Recent News
In October a Houston franchisee acquired five Fitness Project locations and converted them to Planet Fitness clubs, expanding the brand’s footprint in the Houston area and adding new local market presence.
Technical Analysis
ADX at 29.92 signals a strong underlying trend in place; the ADX strength supports a directional move rather than range-bound behavior.
Directional indicators show DI+ at 13.47 with a dip-and-reversal (DI+ increasing) and DI- at 30.45 with a peak-and-reversal (DI- decreasing); both reversals bias price toward the bullish side despite the higher absolute DI- reading.
MACD sits negative at -2.37 while the MACD trend shows a dip-and-reversal, indicating bullish momentum building even though the MACD currently remains below the signal line at -2.06; momentum appears to be shifting upward but has not yet completed a bullish crossover.
MRO reads -0.82, indicating price below modeled target and therefore potential for upward mean-reversion; the small magnitude suggests only modest upward pressure absent reinforcing signals.
RSI at 41.33 with a dip-and-reversal indicates recent selling pressure has waned and creates room for a rebound toward neutral momentum levels.
Price sits at $95.24 below the 200-day average of $102.00 and within the Bollinger 1x band (lower $92.42 / upper $100.25); short-term EMAs show the 12-day EMA decreasing at $95.69 while the 26-day EMA remains higher at $98.19, so short-term averages remain below longer short-term averages but technical reversals suggest a possible recovery toward the mid-band. Volume at 888,457 trails 10/50/200-day averages, implying reduced conviction behind recent moves.
Fundamental Analysis
Revenue totaled $340,879,000. YoY revenue growth registered 8.77%, reflecting continued top-line expansion.
Operating performance shows $148,463,000 of EBITDA and $110,034,000 of EBIT. Operating margin (return on sales) stands at 30.041% and EBIT margin at 32.279%, with EBIT margin QoQ up +4.697% and YoY up +3.299%. The EBIT margin sits above the industry peer mean of 26.242% and above the industry peer median of 20.000%, indicating margin strength versus peers.
Gross margin measures 53.169% with a slight QoQ decline of -2.295% but a YoY increase of +0.796%, supporting high incremental profitability on revenue gains.
Net income reached $58,019,000 and EPS came in at $0.86 versus an estimate of $0.79, a beat of $0.07 or an 8.86% surprise. Forward EPS sits at $0.73 and forward PE about 139.38, showing expectations compress beyond the most recent actuals. Adjusted free cash flow remains modest at $9,700,000 with a free cash flow yield of 0.109% and free cash flow trending down QoQ.
Leverage and capital structure show elevated metrics: total debt equals $2,594,868,000, net debt $1,826,195,000, and debt-to-EBITDA at 17.48x. Debt-to-assets sits at 83.191%, above the industry peer mean of 69.779%. Total equity registers negative at -$158,694,000, producing a negative return on equity of -36.56% despite positive returns on assets of 1.868%.
Liquidity measures appear conservative: current ratio at 2.05 and quick ratio at 2.04, both above the industry peer mean current ratio of 1.01, while the cash position at $335,723,000 and cash and short-term investments at $442,721,000 support near-term obligations.
Operational efficiency metrics show asset turnover at 0.1098 (below the industry peer mean of 0.1996) and receivables turnover at 6.11, indicating lower asset utilization relative to some peers even as system expansion proceeds.
