Planet Fitness: Shares Cheap Enough to Keep OW. Upcoming 8/20 HQ Visit to Achieve on Strategic/Competitive Clarity in Evolving HVLP Landscape.

Research evidence excerpt

Planet Fitness: Shares Cheap Enough to Keep OW. Upcoming 8/20 HQ Visit to Achieve on Strategic/Competitive Clarity in Evolving HVLP Landscape.

Rahul Krotthapalli AC North America Equity Research

(1-212) 622-2408 09 July 2026 J P M O R G A N

rahul.krotthapalli@jpmorgan.com

memberships (per HFA). PLNT US memberships are estimated at 20.0-20.5m and

implied growth translates to ~700k net membership adds for the brand annually for next

10y. The subscale International footprint is modeled to grow from under-200 clubs

currently to 500 clubs by 2035 averaging 5k members per club or ~2.5m for global

membership base approaching ~30m.

• Membership growth is almost always a leading indicator for future club

development. PLNT’s membership base during the 2019-25 period grew at 6.0-6.5%

cagr just shy of ~6.5% club growth cagr and is expected to track below development in

2026 with ~2% membership growth vs guided 6%+ club growth at ~180 club openings.

This translates to ~4% decline in members/store exiting F26 after this declined ~1% in

F25, indicating growing pressure on mature club (>3y) comp trends in our view. With

membership churn remaining elevated and advertising/branding strategy yet to be

refined – we expect development to slowdown in F27/28 to stabilize mature store trends

which is essential for long term health of the brand. As such, we now model 100 new club

openings in F27 and 120 in F28 – to keep members/store intact at ~6.9k before averaging

US/Global development to ~140/~180 clubs F29-35.

• Efforts around brand repositioning could take longer as franchisees and company

take time to align on pricing strategy. Limitations around near term pricing power was

already acknowledged with PLNT no longer being a “price setter” for the category as