10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________to ______________

Commission file number: 001-37534

PLANET FITNESS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	38-3942097
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

4 Liberty Lane West, Hampton, NH 03842

(Address of Principal Executive Offices and Zip Code)

(603) 750-0001

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, $0.0001 Par Value	PLNT	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

As of May 2, 2024 there were 87,528,804 shares of the Registrant’s Class A Common Stock, par value $0.0001 per share, outstanding and 650,531 shares of the Registrant’s Class B Common Stock, par value $0.0001 per share, outstanding.

PLANET FITNESS, INC.

TABLE OF CONTENTS

		Page
	Cautionary Note Regarding Forward-Looking Statements	3
	PART I – FINANCIAL INFORMATION	5
ITEM 1.	Condensed Consolidated Financial Statements	5
	Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2024 and December 31, 2023	5
	Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2024 and 2023	6
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023	7
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023	8
	Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023	9
	Notes to Condensed Consolidated Financial Statements (Unaudited)	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	39
ITEM 4.	Controls and Procedures	39
	PART II – OTHER INFORMATION	39
ITEM 1.	Legal Proceedings	39
ITEM 1A.	Risk Factors	39
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
ITEM 3.	Defaults Upon Senior Securities	40
ITEM 4.	Mine Safety Disclosures	40
ITEM 5.	Other Information	40
ITEM 6.	Exhibits	41
	Signatures	42

2

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, as well as information included in oral statements or other written statements made or to be made by us, contain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “goal,” “plan,” “prospect,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “contemplate,” “future,” “strategy” and the negative thereof and other similar words or expressions, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements we make regarding:

•future financial position;

•business strategy;

•budgets, projected costs and plans;

•future industry growth;

•financing sources;

•potential return of capital initiatives;

•the impact of litigation, government inquiries and investigations; and

•all other statements regarding our intent, plans, beliefs or expectations or those of our directors or officers.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Important factors that could cause actual results and events to differ materially from those indicated in the forward-looking statements include, among others, risks and uncertainties associated with the following:

•Our success depends substantially on the value of our brand, which could be materially and adversely affected by the high level of competition in the health and fitness industry, our ability to anticipate and satisfy consumer preferences, shifting views of health and fitness and our ability to obtain and retain high-profile strategic partnership arrangements.

•Our and our franchisees’ stores may be unable to attract and retain members, which would materially and adversely affect our business, results of operations and financial condition.

•Our intellectual property rights, including trademarks, trade names, copyrights and trade dress, may be infringed, misappropriated or challenged by others.

•We and our franchisees rely heavily on information systems, including the use of email marketing, mobile application and social media, and any material failure, interruption or weakness may prevent us from effectively operating our business, damage our reputation or subject us to potential fines or other penalties.

•If we fail to properly maintain the confidentiality and integrity of our data, including member credit card, debit card, bank account information and other personally identifiable information, our reputation and business could be materially and adversely affected.

•The occurrence of cyber incidents, or a deficiency in cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of confidential information, and/or damage to our employee and business relationships and reputation, all of which could harm our brand and our business.

•If we fail to successfully implement our growth strategy, which includes new store development by existing and new franchisees, our ability to increase our revenues and operating profits could be adversely affected.

•Our planned growth and changes in the industry could place strains on our management, employees, information systems and internal controls, which may adversely impact our business.

•If we cannot retain our key employees and hire additional highly qualified employees, we may not be able to successfully manage our businesses and pursue our strategic objectives.

•Economic, political and other risks associated with our international operations could adversely affect our profitability and international growth prospects.

•Our financial results are affected by the operating and financial results of, our relationships with and actions taken by our franchisees.

•We are subject to a variety of additional risks associated with our franchisees, such as potential franchisee bankruptcies, franchisee changes in control, franchisee turnover, rising costs related to construction of new stores and maintenance of existing stores, including rising costs due to inflation and supply chain disruptions, which could adversely affect the attractiveness of our franchise model, and in turn our business, results of operations and financial condition.

•We and our franchisees could be subject to claims related to health and safety risks to members that arise while at both our corporate-owned and franchise stores.

3

•Our business is subject to various laws and regulations including, among others, those governing indoor tanning, electronic funds transfer, ACH, credit card, debit card, digital payment options, auto-renewal contracts, membership cancellation rights and consumer protection more generally, and changes in such laws and regulations, failure to comply with existing or future laws and regulations or failure to adjust to consumer sentiment regarding these matters, could harm our reputation and adversely affect our business.

•Our failure to address evolving environmental, social and governance (“ESG”) issues may have an adverse effect on our business, financial condition and results of operations.

•We are subject to risks associated with leasing property subject to long-term non-cancelable leases.

•If we and our franchisees are unable to identify and secure suitable sites for new franchise stores, our revenue growth rate and profits may be negatively impacted.

•Opening new stores in close proximity may negatively impact our existing stores’ revenues and profitability.

•Our franchisees may incur rising costs related to construction of new stores and maintenance of existing stores, including rising costs due to inflation, supply chain disruptions and other market conditions, which could adversely affect the attractiveness of our franchise model, and in turn our business, results of operations and financial condition.

•Our dependence on a limited number of suppliers for equipment and certain products and services could result in disruptions to our business and could adversely affect our revenues and gross profit.

•The other factors identified under the heading “Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Report. Unless legally required, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future developments or otherwise.

4

PART I-FINANCIAL INFORMATION

ITEM 1. Financial Statements

Planet Fitness, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except per share amounts)	March 31, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	301,707	$	275,842
Restricted cash	46,190		46,279
Short-term marketable securities	93,362		74,901
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of March 31, 2024 and December 31, 2023, respectively	23,837		41,890
Inventory	4,959		4,677
Restricted assets - national advertising fund	17,945		—
Prepaid expenses	18,945		13,842
Other receivables	12,513		11,072
Income tax receivable	1,324		3,314
Total current assets	520,782		471,817
Long-term marketable securities	45,165		50,886
Investments, net of allowance for expected credit losses of $18,164 and $17,689 as of March 31, 2024 and December 31, 2023, respectively	76,360		77,507
Property and equipment, net of accumulated depreciation of $349,068 and $322,958, as of March 31, 2024 and December 31, 2023, respectively	382,019		390,405
Right-of-use assets, net	385,796		381,010
Intangible assets, net	359,750		372,507
Goodwill	719,074		717,502
Deferred income taxes	499,839		504,188
Other assets, net	3,993		3,871
Total assets	$	2,992,778	$	2,969,693
Liabilities and stockholders’ deficit
Current liabilities:
Current maturities of long-term debt	$	20,750	$	20,750
Accounts payable	20,560		23,788
Accrued expenses	43,709		66,299
Equipment deposits	7,594		4,506
Deferred revenue, current	77,263		59,591
Payable pursuant to tax benefit arrangements, current	41,294		41,294
Other current liabilities	35,331		35,101
Total current liabilities	246,501		251,329
Long-term debt, net of current maturities	1,959,032		1,962,874
Lease liabilities, net of current portion	390,399		381,589
Deferred revenue, net of current portion	33,820		32,047
Deferred tax liabilities	1,666		1,644
Payable pursuant to tax benefit arrangements, net of current portion	456,700		454,368
Other liabilities	3,891		4,833
Total noncurrent liabilities	2,845,508		2,837,355
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit):
Class A common stock, $0.0001 par value, 300,000 shares authorized, 86,832 and 86,760 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	9		9
Class B common stock, $0.0001 par value, 100,000 shares authorized, 1,071 and 1,397 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	—		—
Accumulated other comprehensive (loss) income	(435)		172
Additional paid in capital	581,332		575,631
Accumulated deficit	(677,321)		(691,461)
Total stockholders’ deficit attributable to Planet Fitness, Inc.	(96,415)		(115,649)
Non-controlling interests	(2,816)		(3,342)
Total stockholders’ deficit	(99,231)		(118,991)
Total liabilities and stockholders’ deficit	$	2,992,778	$	2,969,693

See accompanying notes to condensed consolidated financial statements

5

Planet Fitness, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
(in thousands, except per share amounts)	2024		2023
Revenue:
Franchise	$	84,234	$	75,878
National advertising fund revenue	19,786		16,804
Corporate-owned stores	122,378		105,882
Equipment	21,619		23,661
Total revenue	248,017		222,225
Operating costs and expenses:
Cost of revenue	18,993		19,354
Store operations	74,353		66,015
Selling, general and administrative	29,193		27,767
National advertising fund expense	19,792		16,987
Depreciation and amortization	39,380		36,010
Other losses, net	484		3,936
Total operating costs and expenses	182,195		170,069
Income from operations	65,822		52,156
Other income (expense), net:
Interest income	5,461		3,931
Interest expense	(21,433)		(21,599)
Other income, net	647		113
Total other expense, net	(15,325)		(17,555)
Income before income taxes	50,497		34,601
Provision for income taxes	14,324		9,567
Losses from equity-method investments, net of tax	(1,200)		(265)
Net income	34,973		24,769
Less net income attributable to non-controlling interests	664		2,064
Net income attributable to Planet Fitness, Inc.	$	34,309	$	22,705
Net income per share of Class A common stock:
Basic	$	0.39	$	0.27
Diluted	$	0.39	$	0.27
Weighted-average shares of Class A common stock outstanding:
Basic	86,909		84,444
Diluted	87,222		84,787

 See accompanying notes to condensed consolidated financial statements.

6

Planet Fitness, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
(in thousands)	2024		2023
Net income including non-controlling interests	$	34,973	$	24,769
Other comprehensive income, net:
Foreign currency translation adjustments	(212)		81
Unrealized loss on marketable securities, net of tax	(395)		—
Total other comprehensive (loss) income, net	(607)		81
Total comprehensive income including non-controlling interests	34,366		24,850
Less: total comprehensive income attributable to non-controlling interests	664		2,064
Total comprehensive income attributable to Planet Fitness, Inc.	$	33,702	$	22,786

 See accompanying notes to condensed consolidated financial statements.

7

Planet Fitness, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
(in thousands)	2024		2023
Cash flows from operating activities:
Net income	$	34,973	$	24,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39,380		36,010
Amortization of deferred financing costs	1,346		1,360
Accretion of marketable securities discount	(871)		—
Losses from equity-method investments, net of tax	1,200		265
Dividends accrued on held-to-maturity investment	(528)		(483)
Credit loss on held-to-maturity investment	475		255
Deferred tax expense	11,367		8,082
Gain on re-measurement of tax benefit arrangement liability	(362)		—
Loss on disposal of property and equipment	867		—
Equity-based compensation expense	975		2,049
Other	(41)		(44)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	18,084		25,619
Inventory	(287)		266
Other assets and other current assets	(6,444)		2,010
Restricted assets - national advertising fund	(17,945)		(13,387)
Accounts payable and accrued expenses	(18,530)		(19,928)
Other liabilities and other current liabilities	(548)		4,907
Income taxes	1,943		2,736
Equipment deposits	3,088		4,408
Deferred revenue	19,519		19,395
Leases	2,071		(379)
Net cash provided by operating activities	89,732		97,910
Cash flows from investing activities:
Additions to property and equipment	(26,311)		(22,997)
Purchases of marketable securities	(34,922)		—
Maturities of marketable securities	22,589		—
Net cash used in investing activities	(38,644)		(22,997)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock	450		6,748
Principal payments on capital lease obligations	(36)		(56)
Repayment of long-term debt and variable funding notes	(5,188)		(5,188)
Repurchase and retirement of Class A common stock	(20,005)		(25,005)
Distributions paid to members of Pla-Fit Holdings	(218)		(1,106)
Net cash used in financing activities	(24,997)		(24,607)
Effects of exchange rate changes on cash and cash equivalents	(315)		198
Net increase in cash, cash equivalents and restricted cash	25,776		50,504
Cash, cash equivalents and restricted cash, beginning of period	322,121		472,499
Cash, cash equivalents and restricted cash, end of period	$	347,897	$	523,003
Supplemental cash flow information:
Cash paid for interest	$	20,165	$	20,373
Net cash paid for (refund received) income taxes	$	1,013	$	(1,016)
Non-cash investing activities:
Non-cash additions to property and equipment included in accounts payable and accrued expenses	$	11,400	$	11,682

See accompanying notes to condensed consolidated financial statements.

8

Planet Fitness, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited)

	Class A common stock			Class B common stock			Accumulated other comprehensive income (loss)		Additional paid- in capital		Accumulated deficit		Non-controlling interests		Total (deficit) equity
(In thousands)	Shares	Amount		Shares	Amount
Balance at December 31, 2023	86,760	$	9	1,397	$	—	$	172	$	575,631	$	(691,461)	$	(3,342)	$	(118,991)
Net income	—	—		—	—		—		—		34,309		664		34,973
Equity-based compensation expense	—	—		—	—		—		975		—		—		975
Repurchase and retirement of Class A common stock	(314)	—		—	—		—		774		(20,169)		(774)		(20,169)
Exchanges of Class B common stock and other adjustments	326	—		(326)	—		—		(854)		—		854		—
Vesting of restricted share units and ESPP share purchase	60	—		—	—		—		381		—		—		381
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock	—	—		—	—		—		4,425		—		—		4,425
Distributions paid to members of Pla-Fit Holdings	—	—		—	—		—		—		—		(218)		(218)
Other comprehensive loss	—	—		—	—		(607)		—		—		—		(607)
Balance at March 31, 2024	86,832	$	9	1,071	$	—	$	(435)	$	581,332	$	(677,321)	$	(2,816)	$	(99,231)

	Class A common stock			Class B common stock			Accumulated other comprehensive (loss) income		Additional paid- in capital		Accumulated deficit		Non-controlling interests		Total (deficit) equity
(In thousands)	Shares	Amount		Shares	Amount
Balance at December 31, 2022	83,430	$	8	6,146	$	1	$	(448)	$	505,144	$	(703,717)	$	(12,549)	$	(211,561)
Net income	—	—		—	—		—		—		22,705		2,064		24,769
Equity-based compensation expense	—	—		—	—		—		2,049		—		—		2,049
Repurchase and retirement of Class A common stock	(318)	—		—	—		—		—		(25,005)		—		(25,005)
Exchanges of Class B common stock and other adjustments	1,901	1		(1,901)	(1)		—		(4,353)		—		4,353		—
Exercise of stock options, vesting of restricted share units and ESPP share purchase	217	—		—	—		—		6,524		—		—		6,524
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock	—	—		—	—		—		45,903		—		—		45,903
Non-cash adjustments to VIEs	—	—		—	—		—		—		—		(233)		(233)
Distributions paid to members of Pla-Fit Holdings	—	—		—	—		—		—		—		(1,106)		(1,106)
Other comprehensive income	—	—		—	—		81		—		—		—		81
Balance at March 31, 2023	85,230	$	9	4,245	$	—	$	(367)	$	555,267	$	(706,017)	$	(7,471)	$	(158,579)

See accompanying notes to condensed consolidated financial statements.

9

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

(1) Business organization

Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with approximately 19.6 million members and 2,599 owned and franchised locations (referred to as stores) in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia as of March 31, 2024.

The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business:

•Licensing and selling franchises under the Planet Fitness trade name;

•Owning and operating fitness centers under the Planet Fitness trade name; and

•Selling fitness-related equipment to franchisee-owned stores.

In 2012 investment funds affiliated with TSG Consumer Partners, LLC (“TSG”), purchased interests in Pla-Fit Holdings.

The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC, which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations.

The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of Holdings Units not owned by the Company.

As of March 31, 2024, the Company held 100.0% of the voting interest and approximately 98.8% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 1.2% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, the economic interest in Pla-Fit Holdings held by Planet Fitness, Inc. will increase.

(2) Summary of significant accounting policies

(a) Basis of presentation and consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three months ended March 31, 2024 and 2023 are unaudited. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

10

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

(b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the condensed consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.

(c) Fair Value

ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value because of their short-term nature. See Note 3 for investments that are measured at fair value on a recurring basis.

The carrying value and estimated fair value of long-term debt were as follows:

	March 31, 2024				December 31, 2023
	Carrying value		Estimated fair value(1)		Carrying value		Estimated fair value(1)
Long-term debt(1)	$	1,999,250	$	1,851,357	$	2,004,438	$	1,829,286

(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under GAAP.

(d) Recent accounting pronouncements

The FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, in August 2023. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The new standard is effective prospectively for all joint ventures with a formation date on or after January 1, 2025. The Company will apply the standard to any relevant transactions subsequent to the adoption date.

The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

11

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

(3) Investments

Marketable securities

The following tables summarize the amortized cost, net unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s available-for-sale investments in marketable securities. As of March 31, 2024, the marketable securities had maturity dates that range from less than 1 month to approximately 24 months. Realized gains and losses were insignificant for the three months ended March 31, 2024 and 2023.

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
March 31, 2024
Cash equivalents
Money market funds	$	863	$	—	$	—	$	863	$	863	$	—
U.S. treasury securities	10,922		—		—		10,922				10,922
Commercial paper	10,460		—		(8)		10,452		—		10,452
Total cash equivalents	22,245		—		(8)		22,237		863		21,374
Short-term marketable securities
Commercial paper	44,100		—		(29)		44,071		—		44,071
Corporate debt securities	42,917		—		(28)		42,889		—		42,889
U.S. government agency securities	6,394		8		—		6,402		—		6,402
Total short-term marketable securities	93,411		8		(57)		93,362		—		93,362
Long-term marketable securities
Corporate debt securities	41,659		10		—		41,669		—		41,669
U.S. government agency securities	3,500		—		(4)		3,496		—		3,496
Total long-term marketable securities	45,159		10		(4)		45,165		—		45,165
Total marketable securities	$	160,815	$	18	$	(69)	$	160,764	$	863	$	159,901

12

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
December 31, 2023
Cash equivalents
Money market funds	$	761	$	—	$	—	$	761	$	761	$	—
U.S. treasury securities	2,997		1		—		2,998		—		2,998
Total cash equivalents	3,758		1		—		3,759		761		2,998
Short-term marketable securities
Commercial paper	37,063		24		—		37,087		—		37,087
Corporate debt securities	34,632		—		(38)		34,594		—		34,594
U.S. government agency securities	3,210		10		—		3,220		—		3,220
Total short-term marketable securities	74,905		34		(38)		74,901		—		74,901
Long-term marketable securities
Corporate debt securities	47,388		328		—		47,716		—		47,716
U.S. government agency securities	3,151		19		—		3,170		—		3,170
Total long-term marketable securities	50,539		347		—		50,886		—		50,886
Total marketable securities	$	129,202	$	382	$	(38)	$	129,546	$	761	$	128,785

(1) Fair values were determined using market prices obtained from third-party pricing sources.

For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of March 31, 2024.

Held-to-maturity debt security

As of March 31, 2024, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.

During the three months ended March 31, 2024 and 2023, the Company’s review of the investment indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimates using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis, the Company recorded a credit loss expense of $475 and $255 for the three months ended March 31, 2024 and 2023, respectively, on the adjustment of its allowance for credit losses within other (income) expense, net on the condensed consolidated statements of operations.

The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investment was $30,871 and $30,343 and the allowance for expected credit losses was $18,164 and $17,689, as of March 31, 2024 and December 31, 2023, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. The Company recognized dividend income of $528 and $483 during the three months ended March 31, 2024 and 2023, respectively, within other income (expense), net on the condensed consolidated statements of operations.

As of March 31, 2024, the Company’s held-to-maturity investment had a contractual maturity in 2026.

A roll forward of the Company’s allowance for expected credit losses on its held-to-maturity investment is as follows:

13

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2024		2023
Beginning allowance for expected credit losses	$	17,689	$	14,957
Loss on adjustment of allowance for expected credit losses	475		255
Write-offs, net of recoveries	—		—
Ending allowance for expected credit losses	$	18,164	$	15,212

Equity method investments

For the following investments, the Company recorded its proportionate share of the investees’ earnings, prepared in accordance with GAAP, on a one-month lag, with an adjustment to eliminate unrealized profits on intra-entity sales, if any, and the amortization of basis differences, within losses from equity-method investments, net of tax on the condensed consolidated statements of operations. As of March 31, 2024, the Company determined that no impairment of its equity method investments existed.

As of March 31, 2024 and December 31, 2023, the Company held a 21.8% ownership interest in Bravo Fit Holdings Pty Ltd, a franchisee of the Company and store operator in Australia, which is deemed to be a related party, for a total investment carrying value of $12,912 and $13,220, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $6,326 and $6,812 as of March 31, 2024 and December 31, 2023, respectively. These basis differences are attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the three months ended March 31, 2024 and 2023, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $308 and $265, respectively, which included amortization of basis difference of $66 and $65, respectively.

As of March 31, 2024 and December 31, 2023, the Company held a 33.2% ownership interest in Planet Fitmex, LLC, a franchisee of the Company and store operator in Mexico, which is deemed to be a related party and classified as an equity method investment as a result of its organizational structure, for a total investment carrying value of $50,741 and $51,633, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $16,390 and $17,458 as of March 31, 2024 and December 31, 2023, respectively. This basis difference is attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the three months ended March 31, 2024, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $892, which included amortization of basis difference of $163.

(4) Acquisition

Florida Acquisition

On April 16, 2023, the Company purchased from one of its franchisees a majority of the assets associated with four franchisee stores operating in Florida (the “Florida Acquisition”) for cash consideration of $26,264. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $110, which is included in other losses, net on the condensed consolidated statement of operations. The loss incurred reduced the net purchase price to $26,154. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.

14

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

The allocation of the purchase consideration was as follows:

	Amount
Property and equipment	$	3,851
Right of use assets	5,424
Other long-term assets	95
Intangible assets	6,880
Goodwill	14,812
Deferred revenue	(687)
Other current liabilities	(17)
Lease liabilities	(4,204)
Total	$	26,154

The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.

The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:

	Fair value		Useful life
Reacquired franchise rights (1)	$	6,650	6.8
Customer relationships (2)	230		6.0
Total intangible assets subject to amortization	$	6,880

(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.

(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.

The acquisition did not have a material effect on the results of operations of the Company.

(5) Goodwill and intangible assets

Goodwill and related changes in its carrying amount were as follows:

	Amount
Goodwill at December 31, 2023	$	717,502
Acquisition	1,572
Goodwill at March 31, 2024	$	719,074

The Company completed an immaterial acquisition of an operating entity in Spain during the first quarter of fiscal 2024, which resulted in the addition of $1,572 in the carrying value of goodwill. The Company intends to open corporate-owned stores through this entity.

15

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

A summary of intangible assets is as follows:

	March 31, 2024						December 31, 2023
	Gross carrying amount		Accumulated amortization		Net carrying Amount		Gross carrying amount		Accumulated amortization		Net carrying Amount
Finite-lived intangible assets:
Customer relationships	$	199,043	$	(173,087)	$	25,956	$	199,043	$	(169,155)	$	29,888
Reacquired franchise rights	274,708		(87,514)		187,194		274,708		(78,689)		196,019
Total finite-lived intangible assets	473,751		(260,601)		213,150		473,751		(247,844)		225,907
Indefinite-lived intangible assets:
Trade and brand names	146,600		—		146,600		146,600		—		146,600
Total intangible assets	$	620,351	$	(260,601)	$	359,750	$	620,351	$	(247,844)	$	372,507

The Company determined that no impairment charges were required during any periods presented.

Amortization expense related to the finite-lived intangible assets totaled $12,768 and $12,587 for the three months ended March 31, 2024 and 2023, respectively. The anticipated amortization expense related to intangible assets to be recognized in future periods as of March 31, 2024 is as follows:

	Amount
Remainder of 2024	$	36,433
2025	36,713
2026	32,079
2027	27,956
2028	27,300
Thereafter	52,669
Total	$	213,150

(6) Long-term debt

Long-term debt consists of the following: 

	March 31, 2024		December 31, 2023
2018-1 Class A-2-II notes	$	590,625	$	592,187
2019-1 Class A-2 notes	526,625		528,000
2022-1 Class A-2-I notes	416,500		417,563
2022-1 Class A-2-II notes	465,500		466,688
Total debt, excluding deferred financing costs	1,999,250		2,004,438
Deferred financing costs, net of accumulated amortization	(19,468)		(20,814)
Total debt, net	1,979,782		1,983,624
Current portion of long-term debt	20,750		20,750
Long-term debt, net of current portion	$	1,959,032	$	1,962,874

16

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

Future principal payments of long-term debt as of March 31, 2024 are as follows: 

	Amount
Remainder of 2024	$	15,562
2025	600,438
2026	419,313
2027	10,250
2028	10,250
Thereafter	943,437
Total	$	1,999,250

On August 1, 2018, Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, entered into a base indenture and a related supplemental indenture (collectively, the “2018 Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2018-1 4.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2018 Class A-2-I Notes”) with an initial principal amount of $575,000 and Series 2018-1 4.666% Fixed Rate Senior Secured Notes, Class A-2-II (the “2018 Class A-2-II Notes” and, together with the 2018 Class A-2-I Notes, the “2018 Notes”) with an initial principal amount of $625,000. In connection with the issuance of the 2018 Notes, the Master Issuer also entered into a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or certain letters of credit (the “Letters of Credit”) under the Master Issuer’s Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “2018 Variable Funding Notes”). The Company fully drew down on the 2018 Variable Funding Notes on March 20, 2020. On December 3, 2019, the Master Issuer issued Series 2019-1 3.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) with an initial principal amount of $550,000. The 2019 Notes were issued under the 2018 Indenture and a related supplemental indenture dated December 3, 2019 (together, the “2019 Indenture”). On February 10, 2022, the Company completed a prepayment in full of its 2018 Class A-2-I Notes and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I with an initial principal amount of $425,000 and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II with an initial principal amount of $475,000 (the “2022 Notes” and, together with the 2018 Notes and 2019 Notes, the “Notes”), and also entered into a new revolving financing facility that allows for the issuance of up to $75,000 in Variable Funding Notes (“2022 Variable Funding Notes”) and certain Letters of Credit (the issuance of such notes, the “Series 2022-I Issuance”). The 2022 Notes were issued under the 2018 Indenture and a related supplemental indenture dated February 10, 2022 (together, with the 2019 Indenture, the “Indenture”). Together, the Notes, 2018 Variable Funding Notes and 2022 Variable Funding Notes will be referred to as the “Securitized Senior Notes”.

