Planet Fitness, Inc.

Good morning, and thank you for joining today's Planet Fitness Q4 earnings conference call. After prepared remarks by management, there will be an opportunity to ask questions. Please limit yourself to one question and one follow-up. If you have additional questions, please rejoin the queue. I would now like to hand the call over to Stacey Caravella, Vice President, Investor Relations, for opening remarks. Please 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 on 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 fourth quarter earnings call. Our strong 2025 performance is a direct result of our discipline and focus on our four strategic imperatives. I want to personally thank our franchisees and our team members. Their passion is what fuels this brand. We ended the year with approximately 20.8 million members and a global footprint of nearly 2,900 clubs, reinforcing the quality of our member experience and our compelling value proposition. anyone can get a great workout at Planet Fitness for an incredible value. Our financial performance was strong across the board for the year as well. Fame Club sales grew 6.7%, revenue increased 12%, adjusted EBITDA 13%, and we delivered 19% growth in adjusted diluted EPS. Importantly, we opened 181 new clubs and added 1.1 million net new members in 2025. This growth occurred during the first full year of our new Classic Card membership dues, proving that the value of our brand remains unique in the industry. The progress we made on both our top line and new club growth is evidence of our powerful scale and reach and the strength of our team. Our scale provides a foundation to introduce our brand to even more people looking to improve their physical and mental health globally. There was no better way to wrap up the strong year than by taking center stage as the presenting sponsor of Dick Clark's New Year's Rockin' Eve, as we've done for the past decade. With 20,000 purple hats blanketing Times Square, we ensured Planet Fitness was the brand millions of people saw as they set their 2026 wellness goals. As we continue to grow our international presence, we see New Year's Rockin' Eve as an opportunity to put the Planet Fitness brand on a global stage. We are seeing momentum as we execute against our four strategic imperatives. As a reminder, they 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's dive into the specific progress we achieved across these areas during 2025. I'll start with redefining our brand promise. A key driver in member growth was our intentional focus on the next generation of fitness enthusiasts. The 2025 High School Summer Pass Program yielded our most successful results to date, with more than 3.7 million teens completing more than 19 million workouts, an all-time high. We believe the strong year-over-year results were enhanced by the marketing emphasis on our expanded product offering, showcasing that our clubs have a strong complement of strength equipment so members can achieve the workouts they desire at Planet Fitness. We also augmented our social media strategy to reach our younger consumer and increased our use of influencers to promote the Summer Pass. Through the end of the year, we converted 8.3% of teen participants to paying members, which represents an elevation in conversion over the past two years. Our strong conversion rate reflects how young people prioritize their well-being, and we provide them with a judgment-free environment to start or continue their fitness journeys. Our success would not have been possible without our club team members, who are instrumental in ensuring the participants' first experience with Planet Fitness was positive, laying the groundwork for them to become members. We continue to lean into our We Are All Strong on This Planet campaign which effectively showcases our best-in-class equipment and supportive atmosphere. This follows our 2025 strategic shift in our messaging approach, leading with the compelling Why Planet Fitness message, followed by a Why Planet Fitness Now call to action to reengage LAPS members and attract new ones. Because this campaign resonated so strongly last year, we extended it into 2026. By maintaining this consistency, we avoided the cost of developing a completely new creative platform from scratch while updating creative assets, focusing on differentiators for our brand. This efficiency allowed us to redirect those savings into high impact working media to drive even greater reach. The agreement with our franchisees to shift a portion of contributions from the local ad fund to the national ad fund for 2026, beginning in the second quarter, allows us to move faster in executing on several strategic initiatives. Beyond driving efficiencies by centralizing more of our ad spend, we are accelerating high impact technology projects, including AI enabled CRM, and dynamic content optimization to reach new members more effectively than ever before and invest in an AI-enabled predictive churn model to help us increase member retention. Marking his first year with us this month, Chief Marketing Officer Brian Povinelli has made rapid progress in scaling our marketing capabilities. Key milestones include strategic hires who are driving AI-enabled member experience initiatives, national media buying and CRM work, a new social media marketing strategy, as well as augmenting the team responsible for our perks and partnerships. These moves will help us refine and better personalize our messaging, drive marketing spend efficiencies, and more effectively engage and retain members. We are proud of the progress we've made so far and our strong join volume last year, and we're excited for the impact these new leaders will make on our business moving forward. I enjoy spending time in our clubs, and I particularly like spending time in our clubs in early January to hear from our club managers and get a firsthand look at volume, club traffic, and what pieces of equipment are getting the most