Planet Fitness Shares Face Market Skepticism Despite Strong Fundamentals

Planet Fitness US72703H1014

While Planet Fitness, the budget gym operator, reported robust operational results for its 2025 fiscal year, its stock performance tells a contrasting story. The equity continues to lose ground, creating a notable divergence between the company's solid financial health and its weakening market valuation.

Market experts maintain a largely favorable view despite the share price declining approximately 11% over the last month. The consensus rating among analysts remains a "Buy." Their expectations are ambitious, forecasting average annual revenue growth of 11.6% over the next three years. Furthermore, they project the profit margin will expand from 16.2% to 19.3%. The average price target sits near $130, suggesting significant upside potential from the current level of around €88.

All eyes are now on the scheduled release of the complete 2025 annual report and the 2026 outlook on February 24. The consensus estimates an earnings per share (EPS) of $3.02 for the past fiscal year and $3.52 for 2026. Whether these figures can reverse the current downward trend in the stock remains to be seen.

A Year of Operational Strength

The figures released on January 12 demonstrate consistent growth. By year-end, Planet Fitness reported a membership base of approximately 20.8 million, marking clear growth compared to the prior year. System-wide sales for existing locations increased by 6.7%. The network also expanded by 181 new studios, bringing the total count to 2,896 locations. In a move to bolster nationwide marketing efforts, the company and its franchisees agreed to reallocate advertising funds into the national fund for 2026.

The central question for investors is what is driving this persistent gap between the firm's strong foundational metrics and its disappointing share price action.