The Notes were issued in securitization transactions pursuant to which most of the Company’s domestic revenue-generating assets, consisting principally of franchise-related agreements, certain corporate-owned store assets, equipment supply agreements and intellectual property and license agreements for the use of intellectual property, were assigned to the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Securitized Senior Notes and that have pledged substantially all of their assets to secure the Securitized Senior Notes.

Interest and principal payments on the Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2018 Class A-2-II Notes is in September 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2018 Class A-2-II Notes will be repaid in or prior to September 2025. The legal final maturity date of the 2019 Notes is in December 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2019 Notes will be repaid in or prior to December 2029. The legal final maturity date of the 2022 Notes is in February 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2022 Class A-2-I Notes will be repaid in or prior to December 2026 and the 2022 Class A-2-II Notes will be repaid in or prior to December 2031 (together, the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.

If outstanding, the 2022 Variable Funding Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the secured overnight financing rate for U.S. Dollars, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the 2022 Variable Funding Notes. There is a commitment fee on the unused portion of the 2022 Variable Funding Notes of 0.5% based on utilization. It is anticipated that

17

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

the principal and interest on the 2022 Variable Funding Notes, if any, will be repaid in full on or prior to December 2026, subject to two additional one-year extension options. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2022 Variable Funding Notes equal to 5.0% per year.

In connection with the issuance of the 2018 Notes, 2019 Notes, and 2022 Notes, the Company incurred debt issuance costs of $27,133, $10,577, and $16,193 respectively. The debt issuance costs are being amortized to interest expense through the Anticipated Repayment Dates of the Notes utilizing the effective interest rate method.

The Securitized Senior Notes are subject to covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Securitized Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Securitized Senior Notes are in stated ways defective or ineffective, (iv) a cap on non-securitized indebtedness of $50,000 (provided that the Company may incur non-securitized indebtedness in excess of such amount, subject to the leverage ratio cap described below, under certain conditions, including if the relevant lenders execute a non-disturbance agreement that acknowledges the bankruptcy-remote status of the Master Issuer and its subsidiaries and of their respective assets), (v) a leverage ratio cap incurrence test on the Company of 7.0x (calculated without regard for any indebtedness subject to the $50,000 cap) and (vi) covenants relating to recordkeeping, access to information and similar matters.

Pursuant to a parent company support agreement, the Company has agreed to cause its subsidiary to perform each of its obligations (including any indemnity obligations) and duties under the Management Agreement and under the contribution agreements entered into in connection with the securitized financing facility, in each case as and when due. To the extent that such subsidiary has not performed any such obligation or duty within the prescribed time frame after such obligation or duty was required to be performed, the Company has agreed to either (i) perform such obligation or duty or (ii) cause such obligations or duties to be performed on the Company’s behalf.

The Securitized Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, certain manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled Anticipated Repayment Dates. The Securitized Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Securitized Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments.

In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee (the “Trustee”) for the benefit of the trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents cash collections held by the Trustee, interest, principal, and commitment fee reserves held by the Trustee related to the Securitized Senior Notes. As of March 31, 2024, the Company had restricted cash held by the Trustee of $46,190.

18

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

(7) Leases

The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the condensed consolidated balance sheets, were as follows:

Leases	Balance Sheet Classification	March 31, 2024		December 31, 2023
Assets
Operating	Right of use asset, net	$	385,796	$	381,010
Finance	Property and equipment, net	144		179
Total lease assets		$	385,940	$	381,189
Liabilities
Current:
Operating	Other current liabilities	$	31,895	$	33,849
Finance	Other current liabilities	109		125
Noncurrent:
Operating	Lease liabilities, net of current portion	390,399		381,589
Finance	Other liabilities	42		63
Total lease liabilities		$	422,445	$	415,626
Weighted-average remaining lease term - operating leases		8.0 years		8.0 years
Weighted-average discount rate - operating leases		5.5%		5.4%

The components of lease cost were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	17,475	$	14,904
Variable lease cost	6,203		5,751
Total lease cost	$	23,678	$	20,655

The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial.

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Months Ended March 31,
	2024		2023
Cash paid for lease liabilities	$	15,303	$	13,302
Operating lease ROU assets obtained in exchange for operating lease liabilities	$	16,064	$	4,661

19

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Amount
Remainder of 2024	$	34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	$	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$	422,445

As of March 31, 2024, future operating lease payments exclude approximately $32,239 of legally binding minimum lease payments for leases signed but not yet commenced.

(8) Revenue from contracts with customers

Contract liabilities consist primarily of deferred revenue resulting from initial and renewal franchise fees and area development agreement (“ADA”) fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement, and national advertising fund (“NAF”) revenue collected in advance of satisfaction of the Company’s performance obligation. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to its equipment business. The Company classifies these contract liabilities as deferred revenue in its condensed consolidated balance sheets.

The following table reflects the change in contract liabilities between December 31, 2023 and March 31, 2024:

	Amount
Balance at December 31, 2023	$	91,638
Revenue recognized that was included in the contract liability at the beginning of the year	(34,438)
Increase, excluding amounts recognized as revenue during the period	53,883
Balance at March 31, 2024	$	111,083

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, as of March 31, 2024. The Company has elected to exclude short-term contracts, sales and usage-based royalties and any other variable consideration recognized on an “as invoiced” basis.

Contract liabilities to be recognized in:	Amount
Remainder of 2024	$	72,982
2025	7,970
2026	3,630
2027	3,325
2028	3,071
Thereafter	20,105
Total	$	111,083

Equipment deposits received in advance of delivery as of March 31, 2024 were $7,594 and are expected to be recognized as revenue within the next 12 months.

20

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

(9) Related party transactions

Activity with franchisees considered to be related parties is summarized below:

	Three Months Ended March 31,
	2024		2023
Franchise revenue - interim CEO	$	1,280	$	1,006
Franchise revenue - other	884		241
Equipment revenue - interim CEO	1,012		5
Equipment revenue - other	2,990		—
Total revenue from related parties	$	6,166	$	1,252

The Company had $5,247 and $2,916 of accounts receivable attributable to a related party as of March 31, 2024 and December 31, 2023, respectively.

Additionally, the Company had deferred ADA and franchise agreement revenue from related parties of $695 and $719 as of March 31, 2024 and December 31, 2023, respectively, of which $140 and $142 is from a franchisee in which the Company’s interim CEO has a financial interest.

As of March 31, 2024 and December 31, 2023, the Company had $81,474 and $98,494, respectively, payable to related parties pursuant to tax benefit arrangements. See Note 12 for further discussion of these arrangements.

The Company provides administrative services to the NAF and typically charges the NAF a fee for providing these services. The services provided, which include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, amounted to $1,461 and $917 for the three months ended March 31, 2024 and 2023, respectively.

The Company incurred approximately $181 for the three months ended March 31, 2023 for corporate travel to a third-party company which is affiliated with our former Chief Executive Officer, which is included within selling, general and administrative expense on the condensed consolidated statements of operations.

A member of the Company’s board of directors, who is also the Company’s interim Chief Executive Officer and a franchisee, holds an approximate 10.5% ownership of a company that sells amenity tracking compliance software to Planet Fitness stores to which the Company made payments of approximately $65 and $91 during the three months ended March 31, 2024 and 2023, respectively.

(10) Stockholders’ equity

Pursuant to the exchange agreement between the Company and the Continuing LLC Owners, the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock (or cash at the option of the Company) on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. In connection with any exchange of Holdings Units for shares of Class A common stock by a Continuing LLC Owner, the number of Holdings Units held by the Company is correspondingly increased as it acquires the exchanged Holdings Units, and a corresponding number of shares of Class B common stock are canceled.

During the three months ended March 31, 2024, certain existing holders of Holdings Units exercised their exchange rights and exchanged 326,073 Holdings Units for 326,073 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 326,073 shares of Class B common stock were surrendered by the holders of Holdings Units that exercised their exchange rights and canceled. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 326,073 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings.

As a result of the above transactions, as of March 31, 2024:

•Holders of Class A common stock owned 86,831,728 shares of Class A common stock, representing 98.8% of the voting power in the Company and, through the Company, 86,831,728 Holdings Units representing 98.8% of the economic interest in Pla-Fit Holdings; and

21

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

•the Continuing LLC Owners collectively owned 1,071,094 Holdings Units, representing 1.2% of the economic interest in Pla-Fit Holdings, and 1,071,094 shares of Class B common stock, representing 1.2% of the voting power in the Company.

Share repurchase program

On November 4, 2022, the Company’s board of directors approved a share repurchase program of up to $500,000, which replaced the 2019 share repurchase program. During the three months ended March 31, 2024, the Company repurchased and retired 313,834 shares of Class A common stock for a total cost of $20,005. A share repurchase excise tax of $163 was also incurred. As of March 31, 2024, there is $354,965 remaining under the 2022 share repurchase program.

The timing of purchases and amount of stock repurchased are subject to the Company’s discretion and dependent upon market and business conditions, the Company’s general working capital needs, stock price, applicable legal requirements and other factors. The ability to repurchase shares at any particular time is also subject to the terms of the Indenture governing the Securitized Senior Notes. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing.

Preferred stock

The Company had 50,000,000 shares of preferred stock authorized and none issued or outstanding as of March 31, 2024 and December 31, 2023.

(11) Earnings per share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

Shares of the Company’s Class B common stock do not share in the earnings attributable to Planet Fitness, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Holdings Units, are exchangeable into shares of Class A common stock on a one-for-one basis.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:

	Three Months Ended March 31,
	2024		2023
Numerator
Net income	$	34,973	$	24,769
Less: net income attributable to non-controlling interests	664		2,064
Net income attributable to Planet Fitness, Inc.	$	34,309	$	22,705
Denominator
Weighted-average shares of Class A common stock outstanding - basic	86,909,383		84,444,003
Effect of dilutive securities:
Stock options	223,244		271,680
Restricted stock units	63,276		63,358
Performance stock units	26,178		7,654
Weighted-average shares of Class A common stock outstanding - diluted	87,222,081		84,786,695
Earnings per share of Class A common stock - basic	$	0.39	$	0.27
Earnings per share of Class A common stock - diluted	$	0.39	$	0.27

The number of weighted-average common stock equivalents excluded from the computation of diluted net income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:

22

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2024	2023
Class B common stock	1,176,568	5,007,448
Stock options	554	196,209
Restricted stock units	2	—
Performance stock units	—	53
Total	1,177,124	5,203,710

(12) Income taxes

The Company is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and certain state and local income taxes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro-rata basis.

Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company’s effective tax rate was 28.4% and 27.6% for the three months ended March 31, 2024 and 2023, respectively, which differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes, partially offset by income attributable to non-controlling interests. The Company is also subject to taxes in foreign jurisdictions.

Net deferred tax assets of $498,173 and $502,544 as of March 31, 2024 and December 31, 2023, respectively, relate primarily to the tax effects of temporary differences in the book basis as compared to the tax basis of the investment in Pla-Fit Holdings as a result of the secondary offerings, other exchanges, recapitalization transactions and the IPO.

As of March 31, 2024 and December 31, 2023, the total liability related to uncertain tax positions was $242 and $273, respectively. The Company recognizes accrued interest and penalties, if applicable, related to unrecognized tax benefits in income tax expense. Interest and penalties for the three months ended March 31, 2024 and 2023 were not material.

Tax benefit arrangements

The Company’s acquisition of Holdings Units in connection with the IPO and future and certain past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements, pursuant to which, the Company is required to make payments to certain holders of equity interests or their successors-in-interest (“TRA Holders”). Under the first of those arrangements, the Company generally is required to pay certain existing and previous equity owners of Pla-Fit Holdings, LLC 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of certain equity interests previously held by affiliates of TSG that resulted from TSG’s purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the remaining 15% benefit of the applicable tax savings.

In connection with the exchanges that occurred during the three months ended March 31, 2024 and 2023, 326,073 and 1,900,309 Holding Units, respectively, were redeemed by the Continuing LLC Owners for newly-issued shares of Class A common stock, resulting in an increase in the tax basis of the net assets of Pla-Fit Holdings. As a result of the change in the Company’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges and issuance of Holding Units, the Company recorded a decrease of $400 and $2,605 to net deferred tax assets, during the three months ended March 31, 2024 and 2023, respectively. As a result of these exchanges and other activity during the three months ended March 31, 2024 and 2023, the Company also recognized deferred tax assets in the amount of $7,519 and $50,823, respectively, and corresponding tax benefit arrangement liabilities of $2,694 and $2,315, respectively, representing approximately 85% of the tax benefits due to the TRA Holders for shares exchanged that were subject to tax benefit arrangements. The offset to the entries recorded in connection with exchanges was to additional paid in capital within stockholders’ deficit.

The Company had a liability of $497,994 and $495,662 as of March 31, 2024 and December 31, 2023, respectively, related to its projected obligations under the tax benefit arrangements.

23

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

Projected future payments under the tax benefit arrangements were as follows:

	Amount
Remainder of 2024	$	41,135
2025	50,385
2026	52,814
2027	48,624
2028	41,973
Thereafter	263,063
Total	$	497,994

(13) Commitments and contingencies

From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases.

Mexico Acquisition

On March 19, 2020, a franchisee in Mexico exercised a put option that required the Company to acquire their franchisee-owned stores in Mexico. In February 2023, the Company and the franchisee agreed on a summary of terms for a settlement agreement and a release of all claims by all parties. In connection with the settlement agreement, the Company recorded an update to its estimated liability for the legal settlement of $3,300, inclusive of legal fees paid, within other losses, net on the condensed consolidated statement of operations during the three months ended March 31, 2023. On October 20, 2023, the Company finalized its settlement with the franchisee in Mexico for $31,619, which included the acquisition by the Company of five stores in Mexico and the settlement of all claims.

The Company is not currently aware of any other legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations.

(14) Segments

The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment.

The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its interim Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments.

The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Company records all revenues and expenses of the NAF within the franchise segment. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores.

The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues.

The tables below summarize the financial information for the Company’s reportable segments.

24

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2024		2023
Revenue
Franchise segment revenue - U.S.	$	100,528	$	90,288
Franchise segment revenue - International	3,492		2,394
Franchise segment total	104,020		92,682
Corporate-owned stores segment - U.S.	121,158		104,808
Corporate-owned stores segment - International	1,220		1,074
Corporate-owned stores segment total	122,378		105,882
Equipment segment - U.S.	16,417		23,105
Equipment segment - International	5,202		556
Equipment segment total	21,619		23,661
Total revenue	$	248,017	$	222,225

Franchise revenue includes revenue generated from placement services of $1,837 and $1,613 for the three months ended March 31, 2024 and 2023, respectively.

	Three Months Ended March 31,
	2024		2023
Segment EBITDA
Franchise	$	76,311	$	64,735
Corporate-owned stores	42,104		33,530
Equipment	4,760		5,571
Corporate and other(1)	(18,526)		(15,822)
Total Segment EBITDA	$	104,649	$	88,014

(1) Corporate and other primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.

25

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

The following table reconciles total Segment EBITDA to income before taxes:

	Three Months Ended March 31,
	2024		2023
Total Segment EBITDA	$	104,649	$	88,014
Less:
Depreciation and amortization	39,380		36,010
Other income	647		113
Losses from equity-method investments, net of tax	(1,200)		(265)
Income from operations	65,822		52,156
Interest income	5,461		3,931
Interest expense	(21,433)		(21,599)
Other income, net	647		113
Income before income taxes	$	50,497	$	34,601

The following table summarizes the Company’s assets by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	185,046	$	169,836
Corporate-owned stores	1,638,909		1,637,146
Equipment	164,917		176,249
Unallocated	1,003,906		986,462
Total consolidated assets	$	2,992,778	$	2,969,693

The table above includes $5,956 and $3,609 of long-lived assets located in the Company’s international corporate-owned stores as of March 31, 2024 and December 31, 2023, respectively. All other assets are located in the U.S.

The following table summarizes the Company’s goodwill by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	16,938	$	16,938
Corporate-owned stores	609,470		607,898
Equipment	92,666		92,666
Consolidated goodwill	$	719,074	$	717,502

26

Planet Fitness, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands, except share and per share amounts)

(15) Corporate-owned and franchisee-owned stores

The following table shows changes in corporate-owned and franchisee-owned stores:

	Three Months Ended March 31,
	2024	2023
Franchisee-owned stores:
Stores operated at beginning of period	2,319	2,176
New stores opened	23	35
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,341	2,211
Corporate-owned stores:
Stores operated at beginning of period	256	234
New stores opened	2	1
Stores operated at end of period	258	235
Total stores:
Stores operated at beginning of period	2,575	2,410
New stores opened	25	36
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,599	2,446

(1) The term “debranded” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2024 and the related notes included in this Quarterly Report on Form 10-Q and our audited consolidated financial statements as of and for the year ended December 31, 2023 and the related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 29, 2024. Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to Planet Fitness, Inc. and its consolidated subsidiaries.

Overview

We are one of the largest and fastest-growing franchisors and operators of fitness centers in the world by number of members and locations, with a highly recognized national brand. Our mission is to enhance people’s lives and democratize fitness by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone, where anyone—and we mean anyone—can feel they belong. Our bright, clean stores are typically 20,000 square feet, with a large selection of high-quality, purple and yellow Planet Fitness-branded cardio, circuit- and weight-training equipment and friendly staff trainers who offer unlimited free fitness instruction to all our members in small groups through our PE@PF program. We offer this differentiated fitness experience as low as $10 per month for our standard Classic Card membership. This attractive value proposition is designed to appeal to a broad population, including occasional gym users over age 14 who are not gym members, particularly those who find the traditional fitness club setting intimidating and expensive. We and our franchisees fiercely protect Planet Fitness’ community atmosphere—a place where you do not need to be fit before joining and where progress toward achieving your fitness goals (big or small) is supported and applauded by our staff and fellow members.

As of March 31, 2024, we had approximately 19.6 million members and 2,599 stores in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia. Of our 2,599 stores, 2,341 are franchised and 258 are corporate-owned.

As of March 31, 2024, we had contractual commitments to open approximately 1,000 new stores.

Our segments

We operate and manage our business in three business segments: Franchise, Corporate-owned stores and Equipment. Our Franchise segment includes operations related to our franchising business in the U.S., Puerto Rico, Canada, Panama, Mexico and Australia, as well as revenues and expenses of the NAF. Our Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the U.S. and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores in the U.S., Canada, and Mexico. We evaluate the performance of our segments and allocate resources to them based on revenue and earnings before interest, taxes, depreciation and amortization, referred to as Segment EBITDA. Revenue and Segment EBITDA for all operating segments include only transactions with unaffiliated customers and do not include intersegment transactions. The following tables summarize the financial information for our segments:

	Three Months Ended March 31,
(in thousands)	2024		2023
Revenue
Franchise segment	$	104,020	$	92,682
Corporate-owned stores segment	122,378		105,882
Equipment segment	21,619		23,661
Total revenue	$	248,017	$	222,225
Segment EBITDA
Franchise segment	$	76,311	$	64,735
Corporate-owned stores segment	42,104		33,530
Equipment segment	4,760		5,571
Corporate and other(1)	(18,526)		(15,822)
Total Segment EBITDA(2)	$	104,649	$	88,014

(1) “Corporate and other” primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment.

(2) Total Segment EBITDA is equal to EBITDA, which is a metric that is not presented in accordance with GAAP. Refer to “—Non-GAAP Financial Measures” for a definition of EBITDA and a reconciliation to net income, the most directly comparable GAAP measure.

28

A reconciliation of income from operations to Segment EBITDA is set forth below: 

(in thousands)	Franchise		Corporate-owned stores		Equipment		Corporate and other		Total
Three Months Ended March 31, 2024
Income (loss) from operations	$	74,633	$	10,876	$	3,506	$	(23,193)	$	65,822
Depreciation and amortization	1,845		31,056		1,260		5,219		39,380
Other (expense) income	(167)		172		(6)		648		647
Losses from equity-method investments, net of tax	—		—		—		(1,200)		(1,200)
Segment EBITDA(1)	$	76,311	$	42,104	$	4,760	$	(18,526)	$	104,649
Three Months Ended March 31, 2023
Income (loss) from operations	$	63,019	$	4,986	$	4,307	$	(20,156)	$	52,156
Depreciation and amortization	1,845		28,596		1,263		4,306		36,010
Other (expense) income	(129)		(52)		1		293		113
Losses from equity-method investments, net of tax	—		—		—		(265)		(265)
Segment EBITDA(1)	$	64,735	$	33,530	$	5,571	$	(15,822)	$	88,014

(1) Total Segment EBITDA is equal to EBITDA, which is a metric that is not presented in accordance with GAAP. Refer to “—Non-GAAP Financial Measures” for a definition of EBITDA and a reconciliation to net income, the most directly comparable GAAP measure.

How we assess the performance of our business

In assessing the performance of our business, we consider a variety of performance and financial measures. The key measures for determining how our business is performing include total monthly dues and annual fees billed to members (which we refer to as system-wide sales), the number of new store openings, same store sales for both corporate-owned and franchisee-owned stores, , EBITDA, Adjusted EBITDA, Segment EBITDA, Adjusted net income and Adjusted net income per share, diluted. See “—Non-GAAP financial measures” below for our definition of EBITDA, Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted and why we present EBITDA, Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, and for a reconciliation of our EBITDA, Adjusted EBITDA, and Adjusted net income to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, and a reconciliation of Adjusted net income per share, diluted to net income per share, diluted, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Number of new store openings

The number of new store openings reflects stores opened during a particular reporting period for both corporate-owned and franchisee-owned stores. Opening new stores is an important part of our growth strategy and we expect the majority of our future new stores will be franchisee-owned. Before we obtain the certificate of occupancy or report any revenue for new corporate-owned stores, we incur pre-opening costs, such as rent expense, labor expense and other operating expenses. Our stores open with an initial start-up period of higher than normal marketing and operating expenses, particularly as a percentage of monthly revenue. New stores may not be profitable and their revenue may not follow historical patterns. The following table shows the growth in our corporate-owned and franchisee-owned store base:

29

	Three Months Ended March 31,
	2024	2023
Franchisee-owned stores:
Stores operated at beginning of period	2,319	2,176
New stores opened	23	35
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,341	2,211
Corporate-owned stores:
Stores operated at beginning of period	256	234
New stores opened	2	1
Stores operated at end of period	258	235
Total stores:
Stores operated at beginning of period	2,575	2,410
New stores opened	25	36
Stores debranded, sold or consolidated(1)	(1)	—
Stores operated at end of period	2,599	2,446

(1) The term “debranded” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.

Same store sales

Same store sales refers to year-over-year sales comparisons for the same store sales base of both corporate-owned and franchisee-owned stores. We define the same store sales base to include those stores that have been open and for which monthly membership dues have been billed for longer than 12 months. We measure same store sales based solely upon monthly dues billed to members of our corporate-owned and franchisee-owned stores.

Several factors affect our same store sales in any given period, including the following:

•the number of stores that have been in operation for more than 12 months;

•the percentage mix and pricing of PF Black Card and standard Classic Card memberships in any period;

•growth in total net memberships per store;

•consumer recognition of our brand and our ability to respond to changing consumer preferences;

•overall economic trends, particularly those related to consumer spending;

•our ability and our franchisees’ ability to operate stores effectively and efficiently to meet consumer expectations;

•marketing and promotional efforts;

•local competition;

•trade area dynamics; and

•opening of new stores in the vicinity of existing locations.

Consistent with common industry practice, we present same store sales as compared to the same period in the prior year for all stores that have been open and for which monthly membership dues have been billed for longer than 12 months, beginning with the 13th month and thereafter, as applicable. Same store sales of our international stores are calculated on a constant currency basis, meaning that we translate the current year’s same store sales of our international stores at the same exchange rates used in the prior year. Since opening new stores is a significant component of our revenue growth, same store sales is only one measure of how we evaluate our performance.

Stores acquired from or sold to franchisees are removed from the franchisee-owned or corporate-owned same store sales base, as applicable, upon the ownership change and for the 12 months following the date of the ownership change. These stores are included in the corporate-owned or franchisee-owned same store sales base, as applicable, following the 12th month after the acquisition or sale. These stores remain in the system-wide same store sales base in all periods. The following table shows our same store sales:

30

	Three Months Ended March 31,
	2024		2023
Same store sales growth:
Franchisee-owned stores	6.3	%	9.7	%
Corporate-owned stores	6.2	%	12.1	%
System-wide stores	6.2	%	9.9	%
Number of stores in same store sales base:
Franchisee-owned stores	2,199		2,052
Corporate-owned stores	235		222
System-wide stores	2,443		2,280

Total monthly dues and annual fees from members (system-wide sales)

We review the total amount of dues we collect from our members on a monthly basis, which allows us to assess changes in the performance of our corporate-owned and franchisee-owned stores from period to period, any competitive pressures, local or regional membership traffic patterns and general market conditions that might impact our store performance. System-wide sales is an operating measure that includes monthly membership dues and annual fee billings by franchisees that are not revenue realized by the Company in accordance with GAAP, as well as monthly membership dues and annual fee billings by our corporate-owned stores. While we do not record sales by franchisees as revenue, and such sales are not included in our condensed consolidated financial statements, we believe that this operating measure aids in understanding how we derive royalty revenue and is important in evaluating our performance. Provided our stores are open, we bill monthly dues on or around the 17th of every month and bill annual fees once per year from each member based upon when the member signed his or her membership agreement. System-wide sales were $1.2 billion and $1.1 billion, during the three months ended March 31, 2024 and 2023, respectively.

