New York, May 8, 2026, 07:01 (EDT)
Shares of Planet Fitness Inc. tumbled 31% Thursday to $44.01, hitting their lowest finish since April 2020 after the company trimmed its 2026 growth outlook and put a halt on a planned Black Card membership price hike. It marks the steepest one-day drop for the gym chain since its 2015 market debut, according to Bloomberg.
The first quarter carries weight for Planet Fitness—it’s when resolution-driven signups typically flood in. This year, net membership climbed by more than 700,000, counting new members after cancellations, the company reported. But CEO Colleen Keating didn’t mince words with analysts, calling that growth “not satisfied” following a noticeable slowdown in March and early April. The Motley Fool
The reduction undercuts a key bullish pitch: that Planet Fitness could steadily grow its footprint using its budget-friendly, franchise-centric approach while still hiking memberships. Now, the company projects system-wide same-club sales growth of roughly 1% for 2026—previously, that figure sat in the 4% to 5% range. Revenue growth guidance has also been trimmed to about 7%, down from the earlier 9%.
Income statement numbers held up during the quarter. Planet Fitness posted a 21.9% jump in first-quarter revenue, reaching $337.2 million. Adjusted earnings climbed to 74 cents per share, up from 59 cents a year ago. Net income attributable to the company also moved higher, landing at $51.6 million versus $41.9 million.
Keating pointed to “internal and external headwinds” hitting the company during its busiest sign-up stretch, adding that marketing is set for a reset to better capture demand. During the call, she noted the latest ads have been pulling in more fitness-focused customers. Still, she acknowledged, they “may have pivoted too far” from the beginners and casual gymgoers who make up Planet Fitness’s core audience. The Motley Fool
The Black Card tier—Planet Fitness’s pricier membership—was another sticking point. Keating told analysts that management is steering clear of introducing a “price headwind” while membership growth is still regaining momentum. Earlier experiments with bumping up Black Card prices had dampened new sign-ups, he noted. The Motley Fool
Management flagged challenging weather, stepped-up rivalry across the South Central and Southeast, and what they described as ongoing consumer headwinds. Interim CFO Thomas Fitzgerald noted that January member churn picked up — he tied the spike to marketing that included “cancel anytime” phrasing. After they tweaked that language, attrition dropped back down, but still ran higher than a year ago. The Motley Fool
Actions came quickly on Wall Street. BofA Securities downgraded Planet Fitness to Neutral from Buy and slashed its price target to $59 from $110, blaming disappointing sign-up numbers, unfavorable weather, and increased competition. The firm added that fresh marketing efforts aren’t likely to pay off right away.
TD Cowen pulled its rating on the stock down to Hold from Buy, slashing the price target to $50 from $90. Analyst Max Rakhlenko said Planet Fitness should sharpen its “value prop” as it faces changing demand and stiffer competition. The firm also flagged a competitive headache at the local level—one that could escalate nationally, it cautioned. Yahoo Finance
This isn’t theoretical. William Blair points to a surge in high-volume, low-price gyms—think basic offerings, dues sitting between $15 and $30 a month. The firm calls out Crunch Fitness, EoS Fitness and VASA Fitness as names to watch, all attracting private capital as they scale up. Planet Fitness, for its part, acknowledges it’s feeling pressure from competition in certain areas, but isn’t singling out any competitors by name.
Planet Fitness is hanging on to its size advantage. As of the end of March, membership stood at roughly 21.5 million across 2,909 clubs. The company stuck to its forecast for 180 to 190 new club launches this year. During the quarter, it also bought back $50 million worth of shares.
If the marketing reset doesn’t come through strongly or soon enough, revenue and franchise returns could feel the pinch from the price pause. William Blair flagged that delays here may crimp club returns and threaten those 2027 franchised growth targets. TD Cowen, for its part, warned that when mature gyms start shedding members, the whole system could come under pressure.
Planet Fitness yanked its earlier three-year forecast—likely not what investors wanted to hear. Just last year, shareholders were pitched on a multi-year expansion story. Now, the company says it’ll spend the rest of 2026 trying to re-engage the value-focused newcomers who made Planet Fitness what it is.
