PLNT Planet Fitness, Inc.

Overview and Growth

Planet Fitness, Inc. generated $1.32B of revenue in fiscal 2025, with net income of $219.10M and an operating cash inflow of $418.42M. At $1.32B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $1.18B in fiscal 2024, revenue recorded a 12.1% year-over-year increase. Total assets stood at $3.10B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.43x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $1.09B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 82.6% of revenue, showing how much of the top line remained after direct costs. Operating income was $394.68M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 29.8%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $219.10M, after the operating, financing, tax, and other items recognized for the period. Net margin was 16.5%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $308.98M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 23.3%, relating income before taxes directly to revenue. Income tax expense totaled $85.87M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 27.8%, quantifying the portion of pre-tax earnings paid in income tax. Return on period-end assets was 7.1%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

At period end, the $3.10B asset base was financed through $3.59B of liabilities and -$483.38M of equity. The company reported negative equity of -$483.38M, a capital deficit that reduces its ability to absorb losses through book equity. The near-term balance sheet paired $658.39M of current assets with $312.49M of current liabilities at the reporting date. At 2.11x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $345.65M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 110.6%, excluding receivables and other current assets. The company carried $2.48B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-assets relationship was 80.0%, comparing borrowing with the total asset balance. Liabilities represented 115.6% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 11.1%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 1.1% from $3.07B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $418.42M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.91x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $163.67M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 39.1% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $254.75M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 19.2%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 8.2%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.