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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q 
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________to ______________
Commission file number: 001-37534
PLANET FITNESS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 38-3942097
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.)
4 Liberty Lane West, Hampton, NH 03842
(Address of Principal Executive Offices and Zip Code)
(603) 750-0001
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, $0.0001 Par ValuePLNTNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒  Accelerated filer ☐
    
Non-accelerated filer ☐  Smaller reporting company ☐
       
Emerging growth company ☐    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒
As of November 1, 2024 there were 84,180,623 shares of the Registrant’s Class A Common Stock, par value $0.0001 per share, outstanding and 413,207 shares of the Registrant’s Class B Common Stock, par value $0.0001 per share, outstanding.



PLANET FITNESS, INC.
TABLE OF CONTENTS
  
    Page
   
   
  
Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2024 and December 31, 2023
Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023
Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023
  
  
  
   
  
  
  
  
  
  
  
   
2

Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, as well as information included in oral statements or other written statements made or to be made by us, contain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “goal,” “plan,” “prospect,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “contemplate,” “future,” “strategy” and the negative thereof and other similar words or expressions, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements we make regarding:
•future financial position;
•business strategy;
•budgets, projected costs and plans;
•future industry growth;
•financing sources;
•potential return of capital initiatives;
•the impact of litigation, government inquiries and investigations; and
•all other statements regarding our intent, plans, beliefs or expectations or those of our directors or officers.
We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Important factors that could cause actual results and events to differ materially from those indicated in the forward-looking statements include, among others, risks and uncertainties associated with the following:
•Our success depends substantially on the value of our brand, which could be materially and adversely affected by the high level of competition in the health and fitness industry, our ability to anticipate and satisfy consumer preferences, shifting views of health and fitness and our ability to obtain and retain high-profile strategic partnership arrangements.
•Our and our franchisees’ clubs may be unable to attract and retain members, which would materially and adversely affect our business, results of operations and financial condition.
•Our intellectual property rights, including trademarks, trade names, copyrights and trade dress, may be infringed, misappropriated or challenged by others.
•We and our franchisees rely heavily on information systems, including the use of email marketing, mobile application and social media, and any material failure, interruption or weakness may prevent us from effectively operating our business, damage our reputation or subject us to potential fines or other penalties.
•If we fail to properly maintain the confidentiality and integrity of our data, including member credit card, debit card, bank account information and other personally identifiable information, our reputation and business could be materially and adversely affected.
•The occurrence of cyber incidents, or a deficiency in cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of confidential information, and/or damage to our employee and business relationships and reputation, all of which could harm our brand and our business.
•If we fail to successfully implement our growth strategy, which includes new club development by existing and new franchisees, our ability to increase our revenues and operating profits could be adversely affected.
•Our planned growth and changes in the industry could place strains on our management, employees, information systems and internal controls, which may adversely impact our business.
•If we cannot retain our key employees and hire additional highly qualified employees, we may not be able to successfully manage our businesses and pursue our strategic objectives.
•Economic, political and other risks associated with our international operations could adversely affect our profitability and international growth prospects.
•Our financial results are affected by the operating and financial results of, our relationships with and actions taken by our franchisees.
•We are subject to a variety of additional risks associated with our franchisees, such as potential franchisee bankruptcies, franchisee changes in control, franchisee turnover, rising costs related to construction of new clubs and maintenance of existing clubs, including rising costs due to inflation and supply chain disruptions, which could adversely affect the attractiveness of our franchise model, and in turn our business, results of operations and financial condition.
•We and our franchisees could be subject to claims related to health and safety risks to members that arise while at both our corporate-owned and franchise clubs.
3

