We came across a bullish thesis on Planet Fitness, Inc. on Daniel’s Deep Dive’s Substack. In this article, we will summarize the bulls’ thesis on PLNT. Planet Fitness, Inc.’s share was trading at $93.01 as of February 10th. PLNT’s trailing and forward P/E were 37.58 and 25.97 respectively according to Yahoo Finance.
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Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. PLNT represents a compelling example of how a simple, low-cost concept can scale successfully in the highly competitive gym industry.
The company is built around affordable memberships and a non-intimidating, beginner-friendly value proposition, positioning Planet Fitness as the first stop for casual and new gym users rather than high-end fitness enthusiasts. This accessibility-driven model has enabled the company to build a broad and sticky customer base without relying on premium pricing or specialized offerings.
A core pillar of Planet Fitness’s success is its asset-light franchise model. Approximately 90% of its gyms are operated by franchisees, allowing the company to expand rapidly while maintaining low capital intensity and high returns on invested capital. By the end of 2025, Planet Fitness had grown its global footprint to roughly 2,900 locations, serving about 20.8 million active members. While the majority of clubs are located in the United States, the brand has also established an international presence across markets such as Canada, Mexico, Australia, and Spain, providing a long runway for further expansion.
Growth has been driven by a combination of new club openings and improving performance at existing locations. In 2025 alone, Planet Fitness opened more than 180 new clubs, while same-club sales increased by approximately 6.7%, reflecting healthy demand and strong unit-level economics. Over the past decade, the company has delivered revenue growth of roughly 14% annually, with profits growing even faster at about 19% per year.
Importantly, this growth has translated into robust cash generation, with free cash flow margins of around 17%. Overall, Planet Fitness demonstrates how a disciplined, low-price strategy, paired with a scalable franchise model, can create a durable, high-quality business with attractive long-term growth prospects.
Previously, we covered a bullish thesis on Planet Fitness, Inc. (PLNT) by The Elevator Pitch in May 2025, which highlighted the asset-light franchise model, HVLP positioning, market dominance, strong unit economics, and margin expansion potential. PLNT’s stock price has depreciated by approximately 11.25% since our coverage. Daniel’s Deep Dive shares a similar thesis but emphasizes on scalability, international expansion, same-club sales momentum, and durable free cash flow generation.
Planet Fitness, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held PLNT at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of PLNT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLNT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
