Q3 2023 Marks Growth for Planet Fitness

Krissy Vann | Host, All Things Fitness and Wellness

Planet Fitness, Inc. has unveiled its Q3 2023 financial results, reflecting significant leadership changes and a commitment to continued growth.

Interim CEO Governor Craig Benson has emphasized the company's strong performance in Q3 2023, as indicated by key financial highlights:

• Total revenue increased by 13.6% to reach $277.6 million compared to the prior year.

• Notably, the company achieved an 8.4% growth in system-wide same-store sales, signaling its robust performance.

• The net income attributable to Planet Fitness, Inc. was $39.1 million, equivalent to $0.46 per diluted share.

In addition, Planet Fitness expanded its global store count to nearly 2,500 locations. During the third quarter, the company added 26 new stores, emphasizing its commitment to growth and expansion.

Segment-wise, the franchise segment recorded a revenue increase of $17.4 million, while the corporate-owned stores segment saw revenue rise by $11.9 million. The equipment segment also performed well, with a revenue increase of $3.8 million. Adjusted net income climbed by $13.6 million to reach $51.8 million, and Adjusted EBITDA surged by $18.0 million, totaling $111.9 million.

Planet Fitness has a positive outlook for 2023, projecting revenue to grow by approximately 14% and Adjusted EBITDA by 18%. However, the recent leadership transition, with Governor Benson assuming the role of interim CEO, has led to stock fluctuations.

In September of this year, Planet Fitness CEO Chris Rondeau was unexpectedly removed from his position, resulting in a 16% drop in the stock's value during the day's trading. Rondeau had held the CEO position since 2013.

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