•Our business is subject to various laws and regulations including, among others, those governing indoor tanning, electronic funds transfer, ACH, credit card, debit card, digital payment options, auto-renewal contracts, membership cancellation rights and consumer protection more generally, and changes in such laws and regulations, failure to comply with existing or future laws and regulations or failure to adjust to consumer sentiment regarding these matters, could harm our reputation and adversely affect our business.
•Our failure to address evolving environmental, social and governance (“ESG”) issues may have an adverse effect on our business, financial condition and results of operations.
•We are subject to risks associated with leasing property subject to long-term non-cancelable leases.
•If we and our franchisees are unable to identify and secure suitable sites for new franchise clubs, our revenue growth rate and profits may be negatively impacted.
•Opening new clubs in close proximity may negatively impact our existing clubs’ revenues and profitability.
•Our franchisees may incur rising costs related to construction of new clubs and maintenance of existing clubs, including rising costs due to inflation, supply chain disruptions and other market conditions, which could adversely affect the attractiveness of our franchise model, and in turn our business, results of operations and financial condition.
•Our dependence on a limited number of suppliers for equipment and certain products and services could result in disruptions to our business and could adversely affect our revenues and gross profit.
•The other factors identified under the heading “Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission.
The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Report. Unless legally required, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future developments or otherwise.
4
PART I-FINANCIAL INFORMATION
ITEM 1. Financial Statements
Planet Fitness, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except per share amounts)
September 30, 2024December 31, 2023
Assets  
Current assets:  
Cash and cash equivalents$298,783 $275,842 
Restricted cash67,766 46,279 
Short-term marketable securities108,629 74,901 
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of September 30, 2024 and December 31, 2023, respectively
48,958 41,890 
Inventory4,858 4,677 
Restricted assets - national advertising fund363 — 
Prepaid expenses14,432 13,842 
Other receivables7,882 11,072 
Income tax receivable and prepayments
4,773 3,314 
Total current assets556,444 471,817 
Long-term marketable securities
55,535 50,886 
Investments, net of allowance for expected credit losses of $18,538 and $17,689 as of September 30, 2024 and December 31, 2023, respectively
75,078 77,507 
Property and equipment, net of accumulated depreciation of $347,586 and $322,958, as of September 30, 2024 and December 31, 2023, respectively
421,633 390,405 
Right-of-use assets, net400,246 381,010 
Intangible assets, net334,236 372,507 
Goodwill719,127 717,502 
Deferred income taxes481,456 504,188 
Other assets, net4,426 3,871 
Total assets$3,048,181 $2,969,693 
Liabilities and stockholders’ deficit
Current liabilities:
Current maturities of long-term debt$22,500 $20,750 
Accounts payable31,844 23,788 
Accrued expenses66,530 66,299 
Equipment deposits10,345 4,506 
Deferred revenue, current67,517 59,591 
Payable pursuant to tax benefit arrangements, current48,553 41,294 
Other current liabilities39,001 35,101 
Total current liabilities286,290 251,329 
Long-term debt, net of current maturities2,152,276 1,962,874 
Lease liabilities, net of current portion408,588 381,589 
Deferred revenue, net of current portion33,578 32,047 
Deferred tax liabilities1,566 1,644 
Payable pursuant to tax benefit arrangements, net of current portion428,858 454,368 
Other liabilities4,139 4,833 
Total noncurrent liabilities3,029,005 2,837,355 
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit):
Class A common stock, $0.0001 par value, 300,000 shares authorized, 84,104 and 86,760 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
9 9 
Class B common stock, $0.0001 par value, 100,000 shares authorized, 488 and 1,397 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
— — 
Accumulated other comprehensive (loss) income220 172 
Additional paid in capital602,948 575,631 
Accumulated deficit(869,309)(691,461)
Total stockholders’ deficit attributable to Planet Fitness, Inc.(266,132)(115,649)
Non-controlling interests(982)(3,342)
Total stockholders’ deficit(267,114)(118,991)
Total liabilities and stockholders’ deficit$3,048,181 $2,969,693 
See accompanying notes to condensed consolidated financial statements
5
Planet Fitness, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)