Valuation commentary: The current valuation as determined by WMDST categorizes the stock as under-valued. Absolute multiples include a PE ratio of 123.65 and an enterprise multiple of 74.51; those multiples reflect elevated market pricing relative to current earnings but the WMDST valuation assessment indicates residual upside when combining cash flow dynamics, margin profile, and growth assumptions.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-03 |
| CASH FLOW | Begin Period Cash Flow | $ 400.5 M |
| Operating Cash Flow | $ 44.0 M | |
| Capital Expenditures | $ -34.27 M | |
| Change In Working Capital | $ -24.78 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -8.32 M | |
| End Period Cash Flow | $ 392.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 340.9 M | |
| Forward Revenue | $ 90.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 159.6 M | |
| Depreciation | $ 38.4 M | |
| Depreciation and Amortization | $ 38.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 238.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 181.2 M | |
| EBITDA | $ 148.5 M | |
| EBIT | $ 110.0 M | |
| Operating Income | $ 102.4 M | |
| Interest Income | $ 5.7 M | |
| Interest Expense | $ 26.2 M | |
| Net Interest Income | $ -20.49 M | |
| Income Before Tax | $ 83.9 M | |
| Tax Provision | $ 24.9 M | |
| Tax Rate | 29.7 % | |
| Net Income | $ 58.0 M | |
| Net Income From Continuing Operations | $ 58.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.79 | |
| EPS Actual | $ 0.86 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 8.861 % | |
| Forward EPS | $ 0.73 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.1 B | |
| Intangible Assets | $ 1.0 B | |
| Net Tangible Assets | $ -1.18 B | |
| Total Current Assets | $ 637.4 M | |
| Cash and Short-Term Investments | $ 442.7 M | |
| Cash | $ 335.7 M | |
| Net Receivables | $ 72.8 M | |
| Inventory | $ 4.3 M | |
| Long-Term Investments | $ 10.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 49.1 M | |
| Short-Term Debt | $ 22.5 M | |
| Total Current Liabilities | $ 310.2 M | |
| Net Debt | $ 1.8 B | |
| Total Debt | $ 2.6 B | |
| Total Liabilities | $ 3.3 B | |
| EQUITY | ||
| Total Equity | $ -158.69 M | |
| Retained Earnings | $ -774.75 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -1.89 | |
| Shares Outstanding | 83.907 M | |
| Revenue Per-Share | $ 4.06 | |
| VALUATION | Market Capitalization | $ 8.9 B |
| Enterprise Value | $ 11.1 B | |
| Enterprise Multiple | 74.514 | |
| Enterprise Multiple QoQ | -10.496 % | |
| Enterprise Multiple YoY | 76.043 % | |
| Enterprise Multiple IPRWA | high: 115.782 PLNT: 74.514 mean: 73.823 median: 71.611 low: -56.203 |
|
| EV/R | 32.453 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -19.655 | |
| Asset To Liability | 0.952 | |
| Debt To Capital | 1.065 | |
| Debt To Assets | 0.832 | |
| Debt To Assets QoQ | -1.046 % | |
| Debt To Assets YoY | 11974.165 % | |
| Debt To Assets IPRWA | high: 1.647 PLNT: 0.832 median: 0.724 mean: 0.698 low: 0.002 |
|
| Debt To Equity | -16.351 | |
| Debt To Equity QoQ | 38.322 % | |
| Debt To Equity YoY | 25239.207 % | |
| Debt To Equity IPRWA | high: 10.498 median: 0.293 mean: 0.002 low: -12.071 PLNT: -16.351 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -56.149 | |
| Price To Book QoQ | 51.632 % | |
| Price To Book YoY | 197.504 % | |
| Price To Book IPRWA | high: 19.124 median: 3.747 mean: -0.313 low: -25.016 PLNT: -56.149 |
|
| Price To Earnings (P/E) | 123.652 | |
| Price To Earnings QoQ | -24.885 % | |
| Price To Earnings YoY | 23.731 % | |
| Price To Earnings IPRWA | high: 289.09 PLNT: 123.652 mean: 101.007 median: 94.276 low: -27.296 |
|
| PE/G Ratio | 2.702 | |
| Price To Sales (P/S) | 26.14 | |
| Price To Sales QoQ | -11.183 % | |
| Price To Sales YoY | 31.21 % | |
| Price To Sales IPRWA | high: 31.824 PLNT: 26.14 mean: 18.265 median: 16.293 low: 0.286 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 139.384 | |
| Forward PE/G | 3.046 | |
| Forward P/S | 99.04 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.249 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.11 | |
| Asset Turnover Ratio QoQ | 22.227 % | |
| Asset Turnover Ratio YoY | 8.813 % | |
| Asset Turnover Ratio IPRWA | high: 0.621 mean: 0.2 median: 0.147 PLNT: 0.11 low: 0.02 |
|
| Receivables Turnover | 6.115 | |
| Receivables Turnover Ratio QoQ | 27.961 % | |
