Planet Fitness Revenue Beats Q4 Estimates

Planet Fitness reported a better-than-expected 19.4% increase in revenue for Q4, reaching $340.5 million and surpassing analyst estimates of $325 million. The company's adjusted earnings per share rose to 70 cents, beating the consensus expectation of 62 cents. Despite these strong results, the gym operator's full-year guidance fell short of Wall Street projections, causing shares to dip in early trading. Planet Fitness expects a 10% revenue increase in 2025, driven by higher royalty revenue and new club openings, with adjusted earnings projected to rise by 11% to 12%. The company's focus on health and wellness, alongside a first price increase in 25 years, contributed to these results. However, despite annualized revenue growth of 12.3% over the past two years, the company's long-term performance is viewed as modest compared to the broader consumer discretionary sector.