 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per share amounts)
2024202320242023
Revenue:  
Franchise$82,873 $80,587 $254,783 $237,313 
National advertising fund revenue19,542 17,578 59,442 52,378 
Corporate-owned clubs
128,132 113,245 375,976 332,885 
Equipment61,699 66,141 151,003 163,664 
Total revenue292,246 277,551 841,204 786,240 
Operating costs and expenses:
Cost of revenue45,701 53,751 116,628 132,561 
Club operations
71,614 63,120 216,119 188,011 
Selling, general and administrative32,647 33,290 93,453 93,705 
National advertising fund expense19,720 17,618 59,624 52,496 
Depreciation and amortization41,033 37,477 120,230 110,254 
Other losses (gains), net
280 (56)698 7,705 
Total operating costs and expenses210,995 205,200 606,752 584,732 
Income from operations81,251 72,351 234,452 201,508 
Other income (expense), net:
Interest income5,610 4,245 16,687 12,339 
Interest expense(26,603)(21,704)(72,569)(64,771)
Other (expense) income, net
(558)148 1,132 631 
Total other expense, net(21,551)(17,311)(54,750)(51,801)
Income before income taxes
59,700 55,040 179,702 149,707 
Provision for income taxes16,523 13,474 49,824 38,855 
Losses from equity-method investments, net of tax
(782)(242)(3,198)(580)
Net income
42,395 41,324 126,680 110,272 
Less: net income attributable to non-controlling interests386 2,190 1,722 7,299 
Net income attributable to Planet Fitness, Inc.
$42,009 $39,134 $124,958 $102,973 
Net income per share of Class A common stock:
Basic$0.50 $0.46 $1.45 $1.22 
Diluted$0.50 $0.46 $1.45 $1.21 
Weighted-average shares of Class A common stock outstanding:
Basic84,570 84,610 86,090 84,558 
Diluted84,728 84,886 86,289 84,870 
 See accompanying notes to condensed consolidated financial statements.
6
Planet Fitness, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Net income
$42,395 $41,324 $126,680 $110,272 
Other comprehensive income (loss), net:
Foreign currency translation adjustments286 (393)(403)17 
Unrealized gain (loss) on marketable securities, net of tax
1,030 42 451 (253)
Total other comprehensive income (loss), net
1,316 (351)48 (236)
Total comprehensive income
43,711 40,973 126,728 110,036 
Less: total comprehensive income attributable to non-controlling interests386 2,190 1,722 7,299 
Total comprehensive income attributable to Planet Fitness, Inc.$43,325 $38,783 $125,006 $102,737 
 See accompanying notes to condensed consolidated financial statements.
7
Planet Fitness, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
 Nine Months Ended September 30,
(in thousands)
20242023
Cash flows from operating activities:
Net income$126,680 $110,272 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization120,230 110,254 
Amortization of deferred financing costs3,984 4,114 
Loss on extinguishment of debt
2,285 — 
Accretion of marketable securities discount(2,658)(2,224)
Losses from equity-method investments, net of tax
3,198 580 
Dividends accrued on held-to-maturity investment(1,618)(1,490)
Credit loss (gain) on held-to-maturity investment
849 (6)
Deferred tax expense40,077 34,884 
Gain on re-measurement of tax benefit arrangement liability(774)— 
Loss on disposal of property and equipment400 158 
Loss on reacquired franchise rights— 110 
Equity-based compensation expense5,965 6,326 
Other138 (25)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(7,443)10,086 
Inventory(201)(2,270)
Other assets and other current assets1,735 (1,722)
Restricted assets - national advertising fund(368)805 
Accounts payable and accrued expenses8,818 (7,488)
Other liabilities and other current liabilities(741)6,855 
Income taxes(1,553)(104)
Payments pursuant to tax benefit arrangements(28,786)(21,780)
Equipment deposits5,835 5,495 
Deferred revenue9,552 9,428 
Leases9,138 4,662 
Net cash provided by operating activities294,742 266,920 
Cash flows from investing activities:
Additions to property and equipment(112,968)(84,636)
Acquisition of franchisees, net of cash acquired— (26,264)
Proceeds from sale of property and equipment568 2 
Purchases of marketable securities(116,833)(155,007)
Maturities of marketable securities80,922 37,990 
Other investments— (20,000)
Net cash used in investing activities(148,311)(247,915)
Cash flows from financing activities:
Proceeds from issuance of long-term debt800,000 — 
Proceeds from issuance of Class A common stock17,221 8,575 
Principal payments on capital lease obligations(100)(152)
Repayment of long-term debt(603,063)(15,563)
Payment of deferred financing and other debt-related costs(12,055)— 
Repurchase and retirement of Class A common stock(300,205)(125,030)
Distributions paid to members of Pla-Fit Holdings(3,345)(4,216)
Net cash used in financing activities(101,547)(136,386)
Effects of exchange rate changes on cash and cash equivalents(456)233 
Net increase (decrease) in cash, cash equivalents and restricted cash
44,428 (117,148)
Cash, cash equivalents and restricted cash, beginning of period322,121 472,499 
Cash, cash equivalents and restricted cash, end of period$366,549 $355,351 
Supplemental cash flow information:
Cash paid for interest$53,718 $60,964 
Net cash paid for income taxes
$11,248 $4,394 
Non-cash investing activities:
Non-cash additions to property and equipment included in accounts payable and accrued expenses$18,446 $20,590 
See accompanying notes to condensed consolidated financial statements.
8
Planet Fitness, Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited)