usage. Last month, I spent time in several of our corporate clubs that are part of the new Black Card Amenities test. I tried a few of the new black card spa modalities we're currently testing, including the dry cold plunge and the red light sauna. I spoke with members who were using the new amenities as well to hear their feedback, and it was resoundingly positive. We see an opportunity to drive both joins and upgrades as well as enhanced retention with these new amenities. It's our opportunity to democratize recovery and wellness, just as we did with fitness 30 years ago. Turning now to member experience and format optimization. We are elevating the member experience through a sophisticated data-driven approach, strategically leveraging technology to drive deeper engagement and strengthen member retention. Our mobile app is a prime example. It remains the top download in the health and fitness category, serving as a touchpoint for our community. We know that the first 100 days of membership influence long-term retention. Our data indicates that early engagement, both digitally and in-club, contributes to higher lifetime value and the emotional connection to unlock our next wave of growth. Looking ahead, we are piloting AI-driven tools to augment our in-club trainers, providing members with personalized coaching and workout support. We're also leaning into the evolving health landscape, specifically regarding GLP-1s. As these treatments can lead to a loss of muscle mass, it's essential that users incorporate strength training to maintain their overall health. Our judgment-free environment makes us the natural partner for this growing demographic. A recent survey conducted by one of our franchisees indicated that roughly 50% of people who take a GLP-1 consider a gym membership. We see positive indicators for continued growth in demand for our offering, as GLP-1s become more accessible through lower pricing and pill formats. To that end, we are seeing excellent early results from our PERCS partnership with Roe. While it is still early days and too soon to run a victory lap, we can share that this has been our most successful PERCS program yet with high download and conversion. Collaborations like this help to position us at the forefront of a major shift in consumer wellness. Beyond digital perks, we're focused on the physical member experience through format optimization. We believe in giving members the ideal equipment mix designed for them to complete their workout their way. Not only has member response been favorable, the response from our franchisees has been overwhelming. In 2025, 95% of those who opened or remodeled clubs chose an optimized format. We concluded the year with nearly 80% of our entire system featuring some version of a format optimized layout or equipment offering. And finally, our efforts to accelerate new club growth. Our focus is on leveraging our collective size and scale to defend and expand our industry leadership position in the HVLP space. Thanks to an incredible push by our total system, particularly in the last several weeks of the year, we opened 104 clubs during the fourth quarter, an all-time quarterly high for a total of 181 openings in 2025. Let me say that again because it bears repeating. This is the highest number of Q4 openings in our history. While the real estate market showed a few signs of easing in 2025, it remains highly competitive. We are navigating this by partnering with franchisees to demonstrate our unique value proposition to landlords, specifically how Planet Fitness drives foot traffic that benefits the entire retail center. Furthermore, we're leveraging industry relationships to capitalize on prime site opportunities emerging from retail bankruptcies. We're also seeing success with franchisee-led acquisitions where they purchase small portfolios of regional gyms and convert them to Planet Fitness locations, an effective way of expanding our footprint in high-demand, tight real estate markets. This can be beneficial from a build cost standpoint, as electrical and plumbing is already in place, and from a financial ramp standpoint, as we have seen a solid percentage of members convert to Planet Fitness, so the club has a member base and cash flows from day one. Our international expansion remains a key growth pillar. We are focused on scaling our presence in existing markets like Mexico, Australia, and Spain, while strategically entering one to two new markets annually. A prime example of this momentum is our recent entry into Northern Mexico with a new franchisee set to develop Tijuana and Mexicali. We've also partnered with a bank to lead the Spain marketing process and have a number of interested investors as we look to convert that territory to a franchise market for accelerated growth. We are disciplined in our approach. We're building sustainable, healthy international market positions. This deliberate strategy is yielding results as we surpassed the 1 million member milestone across our international markets last year and have now crested 200 international clubs. Our chief development officer, Chip Olson, recently celebrated his one-year anniversary, during which he has strengthened his leadership team with several key appointments. He recently added a franchise sales director to his team with a focus on driving growth domestically to accelerate our outreach and expand our network of franchise partners. Finally, our commitment to member experience continues to earn prestigious third-party recognition. We are especially proud to be named one of USA Today's best customer service companies for 2026. Planet Fitness was the highest rated fitness brand on a list of 750 companies across a wide number of industries, a distinction based on millions of reviews measuring friendliness, competence, and reliability. Exceptional service is a business imperative that builds trust and drives the loyalty essential to our long-term retention and top-line growth. Now, I'll turn it over to Jay.