Planet Fitness (PLNT) has just wrapped up FY 2025 with fourth quarter revenue of US$376.3 million and basic EPS of US$0.73, alongside net income excluding extra items of US$60.4 million, putting a clean set of headline numbers in front of investors. The company has seen quarterly revenue move from US$320.97 million and EPS of US$0.56 in Q4 2024 to US$376.3 million and EPS of US$0.73 in Q4 2025. This frames a year where trailing twelve month revenue reached about US$1.3 billion and EPS came in at US$2.62. With trailing net income of US$219.1 million and a net margin profile that has edged higher year on year, the latest print gives investors plenty to work with on how Planet Fitness is converting its scale into earnings power.

See our full analysis for Planet Fitness.

With the quarterly scorecard set, the next step is to see how these reported margins and earnings trends line up against the big narratives investors usually repeat about Planet Fitness, and where those stories might need an update.

TTM earnings growth outpaces revenue

• Over the last 12 months, Planet Fitness generated trailing revenue of about US$1.3b and net income excluding extra items of US$219.1 million, with trailing EPS at US$2.62, while reported earnings growth of 27.4% ran ahead of the forecast ~9.2% annual revenue growth cited in the analysis data.
• Consensus narrative talks about younger members and new markets driving revenue growth, and the current figures give you a way to test that story:
  • Revenue on a trailing basis moved from US$1.1b at Q4 2024 to about US$1.3b by Q4 2025, which sits alongside that 27.4% trailing earnings growth and a 16.5% net margin in the analysis summary.
  • If analysts expect earnings to grow about 15.2% per year while revenue is forecast around 9.2%, the faster earnings growth versus revenue in the last year is consistent with the idea that margins and mix, not just member counts, matter for the thesis.

Margins at 16.5% meet bullish claims

• The trailing net margin of 16.5% in the analysis data compares to 15.6% a year earlier, and sits alongside quarterly net income excluding extra items of US$60.4 million on Q4 2025 revenue of US$376.3 million. This is described as “high quality” earnings in the trailing-year review.
• Bulls argue that pricing power, higher Black Card penetration and better franchise economics can push margins higher, and the current margin profile partly supports that view while also setting a bar:
  • Bullish assumptions in the narrative look for margins to move from 16.2% to 19.0% in three years. The current 16.5% level in the trailing data already sits slightly above that 16.2% starting point but still some distance from the 19.0% target.
  • With trailing EPS at US$2.62 versus the bullish 2028 EPS assumption of US$3.97, the gap between today’s earnings and the bullish scenario is clear. This helps you see how much of the bull case depends on further margin expansion on top of the recent trend.

Have a look at how optimistic investors connect these margin trends to future growth in the full bullish story: 🐂 Planet Fitness Bull Case

Premium P/E and weak balance sheet back the bears

• Planet Fitness is trading on a P/E of 31.3x against the US Hospitality average of 21.9x and a peer average of 14.9x, while the analysis data also flags weak debt coverage by operating cash flow and negative shareholders’ equity as balance sheet risks.
• Bears focus on competition, higher churn and saturation, and the numbers give their concerns some footing alongside the growth story:
  • At a share price of US$82.61 and a DCF fair value of about US$93.78, the analysis suggests the stock sits roughly 11.9% below that DCF fair value. Even so, the 31.3x P/E still represents a clear premium to the industry and peers that bears point to in their cautious view.
  • Analyst upside signals in the data reference an implied move toward an analyst price target of US$126.38, but the flagged issues around debt coverage and negative equity mean that any premium valuation rests on investors being comfortable with those financial risks.

If you are weighing that premium valuation against the financial risk flags, it is worth reading how skeptics frame the cautious case: 🐻 Planet Fitness Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Planet Fitness on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both the bullish and cautious stories on the table, the real question is how you read the same set of numbers. Take a moment to review the data for yourself and form your own view, then check the balance of 4 key rewards and 2 important warning signs.

See What Else Is Out There

Planet Fitness pairs a premium 31.3x P/E with weak debt coverage and negative shareholders’ equity, so some investors may question whether the risk profile fits the price.

If that mix of valuation and balance sheet concerns makes you hesitate, it is a good time to check out solid balance sheet and fundamentals stocks screener (40 results) that focus on stronger financial footing and potentially steadier sleep at night.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.