Planet Fitness delivered solid topline growth in Q2 FY2025, supported by a disciplined franchising model and a resilient unit economics framework. Revenue of $340.9 million represented a 13.3% year-over-year increase and a 23.2% quarter-over-quarter gain, with gross profit of $181.2 million and a gross margin of 53.17%. Operating income reached $102.4 million, yielding an operating margin of 30.04%, while net income was $58.0 million and earnings per share stood at $0.69. EBITDA was $148.5 million with an EBITDA margin of 43.55%, underscoring the scalability of the franchise-centric model and strong cost discipline.
From a balance sheet and cash flow perspective, the company remains significantly leveraged. Total debt stood at $2.595 billion with long-term debt of $2.572 billion, and stockholders’ equity remained negative at $(158.7) million, indicating an equity base that is not supporting the liabilities. Net debt was approximately $2.26 billion. Operating cash flow was $43.97 million for the period, capex totaled $34.27 million, and free cash flow amounted to $9.7 million, culminating in a cash balance of about $392.2 million at period end. The capital structure implies meaningful debt service obligations and a need for ongoing deleveraging over the next several quarters to support a stronger balance sheet.
While management commentary is not available in the provided transcript data, the reported metrics imply a business benefiting from continued franchise expansion, steady membership growth, and a disciplined expense framework. The core takeaways for investors are a healthy margin structure and improving profitability on the back of a scalable franchise model, balanced against the headwinds of high leverage and equity erosion. The near-to-medium-term focus should be on deleveraging, sustaining membership momentum, and expanding the high-margin franchise network to offset debt service costs.