 Class A
common stock		Class B
common stock
Accumulated
other
comprehensive income
Additional paid-
in capital		Accumulated
deficit		Non-controlling
interests		Total (deficit)
equity
(In thousands)SharesAmountSharesAmount
Balance at December 31, 202386,760 $9 1,397 $— $172 $575,631 $(691,461)$(3,342)$(118,991)
Net income——————124,958 1,722 126,680 
Equity-based compensation expense—————5,965 — —5,965 
Repurchase and retirement of Class A common stock(4,073)— — ——2,363 (302,806)(2,363)(302,806)
Exchanges of Class B common stock and other adjustments909 — (909)— —(5,336)—5,336 — 
Exercise of stock options, vesting of restricted share units and ESPP share purchase508 ————17,366 ——17,366 
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock— — — — — 6,259 — — 6,259 
Distributions paid to members of Pla-Fit Holdings——————— (3,345)(3,345)
Issuance of subsidiary stock to non-controlling interest—————700 —1,010 1,710 
Other comprehensive income————48 ——— 48 
Balance at September 30, 202484,104 $9 488 $— $220 $602,948 $(869,309)$(982)$(267,114)

 Class A
common stock		Class B
common stock
Accumulated
other
comprehensive loss
Additional paid-
in capital		Accumulated
deficit		Non-controlling
interests		Total (deficit)
equity
(In thousands)SharesAmountSharesAmount
Balance at December 31, 202283,430 $8 6,146 $1 $(448)$505,144 $(703,717)$(12,549)$(211,561)
Net income——————102,973 7,299 110,272 
Equity-based compensation expense—————6,326 — —6,326 
Repurchase and retirement of Class A common stock(1,699)— — ——3,117 (126,078)(3,117)(126,078)
Exchanges of Class B common stock and other adjustments3,413 1 (3,413)(1)—(9,096)—9,096 — 
Exercise of stock options, vesting of restricted share units and ESPP share purchase266 ————8,611 ——8,611 
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock— — — — — 56,295 — — 56,295 
Non-cash adjustments to VIEs—————— — (389)(389)
Deconsolidation of VIEs——————22 (3,976)(3,954)
Distributions paid to members of Pla-Fit Holdings——————— (4,216)(4,216)
Other comprehensive loss————(236)——— (236)
Balance at September 30, 202385,410 $9 2,733 $— $(684)$570,397 $(726,800)$(7,852)$(164,930)

9
 Class A
common stock		Class B
common stock
Accumulated
other
comprehensive (loss) income
Additional paid-
in capital		Accumulated
deficit		Non-controlling
interests		Total (deficit)
equity
(In thousands)SharesAmountSharesAmount
Balance at June 30, 202484,496 $9 650 $— $(1,096)$594,049 $(910,626)$(2,166)$(319,830)
Net income— — — — — — 42,009 386 42,395 
Equity-based compensation expense— — — — — 3,118 — — 3,118 
Repurchase and retirement of Class A common stock(669)— — — — — (692)— (692)
Exchanges of Class B common stock and other adjustments162 — (162)— — (2,411)— 2,411 — 
Exercise of stock options, vesting of restricted share units and ESPP share purchase115 — — — — 7,826 — — 7,826 
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock— — — — — 366 — — 366 
Distributions paid to members of Pla-Fit Holdings— — — — — — — (1,613)(1,613)
Other comprehensive income— — — — 1,316 — — — 1,316 
Balance at September 30, 202484,104 $9 488 $— $220 $602,948 $(869,309)$(982)$(267,114)