Non-GAAP financial measures

We refer to EBITDA and Adjusted EBITDA as we use these measures to evaluate our operating performance and we believe these measures are useful to investors in evaluating our performance. EBITDA and Adjusted EBITDA as presented in this Quarterly Report on Form 10-Q are supplemental measures of our performance that are neither required by, nor presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered as substitutes for GAAP metrics such as net income or any other performance measures derived in accordance with GAAP.

Also, in the future we may incur expenses or charges such as those used to calculate Adjusted EBITDA. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. We have also disclosed Segment EBITDA as an important financial metric utilized by the Company to evaluate performance and allocate resources to segments in accordance with ASC 280, Segment Reporting. As part of such disclosure in “Our Segments” within Management’s Discussion and Analysis of Financial Condition and Results of Operations, the Company has provided a reconciliation from income from operations to Total Segment EBITDA, which is equal to the Non-GAAP financial metric EBITDA.

We define EBITDA as net income before interest, taxes, depreciation and amortization. We believe that EBITDA, which eliminates the impact of certain expenses that we do not believe reflect our underlying business performance, provides useful information to investors to assess the performance of our segments as well as the business as a whole. Our Board of Directors also uses EBITDA as a key metric to assess the performance of management. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company’s core operations. We believe that Adjusted EBITDA is an appropriate measure of operating performance in addition to EBITDA because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors.

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A reconciliation of net income to EBITDA and Adjusted EBITDA is set forth below:

	Three Months Ended March 31,
(in thousands)	2024		2023
Net income	$	34,973	$	24,769
Interest income	(5,461)		(3,931)
Interest expense	21,433		21,599
Provision for income taxes	14,324		9,567
Depreciation and amortization	39,380		36,010
EBITDA	104,649		88,014
Purchase accounting adjustments-revenue(1)	20		86
Purchase accounting adjustments-rent(2)	171		104
Transaction fees and acquisition-related costs(3)	—		394
Severance costs(4)	1,602		—
Executive transition costs(5)	283		—
Legal matters(6)	—		3,300
Loss on adjustment of allowance for credit losses on held-to-maturity investment(7)	475		255
Dividend income on held-to-maturity investment(8)	(528)		(483)
Tax benefit arrangement remeasurement(9)	(362)		—
Amortization of basis difference of equity-method investments(10)	229		—
Other(11)	(228)		(1,459)
Adjusted EBITDA	$	106,311	$	90,211

(1) Represents the impact of revenue-related purchase accounting adjustments associated with the acquisition of Pla-Fit Holdings on November 8, 2012 by TSG (the “2012 Acquisition”). At the time of the 2012 Acquisition, the Company maintained a deferred revenue account, which consisted of deferred area development agreement fees, deferred franchise fees, and deferred enrollment fees that the Company billed and collected up front but recognizes for GAAP purposes at a later date. In connection with the 2012 Acquisition, it was determined that the carrying amount of deferred revenue was greater than the fair value assessed in accordance with ASC 805—Business Combinations, which resulted in a write-down of the carrying value of the deferred revenue balance upon application of acquisition push-down accounting under ASC 805. These amounts represent the additional revenue that would have been recognized if the write-down to deferred revenue had not occurred in connection with the application of acquisition pushdown accounting.

(2) Represents the impact of rent related purchase accounting adjustments. In accordance with guidance in ASC 805—Business Combinations, in connection with the 2012 Acquisition, the Company’s deferred rent liability was required to be written off as of the acquisition date and rent was recorded on a straight-line basis from the acquisition date through the end of the lease term. This resulted in higher overall rent expense each period than would have otherwise been recorded had the deferred rent liability not been written off as a result of the acquisition push down accounting applied in accordance with ASC 805. An immaterial adjustment for both the three months ended March 31, 2024 and 2023 reflect the difference between the higher rent expense recorded in accordance with GAAP since the acquisition and the rent expense that would have been recorded had the 2012 Acquisition not occurred. Adjustments of $0.1 million for both the three months ended March 31, 2024 and 2023 are due to the amortization of favorable and unfavorable lease intangible assets. All of the rent related purchase accounting adjustments are adjustments to rent expense which is included in store operations on our condensed consolidated statements of operations.

(3) Represents transaction fees and acquisition-related costs incurred in connection with our acquisition of franchisee-owned stores.

(4) Represents severance related expenses recorded in connection with a reduction in force during the three months ended March 31, 2024.

(5) Represents certain expenses recorded in connection with the departure of the Chief Executive Officer including costs associated with the search for a new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

(6) Represents costs associated with legal matters in which the Company was a defendant. In 2023, this represents an increase in the legal reserve related to preliminary terms of a settlement agreement (the “Preliminary Settlement Agreement”). The legal reserve liability was subsequently paid in 2023.

(7) Represents a loss on the adjustment of the allowance for credit losses on the Company’s held-to-maturity investment.

(8) Represents dividend income recognized on a held-to-maturity investment.

(9) Represents gains related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

(10) Represents the amortization expense of the Company’s pro-rata portion of the basis difference in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.

(11) Represents certain other gains and charges that we do not believe reflect our underlying business performance.

Adjusted net income assumes that all net income is attributable to Planet Fitness, Inc., which assumes the full exchange of all outstanding Holdings Units for shares of Class A common stock of Planet Fitness, Inc., adjusted for certain non-cash and other

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items that we do not believe directly reflect our core operations. Adjusted net income per share, diluted, is calculated by dividing Adjusted net income by the total weighted-average shares of Class A common stock outstanding plus any dilutive awards granted under the 2015 Omnibus Incentive Plan as calculated in accordance with GAAP and assuming the full exchange of all outstanding Holdings Units and corresponding Class B common stock as of the beginning of each period presented. Adjusted net income and Adjusted net income per share, diluted, are supplemental measures of operating performance that do not represent, and should not be considered, alternatives to net income and earnings per share, as calculated in accordance with GAAP. We believe Adjusted net income and Adjusted net income per share, diluted, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted net income, and the computation of Adjusted net income per share, diluted, is set forth below.

	Three Months Ended March 31,
(in thousands, except per share amounts)	2024		2023
Net income	$	34,973	$	24,769
Provision for income taxes	14,324		9,567
Purchase accounting adjustments-revenue(1)	20		86
Purchase accounting adjustments-rent(2)	171		104
Transaction fees and acquisition-related costs(3)	—		394
Severance costs(4)	1,602		—
Executive transition costs(5)	283		—
Legal matters(6)	—		3,300
Loss on adjustment of allowance for credit losses on held-to-maturity investment(7)	475		255
Dividend income on held-to-maturity investment(8)	(528)		(483)
Tax benefit arrangement remeasurement(9)	(362)		—
Amortization of basis difference of equity-method investments(10)	229		—
Other(11)	(228)		(1,459)
Purchase accounting amortization(12)	12,757		12,577
Adjusted income before income taxes	63,716		49,110
Adjusted income taxes(13)	16,439		12,719
Adjusted net income	$	47,277	$	36,391
Adjusted net income per share, diluted	$	0.53	$	0.41
Adjusted weighted-average shares outstanding, diluted(14)	88,399		89,794

(1) Represents the impact of revenue-related purchase accounting adjustments associated with the 2012 Acquisition. At the time of the 2012 Acquisition, the Company maintained a deferred revenue account, which consisted of deferred area development agreement fees, deferred franchise fees, and deferred enrollment fees that the Company billed and collected up front but recognizes for GAAP purposes at a later date. In connection with the 2012 Acquisition, it was determined that the carrying amount of deferred revenue was greater than the fair value assessed in accordance with ASC 805—Business Combinations, which resulted in a write-down of the carrying value of the deferred revenue balance upon application of acquisition push-down accounting under ASC 805. These amounts represent the additional revenue that would have been recognized if the write-down to deferred revenue had not occurred in connection with the application of acquisition pushdown accounting.

(2) Represents the impact of rent related purchase accounting adjustments. In accordance with guidance in ASC 805—Business Combinations, in connection with the 2012 Acquisition, the Company’s deferred rent liability was required to be written off as of the acquisition date and rent was recorded on a straight-line basis from the acquisition date through the end of the lease term. This resulted in higher overall rent expense each period than would have otherwise been recorded had the deferred rent liability not been written off as a result of the acquisition push down accounting applied in accordance with ASC 805. An immaterial adjustment for both the three months ended March 31, 2024 and 2023 reflect the difference between the higher rent expense recorded in accordance with GAAP since the acquisition and the rent expense that would have been recorded had the 2012 Acquisition not occurred. Adjustments of $0.1 million for both the three months ended March 31, 2024 and 2023 are due to the amortization of favorable and unfavorable lease intangible assets. All of the rent related purchase accounting adjustments are adjustments to rent expense which is included in store operations on our condensed consolidated statements of operations.

(3) Represents transaction fees and acquisition-related costs incurred in connection with our acquisition of franchisee-owned stores.

(4) Represents severance related expenses recorded in connection with a reduction in force during the three months ended March 31, 2024.

(5) Represents certain expenses recorded in connection with the departure of the Chief Executive Officer including costs associated with the search for a new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

(6) Represents costs associated with legal matters in which the Company was a defendant. In 2023, this represents an increase in the legal reserve, net of legal fees paid, related to the Preliminary Settlement Agreement. The legal reserve liability was subsequently paid in 2023.

(7) Represents a loss on the adjustment of the allowance for credit losses on the Company’s held-to-maturity investment.

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(8) Represents dividend income recognized on a held-to-maturity investment.

(9) Represents gains related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

(10) Represents the amortization expense of the Company’s pro-rata portion of the basis difference in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.

(11) Represents certain other gains and charges that we do not believe reflect our underlying business performance.

(12) Includes $3.1 million of amortization of intangible assets recorded in connection with the 2012 Acquisition, other than favorable leases, for each of the three months ended March 31, 2024 and 2023, and $9.7 million and $9.5 million of amortization of intangible assets created in connection with historical acquisitions of franchisee-owned stores for the three months ended March 31, 2024 and 2023, respectively. The adjustment represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, in each period.

(13) Represents corporate income taxes at an assumed effective tax rate of 25.8% and 25.9% for the three months ended March 31, 2024 and 2023, respectively, applied to adjusted income before income taxes.

(14) Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.

A reconciliation of net income per share, diluted, to Adjusted net income per share, diluted is set forth below:

	Three Months Ended March 31, 2024					Three Months Ended March 31, 2023
(in thousands, except per share amounts)	Net income		Weighted Average Shares	Net income per share, diluted		Net income		Weighted Average Shares	Net income per share, diluted
Net income attributable to Planet Fitness, Inc.(1)	$	34,309	87,222	$	0.39	$	22,705	84,787	$	0.27
Assumed exchange of shares(2)	664		1,177			2,064		5,007
Net income	34,973					24,769
Adjustments to arrive at adjusted income before income taxes(3)	28,743					24,341
Adjusted income before income taxes	63,716					49,110
Adjusted income taxes(4)	16,439					12,719
Adjusted net income	$	47,277	88,399	$	0.53	$	36,391	89,794	$	0.41

(1) Represents net income attributable to Planet Fitness, Inc. and the associated weighted average shares of Class A common stock outstanding (see Note 10 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q).

(2) Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. as of the beginning of the period presented. Also assumes the addition of net income attributable to non-controlling interests corresponding with the assumed exchange of Holdings Units and shares of Class B common stock for shares of Class A common stock.

(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes.

(4) Represents corporate income taxes at an assumed effective tax rate of 25.8% and 25.9% for the three months ended March 31, 2024 and 2023, respectively, applied to adjusted income before income taxes.

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Results of operations

The following table sets forth a comparison of our condensed consolidated statements of operations in dollars and as a percentage of total revenue:

	Three Months Ended March 31,
	2024			2023
(in thousands)	Amount		% of Total Revenues	Amount		% of Total Revenues
Revenue:
Franchise	$	84,234	34.0%	$	75,878	34.1%
National advertising fund revenue	19,786		8.0%	16,804		7.7%
Franchise segment	104,020		42.0%	92,682		41.8%
Corporate-owned stores	122,378		49.3%	105,882		47.6%
Equipment	21,619		8.7%	23,661		10.6%
Total revenue	248,017		100.0%	222,225		100.0%
Operating costs and expenses:
Cost of revenue	18,993		7.7%	19,354		8.7%
Store operations	74,353		30.0%	66,015		29.7%
Selling, general and administrative	29,193		11.8%	27,767		12.5%
National advertising fund expense	19,792		8.0%	16,987		7.6%
Depreciation and amortization	39,380		15.9%	36,010		16.2%
Other losses, net	484		0.2%	3,936		1.8%
Total operating costs and expenses	182,195		73.6%	170,069		76.5%
Income from operations	65,822		26.4%	52,156		23.5%
Other income (expense), net:
Interest income	5,461		2.2%	3,931		1.8%
Interest expense	(21,433)		(8.6)%	(21,599)		(9.7)%
Other income, net	647		0.3%	113		0.1%
Total other expense, net	(15,325)		(6.1)%	(17,555)		(7.8)%
Income before income taxes	50,497		20.3%	34,601		15.7%
Provision for income taxes	14,324		5.8%	9,567		4.3%
Losses from equity-method investments, net of tax	(1,200)		(0.5)%	(265)		(0.1)%
Net income	34,973		14.0%	24,769		11.3%
Less net income attributable to non-controlling interests	664		0.3%	2,064		0.9%
Net income attributable to Planet Fitness, Inc.	$	34,309	13.7%	$	22,705	10.4%

Comparison of the three months ended March 31, 2024 and three months ended March 31, 2023

Revenue

Total revenue was $248.0 million for the three months ended March 31, 2024, compared to $222.2 million for three months ended March 31, 2023, an increase of $25.8 million, or 11.6%.

Franchise segment revenue was $104.0 million for the three months ended March 31, 2024, compared to $92.7 million for three months ended March 31, 2023, an increase of $11.3 million, or 12.2%.

Franchise revenue was $84.2 million for the three months ended March 31, 2024, compared to $75.9 million for the three months ended March 31, 2023, an increase of $8.4 million, or 11.0%. Included in franchise revenue is royalty revenue of $72.3 million, franchise and other fees of $9.5 million, and placement revenue of $1.8 million for the three months ended March 31, 2024, compared to royalty revenue of $64.5 million, franchise and other fees of $9.4 million, and placement revenue of $1.6 million for the three months ended March 31, 2023. Of the $7.8 million increase in royalty revenue, $4.0 million was attributable to a franchise same store sales increase of 6.3%, $1.6 million was attributable to new stores opened since January 1, 2023 and $2.2 million was from higher royalties on annual fees.

National advertising fund revenue was $19.8 million for the three months ended March 31, 2024, compared to $16.8 million for the three months ended March 31, 2023, an increase of $3.0 million, or 17.7%. This increase was primarily attributable to $2.8 million from higher same store sales and new stores opened since January 1, 2023.

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Revenue from our corporate-owned stores segment was $122.4 million for the three months ended March 31, 2024, compared to $105.9 million for the three months ended March 31, 2023, an increase of $16.5 million, or 15.6%. This increase was primarily attributable to $10.6 million from the corporate-owned store same store sales increase of 6.2%, $3.5 million was from new stores opened since January 1, 2023 and $2.4 million was from the acquisition of four stores in Florida (the “Florida Acquisition”) in the prior year.

Equipment segment revenue was $21.6 million for the three months ended March 31, 2024, compared to $23.7 million for the three months ended March 31, 2023, a decrease of $2.0 million, or 8.6%. This decrease was primarily attributable to $1.1 million of lower revenue from equipment sales to new franchisee-owned stores and $0.9 million of lower revenue from equipment sales to existing franchisee-owned stores. In the three months ended March 31, 2024, we had equipment sales to 14 new franchisee-owned stores compared to 18 in the same period last year.

Cost of revenue

Cost of revenue, which primarily relates to our equipment segment, was $19.0 million for the three months ended March 31, 2024, compared to $19.4 million for the three months ended March 31, 2023, a decrease of $0.4 million, or 1.9%. This decrease was primarily attributable to lower equipment sales to new and existing franchisee-owned stores, as described above.

Store operations

Store operations expense, which relates to our Corporate-owned stores segment, was $74.4 million for the three months ended March 31, 2024, compared to $66.0 million for the three months ended March 31, 2023, an increase of $8.3 million, or 12.6%. This increase was primarily attributable to $4.6 million from new stores opened since January 1, 2023, $2.5 million from stores included in our same store sales base as a result of higher rent, occupancy, and payroll expense, and $1.2 million from the stores acquired in the Florida Acquisition.

Selling, general and administrative

Selling, general and administrative expenses were $29.2 million for the three months ended March 31, 2024, compared to $27.8 million for the three months ended March 31, 2023, an increase of $1.4 million, or 5.1%. This increase was primarily attributable to higher consulting costs and higher severance related costs from a headcount reduction in the current year period, which were partially offset by lower expenses from marketing and travel expenses.

National advertising fund expense

National advertising fund expense was $19.8 million for the three months ended March 31, 2024, compared to $17.0 million for the three months ended March 31, 2023, an increase of $2.8 million, or 16.5%. This increase was primarily a result of higher advertising and marketing expenditures due to higher national advertising revenue as described above.

Depreciation and amortization

Depreciation and amortization expense was $39.4 million for the three months ended March 31, 2024, compared to $36.0 million for the three months ended March 31, 2023, an increase of $3.4 million, or 9.4%. This increase was primarily attributable to the assets acquired in the Florida Acquisition as well as new stores opened since January 1, 2023.

Other losses, net

Other losses, net was $0.5 million for the three months ended March 31, 2024, compared to $3.9 million for the three months ended March 31, 2023, a decrease of $3.5 million, or 87.7%. The decrease was primarily the result of a legal reserve recorded in the prior year period.

Interest income

Interest income was $5.5 million for the three months ended March 31, 2024, compared to $3.9 million for the three months ended March 31, 2023, an increase of $1.5 million, or 38.9%. This increase was primarily due to a greater allocation of cash on hand into higher yielding marketable securities and due to higher interest rates on our cash, cash equivalents and investments in marketable securities in the current period compared to the same period last year.

Interest expense

Interest expense primarily consists of interest on long-term debt as well as the amortization of deferred financing costs.

Interest expense was $21.4 million for the three months ended March 31, 2024, compared to $21.6 million for the three months ended March 31, 2023, a decrease of $0.2 million, or 0.8%. This decrease was primarily from a lower principal balance on our indebtedness during the three months ended March 31, 2024.

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Other income, net

Other income, net was $0.6 million for the three months ended March 31, 2024, compared to $0.1 million for the three months ended March 31, 2023. This increase was primarily attributable to $0.4 million on the remeasurement of our tax benefit arrangements due to changes in our effective tax rate.

Provision for income taxes

Income tax expense was $14.3 million for the three months ended March 31, 2024, compared to $9.6 million for the three months ended March 31, 2023, an increase of $4.8 million, or 49.7%. This increase is primarily attributable to our higher income before taxes in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

The Company’s effective tax rate was 28.4% for the three months ended March 31, 2024, compared to 27.6% in the prior year period. The increase in the effective income tax rate was primarily due to remeasurement of deferred tax assets.

Segment results

Franchise

Franchise segment EBITDA was $76.3 million for the three months ended March 31, 2024, compared to $64.7 million for the three months ended March 31, 2023, an increase of $11.6 million, or 17.9%. This increase was primarily due to higher franchise and NAF revenue of $8.4 million and $3.0 million, respectively, as described above, $3.1 million of lower other losses, net primarily from the legal reserve recorded in the prior year period, as described above, and $0.7 million of lower selling, general and administrative expense, partially offset by $2.8 million of higher NAF expense.

Corporate-owned stores

Corporate-owned stores segment EBITDA was $42.1 million for the three months ended March 31, 2024, compared to $33.5 million for the three months ended March 31, 2023, an increase of $8.6 million, or 25.6%. This increase was primarily attributable to $8.0 million from the corporate-owned same store sales increase of 6.2% and $1.2 million from the stores acquired in the Florida Acquisition, partially offset by lower EBITDA of $1.1 million from new stores opened since January 1, 2023. Depreciation and amortization increased $2.5 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, and was primarily attributable to the Florida Acquisition and new stores opened since January 1, 2023.

Equipment

Equipment segment EBITDA was $4.8 million for the three months ended March 31, 2024, compared to $5.6 million for the three months ended March 31, 2023, a decrease of $0.8 million, or 14.6%. This decrease was primarily driven by lower equipment sales to new and existing franchisee-owned stores, as described above.

Liquidity and capital resources

As of March 31, 2024, we had $301.7 million of cash and cash equivalents, $93.4 million of short-term marketable securities, $45.2 million of long-term marketable securities and $46.2 million of restricted cash.

We require cash principally to fund day-to-day operations, to finance capital investments, to service our outstanding debt and tax benefit arrangements and to address our working capital needs. Based on our current level of operations, we believe that with our available cash balance, the cash generated from our operations, and amounts available under our 2022 Variable Funding Notes will be adequate to meet our anticipated debt service requirements and obligations under our tax benefit arrangements, capital expenditures and working capital needs for at least the next 12 months. Our ability to continue to fund these items could be adversely affected by the occurrence of any of the events described under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023. There can be no assurance that our business will generate sufficient cash flows from operations or otherwise to enable us to service our indebtedness, including our Securitized Senior Notes, or to make anticipated capital expenditures. Our future operating performance and our ability to service, extend or refinance our indebtedness will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.

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Summary of Cash Flows

	Three Months Ended March 31,
(in thousands)	2024		2023
Net cash provided by (used in):
Operating activities	$	89,732	$	97,910
Investing activities	(38,644)		(22,997)
Financing activities	(24,997)		(24,607)
Effect of foreign exchange rates on cash	(315)		198
Net increase in cash, cash equivalents and restricted cash	$	25,776	$	50,504

Operating activities

For the three months ended March 31, 2024, net cash provided by operating activities was $89.7 million compared to $97.9 million in the three months ended March 31, 2023, a decrease of $8.2 million, or 8.4%. Of the decrease, $24.7 million was due to unfavorable changes in working capital primarily attributable to accounts receivable and other assets and other current assets and a lower relative increase in other liabilities and other current liabilities. This decrease was partially offset by $16.5 million of higher net income after adjustments to reconcile net income to net cash provided by operating activities.

Investing activities

For the three months ended March 31, 2024, net cash used in investing activities was $38.6 million compared to $23.0 million in the three months ended March 31, 2023, an increase of $15.6 million. The primary drivers of the increase were $12.3 million of cash used for the purchase of marketable securities, net of maturities and $3.3 million of higher capital expenditures.

Capital expenditures were as follows:

	Three Months Ended March 31,
(in thousands)	2024		2023
New corporate-owned stores	$	6,568	$	5,906
Existing corporate-owned stores	15,391		12,826
Information systems	3,291		4,195
Corporate and all other	1,061		70
Total capital expenditures	$	26,311	$	22,997

Financing activities

For the three months ended March 31, 2024, net cash used in financing activities was $25.0 million compared to $24.6 million in the three months ended March 31, 2023, an increase of $0.4 million. The primary driver of the increase was a $6.3 million decrease in the proceeds from issuance of Class A common stock, partially offset by a $5.0 million decrease in cash used for share repurchases in 2024.

Securitized Financing Facility

Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, is the master issuer of outstanding senior secured notes under a securitized financing facility that was entered into in August 2018.

In February 2022, the Master Issuer issued the Series 2022-1 Class A-1 Notes, which allow for the drawing of up to $75 million of 2022 Variable Funding Notes, including a letter of credit facility. The 2022 Variable Funding Notes are undrawn as of March 31, 2024.

There were no material changes to the terms of any debt obligations in the three months ended March 31, 2024. The Company was in compliance with its debt covenants as of March 31, 2024. See Note 6 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information related to our long-term debt obligations.

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Off-balance sheet arrangements

As of March 31, 2024, our off-balance sheet arrangements consisted of guarantees of lease agreements for certain franchisees up to a maximum period of ten years with earlier expiration dates possible if certain conditions are met. Our maximum total obligation under these lease guarantee agreements is approximately $5.0 million and would require payment only upon default by the primary obligor. The estimated fair value of these guarantees as of March 31, 2024 was not material, and no accrual has been recorded for our potential obligation under these arrangements.

Critical accounting policies and use of estimates

There have been no material changes to our critical accounting policies and use of estimates from those described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 3. Quantitative and Qualitative Disclosure about Market Risk

There have been no significant changes to the Company’s market risk during the three months ended March 31, 2024. Refer to “Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of the Company’s exposure to market risk.

ITEM 4. Controls and Procedures

Evaluation of disclosure controls and procedures

Our management, with the participation of our interim Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their control objectives.

Based on that evaluation, our interim Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2024, our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in the reports it files or submits with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting

There have been no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II-OTHER INFORMATION

ITEM 1. Legal Proceedings

We are currently involved in various claims and legal actions that arise in the ordinary course of business, most of which are covered by insurance. We do not believe that the ultimate resolution of these actions will have a material adverse effect on our business, financial condition, results of operations, liquidity or capital resources nor do we believe that there is a reasonable possibility that we will incur material loss as a result of such actions. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims could have a material adverse effect on our business, financial condition and results of operations. 

