Planet Fitness, Inc.

will be your conference operator today. At this time, I would like to welcome everyone to the Q3 Planet Fitness earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Stacey Caravella, Vice President of Investment Relations. Let's go ahead.

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 this call. Our release can be found on our investor website along with any reconciliation of non-GAAP financial measures mentioned on their 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 third quarter earnings call. In the first nine months of the year, we made considerable progress in executing our strategic imperatives and are feeling energized to capture even greater opportunities in the evolving fitness landscape. Our strong financial performance in the third quarter is indicative of that progress and allows us to raise elements of our 2025 outlook, which Jay will touch on in greater detail. As consumers increasingly prioritize their health and wellbeing, we are pleased to have entered the quarter with approximately 20.7 million members and 6.9% system-wide same club sales growth. We added 35 new clubs and ended the quarter with a global club count of 2795. Our reach is unparalleled. At the same time, With population growth and de-urbanization over the past several years, we see increased opportunities to bring our high-value offering to an ever-growing community of fitness-minded consumers in more geographies than ever before. In September, we announced record-breaking participation in our 2025 High School Summer Pass program, with more than 3.7 million teens completing over 19 million free workouts in our clubs. Participation was up roughly 30% from last year, reflecting teens' desire to stay active and prioritize their wellbeing during a critical time when school is out. We believe that the marketing emphasis on our expanded product offering, including more strength equipment, is resonating with younger consumers. We also shifted our marketing approach this year by increasing the number of influencers we use to promote the Summer Pass, and we prioritized platforms that drive participation, such as TikTok. This year alone, we've invested nearly $170 million in waived membership dues. Historically, we've converted mid single digit percentages of the participants to paying members over time. To reach these highs in the fifth year of the program speaks volumes about Gen Z's commitment to their health and wellness. Key findings from this year's participants are particularly affirming, with 93% of surveyed participants reporting that the program helped them create sustainable fitness routines, and 78% feeling more confident. Let's now turn to the progress we've made on our four strategic imperatives during the third quarter. As a reminder, the 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. I'll start with redefining our brand promise. In the third quarter, we continued with our We're All Strong on This Planet marketing campaign that highlights our best-in-class equipment, our welcoming atmosphere, and the supportive community we offer. Our strong join trend has continued, and our member count at the end of Q3 was in line with our expectations. We also saw increased black card penetration in the quarter, with 66.1% of our total membership now at the higher tier. a 300 basis point increase from the same quarter last year. Consumers continue to recognize the value of the black card with the smallest price gap between our two membership tiers since we launched the black card. As many of you know, we held off on increasing the price of our black card membership until we got on the other side of the classic card price increase anniversary. After thoughtful consideration, significant testing and data analysis, we've made the decision to raise the black card price to $29.99 after our peak joint season in 2026. We're also continuing to test new black card amenities such as dry cold plunge and red light technology that would add even more value to our black card offering. We unveiled several of these potential new offerings to our franchisees last week at our annual franchisee meeting, and they were met with great enthusiasm. We look forward to sharing our plans to modernize the Black Card Spa at our Investor Day next week. Finally, we're excited to announce that we'll be sponsoring New Year's Rockin' Eve next month in Times Square for our 11th consecutive year. This is a high visibility event that continues to put Planet Fitness on a global stage and keeps our brand top of mind for consumers as they think about prioritizing their health and fitness goals in the new year. Now to member experience and format optimization. We know that establishing a relationship with our members is important to their engagement and retention. And utilization matters, as people tend to be more loyal to brands that they use regularly. It's an indication of the value they find in their Planet Fitness membership, which is why we're pleased to see utilization rates continue to increase, a leading indicator of member stickiness. We're partnering with our franchisees to put the member at the core of everything we do, along with the team members in our clubs who play a critical role in personally welcoming every member. We see time and time again when club team members greet our members by name and provide personal recognition, it enhances the experience for both the member and the team member. Our goal is to create a deeper sense of loyalty and emotional connection to drive retention and ultimately revenue. A recent consumer insights study showed that Planet Fitness outperformed several other fitness brands on feel welcomed. This is an important emotional equity when we consider that gym intimidation can be a barrier to gym membership and usage. We also saw strong positive associations for Planet Fitness with convenient location, value for money, price, easy access, and machine variety and availability. These are strong associations for our brand. Member experience goes beyond a welcoming atmosphere. It includes providing members with the ideal equipment mix in a club with a format optimized layout so they can achieve their workouts their way. To this end, we gave franchisees who are developing or renovating clubs this year the opportunity to build a traditional layout or one of the new format optimized clubs, and 95% elected to build one of the newer club formats. By the end of 2025, close to 80% of clubs system-wide will have some version of an optimized format. That's nearly four out of five clubs. We will share more about this next week at our Investor Day. And finally, our efforts to accelerate new club growth We continue to refine our product offering and enhance operational efficiencies to maximize the economic value proposition for our franchisees while delivering the most relevant on-brand experience for today's members. That said, we're a top-line driven business, and we are keenly focused on driving unit economics through top-line growth. In August, our franchisees voted to shift one percentage point of the marketing funding from the local advertising fund to the national ad fund. This change will enable us to unlock new marketing opportunities to drive consideration and conversion, spend our dollars more efficiently, and ultimately fuel member growth. Our goal is to drive top line revenue as it is the key driver of unit economics. We do this through more effective marketing, while enhancing the bottom line through greater marketing efficiency and the flow through on incremental revenue in this high margin business. We're grateful to our franchisees for this vote of confidence in our marketing leadership and strategy. Finally, we proudly received two notable honors recently. First, we were named to Fortune's 2025 100 fastest growing companies list, and second, we were recognized as number 22 in this year's Franchise Times Top 400 as the top-rated fitness concept. These honors illustrate the strength of our brand and are a testimonial to the dedication of our esteemed team members and franchisees. Now I'll turn it over to Jay.