Planet Fitness (PLNT) Stock Forecast & Price Target

Planet Fitness Inc. reported a substantial increase in its membership base, ending 2024 with 19.7 million members, reflecting a year-over-year growth of 1.0 million. The company achieved revenue growth of 10.3%, surpassing its prior guidance, while adjusted EBITDA and net income both increased approximately 12% year-over-year, indicating strong operational performance. Additionally, an increase in Black Card membership penetration to 64% and modest pricing adjustments contributed to the positive financial outlook, suggesting ongoing strength in membership retention and revenue generation.

Planet Fitness's stock outlook reflects concerns regarding anticipated declines in free cash flow in 2025, primarily driven by significant capital expenditure growth, which could strain financial performance despite a forecast for net leverage below 3x. Additionally, a disappointing initial outlook for 2025, coupled with guidance of only 10% total sales and EBITDA growth amidst expectations of flat margins, indicates possible challenges in maintaining profitability across its segments. The company's recent performance, marked by a notable sell-off and underperformance relative to the S&P 500, suggests that both macroeconomic factors and operational inefficiencies are contributing to a less favorable growth environment.