Planet Fitness Stock Plummets 50%—Is This Your Last Chance to Strike Gold?

Shares of Planet Fitness (NYSE: PLNT) have taken a significant hit this year, down over 32% as investors express concern that the company's rapid growth may be slowing. In its latest quarterly report, the company indicated a deceleration in key performance metrics, particularly in comparable club sales. While the fitness chain remains a formidable player in the low-cost gym sector, the mounting competition is putting pressure on its growth trajectory, raising questions for potential investors.

In the fourth quarter of 2025, Planet Fitness achieved a revenue increase of 10.5% year-over-year, totaling $376.3 million. However, a closer look reveals that comparable club sales, which reflect sales at locations open for at least a year, only grew by 5.7%. This marks a decline from the company's full-year 2025 comparable club sales growth of 6.7%. Furthermore, the fourth-quarter revenue growth lagged behind the 12.1% pace set for the entire year, illustrating a concerning trend in performance.

Historically, Planet Fitness has demonstrated strong comparable growth rates in the high single digits and even double digits, making this recent slowdown particularly noteworthy. Despite this, the company has shown resilience, successfully opening 181 new clubs in 2025, bringing its total to nearly 2,900. CEO Colleen Keating noted in the earnings release that the addition of 1.1 million net new members during the year, coinciding with a 50% price increase for new Classic Card members, reflects strong demand for the brand.

However, with success comes increased competition. Rival low-cost fitness chains have aggressively expanded, offering similar pricing and amenities, which poses a challenge for Planet Fitness. Yet, the company appears undeterred, with plans to further raise prices for its lucrative Black Card tier this year. As of the end of Q4, Black Card penetration stood at 66.5%, suggesting room for significant revenue growth. Additionally, the company opened the highest number of clubs during a fourth quarter in its history, indicating robust expansion plans.

Internationally, Planet Fitness is capitalizing on growth opportunities, having surpassed 200 international clubs recently. The company aims to strengthen its presence in existing markets like Mexico, Australia, and Spain while strategically entering one to two new markets each year, according to Keating.

As potential investors weigh their options, a critical question arises: Is Planet Fitness stock a buy? Currently, shares are valued at approximately 28 times earnings. While the company is demonstrating some pricing power, concerns about decelerating sales trends and rising competition suggest that the stock's valuation is closer to fairly priced than undervalued. Should comparable club sales continue to moderate, or if competitive pressures demand margin sacrifices to retain members, the stock could experience further declines.

Given these factors, it may be prudent for investors to hold off on purchasing Planet Fitness stock at this time. While the company has a strong operational footing and a vast network of clubs, the current stock price seems steep relative to its shifting growth dynamics. For those intrigued by the fitness sector, it might be wise to keep Planet Fitness on a watchlist but await a more favorable entry point that reflects the risks associated with an increasingly crowded market.

Moreover, the investment landscape offers numerous opportunities. The Motley Fool Stock Advisor analyst team recently highlighted ten stocks they believe represent the best buying opportunities at present, and notably, Planet Fitness was not among them. Their track record in identifying high-performing stocks suggests that exploring alternatives could yield more promising returns.