Planet Fitness reported a solid QQ3 2025 with meaningful year-over-year revenue growth and strong profitability metrics, underpinned by the franchise-driven business model. Revenue of USD 330.345 million marked a 13.0% year-over-year increase, while operating income reached USD 101.336 million and EBITDA USD 153.179 million, translating to an EBITDAR margin of approximately 46.4% and an operating margin of about 30.7%, indicating durable operating leverage within a predominantly franchise-based structure. Net income of USD 58.829 million produced a net margin near 17.8% and basic EPS of USD 0.704. Free cash flow per share (FCF/PS) stood at USD 0.918, and operating cash flow per share (OCF/PS) was USD 1.574, underscoring robust cash generation and resilient liquidity.
The quarter also showed a modest sequential headwind, with revenue (QoQ) down about 3.1%, and gross profit declined more materially on a quarterly basis, reflecting mix dynamics and timing of franchise-related activity. Despite this, liquidity remains ample with current and quick ratios around 2.0x, and a cash per share position of USD 5.31. A notable caveat is a set of leverage and equity metrics that appear unconventional (e.g., negative ROE and debt-to-capitalization above 1.0), suggesting potential reporting or balance sheet peculiarities that warrant closer scrutiny in the upcoming filings. Overall, the franchise-centric model continues to generate resilient cash flow and a favorable margin profile, supporting an attractively positioned platform for long-term growth while monitoring the near-term cadence of store openings, same-store sales, and competitive dynamics.