Planet Fitness, Inc.

To withdraw your question, press star 1 again. We'll now like to turn the conference over to Stacey Carabella, VP of Investor Relations. You may begin.

Thank you, Operator, and good morning, everyone. Speaking on today's call will be Planet Fitness Chief Executive Officer, Colleen Keating, and Chief Financial Officer, Jay Stas. They will be available for questions during the Q&A session following the prepared remarks. Today's call is being webcast live and recorded for replay. Before I turn the call over to Colleen, I'd like to remind everyone that the language and forward-looking statements included in our earnings release also applies to our comments made during the call. Our release can be found on our investor website along with any reconciliation of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures. Now, I will turn the call over to Colleen.

Thank you, Stacey, and thank you, everyone, for joining us for the Planet Fitness second quarter earnings call. We're excited to be joining you from the New York Stock Exchange, where we will be ringing the closing bell today in celebration of our 10th anniversary as a public company. Over the past decade, through a steadfast commitment to our mission and purpose, we've added nearly 14 million members. expanded our global footprint by more than 1700 clubs and established a presence in all 50 states and four additional countries today we have 2762 clubs and 20.8 million members around the planet we are proud of our accomplishments and confident in our even greater opportunity ahead As consumers increasingly prioritize their health and well-being, Planet Fitness is uniquely positioned to meet that demand with our judgment-free, high-quality, and affordable fitness experience. Our reach is unparalleled, with a Planet Fitness club within a 12-minute drive of 170 million people in the U.S. At the same time, With population growth and de-urbanization over the past several years, we see increasing opportunities to bring Planet Fitness's high-value offering to an ever-growing community of fitness-minded consumers in more geographies than ever before. Gen Z continues to be the fastest-growing segment of our membership. The ongoing success of initiatives like our high school summer pass now in its fifth year and already outpacing last year's sign-ups and workouts, highlights the continued strength and potential of our model. Gen Z is highly fitness aware, and there are still three years of this population that aren't yet of age to join our clubs. In fact, we have twice the unaided awareness versus our next closest gym peer, and that gap is even greater among Gen Zs. And the next generation, Gen Alpha, is expected to be even more focused on health and well-being. In the second quarter, we delivered strong financial performance and remained confident in our full-year outlook for 2025. We ended the quarter with approximately 20.8 million members and 8.2% system-wide same-club sales growth. We added 23 new clubs, ending the quarter with a global club count of 2762. I'd now like to review the progress we've made on our four strategic imperatives during the second quarter. As a reminder, these four strategic imperatives are redefining our brand promise and communicating it through our marketing, enhancing our member experience, refining our product and optimizing our format, and accelerating new club growth let me start with redefining our brand promise in the second quarter we continued with our we are all strong on this planet marketing campaign that highlights our best-in-class strength equipment our welcoming atmosphere and the supportive community that we offer we continue to see strong black card penetration with 65.8% of our membership at that tier as of the end of the quarter, a 340 basis point increase from the second quarter of last year. Consumers continue to recognize the value of the black card, with the gap between the classic and black card memberships only $10. That said, it's not a question of if, it's a question of when we implement a black card price increase. We wanted to anniversary the classic card price increase and will evaluate the impact of the online cancel functionality before making a timing decision on a black card price change. Now to member experience and format optimization. Our commitment to providing a positive member experience starts with a member's very first interaction with our brand. For many young adults, That initial connection is being forged this summer. As I noted earlier, high school summer pass initial results are outpacing last year's. It's exciting to see so many young people embracing their fitness journeys and even more so that they're choosing Planet Fitness to support them along the way. In line with our members first philosophy, We completed our national rollout of the online cancel functionality in May, despite the federal appeals court ruling that blocked the quits to cancel rule. We are proud to lead by doing the right thing for our members and simplifying their ability to manage their membership with us. As a reminder, this was an option that we offered in more than 35% of our system before the end of Q1, including all of our corporate clubs. where we enabled it more than a year ago. We are seeing a higher attrition rate now that this functionality is live across our system. This is contemplated in our same club sales outlook that Jay will address in his comments. In alignment with our core values and commitment to integrity and excellence, we believe this is the right thing to do, both to support our members and their experience and as the industry leader. In Q2, we once again had a mid-30% rejoin rate and believe that allowing members to more easily manage their membership will only benefit us when they think about rejoining a club in the future. And finally, our efforts to accelerate new club growth. We are steadfastly focused on unit economics and believe that franchisee success fuels franchisor success. we continue to refine our product offering and operational efficiencies to maximize the economic value proposition while delivering the most relevant on-brand experience for our members. Our goal is to drive the top line while enhancing the bottom line to realize the tremendous growth opportunity we have in the US and beyond. Internationally, Jay and I were in Spain in July to celebrate the opening of our ninth club located in Madrid, Chamartin. The milestone came just a week after the one-year anniversary of our first club in Spain. It was incredible to experience firsthand how the brand is being brought to life by the team in both newly built and a couple of conversion clubs. Seeing our brand continue to grow in new markets is extremely rewarding and a testament to our global appeal. Our success in bringing the brand to life in Europe is another proof point to support the long-term club growth opportunities for Planet Fitness. We look forward to providing more insight into our strategy for both domestic and international growth at our Investor Day in November. Earlier this week, we executed an agreement for the sale of our eight corporate clubs in California to a franchisee in the market. This transaction reflects our commitment to recycling capital where appropriate and advancing our asset light model. This sale also allows us to focus our resources on our corporate owned clubs on the East Coast, where we are more densely concentrated and therefore can operate more efficiently. Now I will turn it over to Jay.