ITEM 1A. Risk Factors

Refer to the “Risks Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of risks to which our business, financial condition, results of operations and cash flows are subject. There have been no material changes to the risk factors disclosed in the aforementioned Annual Report.

39

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information regarding purchases of shares of our Class A common stock by us and our “affiliated purchasers” (as defined in Rule 10b-18(a)(3) under the Exchange Act) during the three months ended March 31, 2024.

	Issuer Purchases of Equity Securities
Month Ending	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(1)
1/31/2024	—	—		—	$	374,970,426
2/29/2024	—	—		—	$	374,970,426
3/31/2024	313,834	63.85		313,834	$	354,964,974
Total	313,834	$	63.85	313,834

(1) On November 4, 2022, our board of directors approved a share repurchase program of up to $500,000,000, which replaced the previously approved November 5, 2019 share repurchase program. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing. The Company may terminate the program at any time.

In connection with our IPO, we and the existing holders of Holdings Units entered into an exchange agreement under which they (or certain permitted transferees) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, together with a corresponding number of shares of Class B common stock, for shares of our Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and other similar transactions. As an existing holder of Holdings Units exchanges Holdings Units for shares of Class A common stock, the number of Holdings Units held by Planet Fitness, Inc. is correspondingly increased, and a corresponding number of shares of Class B common stock are canceled.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

None.

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ITEM 6. Exhibits

			Incorporated by Reference
Exhibit number	Exhibit Description	Filed herewith	Form	File No.	Exhibit	Filing date
10.1	Employment Offer Letter with Colleen Keating		8-K	001-37534	10.1	4/16/24
10.2	Executive Severance & Change in Control Policy as Amended and Restated	X
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101	The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language) tagged as blocks of text and including detailed tags, as follows: (i) Condensed Consolidated Balance Sheets (Unaudited) (ii) Condensed Consolidated Statements of Operations (Unaudited) (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) (v) Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited) (vi) Condensed Notes (Unaudited) to Condensed Consolidated Financial Statements	X
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	X

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Planet Fitness, Inc.
	(Registrant)
Date: May 9, 2024	/s/ Thomas Fitzgerald
	Thomas Fitzgerald
	Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer)

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EX-10.2

Exhibit 10.2

PLANET FITNESS, INC.

EXECUTIVE SEVERANCE & CHANGE IN CONTROL POLICY

(AS AMENDED AND RESTATED)

Introduction

The purpose of the Plan is to provide separation pay and other benefits to certain executive and key employees of Planet Fitness, Inc. (the “Company”) and its Affiliates upon a separation of service in connection with an Involuntary Termination, including in connection with a Change in Control. Accordingly, the Board of Directors of the Company (the “Board”), with the approval of the Compensation Committee of the Board (the “Compensation Committee”), has adopted the Plan, effective on the Effective Date and has approved this amendment and restatement of the Plan as of April 30, 2024.

Unless otherwise provided herein, the Plan supersedes any and all plans, policies and/or practices of the Company and its Affiliates in effect for Eligible Employees that provide for severance payments under the circumstances described herein, including offer letters or employment contracts that provide for the payment and provision of severance compensation and benefits to the Eligible Employee. The Severance Benefits payable under the Plan shall apply to Involuntary Terminations on and after the Effective Date. In no event shall a Participant receive severance compensation and benefits under the Plan and under any other severance plan, policy or practice of the Company or any Affiliate or under any employment, severance-benefit, change in control or similar agreement with the Company or any of its Affiliates. The Severance Benefits are intended to be supplemental unemployment benefits and are not intended to be deferred compensation.

The Company, as the Plan sponsor, has the sole discretion to determine whether an employee may be considered eligible for Severance Benefits under the Plan. The Plan is unfunded, has no trustee, and is administered by the Compensation Committee.

All capitalized terms in this Introduction not otherwise defined shall have the meaning ascribed to them in Article 2 below.

Article I.     Establishment, Term and Purpose

1.1.    Establishment of the Plan. The Company has established the Plan, effective as of the Effective Date. The Plan is intended to be an “employee welfare benefit plan” (within the meaning of section 3(1) of ERISA) maintained for the purpose of providing benefits for a select group of management or highly compensated employees and it shall be administered and construed accordingly.

1.2.    Term of the Plan. The Plan, as set forth herein, is effective as of the Effective Date and will continue until terminated or amended by action of the Board or the Compensation Committee in accordance with Section 12.8.

1.3.    Purpose of the Plan. The purpose of the Plan is to provide Severance Benefits to Eligible Employees in the event of an Involuntary Termination.

Article II.     Definitions

When used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized.

2.1 “Accrued Compensation” means (i) an Eligible Employee’s Base Salary earned or accrued but unpaid through the Eligible Employee’s Separation Date; (ii) reimbursement for reasonable business expenses incurred in the ordinary course of the Eligible Employee’s duties and unreimbursed prior to the Eligible Employee’s Separation Date and payable in accordance with Company policies as in effect from time to time; provided, however, that claims for such reimbursement are submitted to the Company or an Affiliate within 30 days following the Eligible Employee’s Separation Date; and (iii) payment for all vested benefits pursuant to the terms of any applicable benefit plans and programs as in effect, and as amended from time to time, as of the Separation Date.

2.2.    “Administrator” means the Compensation Committee, except that the Compensation Committee may delegate (i) to one or more of its members (or one or more other members of the Board, including the full Board) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to exercise some or all of its authority in administering the Plan in accordance with the terms of the Plan; and (iii) to such employees or other persons as it determines such ministerial tasks as it deems appropriate. In the event of any delegation described in the preceding sentence, the term “Administrator” shall include the person or persons so delegated to the extent of such delegation.

2.3.    “Affiliates” means any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code.

2.4.    “Base Salary” means an Eligible Employee’s annual base salary at the rate in effect on the Separation Date (or in the event that an Eligible Employee terminates his or her employment with Good Reason as a result of a material reduction in Base Salary, the annual base salary at the rate in effect immediately prior to such reduction).

2.5.    “Beneficiary” means the Participant’s estate.

2.6.    “Cause” means: (i) a material breach by the Eligible Employee of his or her employment agreement with the Company or an Affiliate of the Company, or any material written policy of the Company or its Affiliates generally applicable to similarly situated employees of the Company or its Affiliates; (ii) the material failure by the Eligible Employee to reasonably and substantially perform his or her duties to the Company or any of its Affiliates, other than by reason of death, Disability, illness or incapacity; (iii) the Eligible Employee’s willful misconduct or gross negligence that could reasonably be expected to be injurious to the Company or an Affiliate of the Company; (iv) an act or omission by the Eligible Employee that involves fraud, material dishonesty, or moral turpitude, in each case to the detriment of the Company or an Affiliate; or (v) the Eligible Employee commits, is indicted or convicted of, pleads guilty or nolo contendere to a felony or to another serious crime involving moral turpitude. In the case of clauses (i), (ii) and (iii) above, the Company shall permit the Eligible Employee no less than 30 days to cure such breach or failure if reasonably susceptible to cure.

2.7.    “Change in Control” means the first to occur of any of the following events:

(a)    an event in which any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than (i) the Company, (ii) any subsidiary of the Company, (iii) any employee benefit plan of the Company or a subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of any subsidiary of the Company, and (iv) any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Section 13(d) of the Exchange Act), together with all affiliates and associates (as such terms are used in Rule 12b-2 of the General Rules and Regulations under the Exchange Act) of such person, directly or indirectly, of securities of the Company representing 40% or more of the combined voting power of the Company’s then outstanding securities;

(b)    the consummation of the merger or consolidation of the Company with any other company, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, more than 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation and (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) after which no “person” “beneficially owns” (with the determination of such “beneficial ownership” on the same basis as set forth in clause (a) of this definition) securities of the Company or the surviving entity of such merger or consolidation representing 40% or more of the combined voting power of the securities of the Company or the surviving entity of such merger or consolidation;

(c)    if during any period of two consecutive years (not including any period prior to the date the Plan was initially adopted), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has conducted or threatened a proxy contest, or has entered into an agreement with the Company to effect a transaction described in clause (a), (b) or (d) of this definition) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office, who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; or

(d)    the complete liquidation of the Company or the sale or disposition by the Company of all or substantially all of the Company’s assets.

Notwithstanding the foregoing, to the extent any amount constituting “nonqualified deferred compensation” subject to Code Section 409A would become payable under the Plan, or the time or form of payment under the Plan would be affected, by reason of a Change in Control or a termination of employment following a Change in Control, to the extent necessary to avoid adverse tax consequences under Code Section 409A, a Change in Control shall not be deemed to have occurred unless the event or circumstances constituting the Change in Control would also constitute a change in the ownership or effective control of the Company, or a change in the ownership of a substantial

portion of the Company’s assets, within the meaning of subjection Code Section 409A(a)(2)(A)(v) and the Treasury Regulations thereunder.

2.8.    RESERVED

2.9.    “Code” means the U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor statute as from time to time in effect.

2.10.    “Confidential Information” means all non-public information, trade secrets, and proprietary information of the Company and its Affiliates, including financial information, plans and strategy, research, franchisee, consumer and marketing information, and any other such information the Company deems confidential from time to time.

2.11.    “Disability” means a physical or mental incapacity or disability of an Eligible Employee that renders the Eligible Employee unable to substantially perform his or her duties and responsibilities to the Company and its Affiliates (with or without any reasonable accommodation) (i) for 120 days in any 12-month period or (ii) for a period of 90 consecutive days in any 12-month period. If any question arises as to whether an Eligible Employee has a Disability, then at the request of the Administrator the Eligible Employee shall submit to a medical examination by a qualified third-party health care provider selected by the Administrator to whom the Eligible Employee or his or her duly appointed guardian, if any, has no reasonable objection to determine whether the Eligible Employee has a Disability and such determination shall be conclusive of the issue for the purposes of the Plan. If such question shall arise and the Eligible Employee shall fail to submit to such medical examination, the Administrator’s determination of the issue shall be conclusive of the issue for the purposes of the Plan.

2.12.    “Effective Date” means July 1, 2021.

2.13.    “Eligible Employee” means each senior executive of the Company in a position designated as Senior Vice President or above who meets the eligibility requirements of Article 3.

2.14.    “ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time amended and in effect.

2.15.    “Exchange Act” means the Securities Exchange Act of 1934, as from time to time amended and in effect.

2.16.    “Good Reason” means the occurrence, without the Eligible Employee’s express written consent, of any of the events or conditions described herein, provided that, the Eligible Employee shall deliver written notice to the Company or the employing Affiliate of the occurrence of Good Reason within 90 days following the date on which the Eligible Employee first knew of such occurrence and the Company or applicable Affiliate shall not have fully corrected the situation within 30 days following delivery of such notice. The following occurrences shall constitute Good Reason for purposes of the Plan: (i) a material reduction in the Eligible Employee’s Base Salary or target annual cash bonus opportunity, (ii) a material diminution in the nature and scope of the Eligible Employee’s responsibilities, duties, authority or status or (iii) a relocation that would result in the Eligible Employee’s principal location of employment being moved 60 miles or more away from the Eligible Employee’s principal location of employment as in effect immediately prior to such relocation; provided, however, that “Good Reason” shall cease to exist for an event (a) on the 90th day following the date on which the Eligible Employee knew or reasonably should have known of such

event and failed to give notice as described above, or (b) on the 30th day following the expiration of the 30-day cure period if the Company or the applicable Affiliate failed to correct the event or condition and the Eligible Employee has not terminated his or her employment as of such date.

2.17.    “Involuntary Termination” means the termination of an Eligible Employee’s employment (i) by the Company or an Affiliate for any reason other than death, Disability or Cause or (ii) by the Eligible Employee with Good Reason. An Eligible Employee shall not be treated as having an Involuntary Termination if his or her employment with the Company or an Affiliate terminates solely by reason of a sale, spin-off, transfer of business, or other disposition, including a sale of assets; provided that he or she continues employment, or is otherwise offered continued employment, with his or her employer or a successor thereto immediately after such sale, spin-off, or other disposition occurs, under terms that are materially comparable in the aggregate to the terms in effect immediately before such sale, spin-off, or other disposition.

2.18.    “Participant” means an Eligible Employee who has satisfied and continues to satisfy the conditions for participation in Article 3 and thereby becomes and continues to be eligible to receive and retain Severance Benefits under the Plan.

2.19.    “Person” means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust and any other entity or organization, other than the Company or any of its Affiliates.

2.20.    “Plan” means this Executive Severance & Change in Control Policy, as amended and restated effective April 30, 2024, and as further amended from time to time (to the extent permitted herein).

2.21.    “Separation Agreement” means a separation agreement in a form acceptable to the Company.

2.22.    “Separation Date” means the later of an Eligible Employee’s “separation from service” (as defined in Treasury regulation section 1.409A-1(h)) or the date the Eligible Employee’s right to Severance Benefits under this Plan ceases to be subject to a substantial risk of forfeiture (generally the Eligible Employee’s last active day of employment with the Company and its Affiliates (or any successor thereto), as specified by the Company in the Separation Agreement).

2.23.    “Severance Benefits” means the payment and provision of severance compensation and benefits as provided in Section 4.1 and Section 4.2 herein.

2.24.    “Severance Period” means the number of months equal to 12 times the percentage of Base Salary that the Participant is eligible to receive under Section 4.1(a) or 4.2(a), as applicable.

2.25.    “Voluntary Resignation” means any retirement or resignation of employment that is initiated by the Eligible Employee without Good Reason.

Article III.    Participation and Eligibility

3.1.    Participant. Each Eligible Employee who (i) experiences an Involuntary Termination, (ii) complies with the conditions set forth in Article 6, (iii) satisfies the conditions of Section 3.2 regarding the execution and nonrevocation of the Separation Agreement, and (iv) complies in all respects with the terms and conditions set forth in the Separation Agreement, shall be a Participant and shall be entitled to receive and retain the Severance Benefits described in the Plan.

3.2.    Separation Agreement. As a condition of receiving benefits hereunder, an Eligible Employee who otherwise meets the requirements for participation under Section 3.1 shall be required to enter into an effective and irrevocable Separation Agreement with the Company or the employing Affiliate, which agreement shall include a release of all claims against the Company, its Affiliates, and its and their subsidiaries, employees, officers, directors, agents, and representatives. The Separation Agreement must be executed within the time period requested by the Company or Affiliate, and must become effective and irrevocable not later than the eighth day following the date of execution. Provided that the Eligible Employee complies in all respects with the terms and conditions of the Separation Agreement and the Plan, the Eligible Employee shall become and remain a Participant and the Company or an Affiliate shall provide the Participant with the Severance Benefits set forth in Section 4.1 or Section 4.2, as applicable. An Eligible Employee’s continued compliance with the conditions contained in the Plan and with the terms and conditions set forth in the Separation Agreement shall be an express condition to the Eligible Employee’s status as a Participant and to his or her right to receive and retain the Severance Benefits provided in Section 4.1 or 4.2, as applicable.

Article IV.    Severance and Change of Control Benefits

4.1.    Severance Benefits. An Eligible Employee who becomes a Participant due to an Involuntary Termination that does not occur upon or within 24 months after the consummation of a Change in Control shall be entitled to receive from the Company or an Affiliate, in addition to the Accrued Compensation, the following Severance Benefits:

(a)    Base Salary:

(i)    for the Chief Executive Officer an amount equal to 200% of the Participant’s Base Salary;

(ii)    for the President an amount equal to 150% of the Participant’s Base Salary; and

(iii)    for all other Eligible Employees an amount equal to 100% of the Participant’s Base Salary;

(b)    an amount equal to the prorated portion of the Participant’s annual cash bonus (or in the event that an Eligible Employee terminates his or her employment with Good Reason as a result of a material reduction in Base Salary or a material reduction in target annual cash bonus opportunity, the annual cash bonus at the rate in effect immediately prior to such reduction), in all cases as determined pursuant to the Company’s annual bonus plan or any successor or similar plan, for the calendar year in which the Involuntary Termination occurs. If the Involuntary Termination occurs on or after January 1, but before the payment date of the annual cash bonus for the immediately preceding year, the Eligible employee shall also receive 100% of the annual cash bonus he or she would have received had the Involuntary Termination occurred on or after the payment date for the annual cash bonus;

(c)    provided the Participant was eligible for and properly enrolled in a Company sponsored health and welfare plan, an amount equal to the Company’s monthly portion of the premium for each such enrollment multiplied by 12; provided, however, that if the payments or benefits to be provided pursuant to this Section 4.1(c) would subject the Company (or an Affiliate) or the Participant to adverse penalties or excise taxes, the Company or an Affiliate shall arrange to provide the Participant (or his or her qualified beneficiaries) with an alternative payment or benefit that avoids the penalty or excise tax;

(d)    the Participant’s unvested time-based equity awards shall continue to vest for 12 additional months following the Participant’s Involuntary Termination, subject to the Participant’s complying with all obligations under such awards except for the requirement to continue working for such 12 additional months. All unvested time-based equity awards that are not eligible to become vested as a result of the 12 additional months described in the immediately preceding sentence shall be forfeited upon the Participant’s Involuntary Termination. Any post-employment exercise period applicable to the Participant’s stock options, as set forth in the applicable award agreement, shall commence on the 12-month anniversary of the Participant’s Involuntary Termination (but in no event following the original expiration date of such stock options). All performance-based equity awards shall be forfeited immediately upon the Separation Date; provided, however, that if the Separation Date is after the end of the performance period associated with such performance-based equity award, but before the performance-based equity award is paid, then the Participant shall retain the right to receive shares, that have vested or will vest within 12 months following the termination date, under such award in accordance with the terms of the award as if the Participant had remained employed through the vesting date of such award, subject to the Participant’s complying with all obligations under such awards except for the requirement to continue working through the date the award is paid. Except as expressly provided herein, the treatment of equity awards shall be governed by the terms of the applicable equity incentive plan and award agreement under which the award was granted. Without limiting the generality of the foregoing, all equity awards that become vested shall be paid at the time prescribed by the applicable award agreement; and

(e)    Except as expressly noted, participation in all Company employee benefit plans will end as of the Separation Date.

4.2.    Change In Control Severance Benefits. An Eligible Employee who becomes a Participant due to an Involuntary Termination that occurs upon or within 24 months after the consummation of a Change in Control shall be entitled to receive from the Company or an Affiliate, in addition to the Accrued Compensation, the following Severance Benefits:

(a)    Base Salary:

(i)    for the Chief Executive Officer an amount equal to 300% of the Participant’s Base Salary;

(ii)    for the President an amount equal to 200% of the Participant’s Base Salary; and

(iii)    for all other Eligible Employees an amount equal to 150% of the Participant’s Base Salary;

(b)    an amount equal to 100% of the Participant’s target annual cash bonus (or in the event that an Eligible Employee terminates his or her employment with Good Reason as a result of a material reduction in Base Salary or a material reduction in target annual cash bonus opportunity, the target annual cash bonus at the rate in effect immediately prior to such reduction, in all cases as determined pursuant to the Company’s annual bonus plan or any successor or similar plan), for the year in which the Change in Control occurs. If the Involuntary Termination occurs on or after January 1, but before the payment date of the annual cash bonus for the immediately preceding year, the Eligible employee shall also receive 100% of the annual cash bonus he or she would have received had the Involuntary Termination occurred on or after the payment date for the annual cash bonus;

(c)    provided the Participant was eligible for and properly enrolled in a Company sponsored health and welfare plan, an amount equal to the Company’s monthly portion of the premium for each such enrollment multiplied by 12; provided, however, that if the payments or benefits to be provided pursuant to this Section 4.2(c) would subject the Company (or an Affiliate) or the Participant to adverse penalties or excise taxes, the Company or an Affiliate shall arrange to provide the Participant (or his or her qualified beneficiaries) with a substantially similar benefit;

(d)    All unvested time-based equity awards shall vest immediately upon the Separation Date. All performance-based equity awards shall vest at target immediately upon the Separation Date; provided, however, that if the Separation Date is after the end of the performance period associated with such performance-based equity award, but before the performance-based equity award is paid, then the Participant shall instead be paid in accordance with the terms of the award, notwithstanding the Participant’s Involuntary Termination. Except as expressly provided herein, the treatment of equity awards shall be governed by the terms of the applicable equity incentive plan and award agreement under which the award was granted. Without limiting the generality of the foregoing, all equity awards that become vested shall be paid at the time prescribed by the applicable award agreement; and

(e)    Except as expressly noted, participation in all Company employee benefit plans will end as of the Separation Date.

4.3.    Timing of Payments. Except as otherwise provided in Article 9 (Code Section 409A) or elsewhere herein, and provided that the Participant has complied with the terms and conditions of the Separation Agreement and the Plan, any payments dueto the Participant shall be paid as follows:

(a)    Payments due under Section 4.1(a), shall be payable as a salary continuation in accordance with the Company’s normal payroll practices applicable to the Participant as of the date of the Involuntary Termination, with each payment being due and payable on each scheduled payroll date, beginning within 60 days following the Separation Date, as soon as administratively practicable following the date on which the Separation Agreement becomes effective, with the first payment to include any payments that would have been paid during such period had payment started on the first scheduled payroll date after the Separation Date. Notwithstanding the foregoing, if the Separation Date occurs in one taxable year and the date that is 60 days following the Separation Date occurs in a second taxable year, to the extent required by Code Section 409A, such payments shall not be made prior to the first day of the second taxable year.

(b)    Payments due pursuant to Sections 4.1(b) and 4.2(b) shall be paid in a lump sum no later than the payment date for the annual cash bonus to the Company’s employees for the year in which the Involuntary Termination occurs. To the extent that the Involuntary Termination occurs after the payment date for the annual cash bonus, any payments due pursuant to Sections 4.1(b) and 4.2(b) shall be made within 60 days following the Separation Date.

(c)    Payments due pursuant to Sections 4.1(c), 4.2(a) and 4.2(c) shall be paid in a lump sum no later than 30 days from the Separation Date.

(d)    For the avoidance of doubt, if an Eligible Employee does not execute a Separation Agreement within theperiod specified in Section 3.2or if an Eligible Employee or Participant subsequently revokes or breaches an executed Separation Agreement, the Eligible

Employee shall not become a Participant, shall not be entitled to any Severance Benefits, and neither the Company nor any of its Affiliates shall have any further obligations to the Eligible Employee under the Plan. To the extent such breach occurs after an Eligible Employee becomes a Participant, the payment of Severance Benefits shall immediately cease and any Severance Benefits already paid shall be subject to clawback by the Administrator. Unless otherwise subject to clawback pursuant to the Company’s Executive Compensation Recoupment Policy, regardless of whether the Eligible Employee executes or revokes the Separation Agreement, the Eligible Employee is entitled to receive the Accrued Compensation.

4.4.    Voluntary Resignation; Termination for Death or Disability. If an Eligible Employee’s employment terminates for any reason other than an Involuntary Termination, then the Eligible Employee shall not be entitled to receive Severance Benefits under the Plan and shall be entitled only to receive his or her Accrued Compensation. Except as described in this Section 4.4, neither the Company nor any of its Affiliates shall have any further obligations to the Eligible Employee under the Plan.

4.5.    Termination for Cause. If an Eligible Employee’s employment terminates on account of termination by the Company or an Affiliate for Cause, or if after an Involuntary Termination, circumstances that would have given rise to termination for Cause are discovered, the Eligible Employee shall not be entitled to receive Severance Benefits and shall be entitled only to receive his or her Accrued Compensation. Except as described in this Section 4.5, neither the Company nor any of its Affiliates shall have any further obligations to such Eligible Employee or Participant as applicable under the Plan. Nothing in this Plan shall limit the Company’s and Affiliates’ rights to damages and other remedies in the event of misconduct that constitutes Cause.

4.6.    Severance Benefits in the Event of Post-Involuntary Termination Death of a Participant. If a Participant dies following an Involuntary Termination and while any amount would still be payable to him or her hereunder had he or she continued to live, all such amounts, unless otherwise provided herein, shall be paid to the Participant’s Beneficiary within the time period provided for under Section 4.3.

4.7.    Non-Duplication.

(a)    No provision of this Plan shall require (or be interpreted to require) the Company or any Affiliate to duplicate any payment or other compensation or benefit that a Participant is entitled to receive under any employment agreement or other plan, program, policy or other arrangement (each an “Other Arrangement”).

(b)    The amount of any salary continuation or bonus payment that is required by the Plan for a pay period shall be reduced dollar-for-dollar (but not below zero) by the amount of any severance or similar payment that the Participant is entitled to receive for such period pursuant to an Other Arrangement.  If the Plan or an Other Arrangement provides for payment of an amount in a form other than installments over the Severance Period, in accordance with the schedule contemplated by Section 4.3(a), such amount shall be expressed for purposes of applying this Section 4.7 as an equivalent benefit payable in installments over the Severance Period in accordance with Section 4.3(a).  For example, a lump-sum severance payment equal to 12 months’ base salary shall be treated as if it were paid in installments over 12 months, with a pro-rated amount payable on each scheduled payroll date.

(c)    The amount payable in respect of benefits under Section 4.1(c) or 4.2(c) shall be reduced dollar-for-dollar (but not below zero) by the amount of any reimbursement or allowance for comparable benefits, or the value of Company-subsidized benefits for the applicable period.

(d)    Unless otherwise expressly provided, no Other Arrangement involving a Participant that is executed after the Participant becomes covered by the Plan shall be interpreted to change the form or time of payment of any benefits that such Participant had a legally binding right to receive under the Plan before execution of such Other Arrangement.