 Class A
common stock		Class B
common stock
Accumulated
other
comprehensive loss
Additional paid-
in capital		Accumulated
deficit		Non-controlling
interests		Total (deficit)
equity
(In thousands)SharesAmountSharesAmount
Balance at June 30, 202383,980 $9 4,151 $— $(333)$564,170 $(765,815)$(13,992)$(215,961)
Net income——————39,134 2,190 41,324 
Equity-based compensation expense—————1,533 — —1,533 
Exchanges of Class B common stock and other adjustments1,418 — (1,418)— —(4,430)—4,430 — 
Exercise of stock options, vesting of restricted share units and ESPP share purchase12 ————591 ——591 
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock— — — — — 8,533 — — 8,533 
Deconsolidation of VIEs——————(119)— (119)
Distributions paid to members of Pla-Fit Holdings——————— (480)(480)
Other comprehensive loss————(351)——— (351)
Balance at September 30, 202385,410 $9 2,733 $— $(684)$570,397 $(726,800)$(7,852)$(164,930)
See accompanying notes to condensed consolidated financial statements.
10
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)

(1) Business organization
Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness clubs (historically referred to as stores or centers), with approximately 19.6 million members and 2,637 owned and franchised locations (referred to as clubs) in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain as of September 30, 2024.
The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business:
•Licensing and selling franchises under the Planet Fitness trade name;
•Owning and operating fitness clubs under the Planet Fitness trade name; and
•Selling fitness-related equipment to franchisee-owned clubs.
In 2012 investment funds affiliated with TSG Consumer Partners, LLC (“TSG”), purchased interests in Pla-Fit Holdings.
The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC, which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness clubs. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations.
The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of Holdings Units not owned by the Company.
As of September 30, 2024, the Company held 100.0% of the voting interest and approximately 99.4% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 0.6% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, the economic interest in Pla-Fit Holdings held by Planet Fitness, Inc. will increase.

