Planet Fitness is bucking the trend of economic uncertainty, driven by strong membership growth, particularly among Gen Z consumers. The fitness giant continues to expand its brand, with the younger demographic playing a significant role in shaping the company’s success and future initiatives.
The company reported an impressive start to 2025, with total revenue increasing by 11.5% to $276.7 million in the first quarter compared to the same period last year. System-wide same-club sales grew by 6.1%, and total system-wide sales reached $1.3 billion. Planet Fitness also expanded its footprint, opening 19 new clubs—16 franchise-owned and 3 corporate-owned—bringing the global total to 2,741 locations by the end of March.
The fitness chain ended the quarter with 20.6 million members, marking a significant increase of 900,000 members compared to the end of 2024.
Resilient Growth Amid Economic Volatility
CEO Colleen Keating emphasized the company’s resilience, noting that Planet Fitness achieved this strong growth despite the ongoing economic volatility. “We are a resilient brand and continue to strengthen our leadership position by offering consumers a place to get a high-quality workout at an incredible value in our Judgement Free atmosphere,” Keating said.
Pricing Strategy and Testing Initiatives
Keating highlighted several ongoing experiments, including testing changes to club layouts. The company is also evaluating the possibility of adjusting the price for its Black Card membership, which currently costs $24.99 per month. New pilot programs are testing pricing tiers of $27.99 and $29.99. This follows last year’s $5 increase to the Classic Card membership, which now costs $15 per month for new members.
Planet Fitness has also expanded its Black Card benefits, offering access to all locations, guest passes, and additional amenities like massage chairs and tanning beds. In March, the company took its Black Card offerings on the road with a mobile “spa” featuring a HydroMassage bed, massage chair, and CryoLounge+. It even provided free HydroMassage sessions to non-members during tax season to help reduce stress.
New offerings, such as red light therapy and spray tanning, have been introduced at select locations and could potentially be included as premium perks for Black Card members in the future.
Gen Z Drives Membership Growth
Gen Z continues to be the driving force behind Planet Fitness’ membership growth, with the group emerging as the fastest-growing demographic since 2021. Keating confirmed that the company’s popular High School Summer Pass program would be returning this year, building brand loyalty while offering a cost-effective way to engage younger audiences.
Gen Z’s dedication to fitness as part of their lifestyle provides stability for Planet Fitness in a time of broader market uncertainty. Despite changes in consumer spending habits, which show less focus on products but continued investment in experiences, Planet Fitness remains confident in its future growth. “Fitness is really a part of their lifestyle,” Keating said.
Navigating Tariffs and Economic Pressures
Amid rising concerns about tariffs, Planet Fitness is monitoring potential impacts while focusing on its growth strategy. “We are working closely with our vendors to understand potential tariff impacts on our business,” Keating explained. However, the company remains optimistic, with no significant impact expected on its 2025 targets at current tariff levels.
CFO Jay Stasz also sees an opportunity for Planet Fitness as cost-conscious consumers may turn to more affordable gym options. “In this kind of environment, we could benefit from a trade-down from some of the higher-priced clubs,” he noted.
Adapting to Click-to-Cancel Regulation
Planet Fitness is also preparing for the Federal Trade Commission’s new “click-to-cancel” rule, which mandates businesses to make it easier for consumers to cancel subscriptions and memberships online. Keating believes the new regulation could even benefit the company, as it may encourage more people to sign up if they feel more confident about the cancellation process.
Stasz added, “We remain committed to delivering a great member experience, and we want to make the cancellation process as seamless as the join process.” As of April, more than 35% of Planet Fitness locations, including all corporate-owned clubs, have already implemented the click-to-cancel feature.
With the rollout of the new cancellation functionality set to be completed by May 14, Planet Fitness is ready to meet the regulatory deadline while continuing to prioritize a positive experience for its members.