Subject to this Section 4, the Severance Benefits (after reduction pursuant to subsections (b) and (c) above) shall be in addition to any compensation or benefits the Participant is eligible to receive under an Other Arrangement.  Benefits under the Plan shall in all cases be calculated consistently with the intent that the aggregate amount payable under the Plan and all Other Arrangements equals the amount payable under this Plan.

Article V.    Code Section 4999 Excise Tax.

Anything in the Plan to the contrary notwithstanding, in the event that it shall be determined that any payment or benefit made or provided, or to be made or provided, by the Company or any of its Affiliates (or any successor thereto) to or for the benefit of a Participant, whether pursuant to the terms of the Plan, any other agreement, plan, program or arrangement of or with the Company or any of its Affiliates (or any successor thereto) or otherwise (any such payment or benefit, individually, the “Payment” and collectively, the “Payments”), will be subject to the excise tax imposed by Code Section 4999 or any comparable tax imposed by any replacement or successor provision of United States tax law (the “Excise Tax”), then such Participant shall be entitled to receive (a) the amount of such Payments, reduced such that no portion thereof shall fail to be tax deductible under Code Section 280G (the “Limited Amount”), or (b) the full Payments, whichever results in the greatest after-tax proceeds to the Participant. Any amount paid under this Article 5 shall be subject to normal federal, state and local tax withholding requirements. In the event that it is determined that the aggregate amount of the Payments will be reduced in accordance with this Article 5, the Payments shall be reduced on a nondiscretionary basis in such a way as to minimize the reduction in the economic value deliverable to the Participant. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Code Section 409A, and where more than one payment has the same value for this purpose and they are payable at different times, they will be reduced on a pro-rata basis. All determinations to be made under this Article 5 shall be made by the nationally recognized independent public accounting firm or valuation firm selected by the Company in its reasonable discretion (“AccountingFirm”), which Accounting Firm shall provide its determinations and any supporting calculations to the Administrator and the Participant within 10 days of the Separation Date. Any such determination by the Accounting Firm shall be binding upon the Company, its Affiliates and the Participant. All of the fees and expenses of the Accounting Firm in performing the determinations referred to in this Article 5 shall be borne solely by the Company or an Affiliate.

Article VI.    Conditions to Receipt and Retention of Severance Benefits

Receipt and retention of Severance Benefits is expressly conditioned upon each Eligible Employee’s continued compliance with all non-competition, non-solicitation, confidentiality and/or other restrictive covenant obligations contained in this policy and any other applicable agreement between the Eligible Employee and the Company and/or any of its Affiliates or their respective subsidiaries, both before and after becoming a Participant. In the event such an individual fails to comply with any of these conditions: (i) the individual shall cease to be entitled to receive any

Severance Benefits, (ii) the individual shall return any Severance Benefits previously paid to or for him or her, and (iii) the Company shall be entitled to recover any such Severance Benefits not returned by the individual.

6.1.    Non-Competition. During an Eligible Employee’s employment with the Company or an Affiliate, and for the Severance Period following his or her Separation Date, such Eligible Employee shall not, without prior written consent from the Company, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with the Company or its Affiliates in any markets where the Company or its Affiliates do business, or plan to do business, as of the Separation Date. Competitors include any entity in the business of owning, operating or franchising high value low-cost fitness centers, digital fitness subscriptions or the sale and distribution of fitness equipment (other than a Planet Fitness business). The foregoing shall not prevent the Eligible Employee from owning up to five percent (5%) of the outstanding securities of a publicly held corporation that may compete with the Company.

6.2.    Non-Solicitation.

(a)    During an Eligible Employee’s employment with the Company or an Affiliate, and for the Severance Period following his or her Separation Date, such Eligible Employee shall not, directly or indirectly (a) solicit or encourage any franchisee of the Company or its Affiliates to terminate or diminish its relationship with it or them; or (b) seek to persuade any such franchisee or prospective franchisee of the Company or its Affiliates to conduct with anyone else any business or activity which such franchisee or prospective franchisee conducts with the Company or its Affiliates.

(b)    During an Eligible Employee’s employment with the Company or an Affiliate, and for the Severance Period following his or her Separation Date, such Eligible Employee may not, and will not assist any other party to, (a) hire or solicit for hiring any employee of the Company or its Affiliates or seek to persuade any employee of the Company or its Affiliates to discontinue employment or (b) solicit or encourage any independent contractor or vendor providing services to the Company or its Affiliates to terminate or diminish its relationship with them. For purposes hereof, general solicitations not directed at a particular person or advertising in media directed at the general public shall not provide the basis for a claim by the Company that a Participant violated this provision.

(c)    For avoidance of doubt, this Section 6.2 shall not apply to any period following separation from service with the Company or an Affiliate with respect to any Eligible Employee who declines to enter into a Separation Agreement unless they have otherwise executed a Non-Compete/Non-Solicitation/Confidentiality Agreement.

6.3.    Non-Disparagement. During an Eligible Employee’s employment with the Company or an Affiliate, and continuing after the Separation Date shall not, directly or indirectly, by any manner or means, in public or in private, disparage orally or in writing the Company or its affiliates’ business, management, products or services, and will not otherwise do or say anything that could disrupt the good morale of employees of the Company or any of its Affiliates or harm the interests or reputation of the Company or any of its Affiliates. Nothing in this paragraph shall prohibit an Eligible Employee from providing truthful information in response to a legal proceeding.

6.4.    Confidentiality. Other than as required by applicable law or for the proper performance of his or her duties and responsibilities to the Company or any of its Affiliates during his or her employment with the Company or any of its Affiliates, no Eligible Employee shall disclose to any Person or use any Confidential Information obtained by such individual incident to his or her employment or other association with the Company or any of its Affiliates. As of the Separation Date,

Eligible Employees must return all such Confidential Information to the Company, materials that incorporate or reference such Confidential Information, and all copies thereof. The confidentiality condition under this Section 6.4 shall not apply to information which is generally known or readily available to the public at the time of disclosure or becomes generally known through no wrongful act on the part of the Eligible Employee or any other Person having an obligation of confidentiality to the Company or any of its Affiliates. Notwithstanding the foregoing, nothing in the Plan limits, restricts or in any other way affects an Eligible Employee’s communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or entity, or requires an Eligible Employee to provide prior notice to the Company of the same. An Eligible Employee cannot be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (a) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (b) in a complaint or other document filed under seal in a lawsuit or other proceeding. Notwithstanding this immunity from liability, an Eligible Employee may be held liable if he or she unlawfully accesses trade secrets by unauthorized means.

Article VII.    Withholding of Taxes; Funding

7.1.    Withholding of Taxes; Taxes. The Company and any Affiliate shall be entitled to withhold from any amounts payable under the Plan all taxes as legally shall be required (including, without limitation, any United States federal taxes, and any other state, city, or local taxes). Regardless of the amount withheld or reported, each Eligible Employee shall be solely responsible for the payment of all taxes that become due as a result of a payment or other rights (including imputed income) to the Participant under the Plan.

7.2.    Funding. The Plan shall be funded out of the general assets of the Company or an Affiliate as and when Severance Benefits are payable under the Plan. All Participants shall be solely general creditors of the Company and Affiliates.

Article VIII.    Successors and Assignment

8.1.    Successors to the Company. The Company or an Affiliate will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) of all or substantially all of the business and/or assets of the Company or an Affiliate or of any division or subsidiary thereof to expressly assume and agree to perform the Company’s or an Affiliate’s obligations under the Plan in the same manner and to the same extent that the Company or the Affiliate would be required to perform them if no such succession had taken place.

8.2.    Assignment by Eligible Employee or Participant. Except in the event of death, an Eligible Employee or Participant does not have the power to transfer, assign, anticipate, mortgage or otherwise encumber any rights or any amounts payable under the Plan; nor will any such rights or amounts payable under the Plan be subject to seizure, attachment, execution, garnishment or other legal or equitable process, or for the payment of any debts, judgments, alimony, or separate maintenance, or be transferable by operation of law in the event of bankruptcy, insolvency, or otherwise. In the event an Eligible Employee or Participant attempts to assign, transfer or dispose of such right, or if an attempt is made to subject such light to such process, such assignment, transfer or disposition will be null and void.

Article IX.    Code Section 409A

9.1.    The Plan is intended to comply with the requirements of Code Section 409A, to the extent applicable, and this Plan shall be interpreted consistently with the intent to avoid any tax under Code Section 409A. For the avoidance of doubt, however, no provision of this Plan shall transfer liability for taxes under Code Section 409A from the Eligible Employee or Participant to the Company, any Affiliate, or any other Person.

Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Code Section 409A and, if necessary, any such provision shall be deemed amended to comply with Code Section 409A and the regulations thereunder. If any payment or benefit cannot be provided or made at the time specified herein without incurring any accelerated or additional tax under Code Section 409A, then such benefit or payment shall be provided in full at the earliest time thereafter when such accelerated or additional tax will not be imposed, and vice versa. All payments to be made upon a separation, termination of employment, or similar event under the Plan may only be made upon a “separation from service” (as defined in Treasury regulation section 1.409A-1(h), after giving effect to the presumptions contained therein) to the extent required under Code Section 409A. For purposes of Code Section 409A, each payment made under the Plan shall be treated as a separate payment. In no event may an Eligible Employee or Participant, directly or indirectly, designate the calendar year of payment of any severance benefit payable hereunder.

9.2.    Reimbursements provided under the Plan, if any, shall be made or provided in accordance with the requirements of Code Section 409A including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during a limited period of time specified in the Plan; (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year; (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

9.3.    To the maximum extent permitted under Code Section 409A, the Severance Benefits payable under the Plan are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-l(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-l(b)(9)(iii). Any portion of the Severance Benefits that are payable under the Plan to a Participant during the six-month period following the Participant’s Separation Date that does not qualify within either of the foregoing exceptions and constitutes deferred compensation subject to the requirements of Code Section 409A shall hereinafter be referred to as the “Excess Amount”. If at the time of the Participant’s separation from service, the Company’s (or any entity required to be aggregated with the Company under Code Section 409A) stock is publicly traded on an established securities market or otherwise and the Participant is a “specified employee” (as defined in Code Section 409A and determined in the sole discretion of the Company (or any successor thereto) in accordance with the Company’s (or any successor thereto) “specified employee” determination policy), then the Company shall postpone the commencement of the payment of the portion of the Excess Amount that is payable within the six-month period following the Participant’s Separation Date for six months following the Participant’s Separation Date. The delayed Excess Amount shall be paid in a lump sum to the Participant within 10 days following the date that is six months following the Participant’s Separation Date and any remaining installments shall continue to be paid to the Participant in accordance with the original schedule provided herein. If the Participant dies during such six-month period and prior to the payment of the portion of the Excess Amount that is required to be delayed on account of Code Section 409A, such Excess Amount shall be paid to the personal representative of the Participant’s Beneficiary within 60 days after the Participant’s death.

Article X.    Claims Procedures

10.1.    Claims. (a) Any request or claim for benefits under the Plan shall be deemed to be filed when a written request is made by the claimant or the claimant’s authorized representative which is reasonably calculated to bring the claim to the attention of the Administrator.

(a)    The Administrator, or its designee, shall advise the claimant, or such claimant’s representative, in writing or in electronic form, of its decision within 90 days of receipt of the claim for Severance Benefits under the Plan, unless special circumstances require an extension of such 90-day period for not more than an additional 90 days. Where such extension is necessary, the claimant shall be given written notice of the delay before the expiration of the initial 90-day period, which notice shall set forth the reasons for the delay and the date the Administrator expects to render its decision.

(b)    The Administrator’s response to a claim shall (i) be in writing or in electronic form; and (ii) in the case of an adverse benefit determination: (A) set forth the reason(s) for the denial of benefits; (B) contain references to Plan provisions on which the denial is based; (C) describe the additional material and information, if any, necessary for the claim for benefits to be perfected and an explanation of why such material or information is necessary; and (D) describe the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review.

10.2.    Appeals. (a) If the claimant or the claimant’s authorized representative fails to appeal the Administrator’s adverse benefit determination, in writing, within 60 days after its receipt by the claimant, the Administrator’s determination shall become final and conclusive.

(a)    If the claimant or the claimant’s authorized representative appeals the Administrator’s adverse benefit determination in a timely fashion, the Administrator shall reexamine all issues relevant to the original denial of benefits. Any such claimant or his or her duly authorized representative may review any relevant documents, records and other information, free of charge, including documents and records that were relied upon in making the benefit determination, documents submitted, considered or generated in the course of making the benefit determination (even if such documents were not relied upon in making the benefit determination), and documents that demonstrate compliance, in making the benefit determination, with the Plan’s required administrative processes and safeguards. In addition, the claimant or his or her duly authorized representative may submit written comments, documents, records and other information relating to such claim for benefits. In the course of the review, the Administrator shall take into account all comments, documents, records and other information submitted by the claimant or his or her duly authorized representative relating to such claim, regardless of whether it was submitted or considered as part of the initial benefit determination.

(b)    The Administrator shall advise the claimant or such claimant’s representative, in writing or in electronic form, of its decision within 60 days of receipt of the written appeal, unless special circumstances require an extension of such 60-day period for not more than an additional 60 days. Where such extension is necessary, the claimant shall be given written notice of the delay before the expiration of the initial 60-day period, which notice shall set forth the reasons for the delay and the date the Administrator expects to render its decision. If the extension is necessary because the claimant has failed to submit the information necessary to decide the claim, the Administrator’s period for responding to such claim shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information. In the event of an adverse benefit determination on appeal, the Administrator shall advise the claimant, in a manner calculated to be understood by the claimant of: (i) the reason(s) for the adverse benefit determination; (ii) the Plan provisions on which the decision was based; (iii) the

claimant’s right to receive, upon request and free of charge, and have reasonable access to, copies of all documents, records and other information relevant to such claim; and (iv) a statement describing any voluntary appeals procedures offered by the Plan, the claimant’s right to obtain information about such procedures, and a statement of the claimant’s right to bring an action under section 502(a) of ERISA.

10.3.    Exhaustion. No person may bring an action for any alleged wrongful denial of Plan benefits in a court of law unless the claims procedures set forth above are exhausted and a final determination is made by the Administrator. If a Participant or other interested person challenges a decision of the Administrator, such challenge must be filed in the court of law no later than within one year after the earliest of (i) the date the first payment under the Plan was made, (ii) the date the first payment under the Plan was allegedly due, or (iii) the date the Company or an Affiliate first repudiated the alleged obligation to provide such benefit. following the denial of the appeal described in Section 10.2(c), and If the one-year period expires during the time that a request for review of the claim pursuant to this Article 10 is pending, such period shall be extended until the 60th calendar day following final denial (including a deemed denial) of such claim on administrative review (but the period for filing a new claim or requesting administrative review shall not be extended).  The foregoing limitations period shall supersede and replace any limitations period that might otherwise be deemed applicable under state or federal law in the absence of this Section 10.3.   Before a Change in Control, (I) a review by the court of law will be limited to the facts, evidence and issues presented to the Administrator during the claims procedure set forth above, and shall be subject to an abuse of discretion standard of review; (II) facts and evidence that become known to the Participant or other interested person after having exhausted the claims procedure shall not be taken into account unless timely must be brought to the attention of the Administrator for reconsideration of the claims determination; and (III) issues not raised with the Administrator will be deemed waived.  After a Change in Control, the standard of review by a court shall be de novo and shall take into account all facts presented.

Article XI.    Administration

11.1    The Compensation Committee will be the administrator of the Plan. The Compensation Committee may, however, delegate to any person, committee or entity any of its power or duties under the Plan. The Administrator will be the sole judge of the application and interpretation of the Plan, and will have the discretionary authority to construe the provisions of the Plan and to resolve disputed issues of fact. The Administrator will have the sole authority to make determinations regarding eligibility for benefits. Subject to Section 10.3, the decisions of the Administrator in all matters relating to the Plan that are within the scope of its authority (including, but not limited to, eligibility for benefits, Plan interpretations, and disputed issues of fact) will be final and binding on all parties. The Administrator will have such powers as may be necessary to discharge its duties, including but not limited to, the following:

(a)    To construe and interpret the Plan, decide all questions of eligibility and determine the amount, manner and time of payment of any benefits under the Plan;

(b)    To prescribe procedures to be followed by claimants filing applications for benefits;

(c)    To prepare and distribute, in such manner as the Administrator determines to be appropriate, information explaining the Plan;

(d)    To receive from the Company and from Participants and employees such information as will be necessary for the proper administration of the Plan;

(e)    To furnish the Company, upon request, such reports with respect to the administration of the Plan as are reasonable and appropriate;

(f)    To receive, review and keep on file (as it deems convenient and proper) reports of benefit payments by the Company and reports for disbursements of expenses directed by the Administrator;

(g)    To appoint and compensate persons to assist in the administration of the Plan and any other agents it deems advisable, including legal counsel; and

(h)    To make all appropriate filings with governmental agencies on behalf of the Plan.

Article XII.    Miscellaneous

12.1.    Employment Status. Except as may be provided under any other agreement between an Eligible Employee and the Company or an Affiliate, all employment with the Company and its Affiliates is “at will”, and may be terminated by either the Eligible Employee or the Company or an Affiliate at any time, subject to applicable law. Nothing contained herein shall constitute an employment contract or guarantee of employment or confer any other rights except as set forth herein. Nothing in the Plan will be construed to create any right to employment or re-employment with the Company.

12.2.    Other Payments. Except as otherwise provided in the Plan, no Eligible Employee shall be entitled to any cash payments or other severance benefits under any of the Company’s or any Affiliate’s then current severance pay policies or under any individual employment, severance or similar agreement for a termination that is covered by the Plan for the Eligible Employee. Except as otherwise provided in the Plan, acceptance of benefits under the Plan constitutes a waiver of any other separation or severance benefits from the Company, including without limitation any separation or severance benefits offered under a Participant’s employment agreement or offer letter. In the event a Participant receives a judgment for or relating to any other separation benefits from the Company, the amounts paid out under the Plan will be reduced by such judgment.

12.3.    No Mitigation. Participants shall not be required to mitigate the amount of any Severance Benefit provided for in the Plan by seeking other employment or otherwise, nor shall the amount of any Severance Benefit provided for herein be reduced by any compensation earned by other employment or otherwise, except in the event the Participant is re-employed by the Company or an Affiliate, in which case Severance Benefits shall cease upon the date of reemployment.

12.4.    Overpayments. If a Participant receives payments in excess of the amounts specified in Section 4, the Company, it its sole discretion, may elect to deduct such overpayments from any future payments to the Participant. If all payments have been made to the Participant, the Participant will be obligated to repay any overpayments upon demand from the Company.

12.5.    Conflicts. The Plan document is the sole authority for any disputes regarding the Plan. In the event there is any conflict between the terms of the Plan and any other document or oral statements describing the terms of the Plan, the Plan document will control.

12.6.    No Oral Promises. No person has the authority to modify or waive or vary the terms of the Plan. No oral promise of benefits or payments under or relating to the Plan will create a right in favor of any employee or impose any obligation on the Company or the Plan. Any interpretation of the Plan or obligation under or relating to the Plan must be in writing and signed by the Administrator or its designee to be binding.

12.7.    Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

12.8.    Amendment or Termination. The Board or the Compensation Committee may, in their sole discretion, amend or terminate the Plan, in whole or in part, at any time and for any reason or no reason without the consent of Participants; provided that the Plan may not be amended or terminated during the period commencing on the Change in Control and ending on the 24-month anniversary of such Change in Control, except for amendments that are required to comply with any changes in applicable law, and provided further that no amendment to the Plan may discontinue or change any payments to a Participant who has entered into an effective Separation Agreement under the Plan prior to the effective date of the amendment or termination of the Plan. If the Plan is terminated, no Severance Benefits will be payable under the Plan to any Eligible Employee who has not entered into an effective Separation Agreement under the Plan prior to the effective date of such termination. For the avoidance of doubt, any Separation Agreement that took effect prior to the date the Plan is amended or terminated shall remain in full force and effect in accordance with its terms.

12.9.    Governing Law. To the extent not preempted by the laws of the United States, the Plan shall be construed and enforced under and be governed in all respects by the laws of the State of New Hampshire, without regard to the conflict of laws principles thereof. The sole and exclusive jurisdiction for any dispute or claim arising from this Agreement shall be the United States Federal District Court for the District of New Hampshire.

12.10.    Liability. No member of the Compensation Committee, no Administrator, and no officer, director or employee of the Company or any Affiliate shall be personally liable for any inaction with respect to his or her functions under the Plan unless such action or inaction is adjudged to be due to gross negligence, willful misconduct or fraud. Further, no member of the Compensation Committee and no Administrator shall be personally liable merely by virtue of any instrument executed by him or her or on his or her behalf as a member of the Compensation Committee or as an Administrator.

12.11.    Indemnification. The Company shall indemnify, to the fullest extent permitted by law and its Certificate of Incorporation and By-laws (but only to the extent not covered by insurance) its officers and directors (and any employee involved in carrying out the functions of the Company under the Plan), each member of the Compensation Committee and each Administrator against any expenses, including amounts paid in settlement of a liability, which are reasonably incurred in connection with any legal action to which such person is a party by reason of his or her duties or responsibilities with respect to the Plan, except with regard to matters as to which he or she shall be adjudged in such action to be liable for gross negligence, willful misconduct or fraud in the performance of his or her duties.

12.12.    Headings. The headings of the Plan are inserted for convenience of reference only and shall have no effect upon the meaning of provisions hereof.

12.13.    Incompetency. In the event that the Administrator finds that a Participant is unable to care for his or her affairs because of illness or accident, then benefits payable hereunder, unless claim has been made therefor by a duly appointed guardian, committee, or other legal representative, may be paid in such manner as the Administrator shall determine, and the application thereof shall be a complete discharge of all liability for any payments or benefits to which such Participant was or would have been otherwise entitled under the Plan.

EX-31.1

Exhibit 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Craig Benson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Planet Fitness, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024

/s/ Craig Benson

Craig Benson

Interim Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Thomas Fitzgerald, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Planet Fitness, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024

/s/ Thomas Fitzgerald

Thomas Fitzgerald

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Planet Fitness, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2024 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Craig Benson, Interim Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

•The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

•The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: May 9, 2024

/s/ Craig Benson

Craig Benson

Interim Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Planet Fitness, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2024 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Fitzgerald, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

•The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

•The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: May 9, 2024

/s/ Thomas Fitzgerald

Thomas Fitzgerald

Chief Financial Officer

(Principal Financial Officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 02, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-37534
Entity Registrant Name	PLANET FITNESS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-3942097
Entity Address, Address Line One	4 Liberty Lane West
Entity Address, City or Town	Hampton
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03842
City Area Code	603
Local Phone Number	750-0001
Title of 12(b) Security	Class A common stock, $0.0001 Par Value
Trading Symbol	PLNT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001637207
Current Fiscal Year End Date	--12-31
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,528,804
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		650,531

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 301,707	$ 275,842
Restricted cash	46,190	46,279
Short-term marketable securities	93,362	74,901
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of March 31, 2024 and December 31, 2023, respectively	23,837	41,890
Inventory	4,959	4,677
Restricted assets - national advertising fund	17,945	0
Prepaid expenses	18,945	13,842
Other receivables	12,513	11,072
Income tax receivable	1,324	3,314
Total current assets	520,782	471,817
Long-term marketable securities	45,165	50,886
Investments, net of allowance for expected credit losses of $18,164 and $17,689 as of March 31, 2024 and December 31, 2023, respectively	76,360	77,507
Property and equipment, net of accumulated depreciation of $349,068 and $322,958, as of March 31, 2024 and December 31, 2023, respectively	382,019	390,405
Right-of-use assets, net	385,796	381,010
Intangible assets, net	359,750	372,507
Goodwill	719,074	717,502
Deferred income taxes	499,839	504,188
Other assets, net	3,993	3,871
Total assets	2,992,778	2,969,693
Current liabilities:
Current maturities of long-term debt	20,750	20,750
Accounts payable	20,560	23,788
Accrued expenses	43,709	66,299
Equipment deposits	7,594	4,506
Deferred revenue, current	77,263	59,591
Payable pursuant to tax benefit arrangements, current	41,294	41,294
Other current liabilities	35,331	35,101
Total current liabilities	246,501	251,329
Long-term debt, net of current maturities	1,959,032	1,962,874
Lease liabilities, net of current portion	390,399	381,589
Deferred revenue, net of current portion	33,820	32,047
Deferred tax liabilities	1,666	1,644
Payable pursuant to tax benefit arrangements, net of current portion	456,700	454,368
Other liabilities	3,891	4,833
Total noncurrent liabilities	2,845,508	2,837,355
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit):
Accumulated other comprehensive (loss) income	(435)	172
Additional paid in capital	581,332	575,631
Accumulated deficit	(677,321)	(691,461)
Total stockholders’ deficit attributable to Planet Fitness, Inc.	(96,415)	(115,649)
Non-controlling interests	(2,816)	(3,342)
Total stockholders’ deficit	(99,231)	(118,991)
Total liabilities and stockholders’ deficit	2,992,778	2,969,693
Class A common stock
Stockholders’ equity (deficit):
Common stock, value	9	9
Class B common stock
Stockholders’ equity (deficit):
Common stock, value	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Accounts receivable, allowance for bad debts	$ 0	$ 0
Allowance for expected credit loss	18,164	17,689
Accumulated depreciation	$ 349,068	$ 322,958
Class A common stock
Stockholders’ equity (deficit):
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	300,000	300,000
Common stock, shares issued (in shares)	86,832	86,760
Common stock, shares outstanding (in shares)	86,832	86,760
Class B common stock
Stockholders’ equity (deficit):
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000	100,000
Common stock, shares issued (in shares)	1,071	1,397
Common stock, shares outstanding (in shares)	1,071	1,397

