PLNT slashes 2026 revenue growth forecast to 7% and projects a 2% net income decline after Q1 results.
Planet Fitness shares fell nearly 33% after the company reduced its 2026 revenue growth forecast to 7% from 9% and projected a 2% net income decline, reversing prior guidance of a 4%-5% increase. The gym operator cited higher marketing costs and a 36% year-over-year drop in new member sign-ups as key factors, while keeping its premium Black Card membership price unchanged.
First-quarter revenue rose 22% to $337 million, and net income increased 23% to $52 million, despite a 101% surge in the cost of revenue. The stock has now declined 58% year-to-date, extending losses amid broader market volatility.
Investors reacted sharply to the revised outlook, driving the stock to its lowest level in over a year. The company’s decision to maintain membership pricing amid rising costs added to concerns over profitability.