the whole enterprise humming.

Expansion is aggressive, as it should be for a Star. Management reiterated confidence in opening between 160 to 170 new clubs system-wide throughout 2025. In Q3 alone, they added 35 new locations, bringing the global count to 2,795 clubs. This pace signals a clear intent to accelerate market saturation while the market is still hot.

The support structure for this growth, particularly the equipment business, is also performing like a Star. The Equipment Segment Revenue saw a massive jump in Q3 2025, increasing by 27.8% compared to the prior year period, reaching $78.8 million. This surge is driven by franchisee re-equips and sales to those 35 new clubs opened in the quarter.

Here's a quick look at how the Q3 2025 performance metrics stack up, showing the high-growth nature of these core areas:

The strategy here is clear: invest heavily to maintain that high market share. You want these units to keep growing until the market naturally matures, at which point they transition into the Cash Cows you'll rely on later. The focus on the Black Card tier is key to this strategy, as it provides both high revenue per member and strong brand positioning.

Key drivers supporting the Star status include:

• Black Card Penetration: Now at 66.1%, driving premium revenue.
• FY 2025 SSS Projection: Raised to approximately 6.5% growth.
• Unit Expansion Pace: Targeting 160 to 170 new club openings in 2025.
• Equipment Revenue: Segment grew by 27.8% in Q3 2025.

Planet Fitness, Inc. (PLNT) - BCG Matrix: Cash Cows

The Cash Cow segment for Planet Fitness, Inc. (PLNT) is characterized by its highly franchised, asset-light model which generates predictable, high-margin cash flows from a mature market position.

Domestic Franchise Royalty Fees: This revenue stream is derived from the vast majority of the system, which totaled 2,762 clubs system-wide as of June 30, 2025. Approximately 95% of these locations are operated by franchisees. The royalty fee charged to franchisees is a fixed 7% of the total gross monthly and annual membership fees paid via EFT Dues Draft. Franchise segment revenue for the second quarter of fiscal 2025 was $119.7 million.

National Advertising Fund (NAF) Fees: Franchisees contribute a predictable annual fee of 2% of the EFT Dues Draft to the National Advertising Fund. This fund supports brand dominance. For the second quarter of 2025, National Advertising Fund revenue within the Franchise segment increased by $2.7 million year-over-year.

Classic Card Membership Base: The core membership base provides a massive, recurring revenue stream. As of June 30, 2025, Planet Fitness, Inc. reported approximately 20.8 million total members system-wide. The price for the core Classic Card membership for new members was increased to $15 per month, up from $10, which took effect in June 2024.

Established Franchise Base: The domestic franchise base consists of mature, high-volume clubs that require minimal capital expenditure from the franchisor, Planet Fitness, Inc. The Franchise Segment Adjusted EBITDA for the second quarter of 2025 was $86.5 million, demonstrating strong cash generation relative to segment revenue. The company expects capital expenditures to increase approximately 20% for the full year 2025.

The financial mechanics of the Cash Cow segment can be summarized as follows:

The recurring nature of membership fees supports the stability of the cash flow. You can see the high profitability in the segment's EBITDA margin relative to its revenue.

• Franchise Segment Adjusted EBITDA to Revenue Ratio (Q2 2025): ~72.3% ($86.5 million / $119.7 million)
• System-wide Same Club Sales Growth (Q2 2025): 8.2%
• System-wide Same Club Sales Growth (Q1 2025): 6.1%

The model relies on franchisees to fund most of the physical expansion, which keeps the franchisor's capital expenditure growth relatively low, expected to increase approximately 20% in 2025.

Planet Fitness, Inc. (PLNT) - BCG Matrix: Dogs

Dogs are business units or products with a low market share in low-growth markets. They tie up capital without generating significant returns, making divestiture a common strategic consideration for Planet Fitness, Inc. (PLNT).

Legacy $10 Classic Membership

The original entry-level price point, central to the brand for over two decades, is now a legacy item for existing members. New members signing up starting in the summer of 2024 face a 50% price hike to $15 per month for the classic plan, up from $10 a month. Current members on the $10 plan have that rate locked in until their membership expires. This strategic price adjustment on the entry-level Classic membership, implemented in June 2024, directly contributed to higher royalty revenue in 2025. The Black Card membership price remains at $24.99 a month for existing members as of May 2024.