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Total revenue	$ 248,017	$ 222,225
Operating costs and expenses:
Cost of revenue	18,993	19,354
Store operations	74,353	66,015
Selling, general and administrative	29,193	27,767
National advertising fund expense	19,792	16,987
Depreciation and amortization	39,380	36,010
Other losses, net	484	3,936
Total operating costs and expenses	182,195	170,069
Income from operations	65,822	52,156
Other income (expense), net:
Interest income	5,461	3,931
Interest expense	(21,433)	(21,599)
Other income, net	647	113
Total other expense, net	(15,325)	(17,555)
Income before income taxes	50,497	34,601
Provision for income taxes	14,324	9,567
Losses from equity-method investments, net of tax	(1,200)	(265)
Net income	34,973	24,769
Less net income attributable to non-controlling interests	664	2,064
Net income attributable to Planet Fitness, Inc.	$ 34,309	$ 22,705
Class A common stock
Net income per share of Class A common stock:
Basic (in usd per share)	$ 0.39	$ 0.27
Diluted (in usd per share)	$ 0.39	$ 0.27
Weighted-average shares of Class A common stock outstanding:
Basic (in shares)	86,909,383	84,444,003
Diluted (in shares)	87,222,081	84,786,695
Franchise
Revenue:
Total revenue	$ 84,234	$ 75,878
National advertising fund revenue
Revenue:
Total revenue	19,786	16,804
Corporate-owned stores
Revenue:
Total revenue	122,378	105,882
Equipment
Revenue:
Total revenue	$ 21,619	$ 23,661

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income including non-controlling interests	$ 34,973	$ 24,769
Other comprehensive income, net:
Foreign currency translation adjustments	(212)	81
Unrealized loss on marketable securities, net of tax	(395)	0
Total other comprehensive (loss) income, net	(607)	81
Total comprehensive income including non-controlling interests	34,366	24,850
Less: total comprehensive income attributable to non-controlling interests	664	2,064
Total comprehensive income attributable to Planet Fitness, Inc.	$ 33,702	$ 22,786

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 34,973	$ 24,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39,380	36,010
Amortization of deferred financing costs	1,346	1,360
Accretion of marketable securities discount	(871)	0
Losses from equity-method investments, net of tax	1,200	265
Dividends accrued on held-to-maturity investment	(528)	(483)
Credit loss on held-to-maturity investment	475	255
Deferred tax expense	11,367	8,082
Gain on re-measurement of tax benefit arrangement liability	(362)	0
Loss on disposal of property and equipment	867	0
Equity-based compensation expense	975	2,049
Other	(41)	(44)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	18,084	25,619
Inventory	(287)	266
Other assets and other current assets	(6,444)	2,010
Restricted assets - national advertising fund	(17,945)	(13,387)
Accounts payable and accrued expenses	(18,530)	(19,928)
Other liabilities and other current liabilities	(548)	4,907
Income taxes	1,943	2,736
Equipment deposits	3,088	4,408
Deferred revenue	19,519	19,395
Leases	2,071	(379)
Net cash provided by operating activities	89,732	97,910
Cash flows from investing activities:
Additions to property and equipment	(26,311)	(22,997)
Purchases of marketable securities	(34,922)	0
Maturities of marketable securities	22,589	0
Net cash used in investing activities	(38,644)	(22,997)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock	450	6,748
Principal payments on capital lease obligations	(36)	(56)
Repayment of long-term debt and variable funding notes	(5,188)	(5,188)
Repurchase and retirement of Class A common stock	(20,005)	(25,005)
Distributions paid to members of Pla-Fit Holdings	(218)	(1,106)
Net cash used in financing activities	(24,997)	(24,607)
Effects of exchange rate changes on cash and cash equivalents	(315)	198
Net increase in cash, cash equivalents and restricted cash	25,776	50,504
Cash, cash equivalents and restricted cash, beginning of period	322,121	472,499
Cash, cash equivalents and restricted cash, end of period	347,897	523,003
Supplemental cash flow information:
Cash paid for interest	20,165	20,373
Net cash paid for (refund received) income taxes	1,013	(1,016)
Non-cash investing activities:
Non-cash additions to property and equipment included in accounts payable and accrued expenses	$ 11,400	$ 11,682

XML

Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Class A common stock	Class B common stock	Common stock Class A common stock	Common stock Class B common stock	Accumulated other comprehensive income (loss)	Additional paid- in capital	Accumulated deficit	Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2022				83,430,000	6,146,000
Beginning balance at Dec. 31, 2022	$ (211,561)			$ 8	$ 1	$ (448)	$ 505,144	$ (703,717)	$ (12,549)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,769							22,705	2,064
Equity-based compensation expense	2,049						2,049
Repurchase and retirement of Class A common stock (in shares)				(318,000)
Repurchase and retirement of Class A common stock	(25,005)							(25,005)
Exchanges of Class B common stock and other adjustments (in shares)				1,901,000	(1,901,000)
Exchanges of Class B common stock and other adjustments	0			$ 1	$ (1)		(4,353)		4,353
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)				217,000
Vesting of restricted share units and ESPP share purchase	6,524						6,524
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock	45,903						45,903
Non-cash adjustments to VIEs	(233)								(233)
Distributions paid to members of Pla-Fit Holdings	(1,106)								(1,106)
Other comprehensive (loss) income	81					81
Ending balance (in shares) at Mar. 31, 2023				85,230,000	4,245,000
Ending balance at Mar. 31, 2023	(158,579)			$ 9	$ 0	(367)	555,267	(706,017)	(7,471)
Beginning balance (in shares) at Dec. 31, 2023		86,760,000	1,397,000	86,760,000	1,397,000
Beginning balance at Dec. 31, 2023	(118,991)			$ 9	$ 0	172	575,631	(691,461)	(3,342)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,973							34,309	664
Equity-based compensation expense	975						975
Repurchase and retirement of Class A common stock (in shares)				(314,000)
Repurchase and retirement of Class A common stock	(20,169)						774	(20,169)	(774)
Exchanges of Class B common stock and other adjustments (in shares)		326,073		326,000	(326,000)
Exchanges of Class B common stock and other adjustments	0						(854)		854
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)				60,000
Vesting of restricted share units and ESPP share purchase	381						381
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock	4,425						4,425
Distributions paid to members of Pla-Fit Holdings	(218)								(218)
Other comprehensive (loss) income	(607)					(607)
Ending balance (in shares) at Mar. 31, 2024		86,832,000	1,071,000	86,832,000	1,071,000
Ending balance at Mar. 31, 2024	$ (99,231)			$ 9	$ 0	$ (435)	$ 581,332	$ (677,321)	$ (2,816)

XML

Business organization

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business organization

Business organization

Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with approximately 19.6 million members and 2,599 owned and franchised locations (referred to as stores) in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia as of March 31, 2024.

The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business:

•Licensing and selling franchises under the Planet Fitness trade name;

•Owning and operating fitness centers under the Planet Fitness trade name; and

•Selling fitness-related equipment to franchisee-owned stores.

In 2012 investment funds affiliated with TSG Consumer Partners, LLC (“TSG”), purchased interests in Pla-Fit Holdings.

The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC, which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations.

The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of Holdings Units not owned by the Company.

As of March 31, 2024, the Company held 100.0% of the voting interest and approximately 98.8% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 1.2% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, the economic interest in Pla-Fit Holdings held by Planet Fitness, Inc. will increase.

XML

Summary of significant accounting policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of significant accounting policies

Summary of significant accounting policies

(a) Basis of presentation and consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three months ended March 31, 2024 and 2023 are unaudited. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

(b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the condensed consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.

(c) Fair Value

ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value because of their short-term nature. See Note 3 for investments that are measured at fair value on a recurring basis.

The carrying value and estimated fair value of long-term debt were as follows:

	March 31, 2024				December 31, 2023
	Carrying value		Estimated fair value(1)		Carrying value		Estimated fair value(1)
Long-term debt(1)	$	1,999,250	$	1,851,357	$	2,004,438	$	1,829,286

(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under GAAP.

(d) Recent accounting pronouncements

The FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, in August 2023. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The new standard is effective prospectively for all joint ventures with a formation date on or after January 1, 2025. The Company will apply the standard to any relevant transactions subsequent to the adoption date.

The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

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Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Marketable securities

The following tables summarize the amortized cost, net unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s available-for-sale investments in marketable securities. As of March 31, 2024, the marketable securities had maturity dates that range from less than 1 month to approximately 24 months. Realized gains and losses were insignificant for the three months ended March 31, 2024 and 2023.

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
March 31, 2024
Cash equivalents
Money market funds	$	863	$	—	$	—	$	863	$	863	$	—
U.S. treasury securities	10,922		—		—		10,922				10,922
Commercial paper	10,460		—		(8)		10,452		—		10,452
Total cash equivalents	22,245		—		(8)		22,237		863		21,374
Short-term marketable securities
Commercial paper	44,100		—		(29)		44,071		—		44,071
Corporate debt securities	42,917		—		(28)		42,889		—		42,889
U.S. government agency securities	6,394		8		—		6,402		—		6,402
Total short-term marketable securities	93,411		8		(57)		93,362		—		93,362
Long-term marketable securities
Corporate debt securities	41,659		10		—		41,669		—		41,669
U.S. government agency securities	3,500		—		(4)		3,496		—		3,496
Total long-term marketable securities	45,159		10		(4)		45,165		—		45,165
Total marketable securities	$	160,815	$	18	$	(69)	$	160,764	$	863	$	159,901

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
December 31, 2023
Cash equivalents
Money market funds	$	761	$	—	$	—	$	761	$	761	$	—
U.S. treasury securities	2,997		1		—		2,998		—		2,998
Total cash equivalents	3,758		1		—		3,759		761		2,998
Short-term marketable securities
Commercial paper	37,063		24		—		37,087		—		37,087
Corporate debt securities	34,632		—		(38)		34,594		—		34,594
U.S. government agency securities	3,210		10		—		3,220		—		3,220
Total short-term marketable securities	74,905		34		(38)		74,901		—		74,901
Long-term marketable securities
Corporate debt securities	47,388		328		—		47,716		—		47,716
U.S. government agency securities	3,151		19		—		3,170		—		3,170
Total long-term marketable securities	50,539		347		—		50,886		—		50,886
Total marketable securities	$	129,202	$	382	$	(38)	$	129,546	$	761	$	128,785

(1) Fair values were determined using market prices obtained from third-party pricing sources.

For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of March 31, 2024.

Held-to-maturity debt security

As of March 31, 2024, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.

During the three months ended March 31, 2024 and 2023, the Company’s review of the investment indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimates using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis, the Company recorded a credit loss expense of $475 and $255 for the three months ended March 31, 2024 and 2023, respectively, on the adjustment of its allowance for credit losses within other (income) expense, net on the condensed consolidated statements of operations.

The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investment was $30,871 and $30,343 and the allowance for expected credit losses was $18,164 and $17,689, as of March 31, 2024 and December 31, 2023, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. The Company recognized dividend income of $528 and $483 during the three months ended March 31, 2024 and 2023, respectively, within other income (expense), net on the condensed consolidated statements of operations.

As of March 31, 2024, the Company’s held-to-maturity investment had a contractual maturity in 2026.

A roll forward of the Company’s allowance for expected credit losses on its held-to-maturity investment is as follows:

	Three Months Ended March 31,
	2024		2023
Beginning allowance for expected credit losses	$	17,689	$	14,957
Loss on adjustment of allowance for expected credit losses	475		255
Write-offs, net of recoveries	—		—
Ending allowance for expected credit losses	$	18,164	$	15,212

Equity method investments

For the following investments, the Company recorded its proportionate share of the investees’ earnings, prepared in accordance with GAAP, on a one-month lag, with an adjustment to eliminate unrealized profits on intra-entity sales, if any, and the amortization of basis differences, within losses from equity-method investments, net of tax on the condensed consolidated statements of operations. As of March 31, 2024, the Company determined that no impairment of its equity method investments existed.

As of March 31, 2024 and December 31, 2023, the Company held a 21.8% ownership interest in Bravo Fit Holdings Pty Ltd, a franchisee of the Company and store operator in Australia, which is deemed to be a related party, for a total investment carrying value of $12,912 and $13,220, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $6,326 and $6,812 as of March 31, 2024 and December 31, 2023, respectively. These basis differences are attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the three months ended March 31, 2024 and 2023, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $308 and $265, respectively, which included amortization of basis difference of $66 and $65, respectively.

As of March 31, 2024 and December 31, 2023, the Company held a 33.2% ownership interest in Planet Fitmex, LLC, a franchisee of the Company and store operator in Mexico, which is deemed to be a related party and classified as an equity method investment as a result of its organizational structure, for a total investment carrying value of $50,741 and $51,633, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $16,390 and $17,458 as of March 31, 2024 and December 31, 2023, respectively. This basis difference is attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the three months ended March 31, 2024, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $892, which included amortization of basis difference of $163.

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Acquisition

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Acquisition

Acquisition

Florida Acquisition

On April 16, 2023, the Company purchased from one of its franchisees a majority of the assets associated with four franchisee stores operating in Florida (the “Florida Acquisition”) for cash consideration of $26,264. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $110, which is included in other losses, net on the condensed consolidated statement of operations. The loss incurred reduced the net purchase price to $26,154. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.

The allocation of the purchase consideration was as follows:

	Amount
Property and equipment	$	3,851
Right of use assets	5,424
Other long-term assets	95
Intangible assets	6,880
Goodwill	14,812
Deferred revenue	(687)
Other current liabilities	(17)
Lease liabilities	(4,204)
Total	$	26,154

The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.

The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:

	Fair value		Useful life
Reacquired franchise rights (1)	$	6,650	6.8
Customer relationships (2)	230		6.0
Total intangible assets subject to amortization	$	6,880

(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.

(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.

The acquisition did not have a material effect on the results of operations of the Company.

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Goodwill and intangible assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets

Goodwill and related changes in its carrying amount were as follows:

	Amount
Goodwill at December 31, 2023	$	717,502
Acquisition	1,572
Goodwill at March 31, 2024	$	719,074

The Company completed an immaterial acquisition of an operating entity in Spain during the first quarter of fiscal 2024, which resulted in the addition of $1,572 in the carrying value of goodwill. The Company intends to open corporate-owned stores through this entity.

A summary of intangible assets is as follows:

	March 31, 2024						December 31, 2023
	Gross carrying amount		Accumulated amortization		Net carrying Amount		Gross carrying amount		Accumulated amortization		Net carrying Amount
Finite-lived intangible assets:
Customer relationships	$	199,043	$	(173,087)	$	25,956	$	199,043	$	(169,155)	$	29,888
Reacquired franchise rights	274,708		(87,514)		187,194		274,708		(78,689)		196,019
Total finite-lived intangible assets	473,751		(260,601)		213,150		473,751		(247,844)		225,907
Indefinite-lived intangible assets:
Trade and brand names	146,600		—		146,600		146,600		—		146,600
Total intangible assets	$	620,351	$	(260,601)	$	359,750	$	620,351	$	(247,844)	$	372,507

The Company determined that no impairment charges were required during any periods presented.

Amortization expense related to the finite-lived intangible assets totaled $12,768 and $12,587 for the three months ended March 31, 2024 and 2023, respectively. The anticipated amortization expense related to intangible assets to be recognized in future periods as of March 31, 2024 is as follows:

	Amount
Remainder of 2024	$	36,433
2025	36,713
2026	32,079
2027	27,956
2028	27,300
Thereafter	52,669
Total	$	213,150

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Long-term debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Long-term debt

Long-term debt

Long-term debt consists of the following: 

	March 31, 2024		December 31, 2023
2018-1 Class A-2-II notes	$	590,625	$	592,187
2019-1 Class A-2 notes	526,625		528,000
2022-1 Class A-2-I notes	416,500		417,563
2022-1 Class A-2-II notes	465,500		466,688
Total debt, excluding deferred financing costs	1,999,250		2,004,438
Deferred financing costs, net of accumulated amortization	(19,468)		(20,814)
Total debt, net	1,979,782		1,983,624
Current portion of long-term debt	20,750		20,750
Long-term debt, net of current portion	$	1,959,032	$	1,962,874

Future principal payments of long-term debt as of March 31, 2024 are as follows: 

	Amount
Remainder of 2024	$	15,562
2025	600,438
2026	419,313
2027	10,250
2028	10,250
Thereafter	943,437
Total	$	1,999,250

On August 1, 2018, Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, entered into a base indenture and a related supplemental indenture (collectively, the “2018 Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2018-1 4.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2018 Class A-2-I Notes”) with an initial principal amount of $575,000 and Series 2018-1 4.666% Fixed Rate Senior Secured Notes, Class A-2-II (the “2018 Class A-2-II Notes” and, together with the 2018 Class A-2-I Notes, the “2018 Notes”) with an initial principal amount of $625,000. In connection with the issuance of the 2018 Notes, the Master Issuer also entered into a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or certain letters of credit (the “Letters of Credit”) under the Master Issuer’s Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “2018 Variable Funding Notes”). The Company fully drew down on the 2018 Variable Funding Notes on March 20, 2020. On December 3, 2019, the Master Issuer issued Series 2019-1 3.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) with an initial principal amount of $550,000. The 2019 Notes were issued under the 2018 Indenture and a related supplemental indenture dated December 3, 2019 (together, the “2019 Indenture”). On February 10, 2022, the Company completed a prepayment in full of its 2018 Class A-2-I Notes and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I with an initial principal amount of $425,000 and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II with an initial principal amount of $475,000 (the “2022 Notes” and, together with the 2018 Notes and 2019 Notes, the “Notes”), and also entered into a new revolving financing facility that allows for the issuance of up to $75,000 in Variable Funding Notes (“2022 Variable Funding Notes”) and certain Letters of Credit (the issuance of such notes, the “Series 2022-I Issuance”). The 2022 Notes were issued under the 2018 Indenture and a related supplemental indenture dated February 10, 2022 (together, with the 2019 Indenture, the “Indenture”). Together, the Notes, 2018 Variable Funding Notes and 2022 Variable Funding Notes will be referred to as the “Securitized Senior Notes”.

The Notes were issued in securitization transactions pursuant to which most of the Company’s domestic revenue-generating assets, consisting principally of franchise-related agreements, certain corporate-owned store assets, equipment supply agreements and intellectual property and license agreements for the use of intellectual property, were assigned to the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Securitized Senior Notes and that have pledged substantially all of their assets to secure the Securitized Senior Notes.

Interest and principal payments on the Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2018 Class A-2-II Notes is in September 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2018 Class A-2-II Notes will be repaid in or prior to September 2025. The legal final maturity date of the 2019 Notes is in December 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2019 Notes will be repaid in or prior to December 2029. The legal final maturity date of the 2022 Notes is in February 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2022 Class A-2-I Notes will be repaid in or prior to December 2026 and the 2022 Class A-2-II Notes will be repaid in or prior to December 2031 (together, the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.

If outstanding, the 2022 Variable Funding Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the secured overnight financing rate for U.S. Dollars, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the 2022 Variable Funding Notes. There is a commitment fee on the unused portion of the 2022 Variable Funding Notes of 0.5% based on utilization. It is anticipated that

the principal and interest on the 2022 Variable Funding Notes, if any, will be repaid in full on or prior to December 2026, subject to two additional one-year extension options. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2022 Variable Funding Notes equal to 5.0% per year.

In connection with the issuance of the 2018 Notes, 2019 Notes, and 2022 Notes, the Company incurred debt issuance costs of $27,133, $10,577, and $16,193 respectively. The debt issuance costs are being amortized to interest expense through the Anticipated Repayment Dates of the Notes utilizing the effective interest rate method.

The Securitized Senior Notes are subject to covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Securitized Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Securitized Senior Notes are in stated ways defective or ineffective, (iv) a cap on non-securitized indebtedness of $50,000 (provided that the Company may incur non-securitized indebtedness in excess of such amount, subject to the leverage ratio cap described below, under certain conditions, including if the relevant lenders execute a non-disturbance agreement that acknowledges the bankruptcy-remote status of the Master Issuer and its subsidiaries and of their respective assets), (v) a leverage ratio cap incurrence test on the Company of 7.0x (calculated without regard for any indebtedness subject to the $50,000 cap) and (vi) covenants relating to recordkeeping, access to information and similar matters.

Pursuant to a parent company support agreement, the Company has agreed to cause its subsidiary to perform each of its obligations (including any indemnity obligations) and duties under the Management Agreement and under the contribution agreements entered into in connection with the securitized financing facility, in each case as and when due. To the extent that such subsidiary has not performed any such obligation or duty within the prescribed time frame after such obligation or duty was required to be performed, the Company has agreed to either (i) perform such obligation or duty or (ii) cause such obligations or duties to be performed on the Company’s behalf.

The Securitized Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, certain manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled Anticipated Repayment Dates. The Securitized Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Securitized Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments.

In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee (the “Trustee”) for the benefit of the trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents cash collections held by the Trustee, interest, principal, and commitment fee reserves held by the Trustee related to the Securitized Senior Notes. As of March 31, 2024, the Company had restricted cash held by the Trustee of $46,190.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the condensed consolidated balance sheets, were as follows:

Leases	Balance Sheet Classification	March 31, 2024		December 31, 2023
Assets
Operating	Right of use asset, net	$	385,796	$	381,010
Finance	Property and equipment, net	144		179
Total lease assets		$	385,940	$	381,189
Liabilities
Current:
Operating	Other current liabilities	$	31,895	$	33,849
Finance	Other current liabilities	109		125
Noncurrent:
Operating	Lease liabilities, net of current portion	390,399		381,589
Finance	Other liabilities	42		63
Total lease liabilities		$	422,445	$	415,626
Weighted-average remaining lease term - operating leases		8.0 years		8.0 years
Weighted-average discount rate - operating leases		5.5%		5.4%

The components of lease cost were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	17,475	$	14,904
Variable lease cost	6,203		5,751
Total lease cost	$	23,678	$	20,655

The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial.

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Months Ended March 31,
	2024		2023
Cash paid for lease liabilities	$	15,303	$	13,302
Operating lease ROU assets obtained in exchange for operating lease liabilities	$	16,064	$	4,661

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Amount
Remainder of 2024	$	34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	$	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$	422,445

As of March 31, 2024, future operating lease payments exclude approximately $32,239 of legally binding minimum lease payments for leases signed but not yet commenced.

Leases

Leases

The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the condensed consolidated balance sheets, were as follows:

Leases	Balance Sheet Classification	March 31, 2024		December 31, 2023
Assets
Operating	Right of use asset, net	$	385,796	$	381,010
Finance	Property and equipment, net	144		179
Total lease assets		$	385,940	$	381,189
Liabilities
Current:
Operating	Other current liabilities	$	31,895	$	33,849
Finance	Other current liabilities	109		125
Noncurrent:
Operating	Lease liabilities, net of current portion	390,399		381,589
Finance	Other liabilities	42		63
Total lease liabilities		$	422,445	$	415,626
Weighted-average remaining lease term - operating leases		8.0 years		8.0 years
Weighted-average discount rate - operating leases		5.5%		5.4%

The components of lease cost were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	17,475	$	14,904
Variable lease cost	6,203		5,751
Total lease cost	$	23,678	$	20,655

The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial.

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Months Ended March 31,
	2024		2023
Cash paid for lease liabilities	$	15,303	$	13,302
Operating lease ROU assets obtained in exchange for operating lease liabilities	$	16,064	$	4,661

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Amount
Remainder of 2024	$	34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	$	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$	422,445

As of March 31, 2024, future operating lease payments exclude approximately $32,239 of legally binding minimum lease payments for leases signed but not yet commenced.

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Revenue from contract with customers

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue from contract with customers

Revenue from contracts with customers

Contract liabilities consist primarily of deferred revenue resulting from initial and renewal franchise fees and area development agreement (“ADA”) fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement, and national advertising fund (“NAF”) revenue collected in advance of satisfaction of the Company’s performance obligation. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to its equipment business. The Company classifies these contract liabilities as deferred revenue in its condensed consolidated balance sheets.

The following table reflects the change in contract liabilities between December 31, 2023 and March 31, 2024:

	Amount
Balance at December 31, 2023	$	91,638
Revenue recognized that was included in the contract liability at the beginning of the year	(34,438)
Increase, excluding amounts recognized as revenue during the period	53,883
Balance at March 31, 2024	$	111,083

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, as of March 31, 2024. The Company has elected to exclude short-term contracts, sales and usage-based royalties and any other variable consideration recognized on an “as invoiced” basis.

Contract liabilities to be recognized in:	Amount
Remainder of 2024	$	72,982
2025	7,970
2026	3,630
2027	3,325
2028	3,071
Thereafter	20,105
Total	$	111,083

Equipment deposits received in advance of delivery as of March 31, 2024 were $7,594 and are expected to be recognized as revenue within the next 12 months.

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Related party transactions

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related party transactions

Related party transactions

Activity with franchisees considered to be related parties is summarized below:

	Three Months Ended March 31,
	2024		2023
Franchise revenue - interim CEO	$	1,280	$	1,006
Franchise revenue - other	884		241
Equipment revenue - interim CEO	1,012		5
Equipment revenue - other	2,990		—
Total revenue from related parties	$	6,166	$	1,252

The Company had $5,247 and $2,916 of accounts receivable attributable to a related party as of March 31, 2024 and December 31, 2023, respectively.

Additionally, the Company had deferred ADA and franchise agreement revenue from related parties of $695 and $719 as of March 31, 2024 and December 31, 2023, respectively, of which $140 and $142 is from a franchisee in which the Company’s interim CEO has a financial interest.

