TacticScaleWhat Planet Fitness Does & How It Makes Money (PLNT)
Updated October 2026 · reflects Planet Fitness's latest reported financials
Franchisor and operator of Planet Fitness gyms. The company earns franchise revenue from franchisee-owned clubs and operating revenue from the clubs it owns.
How Planet Fitness makes money
The company earns franchise revenue from franchisee-owned clubs and operating revenue from the clubs it owns. It also sells fitness equipment to franchisee-owned clubs.
What Planet Fitness does
Planet Fitness, Inc. franchises and operates fitness centers under the Planet Fitness brand. It was founded in 1992 and is headquartered in Hampton, New Hampshire. The company reports three segments: Franchise, Corporate-Owned Clubs, and Equipment. Franchise operations cover the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The company also owns clubs in the United States, Canada and Spain. The Equipment segment sells fitness equipment to franchisee-owned clubs in the United States, Canada and Mexico. This ties the company's revenue to how many clubs its franchisees open and re-equip, as well as to franchise income and its own club operations.
Products & services
- Planet Fitness brand franchising
- Corporate-owned Planet Fitness clubs
- Fitness equipment sales to franchisees
What is Planet Fitness worth?
On an owner-earnings DCF, Planet Fitness's most-likely value is about $60 versus a recent price near $48 (26% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$28) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 9.8× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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