| Receivables Turnover Ratio YoY | -33.788 % | |
| Receivables Turnover Ratio IPRWA | high: 42.739 mean: 8.281 PLNT: 6.115 median: 4.375 low: 0.692 |
|
| Inventory Turnover | 50.51 | |
| Inventory Turnover Ratio QoQ | 62.614 % | |
| Inventory Turnover Ratio YoY | 80.429 % | |
| Inventory Turnover Ratio IPRWA | high: 63.048 median: 54.358 PLNT: 50.51 mean: 37.212 low: 0.492 |
|
| Days Sales Outstanding (DSO) | 14.922 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -9.883 | |
| Cash Conversion Cycle Days QoQ | -268.453 % | |
| Cash Conversion Cycle Days YoY | 56.821 % | |
| Cash Conversion Cycle Days IPRWA | high: 60.416 median: 4.8 mean: 2.326 PLNT: -9.883 low: -59.918 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.042 | |
| CapEx To Revenue | -0.101 | |
| CapEx To Depreciation | -0.892 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.0 B | |
| Net Invested Capital | $ 2.0 B | |
| Invested Capital | $ 2.0 B | |
| Net Tangible Assets | $ -1.18 B | |
| Net Working Capital | $ 327.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.427 | |
| Current Ratio | 2.055 | |
| Current Ratio QoQ | -2.143 % | |
| Current Ratio YoY | 13.226 % | |
| Current Ratio IPRWA | high: 2.698 PLNT: 2.055 median: 1.012 mean: 1.009 low: 0.137 |
|
| Quick Ratio | 2.041 | |
| Quick Ratio QoQ | -2.491 % | |
| Quick Ratio YoY | 13.651 % | |
| Quick Ratio IPRWA | high: 2.654 PLNT: 2.041 median: 1.178 mean: 1.03 low: 0.106 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.478 | |
| Cost Of Debt | 0.708 % | |
| Interest Coverage Ratio | 4.203 | |
| Interest Coverage Ratio QoQ | 29.08 % | |
| Interest Coverage Ratio YoY | 9.645 % | |
| Interest Coverage Ratio IPRWA | high: 46.029 mean: 9.063 median: 6.755 PLNT: 4.203 low: -26.646 |
|
| Operating Cash Flow Ratio | 0.268 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 27.093 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.881 % | |
| Revenue Growth | 23.211 % | |
| Revenue Growth QoQ | -223.885 % | |
| Revenue Growth YoY | 8.773 % | |
| Revenue Growth IPRWA | high: 52.655 % PLNT: 23.211 % median: 14.912 % mean: 13.588 % low: -34.396 % |
|
| Earnings Growth | 45.763 % | |
| Earnings Growth QoQ | -391.224 % | |
| Earnings Growth YoY | 34.748 % | |
| Earnings Growth IPRWA | high: 214.286 % PLNT: 45.763 % mean: 24.181 % median: 19.476 % low: -246.809 % |
|
| MARGINS | ||
| Gross Margin | 53.169 % | |
| Gross Margin QoQ | -2.295 % | |
| Gross Margin YoY | 0.796 % | |
| Gross Margin IPRWA | high: 82.429 % PLNT: 53.169 % mean: 42.012 % median: 41.612 % low: -15.915 % |
|
| EBIT Margin | 32.279 % | |
| EBIT Margin QoQ | 4.697 % | |
| EBIT Margin YoY | 3.299 % | |
| EBIT Margin IPRWA | high: 47.508 % PLNT: 32.279 % mean: 26.242 % median: 20.0 % low: -17.348 % |
|
| Return On Sales (ROS) | 30.041 % | |
| Return On Sales QoQ | -2.562 % | |
| Return On Sales YoY | -3.863 % | |
| Return On Sales IPRWA | high: 47.655 % PLNT: 30.041 % mean: 25.658 % median: 24.801 % low: -15.426 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 9.7 M | |
| Free Cash Flow Yield | 0.109 % | |
| Free Cash Flow Yield QoQ | -91.884 % | |
| Free Cash Flow Yield YoY | -83.731 % | |
| Free Cash Flow Yield IPRWA | high: 9.594 % mean: 1.008 % median: 0.675 % PLNT: 0.109 % low: -3.222 % |
|
| Free Cash Growth | -91.133 % | |
| Free Cash Growth QoQ | -106.266 % | |
| Free Cash Growth YoY | 148.712 % | |
| Free Cash Growth IPRWA | high: 178.828 % median: -33.191 % mean: -61.665 % PLNT: -91.133 % low: -447.422 % |
|
| Free Cash To Net Income | 0.167 | |
| Cash Flow Margin | 24.42 % | |
| Cash Flow To Earnings | 1.435 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.868 % | |
| Return On Assets QoQ | 37.454 % | |
| Return On Assets YoY | 14.601 % | |
| Return On Assets IPRWA | high: 7.107 % mean: 2.945 % median: 2.755 % PLNT: 1.868 % low: -4.298 % |
|
| Return On Capital Employed (ROCE) | 3.917 % | |
| Return On Equity (ROE) | -0.366 | |
| Return On Equity QoQ | 92.017 % | |
| Return On Equity YoY | 138.767 % | |
| Return On Equity IPRWA | high: 0.488 median: 0.037 mean: 0.016 PLNT: -0.366 low: -0.438 |
|
| DuPont ROE | -30.648 % | |
| Return On Invested Capital (ROIC) | 3.86 % | |
| Return On Invested Capital QoQ | 21.307 % | |
| Return On Invested Capital YoY | -118.613 % | |
| Return On Invested Capital IPRWA | high: 16.565 % mean: 7.237 % median: 6.805 % PLNT: 3.86 % low: -8.237 % |
|