As of March 31, 2024 and December 31, 2023, the Company had $81,474 and $98,494, respectively, payable to related parties pursuant to tax benefit arrangements. See Note 12 for further discussion of these arrangements.

The Company provides administrative services to the NAF and typically charges the NAF a fee for providing these services. The services provided, which include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, amounted to $1,461 and $917 for the three months ended March 31, 2024 and 2023, respectively.

The Company incurred approximately $181 for the three months ended March 31, 2023 for corporate travel to a third-party company which is affiliated with our former Chief Executive Officer, which is included within selling, general and administrative expense on the condensed consolidated statements of operations.

A member of the Company’s board of directors, who is also the Company’s interim Chief Executive Officer and a franchisee, holds an approximate 10.5% ownership of a company that sells amenity tracking compliance software to Planet Fitness stores to which the Company made payments of approximately $65 and $91 during the three months ended March 31, 2024 and 2023, respectively.

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Stockholders' equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

Pursuant to the exchange agreement between the Company and the Continuing LLC Owners, the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock (or cash at the option of the Company) on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. In connection with any exchange of Holdings Units for shares of Class A common stock by a Continuing LLC Owner, the number of Holdings Units held by the Company is correspondingly increased as it acquires the exchanged Holdings Units, and a corresponding number of shares of Class B common stock are canceled.

During the three months ended March 31, 2024, certain existing holders of Holdings Units exercised their exchange rights and exchanged 326,073 Holdings Units for 326,073 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 326,073 shares of Class B common stock were surrendered by the holders of Holdings Units that exercised their exchange rights and canceled. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 326,073 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings.

As a result of the above transactions, as of March 31, 2024:

•Holders of Class A common stock owned 86,831,728 shares of Class A common stock, representing 98.8% of the voting power in the Company and, through the Company, 86,831,728 Holdings Units representing 98.8% of the economic interest in Pla-Fit Holdings; and

•the Continuing LLC Owners collectively owned 1,071,094 Holdings Units, representing 1.2% of the economic interest in Pla-Fit Holdings, and 1,071,094 shares of Class B common stock, representing 1.2% of the voting power in the Company.

Share repurchase program

On November 4, 2022, the Company’s board of directors approved a share repurchase program of up to $500,000, which replaced the 2019 share repurchase program. During the three months ended March 31, 2024, the Company repurchased and retired 313,834 shares of Class A common stock for a total cost of $20,005. A share repurchase excise tax of $163 was also incurred. As of March 31, 2024, there is $354,965 remaining under the 2022 share repurchase program.

The timing of purchases and amount of stock repurchased are subject to the Company’s discretion and dependent upon market and business conditions, the Company’s general working capital needs, stock price, applicable legal requirements and other factors. The ability to repurchase shares at any particular time is also subject to the terms of the Indenture governing the Securitized Senior Notes. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing.

Preferred stock

The Company had 50,000,000 shares of preferred stock authorized and none issued or outstanding as of March 31, 2024 and December 31, 2023.

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Earnings per share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

Shares of the Company’s Class B common stock do not share in the earnings attributable to Planet Fitness, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Holdings Units, are exchangeable into shares of Class A common stock on a one-for-one basis.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:

	Three Months Ended March 31,
	2024		2023
Numerator
Net income	$	34,973	$	24,769
Less: net income attributable to non-controlling interests	664		2,064
Net income attributable to Planet Fitness, Inc.	$	34,309	$	22,705
Denominator
Weighted-average shares of Class A common stock outstanding - basic	86,909,383		84,444,003
Effect of dilutive securities:
Stock options	223,244		271,680
Restricted stock units	63,276		63,358
Performance stock units	26,178		7,654
Weighted-average shares of Class A common stock outstanding - diluted	87,222,081		84,786,695
Earnings per share of Class A common stock - basic	$	0.39	$	0.27
Earnings per share of Class A common stock - diluted	$	0.39	$	0.27

The number of weighted-average common stock equivalents excluded from the computation of diluted net income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:

	Three Months Ended March 31,
	2024	2023
Class B common stock	1,176,568	5,007,448
Stock options	554	196,209
Restricted stock units	2	—
Performance stock units	—	53
Total	1,177,124	5,203,710

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Income taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and certain state and local income taxes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro-rata basis.

Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company’s effective tax rate was 28.4% and 27.6% for the three months ended March 31, 2024 and 2023, respectively, which differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes, partially offset by income attributable to non-controlling interests. The Company is also subject to taxes in foreign jurisdictions.

Net deferred tax assets of $498,173 and $502,544 as of March 31, 2024 and December 31, 2023, respectively, relate primarily to the tax effects of temporary differences in the book basis as compared to the tax basis of the investment in Pla-Fit Holdings as a result of the secondary offerings, other exchanges, recapitalization transactions and the IPO.

As of March 31, 2024 and December 31, 2023, the total liability related to uncertain tax positions was $242 and $273, respectively. The Company recognizes accrued interest and penalties, if applicable, related to unrecognized tax benefits in income tax expense. Interest and penalties for the three months ended March 31, 2024 and 2023 were not material.

Tax benefit arrangements

The Company’s acquisition of Holdings Units in connection with the IPO and future and certain past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements, pursuant to which, the Company is required to make payments to certain holders of equity interests or their successors-in-interest (“TRA Holders”). Under the first of those arrangements, the Company generally is required to pay certain existing and previous equity owners of Pla-Fit Holdings, LLC 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of certain equity interests previously held by affiliates of TSG that resulted from TSG’s purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the remaining 15% benefit of the applicable tax savings.

In connection with the exchanges that occurred during the three months ended March 31, 2024 and 2023, 326,073 and 1,900,309 Holding Units, respectively, were redeemed by the Continuing LLC Owners for newly-issued shares of Class A common stock, resulting in an increase in the tax basis of the net assets of Pla-Fit Holdings. As a result of the change in the Company’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges and issuance of Holding Units, the Company recorded a decrease of $400 and $2,605 to net deferred tax assets, during the three months ended March 31, 2024 and 2023, respectively. As a result of these exchanges and other activity during the three months ended March 31, 2024 and 2023, the Company also recognized deferred tax assets in the amount of $7,519 and $50,823, respectively, and corresponding tax benefit arrangement liabilities of $2,694 and $2,315, respectively, representing approximately 85% of the tax benefits due to the TRA Holders for shares exchanged that were subject to tax benefit arrangements. The offset to the entries recorded in connection with exchanges was to additional paid in capital within stockholders’ deficit.

The Company had a liability of $497,994 and $495,662 as of March 31, 2024 and December 31, 2023, respectively, related to its projected obligations under the tax benefit arrangements.

Projected future payments under the tax benefit arrangements were as follows:

	Amount
Remainder of 2024	$	41,135
2025	50,385
2026	52,814
2027	48,624
2028	41,973
Thereafter	263,063
Total	$	497,994

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Commitments and contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases.

Mexico Acquisition

On March 19, 2020, a franchisee in Mexico exercised a put option that required the Company to acquire their franchisee-owned stores in Mexico. In February 2023, the Company and the franchisee agreed on a summary of terms for a settlement agreement and a release of all claims by all parties. In connection with the settlement agreement, the Company recorded an update to its estimated liability for the legal settlement of $3,300, inclusive of legal fees paid, within other losses, net on the condensed consolidated statement of operations during the three months ended March 31, 2023. On October 20, 2023, the Company finalized its settlement with the franchisee in Mexico for $31,619, which included the acquisition by the Company of five stores in Mexico and the settlement of all claims.

The Company is not currently aware of any other legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations.

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Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segments

Segments

The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment.

The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its interim Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments.

The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Company records all revenues and expenses of the NAF within the franchise segment. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores.

The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues.

The tables below summarize the financial information for the Company’s reportable segments.

	Three Months Ended March 31,
	2024		2023
Revenue
Franchise segment revenue - U.S.	$	100,528	$	90,288
Franchise segment revenue - International	3,492		2,394
Franchise segment total	104,020		92,682
Corporate-owned stores segment - U.S.	121,158		104,808
Corporate-owned stores segment - International	1,220		1,074
Corporate-owned stores segment total	122,378		105,882
Equipment segment - U.S.	16,417		23,105
Equipment segment - International	5,202		556
Equipment segment total	21,619		23,661
Total revenue	$	248,017	$	222,225

Franchise revenue includes revenue generated from placement services of $1,837 and $1,613 for the three months ended March 31, 2024 and 2023, respectively.

	Three Months Ended March 31,
	2024		2023
Segment EBITDA
Franchise	$	76,311	$	64,735
Corporate-owned stores	42,104		33,530
Equipment	4,760		5,571
Corporate and other(1)	(18,526)		(15,822)
Total Segment EBITDA	$	104,649	$	88,014

(1) Corporate and other primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.

The following table reconciles total Segment EBITDA to income before taxes:

	Three Months Ended March 31,
	2024		2023
Total Segment EBITDA	$	104,649	$	88,014
Less:
Depreciation and amortization	39,380		36,010
Other income	647		113
Losses from equity-method investments, net of tax	(1,200)		(265)
Income from operations	65,822		52,156
Interest income	5,461		3,931
Interest expense	(21,433)		(21,599)
Other income, net	647		113
Income before income taxes	$	50,497	$	34,601

The following table summarizes the Company’s assets by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	185,046	$	169,836
Corporate-owned stores	1,638,909		1,637,146
Equipment	164,917		176,249
Unallocated	1,003,906		986,462
Total consolidated assets	$	2,992,778	$	2,969,693

The table above includes $5,956 and $3,609 of long-lived assets located in the Company’s international corporate-owned stores as of March 31, 2024 and December 31, 2023, respectively. All other assets are located in the U.S.

The following table summarizes the Company’s goodwill by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	16,938	$	16,938
Corporate-owned stores	609,470		607,898
Equipment	92,666		92,666
Consolidated goodwill	$	719,074	$	717,502

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Corporate-owned and franchisee-owned stores

3 Months Ended

Mar. 31, 2024

Franchisors [Abstract]

Corporate-owned and franchisee-owned stores

Corporate-owned and franchisee-owned stores

The following table shows changes in corporate-owned and franchisee-owned stores:

	Three Months Ended March 31,
	2024	2023
Franchisee-owned stores:
Stores operated at beginning of period	2,319	2,176
New stores opened	23	35
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,341	2,211
Corporate-owned stores:
Stores operated at beginning of period	256	234
New stores opened	2	1
Stores operated at end of period	258	235
Total stores:
Stores operated at beginning of period	2,575	2,410
New stores opened	25	36
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,599	2,446

(1) The term “debranded” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.

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Summary of significant accounting policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of presentation and consolidation

Basis of presentation and consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three months ended March 31, 2024 and 2023 are unaudited. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

Use of estimates

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the condensed consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.

Fair Value

Fair Value

ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Recent accounting pronouncements

Recent accounting pronouncements

The FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, in August 2023. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The new standard is effective prospectively for all joint ventures with a formation date on or after January 1, 2025. The Company will apply the standard to any relevant transactions subsequent to the adoption date.

The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.

Held-to-maturity debt security

As of March 31, 2024, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.

During the three months ended March 31, 2024 and 2023, the Company’s review of the investment indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimates using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts.

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Summary of significant accounting policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Carrying Value and Estimated Fair Value of Long-term Debt

The carrying value and estimated fair value of long-term debt were as follows:

	March 31, 2024				December 31, 2023
	Carrying value		Estimated fair value(1)		Carrying value		Estimated fair value(1)
Long-term debt(1)	$	1,999,250	$	1,851,357	$	2,004,438	$	1,829,286

(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under GAAP.

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Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities

The following tables summarize the amortized cost, net unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s available-for-sale investments in marketable securities. As of March 31, 2024, the marketable securities had maturity dates that range from less than 1 month to approximately 24 months. Realized gains and losses were insignificant for the three months ended March 31, 2024 and 2023.

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
March 31, 2024
Cash equivalents
Money market funds	$	863	$	—	$	—	$	863	$	863	$	—
U.S. treasury securities	10,922		—		—		10,922				10,922
Commercial paper	10,460		—		(8)		10,452		—		10,452
Total cash equivalents	22,245		—		(8)		22,237		863		21,374
Short-term marketable securities
Commercial paper	44,100		—		(29)		44,071		—		44,071
Corporate debt securities	42,917		—		(28)		42,889		—		42,889
U.S. government agency securities	6,394		8		—		6,402		—		6,402
Total short-term marketable securities	93,411		8		(57)		93,362		—		93,362
Long-term marketable securities
Corporate debt securities	41,659		10		—		41,669		—		41,669
U.S. government agency securities	3,500		—		(4)		3,496		—		3,496
Total long-term marketable securities	45,159		10		(4)		45,165		—		45,165
Total marketable securities	$	160,815	$	18	$	(69)	$	160,764	$	863	$	159,901

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value(1)		Level 1		Level 2
December 31, 2023
Cash equivalents
Money market funds	$	761	$	—	$	—	$	761	$	761	$	—
U.S. treasury securities	2,997		1		—		2,998		—		2,998
Total cash equivalents	3,758		1		—		3,759		761		2,998
Short-term marketable securities
Commercial paper	37,063		24		—		37,087		—		37,087
Corporate debt securities	34,632		—		(38)		34,594		—		34,594
U.S. government agency securities	3,210		10		—		3,220		—		3,220
Total short-term marketable securities	74,905		34		(38)		74,901		—		74,901
Long-term marketable securities
Corporate debt securities	47,388		328		—		47,716		—		47,716
U.S. government agency securities	3,151		19		—		3,170		—		3,170
Total long-term marketable securities	50,539		347		—		50,886		—		50,886
Total marketable securities	$	129,202	$	382	$	(38)	$	129,546	$	761	$	128,785

(1) Fair values were determined using market prices obtained from third-party pricing sources.

Rollforward of Allowance for Expected Credit Losses on Held-to-maturity Investments

A roll forward of the Company’s allowance for expected credit losses on its held-to-maturity investment is as follows:

	Three Months Ended March 31,
	2024		2023
Beginning allowance for expected credit losses	$	17,689	$	14,957
Loss on adjustment of allowance for expected credit losses	475		255
Write-offs, net of recoveries	—		—
Ending allowance for expected credit losses	$	18,164	$	15,212

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Acquisition (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Consideration Allocation

The allocation of the purchase consideration was as follows:

	Amount
Property and equipment	$	3,851
Right of use assets	5,424
Other long-term assets	95
Intangible assets	6,880
Goodwill	14,812
Deferred revenue	(687)
Other current liabilities	(17)
Lease liabilities	(4,204)
Total	$	26,154

Schedule of Components of Identifiable Intangible Assets Acquired

The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:

	Fair value		Useful life
Reacquired franchise rights (1)	$	6,650	6.8
Customer relationships (2)	230		6.0
Total intangible assets subject to amortization	$	6,880

(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.

(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.

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Goodwill and intangible assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill and Related Changes in Carrying Amount

Goodwill and related changes in its carrying amount were as follows:

	Amount
Goodwill at December 31, 2023	$	717,502
Acquisition	1,572
Goodwill at March 31, 2024	$	719,074

The following table summarizes the Company’s goodwill by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	16,938	$	16,938
Corporate-owned stores	609,470		607,898
Equipment	92,666		92,666
Consolidated goodwill	$	719,074	$	717,502

Schedule of Finite-Lived Intangible Assets,

A summary of intangible assets is as follows:

	March 31, 2024						December 31, 2023
	Gross carrying amount		Accumulated amortization		Net carrying Amount		Gross carrying amount		Accumulated amortization		Net carrying Amount
Finite-lived intangible assets:
Customer relationships	$	199,043	$	(173,087)	$	25,956	$	199,043	$	(169,155)	$	29,888
Reacquired franchise rights	274,708		(87,514)		187,194		274,708		(78,689)		196,019
Total finite-lived intangible assets	473,751		(260,601)		213,150		473,751		(247,844)		225,907
Indefinite-lived intangible assets:
Trade and brand names	146,600		—		146,600		146,600		—		146,600
Total intangible assets	$	620,351	$	(260,601)	$	359,750	$	620,351	$	(247,844)	$	372,507

Schedule of Indefinite-Lived Intangible Assets

A summary of intangible assets is as follows:

	March 31, 2024						December 31, 2023
	Gross carrying amount		Accumulated amortization		Net carrying Amount		Gross carrying amount		Accumulated amortization		Net carrying Amount
Finite-lived intangible assets:
Customer relationships	$	199,043	$	(173,087)	$	25,956	$	199,043	$	(169,155)	$	29,888
Reacquired franchise rights	274,708		(87,514)		187,194		274,708		(78,689)		196,019
Total finite-lived intangible assets	473,751		(260,601)		213,150		473,751		(247,844)		225,907
Indefinite-lived intangible assets:
Trade and brand names	146,600		—		146,600		146,600		—		146,600
Total intangible assets	$	620,351	$	(260,601)	$	359,750	$	620,351	$	(247,844)	$	372,507

Summary of Amortization expenses

The anticipated amortization expense related to intangible assets to be recognized in future periods as of March 31, 2024 is as follows:

	Amount
Remainder of 2024	$	36,433
2025	36,713
2026	32,079
2027	27,956
2028	27,300
Thereafter	52,669
Total	$	213,150

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Long-term debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt consists of the following: 

	March 31, 2024		December 31, 2023
2018-1 Class A-2-II notes	$	590,625	$	592,187
2019-1 Class A-2 notes	526,625		528,000
2022-1 Class A-2-I notes	416,500		417,563
2022-1 Class A-2-II notes	465,500		466,688
Total debt, excluding deferred financing costs	1,999,250		2,004,438
Deferred financing costs, net of accumulated amortization	(19,468)		(20,814)
Total debt, net	1,979,782		1,983,624
Current portion of long-term debt	20,750		20,750
Long-term debt, net of current portion	$	1,959,032	$	1,962,874

Schedule of Future Annual Payments of Long-term Debt

Future principal payments of long-term debt as of March 31, 2024 are as follows: 

	Amount
Remainder of 2024	$	15,562
2025	600,438
2026	419,313
2027	10,250
2028	10,250
Thereafter	943,437
Total	$	1,999,250

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Balance Sheet Classification of Lease Assets and Liabilities

The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the condensed consolidated balance sheets, were as follows:

Leases	Balance Sheet Classification	March 31, 2024		December 31, 2023
Assets
Operating	Right of use asset, net	$	385,796	$	381,010
Finance	Property and equipment, net	144		179
Total lease assets		$	385,940	$	381,189
Liabilities
Current:
Operating	Other current liabilities	$	31,895	$	33,849
Finance	Other current liabilities	109		125
Noncurrent:
Operating	Lease liabilities, net of current portion	390,399		381,589
Finance	Other liabilities	42		63
Total lease liabilities		$	422,445	$	415,626
Weighted-average remaining lease term - operating leases		8.0 years		8.0 years
Weighted-average discount rate - operating leases		5.5%		5.4%

Schedule of Components of Lease Cost

The components of lease cost were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	17,475	$	14,904
Variable lease cost	6,203		5,751
Total lease cost	$	23,678	$	20,655

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Months Ended March 31,
	2024		2023
Cash paid for lease liabilities	$	15,303	$	13,302
Operating lease ROU assets obtained in exchange for operating lease liabilities	$	16,064	$	4,661

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Amount
Remainder of 2024	$	34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	$	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$	422,445

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Amount
Remainder of 2024	$	34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	$	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$	422,445

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Revenue from contract with customers (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Contract Liabilities

The following table reflects the change in contract liabilities between December 31, 2023 and March 31, 2024:

	Amount
Balance at December 31, 2023	$	91,638
Revenue recognized that was included in the contract liability at the beginning of the year	(34,438)
Increase, excluding amounts recognized as revenue during the period	53,883
Balance at March 31, 2024	$	111,083

Schedule of Remaining Performance Obligations

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, as of March 31, 2024. The Company has elected to exclude short-term contracts, sales and usage-based royalties and any other variable consideration recognized on an “as invoiced” basis.

Contract liabilities to be recognized in:	Amount
Remainder of 2024	$	72,982
2025	7,970
2026	3,630
2027	3,325
2028	3,071
Thereafter	20,105
Total	$	111,083

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Related party transactions (Tables)

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Activity with franchisees considered to be related parties is summarized below:

	Three Months Ended March 31,
	2024		2023
Franchise revenue - interim CEO	$	1,280	$	1,006
Franchise revenue - other	884		241
Equipment revenue - interim CEO	1,012		5
Equipment revenue - other	2,990		—
Total revenue from related parties	$	6,166	$	1,252

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Earnings per share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:

	Three Months Ended March 31,
	2024		2023
Numerator
Net income	$	34,973	$	24,769
Less: net income attributable to non-controlling interests	664		2,064
Net income attributable to Planet Fitness, Inc.	$	34,309	$	22,705
Denominator
Weighted-average shares of Class A common stock outstanding - basic	86,909,383		84,444,003
Effect of dilutive securities:
Stock options	223,244		271,680
Restricted stock units	63,276		63,358
Performance stock units	26,178		7,654
Weighted-average shares of Class A common stock outstanding - diluted	87,222,081		84,786,695
Earnings per share of Class A common stock - basic	$	0.39	$	0.27
Earnings per share of Class A common stock - diluted	$	0.39	$	0.27

Schedule Of Common Stock Equivalents Excluded From The Computation Of Diluted Net Income Per Share

The number of weighted-average common stock equivalents excluded from the computation of diluted net income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:

	Three Months Ended March 31,
	2024	2023
Class B common stock	1,176,568	5,007,448
Stock options	554	196,209
Restricted stock units	2	—
Performance stock units	—	53
Total	1,177,124	5,203,710

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Income taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Future Payments Under Tax Benefit Arrangements

Projected future payments under the tax benefit arrangements were as follows:

	Amount
Remainder of 2024	$	41,135
2025	50,385
2026	52,814
2027	48,624
2028	41,973
Thereafter	263,063
Total	$	497,994

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Segments (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Summary of Financial Information for the Company's Reportable Segments

The tables below summarize the financial information for the Company’s reportable segments.

	Three Months Ended March 31,
	2024		2023
Revenue
Franchise segment revenue - U.S.	$	100,528	$	90,288
Franchise segment revenue - International	3,492		2,394
Franchise segment total	104,020		92,682
Corporate-owned stores segment - U.S.	121,158		104,808
Corporate-owned stores segment - International	1,220		1,074
Corporate-owned stores segment total	122,378		105,882
Equipment segment - U.S.	16,417		23,105
Equipment segment - International	5,202		556
Equipment segment total	21,619		23,661
Total revenue	$	248,017	$	222,225

	Three Months Ended March 31,
	2024		2023
Segment EBITDA
Franchise	$	76,311	$	64,735
Corporate-owned stores	42,104		33,530
Equipment	4,760		5,571
Corporate and other(1)	(18,526)		(15,822)
Total Segment EBITDA	$	104,649	$	88,014

(1) Corporate and other primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.

Reconciliation of Total Segment EBITDA to Income Before Taxes

The following table reconciles total Segment EBITDA to income before taxes:

	Three Months Ended March 31,
	2024		2023
Total Segment EBITDA	$	104,649	$	88,014
Less:
Depreciation and amortization	39,380		36,010
Other income	647		113
Losses from equity-method investments, net of tax	(1,200)		(265)
Income from operations	65,822		52,156
Interest income	5,461		3,931
Interest expense	(21,433)		(21,599)
Other income, net	647		113
Income before income taxes	$	50,497	$	34,601

Summary of Company's Assets by Reportable Segment

The following table summarizes the Company’s assets by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	185,046	$	169,836
Corporate-owned stores	1,638,909		1,637,146
Equipment	164,917		176,249
Unallocated	1,003,906		986,462
Total consolidated assets	$	2,992,778	$	2,969,693

Summary of Company's Goodwill by Reportable Segment

Goodwill and related changes in its carrying amount were as follows:

	Amount
Goodwill at December 31, 2023	$	717,502
Acquisition	1,572
Goodwill at March 31, 2024	$	719,074

The following table summarizes the Company’s goodwill by reportable segment: 

	March 31, 2024		December 31, 2023
Franchise	$	16,938	$	16,938
Corporate-owned stores	609,470		607,898
Equipment	92,666		92,666
Consolidated goodwill	$	719,074	$	717,502

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Corporate-owned and franchisee-owned stores (Tables)

3 Months Ended

Mar. 31, 2024

Franchisors [Abstract]

Schedule of Changes in Corporate-Owned and Franchisee-Owned Stores

The following table shows changes in corporate-owned and franchisee-owned stores:

	Three Months Ended March 31,
	2024	2023
Franchisee-owned stores:
Stores operated at beginning of period	2,319	2,176
New stores opened	23	35
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,341	2,211
Corporate-owned stores:
Stores operated at beginning of period	256	234
New stores opened	2	1
Stores operated at end of period	258	235
Total stores:
Stores operated at beginning of period	2,575	2,410
New stores opened	25	36
Stores debranded, sold, closed or consolidated(1)	(1)	—
Stores operated at end of period	2,599	2,446

(1) The term “debranded” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.

