Planet Fitness Stock Plummets Over 30% in 2026 Amid Growth Concerns

Shares of Planet Fitness (NYSE: PLNT) have experienced a sharp decline in 2026, falling over 32% year to date as concerns mount over the company's growth trajectory. The fitness operator, known for its low-cost gym model, faces increasing competition in its core market, raising questions about its ability to sustain past performance. While the company continues to open new locations and raise prices, recent financial results indicate a slowdown in momentum. Planet Fitness reported fourth-quarter 2025 revenue of $376.3 million, a 10.5% increase from the prior year. However, comparable club sales growth for the period came in at 5.7%, down from the 6.7% growth recorded for the full year. This marks a notable deceleration from the high-single-digit and double-digit growth rates the company previously achieved. The slowdown has raised concerns among investors, particularly as the stock trades at approximately 28 times earnings, a valuation many consider closer to fair value than a bargain. Despite the recent challenges, Planet Fitness remains a dominant player in the low-cost fitness space. The company added 181 new clubs in 2025, bringing its total to nearly 2,900 locations. CEO Colleen Keating highlighted the success of a 50% price increase for new Classic Card members, which contributed to the addition of 1.1 million net new members in 2025. The company also plans to raise prices for its Black Card tier, which has a 66.5% penetration rate at the end of Q4, potentially boosting revenue further. Internationally, Planet Fitness has made progress, surpassing 200 international clubs and focusing on expanding in existing markets like Mexico, Australia, and Spain. Management also aims to enter one to two new international markets annually. While the company's expansion efforts and pricing power remain strong, the stock's valuation and recent sales deceleration suggest investors may need to proceed with caution. The competitive landscape in the low-cost fitness sector continues to evolve, and Planet Fitness must navigate these challenges to maintain its market position.