Underperforming Corporate-Owned Clubs

The asset-light strategy prioritizes franchise ownership, meaning the remaining corporate-owned clubs, especially those in non-core international markets, can be viewed as units requiring more active management or potential divestiture. The Corporate-owned clubs segment still contributed significantly, reporting revenue of approximately $139.0 million in Q2 2025. Segment Adjusted EBITDA for Corporate-owned clubs increased 14.2% to $56.6 million in Q2 2025. However, this segment's performance was partially offset by the operating costs of clubs in Spain.

You're looking at the segment results, and honestly, the growth in this segment is less about market share expansion and more about optimizing existing, smaller holdings. Here's the quick math on segment performance for Q2 2025:

Divested Corporate Assets

The trend of divesting corporate assets to franchisees is a clear move to reduce capital tied up in owned locations and reinforce the asset-light model. In Q2 2025, Planet Fitness, Inc. (PLNT) confirmed the sale of eight corporate clubs in California to a franchisee. This follows a pattern where the company opened 3 corporate-owned clubs in Q2 2025, while franchisees opened 20. As of December 31, 2024, the company had 8 corporate-owned clubs open during Q4 2024. The strategy is focused on East Coast operations, making international or non-core domestic clubs candidates for recycling capital.

Outdated Club Formats

Clubs not yet updated to the newer, more balanced equipment mix represent a lower-tier offering compared to the optimized fleet. The company is actively addressing this, expecting more than 70% of clubs to have the optimized format by the end of 2025. As of Q2 2025, 70% of clubs had already implemented this new format, which features a more balanced mix of cardio and strength equipment. The goal is to get new plate-loaded strength equipment into nearly all 2,600+ locations in 2025.

The status of equipment rollout as of the search cutoff includes:

• New strength equipment introduced to more than 1,700 clubs nationwide as of late 2024.
• The company expects new plate-loaded strength equipment to be in nearly all 2,600+ locations in 2025.
• By the end of 2025, over 70% of clubs will have an optimized floor plan with a balanced mix of cardio and strength equipment.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Planet Fitness, Inc. (PLNT) - BCG Matrix: Question Marks

Question Marks represent business areas within Planet Fitness, Inc. (PLNT) that operate in high-growth markets but currently hold a relatively low market share. These units typically consume significant cash to fund their growth potential, aiming to convert into Stars, but risk becoming Dogs if market share gains stall.

International Expansion: New Market Entry

International expansion, particularly in new territories like Spain, requires substantial upfront capital expenditure to establish proof of concept and build a foundation. Planet Fitness, Inc. is actively pursuing this high-growth, high-investment strategy.

• As of March 31, 2025, Planet Fitness, Inc. had clubs operating in Spain.
• The operating costs associated with the Spanish expansion were noted, as the opening and operating of seven clubs in Spain partially offset the Adjusted EBITDA increase for the Corporate-owned clubs segment in the first quarter of 2025.
• The company has an ambitious long-term view for this market, with a goal that it is not unreasonable to think they could have a hundred centers in Spain by 2030.

New Amenity Pilots

Testing new, high-cost premium amenities for the Black Card Membership is a strategy to increase the perceived value and justify future price increases in a growing segment of the membership base. These pilots consume cash in the testing phase before potential system-wide rollout.

• Planet Fitness, Inc. has been testing premium amenities such as dry cold plunge and red-light therapy for the Black Card tier.
• The current standard price for the Black Card Membership is $24.99/month, plus a $49 annual fee.
• The company has signaled plans to lift this premium membership price to $29.99/month following the 2026 peak join season.

Corporate-Owned Club Segment

The Corporate-owned clubs segment is a smaller portion of the overall network, requiring direct capital expenditure from Planet Fitness, Inc. to grow, fitting the cash-consuming profile of a Question Mark.

Here's the quick math on the corporate segment as of early 2025:

New Market Penetration

The strategy for new market penetration involves calculated, high-risk expansion into new international territories annually, which demands investment before market share is established.

• Planet Fitness, Inc. plans to expand into one to two new international markets annually.
• The company expects capital expenditures in 2025 to increase approximately 20%, driven by additional clubs in the corporate-owned portfolio, which includes these new international efforts.

Finance: draft 13-week cash view by Friday.