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Business organization (Details) member in Millions	3 Months Ended
	Mar. 31, 2024 store segment member state	Dec. 31, 2023 store	Mar. 31, 2023 store	Dec. 31, 2022 store	Aug. 05, 2015
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Number of members | member	19.6
Number of owned and franchised locations | store	2,599	2,575	2,446	2,410
Number of states in which entity operates | state	50
Number of reportable segments | segment	3
Pla-Fit Holdings, LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of voting power (in percentage)	100.00%				100.00%
Percentage of ownership (in percentage)	98.80%
Economic interest	1.20%
Planet Intermediate, LLC | Pla-Fit Holdings, LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of ownership (in percentage)					100.00%
Planet Fitness Holdings, LLC | Planet Intermediate, LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of ownership (in percentage)					100.00%

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Summary of significant accounting policies - Schedule of Carrying Value and Estimated Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,999,250	$ 2,004,438
Estimated fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,851,357	$ 1,829,286

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Investments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Credit loss on held-to-maturity investment	$ 475	$ 255
Amortized cost of held-to-maturity debt security investments	30,871		$ 30,343
Allowance for expected credit loss	18,164	15,212	$ 17,689	$ 14,957
Dividends accrued on held-to-maturity investment	528	483
Losses from equity-method investments, net of tax	1,200	265
Basis difference amortization	$ 12,768	12,587
Minimum
Schedule of Equity Method Investments [Line Items]
Maturity dates	1 month		1 month
Maximum
Schedule of Equity Method Investments [Line Items]
Maturity dates	24 months		24 months
Bravo Fit Holdings Pty Ltd
Schedule of Equity Method Investments [Line Items]
Total investment	$ 12,912		$ 13,220
Ownership percentage	21.80%		21.80%
Underlying equity in net assets	$ 6,326		$ 6,812
Losses from equity-method investments, net of tax	308	265
Basis difference amortization	$ 66	$ 65
Useful life	9 years
Planet Fitmex, LLC
Schedule of Equity Method Investments [Line Items]
Total investment	$ 50,741		$ 51,633
Ownership percentage	33.20%		33.20%
Underlying equity in net assets	$ 16,390		$ 17,458
Losses from equity-method investments, net of tax	892
Basis difference amortization	$ 163
Useful life	9 years

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Investments - Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Amortized Cost	$ 160,815	$ 129,202
Unrealized Gains	18	382
Unrealized Losses	(69)	(38)
Fair Value	160,764	129,546
Cash equivalents
Schedule of Equity Method Investments [Line Items]
Amortized Cost	22,245	3,758
Unrealized Gains	0	1
Unrealized Losses	(8)	0
Fair Value	22,237	3,759
Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	93,411	74,905
Unrealized Gains	8	34
Unrealized Losses	(57)	(38)
Fair Value	93,362	74,901
Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	45,159	50,539
Unrealized Gains	10	347
Unrealized Losses	(4)	0
Fair Value	45,165	50,886
Level 1
Schedule of Equity Method Investments [Line Items]
Fair Value	863	761
Level 1 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	863	761
Level 1 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
Level 1 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
Level 2
Schedule of Equity Method Investments [Line Items]
Fair Value	159,901	128,785
Level 2 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	21,374	2,998
Level 2 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	93,362	74,901
Level 2 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	45,165	50,886
Money market funds | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Amortized Cost	863	761
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	863	761
Money market funds | Level 1 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	863	761
Money market funds | Level 2 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
U.S. treasury securities | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Amortized Cost	10,922	2,997
Unrealized Gains	0	1
Unrealized Losses	0	0
Fair Value	10,922	2,998
U.S. treasury securities | Level 1 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value		0
U.S. treasury securities | Level 2 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	10,922	2,998
Commercial paper | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Amortized Cost	10,460
Unrealized Gains	0
Unrealized Losses	(8)
Fair Value	10,452
Commercial paper | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	44,100	37,063
Unrealized Gains	0	24
Unrealized Losses	(29)	0
Fair Value	44,071	37,087
Commercial paper | Level 1 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	0
Commercial paper | Level 1 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
Commercial paper | Level 2 | Cash equivalents
Schedule of Equity Method Investments [Line Items]
Fair Value	10,452
Commercial paper | Level 2 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	44,071	37,087
Corporate debt securities | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	42,917	34,632
Unrealized Gains	0	0
Unrealized Losses	(28)	(38)
Fair Value	42,889	34,594
Corporate debt securities | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	41,659	47,388
Unrealized Gains	10	328
Unrealized Losses	0	0
Fair Value	41,669	47,716
Corporate debt securities | Level 1 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
Corporate debt securities | Level 1 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
Corporate debt securities | Level 2 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	42,889	34,594
Corporate debt securities | Level 2 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	41,669	47,716
U.S. government agency securities | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	6,394	3,210
Unrealized Gains	8	10
Unrealized Losses	0	0
Fair Value	6,402	3,220
U.S. government agency securities | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	3,500	3,151
Unrealized Gains	0	19
Unrealized Losses	(4)	0
Fair Value	3,496	3,170
U.S. government agency securities | Level 1 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
U.S. government agency securities | Level 1 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	0	0
U.S. government agency securities | Level 2 | Short-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	6,402	3,220
U.S. government agency securities | Level 2 | Long-term marketable securities
Schedule of Equity Method Investments [Line Items]
Fair Value	$ 3,496	$ 3,170

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Investments - Rollforward of Allowance for Expected Credit Losses on Held-to-maturity Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning allowance for expected credit losses	$ 17,689	$ 14,957
Loss on adjustment of allowance for expected credit losses	475	255
Write-offs, net of recoveries	0	0
Ending allowance for expected credit losses	$ 18,164	$ 15,212

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Acquisition - Narrative (Details) $ in Thousands	Apr. 16, 2023 USD ($) store	Mar. 31, 2024 store	Dec. 31, 2023 store	Mar. 31, 2023 store	Dec. 31, 2022 store
Business Acquisition [Line Items]
Number of owned and franchised locations | store		2,599	2,575	2,446	2,410
Franchisee-owned stores:
Business Acquisition [Line Items]
Number of owned and franchised locations | store		2,341	2,319	2,211	2,176
Florida Acquisition
Business Acquisition [Line Items]
Aggregate consideration | $	$ 26,264
Loss on unfavorable reacquired franchise rights | $	110
Net purchase price | $	$ 26,154
Florida Acquisition | Franchisee-owned stores:
Business Acquisition [Line Items]
Number of owned and franchised locations | store	4

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Acquisition - Schedule of Purchase Consideration (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Apr. 16, 2023
Business Acquisition [Line Items]
Goodwill	$ 719,074	$ 717,502
Florida Acquisition
Business Acquisition [Line Items]
Property and equipment			$ 3,851
Right of use assets			5,424
Other long-term assets			95
Intangible assets			6,880
Goodwill			14,812
Deferred revenue			(687)
Other current liabilities			(17)
Lease liabilities			(4,204)
Total			$ 26,154

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Acquisition - Components of Identifiable Intangible Assets Acquired (Details) - Florida Acquisition $ in Thousands	Apr. 16, 2023 USD ($)
Business Acquisition [Line Items]
Fair value	$ 6,880
Reacquired franchise rights
Business Acquisition [Line Items]
Fair value	$ 6,650
Useful life	6 years 9 months 18 days
Customer relationships
Business Acquisition [Line Items]
Fair value	$ 230
Useful life	6 years

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Goodwill and intangible assets - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 717,502
Acquisition	1,572
Ending balance	$ 719,074

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Goodwill and intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-lived intangible assets:
Gross carrying amount	$ 473,751	$ 473,751
Accumulated amortization	(260,601)	(247,844)
Total	213,150	225,907
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total intangible assets	620,351	620,351
Accumulated amortization	(260,601)	(247,844)
Net carrying Amount	359,750	372,507
Trade and brand names
Indefinite-lived intangible assets:
Indefinite-lived intangible assets	146,600	146,600
Customer relationships
Finite-lived intangible assets:
Gross carrying amount	199,043	199,043
Accumulated amortization	(173,087)	(169,155)
Total	25,956	29,888
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(173,087)	(169,155)
Reacquired franchise rights
Finite-lived intangible assets:
Gross carrying amount	274,708	274,708
Accumulated amortization	(87,514)	(78,689)
Total	187,194	196,019
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (87,514)	$ (78,689)

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Goodwill and intangible assets - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Acquisition	$ 1,572,000
Impairment charges	0		$ 0
Amortization of intangible assets	$ 12,768,000	$ 12,587,000

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Goodwill and intangible assets - Summary of Amortization expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 36,433
2025	36,713
2026	32,079
2027	27,956
2028	27,300
Thereafter	52,669
Total	$ 213,150	$ 225,907

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Long-term debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total debt, excluding deferred financing costs	$ 1,999,250	$ 2,004,438
Deferred financing costs, net of accumulated amortization	(19,468)	(20,814)
Total debt, net	1,979,782	1,983,624
Current portion of long-term debt	20,750	20,750
Long-term debt, net of current portion	1,959,032	1,962,874
2018-1 Class A-2-II notes | Senior Notes
Debt Instrument [Line Items]
Total debt, excluding deferred financing costs	590,625	592,187
2019-1 Class A-2 notes | Senior Notes
Debt Instrument [Line Items]
Total debt, excluding deferred financing costs	526,625	528,000
2022-1 Class A-2-I notes | Senior Notes
Debt Instrument [Line Items]
Total debt, excluding deferred financing costs	416,500	417,563
2022-1 Class A-2-II notes | Senior Notes
Debt Instrument [Line Items]
Total debt, excluding deferred financing costs	$ 465,500	$ 466,688

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Long-term debt - Schedule of Future Annual Payments of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Remainder of 2024	$ 15,562
2025	600,438
2026	419,313
2027	10,250
2028	10,250
Thereafter	943,437
Total	$ 1,999,250	$ 2,004,438

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Long-term debt - Additional Information (Details)	Feb. 10, 2022 USD ($) extension	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 03, 2019 USD ($)	Aug. 01, 2018 USD ($)
Debt Instrument [Line Items]
Debt issuance costs	$ 16,193,000			$ 10,577,000	$ 27,133,000
Restricted cash		$ 46,190,000	$ 46,279,000
2018-1 Class A-2-I | Senior Notes
Debt Instrument [Line Items]
Interest rate					4.262%
Principal amount					$ 575,000,000
2018-1 Class A-2-II notes | Senior Notes
Debt Instrument [Line Items]
Interest rate					4.666%
Principal amount					$ 625,000,000
Variable Funding Note Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 75,000,000
2019-1 Class A-2 notes | Senior Notes
Debt Instrument [Line Items]
Interest rate				3.858%
Principal amount				$ 550,000,000
3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate	3.251%
Principal amount	$ 425,000
4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate	4.008%
Principal amount	$ 475,000
2022 Variable Funding Notes | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000
Commitment fee percentage	0.50%
Number of additional extensions | extension	2
Term of extension (in years)	1 year
Interest rate during period	5.00%
Securitized Senior Notes | Securitized Senior Notes
Debt Instrument [Line Items]
Cap on non-securitized indebtedness		$ 50,000,000
Leverage ratio cap		7.0

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Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Operating	$ 385,796	$ 381,010
Finance	144	179
Total lease assets	385,940	381,189
Liabilities
Current operating lease liabilities	31,895	33,849
Current finance lease liabilities	109	125
Noncurrent operating lease liabilities	390,399	381,589
Noncurrent finance lease liabilities	42	63
Total lease liabilities	$ 422,445	$ 415,626
Weighted-average remaining lease term - operating leases	8 years	8 years
Weighted-average discount rate - operating leases	5.50%	5.40%
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net of accumulated depreciation of $349,068 and $322,958, as of March 31, 2024 and December 31, 2023, respectively	Property and equipment, net of accumulated depreciation of $349,068 and $322,958, as of March 31, 2024 and December 31, 2023, respectively
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities

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Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 17,475	$ 14,904
Variable lease cost	6,203	5,751
Total lease cost	$ 23,678	$ 20,655

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Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Cash paid for lease liabilities	$ 15,303	$ 13,302
Operating lease ROU assets obtained in exchange for operating lease liabilities	$ 16,064	$ 4,661

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Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 34,723
2025	72,448
2026	73,431
2027	71,432
2028	66,344
Thereafter	212,861
Total lease payments	531,239
Less: imputed interest	(108,794)
Present value of lease liabilities	$ 422,445	$ 415,626

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Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
Lease payments for leases signed but not yet commenced	$ 32,239

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Revenue from contract with customers - Schedule of Contract Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Amount
Beginning Balance	$ 91,638
Revenue recognized that was included in the contract liability at the beginning of the year	(34,438)
Increase, excluding amounts recognized as revenue during the period	53,883
Ending Balance	$ 111,083

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Revenue from contract with customers - Remaining Performance Obligations (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 111,083
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 72,982
Remaining performance obligation, expected timing of satisfaction	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 7,970
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,630
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,325
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,071
Remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 20,105
Remaining performance obligation, expected timing of satisfaction

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Revenue from contract with customers - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Equipment deposits	$ 7,594
Deferred revenue expected recognition period (in months)	12 months

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Related party transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Total revenue from related parties	$ 248,017	$ 222,225
Related party
Related Party Transaction [Line Items]
Total revenue from related parties	6,166	1,252
Related party | Franchise revenue
Related Party Transaction [Line Items]
Total revenue from related parties	884	241
Related party | Franchise revenue | CEO
Related Party Transaction [Line Items]
Total revenue from related parties	1,280	1,006
Related party | Equipment revenue
Related Party Transaction [Line Items]
Total revenue from related parties	2,990	0
Related party | Equipment revenue | CEO
Related Party Transaction [Line Items]
Total revenue from related parties	$ 1,012	$ 5

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Related party transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Accounts receivable	$ 23,837		$ 41,890
Deferred revenue	111,083		91,638
Accounts payable	20,560		23,788
Total revenue	248,017	$ 222,225
Selling, general and administrative	29,193	27,767
Equipment
Related Party Transaction [Line Items]
Total revenue	21,619	23,661
Related party
Related Party Transaction [Line Items]
Total revenue	6,166	1,252
Related party | Administrative Service
Related Party Transaction [Line Items]
Total revenue	1,461	917
Related party | Equipment
Related Party Transaction [Line Items]
Accounts receivable	5,247		2,916
Total revenue	2,990	0
Related party | Equipment | Director and Interim CEO
Related Party Transaction [Line Items]
Total revenue	1,012	5
Related party | Deferred ADA and franchise agreement revenue
Related Party Transaction [Line Items]
Deferred revenue	695		719
Related party | Deferred ADA and franchise agreement revenue | Director and Interim CEO
Related Party Transaction [Line Items]
Deferred revenue	140		142
Related party | Tax benefit arrangements
Related Party Transaction [Line Items]
Accounts payable	81,474		$ 98,494
Related party | Amenity tracking compliance software | Director and Interim CEO
Related Party Transaction [Line Items]
Purchases from related party	$ 65	91
Related party | Amenity tracking compliance software | Director and Interim CEO | Amenity Tracking Compliance Software Company
Related Party Transaction [Line Items]
Ownership percentage	10.50%
Affiliated entity | Corporate travel
Related Party Transaction [Line Items]
Selling, general and administrative		$ 181

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Stockholders' equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Nov. 04, 2022
Class of Stock [Line Items]
Repurchase and retirement of common stock	$ 20,169,000	$ 25,005,000
Share repurchase excise tax	$ 163,000
Preferred stock, shares authorized (in shares)	50,000,000		50,000,000
Preferred stock, shares issued (in shares)	0		0
Preferred stock, shares outstanding (in shares)	0		0
2022 share repurchase program
Class of Stock [Line Items]
Stock repurchase program, authorized amount					$ 500,000,000
Remaining authorized amount	$ 354,965,000
Pla-Fit Holdings, LLC
Class of Stock [Line Items]
Stock received during period (in shares)	326,073
Economic interest	1.20%
Investor | Pla-Fit Holdings, LLC | Secondary Offering and Exchange
Class of Stock [Line Items]
Percentage of economic interest	98.80%
Continuing LLC Owners | Secondary Offering and Exchange
Class of Stock [Line Items]
Number of units held by owners (in shares)	1,071,094
Continuing LLC Owners | Pla-Fit Holdings, LLC | Secondary Offering and Exchange
Class of Stock [Line Items]
Percentage of economic interest	1.20%
Holdings Units
Class of Stock [Line Items]
Shares exchanged for Class A common stock (in shares)	1
Class B common stock
Class of Stock [Line Items]
Shares exchanged for Class A common stock (in shares)	1
Number of shares exchanged (in shares)	326,073
Common stock, shares outstanding (in shares)	1,071,000		1,397,000
Class B common stock | Common stock
Class of Stock [Line Items]
Exchanges of Class A common stock, shares (in shares)	(326,000)	(1,901,000)
Common stock, shares outstanding (in shares)	1,071,000	4,245,000	1,397,000	6,146,000
Class B common stock | Continuing LLC Owners | Secondary Offering and Exchange
Class of Stock [Line Items]
Number of units held by owners (in shares)	1,071,094
Class B common stock | Continuing LLC Owners | Pla-Fit Holdings, LLC | Secondary Offering and Exchange | Continuing LLC Owners
Class of Stock [Line Items]
Economic interest	1.20%
Class A common stock
Class of Stock [Line Items]
Exchanges of Class A common stock, shares (in shares)	326,073
Common stock, shares outstanding (in shares)	86,832,000		86,760,000
Class A common stock | Common stock
Class of Stock [Line Items]
Exchanges of Class A common stock, shares (in shares)	326,000	1,901,000
Repurchase and retirement of common stock (in shares)	314,000	318,000
Common stock, shares outstanding (in shares)	86,832,000	85,230,000	86,760,000	83,430,000
Class A common stock | 2022 share repurchase program
Class of Stock [Line Items]
Repurchase and retirement of common stock (in shares)	313,834
Repurchase and retirement of common stock	$ 20,005,000
Class A common stock | Continuing LLC Owners
Class of Stock [Line Items]
Number of shares exchanged (in shares)	326,073	1,900,309
Class A common stock | Investor | Common Stockholders | Common stock
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	86,831,728
Class A common stock | Investor | Continuing LLC Owners
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	86,831,728
Class A common stock | Investor | Planet Fitness, Inc. | Common Stockholders | Common stock
Class of Stock [Line Items]
Economic interest	98.80%

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Earnings per share - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 shares
Holdings Units
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares exchanged for Class A common stock (in shares)	1
Class B common stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares exchanged for Class A common stock (in shares)	1

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Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator
Net income	$ 34,973	$ 24,769
Less: net income attributable to non-controlling interests	664	2,064
Net income attributable to Planet Fitness, Inc.	$ 34,309	$ 22,705
Stock options
Effect of dilutive securities:
Weighted-average shares outstanding adjustment (shares)	223,244	271,680
Restricted stock units
Effect of dilutive securities:
Weighted-average shares outstanding adjustment (shares)	63,276	63,358
Performance stock units
Effect of dilutive securities:
Weighted-average shares outstanding adjustment (shares)	26,178	7,654
Class A common stock
Denominator
Weighted-average shares of Class A common stock outstanding - basic (in shares)	86,909,383	84,444,003
Effect of dilutive securities:
Weighted-average shares of Class A common stock outstanding - diluted (in shares)	87,222,081	84,786,695
Earnings per share of Class A common stock - basic (in usd per share)	$ 0.39	$ 0.27
Earnings per share of Class A common stock - diluted (in usd per share)	$ 0.39	$ 0.27

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Earnings per share - Common Stock Equivalents Excluded from the Computation of Diluted Net Income Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities number of weighted-average common stock equivalents excluded from the computation of diluted net income per share (in shares)	1,177,124	5,203,710
Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities number of weighted-average common stock equivalents excluded from the computation of diluted net income per share (in shares)	1,176,568	5,007,448
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities number of weighted-average common stock equivalents excluded from the computation of diluted net income per share (in shares)	554	196,209
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities number of weighted-average common stock equivalents excluded from the computation of diluted net income per share (in shares)	2	0
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities number of weighted-average common stock equivalents excluded from the computation of diluted net income per share (in shares)	0	53

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Income taxes - Additional information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) agreement shares	Mar. 31, 2023 USD ($) shares	Dec. 31, 2023 USD ($)
Tax Credit Carryforward [Line Items]
Effective income tax rate	28.40%	27.60%
Net deferred tax assets	$ 498,173		$ 502,544
Total liability related to uncertain tax positions	$ 242		273
Number of tax receivable agreements | agreement	2
Applicable tax savings (in percentage)	85.00%
Percentage of remaining tax savings	15.00%
Tax benefit obligation	$ 497,994		$ 495,662
Continuing LLC Owners
Tax Credit Carryforward [Line Items]
Decrease in deferred tax assets	(400)	$ (2,605)
Deferred tax asset	7,519	50,823
Deferred tax liability	$ 2,694	$ 2,315
Continuing LLC Owners | Class A common stock
Tax Credit Carryforward [Line Items]
Number of shares exchanged (in shares) | shares	326,073	1,900,309
TRA Holders
Tax Credit Carryforward [Line Items]
Applicable tax savings (in percentage)	85.00%

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Income taxes - Schedule of Future Payments Under Tax Benefit Arrangements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Remainder of 2024	$ 41,135
2025	50,385
2026	52,814
2027	48,624
2028	41,973
Thereafter	263,063
Total	$ 497,994	$ 495,662

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Commitments and contingencies (Details) - Mexico Acquisition - Planet Fitmex, LLC $ in Thousands		3 Months Ended
	Oct. 20, 2023 USD ($) store	Mar. 31, 2024 USD ($)
Commitment And Contingencies [Line Items]
Legal settlement		$ 3,300
Settlement	$ 31,619
Stores acquired from the Company | store	5

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Segments - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Total revenue	$ 248,017	$ 222,225
Franchise
Segment Reporting Information [Line Items]
Total revenue	104,020	92,682
Franchise | International
Segment Reporting Information [Line Items]
Total revenue	3,492	2,394
Franchise | Placement services
Segment Reporting Information [Line Items]
Total revenue	1,837	1,613
Corporate-owned stores
Segment Reporting Information [Line Items]
Total revenue	122,378	105,882
Corporate-owned stores | International
Segment Reporting Information [Line Items]
Total revenue	1,220	$ 1,074
Long-lived assets	$ 5,956		$ 3,609

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Segments - Summary of Financial Information for the Company's Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Total revenue	$ 248,017	$ 222,225
Total Segment EBITDA	104,649	88,014
Corporate and other
Segment Reporting Information [Line Items]
Total Segment EBITDA	(18,526)	(15,822)
Franchise segment
Segment Reporting Information [Line Items]
Total revenue	104,020	92,682
Franchise segment | Operating segments
Segment Reporting Information [Line Items]
Total Segment EBITDA	76,311	64,735
Franchise segment | US
Segment Reporting Information [Line Items]
Total revenue	100,528	90,288
Franchise segment | International
Segment Reporting Information [Line Items]
Total revenue	3,492	2,394
Corporate-owned stores segment
Segment Reporting Information [Line Items]
Total revenue	122,378	105,882
Corporate-owned stores segment | Operating segments
Segment Reporting Information [Line Items]
Total Segment EBITDA	42,104	33,530
Corporate-owned stores segment | US
Segment Reporting Information [Line Items]
Total revenue	121,158	104,808
Corporate-owned stores segment | International
Segment Reporting Information [Line Items]
Total revenue	1,220	1,074
Equipment segment
Segment Reporting Information [Line Items]
Total revenue	21,619	23,661
Equipment segment | Operating segments
Segment Reporting Information [Line Items]
Total Segment EBITDA	4,760	5,571
Equipment segment | US
Segment Reporting Information [Line Items]
Total revenue	16,417	23,105
Equipment segment | International
Segment Reporting Information [Line Items]
Total revenue	$ 5,202	$ 556

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Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting [Abstract]
Total Segment EBITDA	$ 104,649	$ 88,014
Depreciation and amortization	39,380	36,010
Other income	647	113
Losses from equity-method investments, net of tax	(1,200)	(265)
Income from operations	65,822	52,156
Interest income	5,461	3,931
Interest expense	(21,433)	(21,599)
Other income, net	647	113
Income before income taxes	$ 50,497	$ 34,601

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Segments - Summary of Company's Assets by Reportable Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Total consolidated assets	$ 2,992,778	$ 2,969,693
Operating segments | Franchise
Segment Reporting, Asset Reconciling Item [Line Items]
Total consolidated assets	185,046	169,836
Operating segments | Corporate-owned stores
Segment Reporting, Asset Reconciling Item [Line Items]
Total consolidated assets	1,638,909	1,637,146
Operating segments | Equipment
Segment Reporting, Asset Reconciling Item [Line Items]
Total consolidated assets	164,917	176,249
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Total consolidated assets	$ 1,003,906	$ 986,462

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Segments - Summary of Company's Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Segment Reporting, Other Significant Reconciling Item [Line Items]
Consolidated goodwill	$ 719,074	$ 717,502
Franchise
Segment Reporting, Other Significant Reconciling Item [Line Items]
Consolidated goodwill	16,938	16,938
Corporate-owned stores
Segment Reporting, Other Significant Reconciling Item [Line Items]
Consolidated goodwill	609,470	607,898
Equipment
Segment Reporting, Other Significant Reconciling Item [Line Items]
Consolidated goodwill	$ 92,666	$ 92,666

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Corporate-owned and franchisee-owned stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Details) - store	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Number Of Stores [Roll Forward]
Stores operated at beginning of period	2,575	2,410
New stores opened	25	36
Stores debranded, sold, closed or consolidated	(1)	0
Stores operated at end of period	2,599	2,446
Franchisee-owned stores:
Number Of Stores [Roll Forward]
Stores operated at beginning of period	2,319	2,176
New stores opened	23	35
Stores debranded, sold, closed or consolidated	(1)	0
Stores operated at end of period	2,341	2,211
Corporate-owned stores:
Number Of Stores [Roll Forward]
Stores operated at beginning of period	256	234
New stores opened	2	1
Stores operated at end of period	258	235