Planet Fitness (PLNT) issued fiscal 2026 guidance that came in below expectations and reported "choppy" quarter-to-date member trends, RBC Capital Markets said.
The brokerage said in a Tuesday note that the revenue is expected to grow about 9% in 2026. That is below the 10.8% consensus estimate and below the company's long-term algorithm calling for a low double-digit compound annual growth rate from 2026 through 2028.
Same-store sales are projected at 4% to 5% compared with consensus expectations of 6.2%. Adjusted earnings per share growth of 9% to 10% also trails the 16.8% consensus view. RBC noted that higher net interest expense tied to refinancing and a debt upsize represents a meaningful headwind to earnings growth next year.
The firm also pointed to weather-related weakness in January and slightly higher churn, which weighed on quarter-to-date net member additions. Given that the first quarter typically accounts for the bulk of annual net adds, month-to-month volatility may keep investors cautious.
RBC lowered its fiscal 2026 estimates. It trimmed its revenue forecast by 1.2%, reduced its adjusted EBITDA estimate by 2.9% and cut its adjusted EPS view by 2.8%.
The firm cut its price target to $120 from $130 on the company's stock and maintained its outperform rating.
Shares of Planet Fitness were down nearly 3% in recent trading.
Price: 80.36, Change: -2.25, Percent Change: -2.72
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