00:00I got to start with the forecast here because that seems to be what the market's reacting to the EBITDA
00:04growth number about 10 percent growth on an adjusted basis.
00:07But that's below what the street was expecting. There seemed to be this expectation that with some of the pricing
00:13changes that you've made the rollout of the black card program that we would maybe see a little bit more
00:19meaningful growth on the bottom line.
00:21What's going on? Well, I mean, we we landed a very strong 2025 and think that's much reflective of the
00:28momentum in the business and evidence that our strategic imperatives are delivering.
00:34You know, our first imperative was our brand promise and pulling it through our marketing.
00:39And that resulted in one point one million net new members for 2025, a 10 percent lift versus the prior
00:48year.
00:48And that was on top of a 50 percent lift in our entry price point, the classic price point from
00:54$10 to $15 for the full year 2025.
00:59From a member experience standpoint, we're seeing members utilizing our clubs more frequently.
01:05Utilization is up, as is the percentage of members who are rejoining.
01:11We're seeing a mid 30 percent rejoin rate. Our format optimization is resonating.
01:16We finished the year with 80 percent or nearly 80 percent of our estate with some version of an optimized
01:22format and new equipment package.
01:25And all of this culminates in growth. And we had our highest fourth quarter unit openings number in the history
01:33of the company in the fourth quarter of 2025 and finished the year with with 181 units.
01:40So strong, strong, strong growth. And we remain confident in the three year CAGR that we outlined at our investor
01:49day in November.
01:51So strong momentum. Well, that's what I'm curious about.
01:54I mean, you were obviously going through a bit of a transition here, kind of reimagining the space of what
01:59meaning the physical space and just really the ethos of what Planet Fitness is.
02:02I assume there are costs associated with that. Are those costs permanent or is this just kind of a temporary
02:07thing with regards to the revamping of the of the locations and any marketing costs associated with it?
02:14Yeah. One of the beautiful things about our model is its high efficiency.
02:19And our franchisees have invested, have made the investments in in the equipment packages to optimize the format.
02:28That said, one of the things that we rolled out in 2024 was our new growth model.
02:33And this was to help our franchisees with their unit economics and their IRRs.
02:38That is one of the things that's influencing our guidance for 2026.
02:44This is the first year we'll see a little bit of a push out in in equipment, in equipment revenue.
02:50That was intentional. And again, that was anticipated in in the three year projections that we rolled out.
02:56Now, Colleen, I also want to dig into your membership growth a little bit.
03:01You did mention an uplift there, 20 million, usually more than 20 million members at the moment.
03:07Where do you think the next leg of membership growth comes from?
03:09Is it a matter of improving the pricing or perhaps finding new customer segments to penetrate, maybe adding more units?
03:16So a couple of things. So we've we finished at 20.8 million members or nearly 21 million members.
03:24And our, you know, our reach is unparalleled.
03:27We have a club within 12 minutes of 170 million of the U.S. population.
03:32And at the same time, we're in the golden age of fitness.
03:37I mean, you can't open a news feed without reading about the importance of fitness and wellness and how it
03:43contributes to mental health as well.
03:45So interest in interest in working out in fitness and wellness has has never been higher.
03:51We know that there are about 50 to 60 million people, adults in the U.S., that are that think
03:58about a gym membership and express a willingness to pay.
04:02And there are also about 50 to 60 million people in the U.S. who who have a gym membership,
04:08who are in the TAM that that, you know, we could convert to Planet Fitness as well.
04:13So a tremendous opportunity to continue growing membership.
04:17Colleen, only about a minute left, but I am curious as to who you're positioning yourself against here.
04:21Like, who are your competitors? Are you going up against the big global gyms, the boutique kind of fitness craze
04:26that's popped up?
04:26Who we you know, we are solidly the industry leader in the high value, low price space at a very
04:35approachable price point.
04:36We democratized access to fitness while bringing to bear a great offering of top shelf equipment.
04:42And what makes us unique is that we have a judgment free, no, you know, no gym intimidation environment that's
04:49welcoming to all fitness levels.
Comments