Planet Fitness is capitalizing on its value proposition as it continues to grow.
In the first quarter of 2025, the company saw an 11.5% year-over-year increase in revenue. It also added 900,000 new members, bringing the total to 20.6 million. While earnings fell short of expectations, adjusted EBITDA increased by 10%, and same-store sales rose by 6.1%.
A key driver of this growth is its $25/month Black Card membership, which now has a 65% adoption rate, the highest in the company’s history. A March promotion offering the first month free helped boost sign-ups without increasing member churn.
Younger generations, particularly Gen Z, are fueling the growth. The company’s High School Summer Pass program has been successful in converting a small but significant percentage of participants into paying members.
Despite facing economic challenges and rising costs, Planet Fitness plans to open 160 to 170 new clubs and achieve 10% top-line growth. The company remains confident in its resilience, citing its ability to withstand previous downturns and its strong value offering. However, it expects a 20% increase in capital expenditures due to tariffs.
To stay competitive, Planet is adjusting its offerings to emphasize strength training. The company is also experimenting with new formats and introducing wellness services, including red light therapy and cryotherapy.
With its extensive reach and focus on low-cost value, Planet Fitness is well-positioned to weather market turbulence. While others may change course, Planet’s strength lies in staying true to its core, only getting stronger.