(2) Summary of significant accounting policies
(a) Basis of presentation and consolidation
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.
The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024 and 2023 are unaudited. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.
11
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
(b) Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the condensed consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.
(c) Fair Value
ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value because of their short-term nature. See Note 3 for investments that are measured at fair value on a recurring basis.
The carrying value and estimated fair value of long-term debt were as follows:
September 30, 2024December 31, 2023
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt(1)
$2,201,375 $2,141,443 $2,004,438 $1,829,286 
(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under GAAP.
(d) Non-controlling interests
Non-controlling interests represent third-party interests in certain of the Company’s subsidiaries. Allocation of net income or loss is generally based upon relative ownership interests held by equity owners in each subsidiary or based upon contractual arrangements. If such contractual arrangements are substantive and provide for a disproportionate allocation of economic returns among equity holders, the Company uses the hypothetical liquidation at book value (“HLBV”) method to allocate net income and loss of the subsidiary. The HLBV method is a balance sheet focused approach which measures each party’s capital account at each balance sheet date to determine the amount that the Company would receive if the subsidiary were to hypothetically liquidate its net assets at their carrying values determined in accordance with GAAP and distribute such hypothetical proceeds based on the liquidation rights and priorities defined in the contractual arrangement. Under the HLBV method, net income and losses of the subsidiary are attributed based on the change in each party’s capital account between the beginning and the end of the reporting period, after adjusting for capital contributions and distributions. The proportion of net income and losses attributed to non-controlling interests under the HLBV method is subject to change as the net assets in the subsidiary change.
(e) Reclassification
Certain amounts have been reclassified to conform to current year presentation.
12
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
(f) Recent accounting pronouncements
The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
(3) Investments
Marketable securities
The following tables summarize the amortized cost, net unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s available-for-sale investments in marketable securities. As of September 30, 2024, the marketable securities had maturity dates that range from less than 1 month to approximately 23 months. Realized gains and losses were insignificant for the three and nine months ended September 30, 2024 and 2023.
Amortized CostUnrealized Gains, Net
Fair Value(1)
Level 1Level 2
September 30, 2024
Cash equivalents
Money market funds$1,260 $— $1,260 $1,260 $— 
Total cash equivalents1,260 — 1,260 1,260 — 
Short-term marketable securities
Commercial paper17,731 33 17,764 — 17,764 
Corporate debt securities83,339 330 83,669 — 83,669 
U.S. treasury securities1,976 — 1,976 — 1,976 
U.S. government agency securities5,207 13 5,220 — 5,220 
Total short-term marketable securities108,253 376 108,629 — 108,629 
Long-term marketable securities
Corporate debt securities52,616 418 53,034 — 53,034 
U.S. government agency securities2,500 1 2,501 — 2,501 
Total long-term marketable securities55,116 419 55,535 — 55,535 
Total marketable securities$164,629 $795 $165,424 $1,260 $164,164 
13
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
Amortized CostUnrealized Gains (Losses), Net
Fair Value(1)
Level 1Level 2
December 31, 2023
Cash equivalents
Money market funds$761 $— $761 $761 $— 
U.S. treasury securities2,997 1 2,998 — 2,998 
Total cash equivalents3,758 1 3,759 761 2,998 
Short-term marketable securities
Commercial paper37,063 24 37,087 — 37,087 
Corporate debt securities34,632 (38)34,594 — 34,594 
U.S. government agency securities3,210 10 3,220 — 3,220 
Total short-term marketable securities74,905 (4)74,901 — 74,901 
Long-term marketable securities
Corporate debt securities47,388 328 47,716 — 47,716 
U.S. government agency securities3,151 19 3,170 — 3,170 
Total long-term marketable securities50,539 347 50,886 — 50,886 
Total marketable securities$129,202 $344 $129,546 $761 $128,785 
(1) Fair values were determined using market prices obtained from third-party pricing sources.
For marketable securities with unrealized loss positions, the Company does not intend to sell these securities before maturity and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of September 30, 2024 and December 31, 2023.
Held-to-maturity debt security
As of September 30, 2024, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.
The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimates using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis, the Company recorded a credit loss expense of $292 and a gain on the reversal of credit loss allowance of $101 during the three months ended September 30, 2024 and 2023, respectively, and a credit loss expense of $849 and a gain on the reversal of credit loss allowance of $6 during the nine months ended September 30, 2024 and 2023, respectively, on the adjustment of its allowance for credit losses within other (gains) losses, net on the condensed consolidated statements of operations.
The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investment was $31,961 and $30,343 and the allowance for expected credit losses was $18,538 and $17,689, as of September 30, 2024 and December 31, 2023, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. The Company recognized dividend income of $553 and $511 during the three months ended September 30, 2024 and 2023, respectively, and $1,618 and $1,490 during the nine months ended September 30, 2024 and 2023, respectively, within other income, net on the condensed consolidated statements of operations.
The Company’s held-to-maturity investment has a contractual maturity in 2026.
14
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
A roll forward of the Company’s allowance for expected credit losses on its held-to-maturity investment is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Beginning allowance for expected credit losses$18,246 $15,052 $17,689 $14,957 
Loss (gain) on adjustment of allowance for expected credit losses292 (101)849 (6)
Write-offs, net of recoveries— — — — 
Ending allowance for expected credit losses$18,538 $14,951 $18,538 $14,951 
Equity method investments
For the following investments, the Company recorded its proportionate share of the investees’ earnings, prepared in accordance with GAAP, on a one-month lag, with an adjustment to eliminate unrealized profits on intra-entity sales, if any, and the amortization of basis differences, within losses from equity-method investments, net of tax on the condensed consolidated statements of operations. As of September 30, 2024, the Company determined that no impairment of its equity method investments existed.
As of September 30, 2024 and December 31, 2023, the Company held a 21.8% ownership interest in Bravo Fit Holdings Pty Ltd, a franchisee of the Company and club operator in Australia, which is deemed to be a related party, for a total investment carrying value of $12,080 and $13,220, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $5,287 and $6,812 as of September 30, 2024 and December 31, 2023, respectively. This basis difference is primarily attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. The Company’s proportionate share of the losses in accordance with the equity method was $674 and $94 for the three months ended September 30, 2024 and 2023, respectively, and $1,140 and $432 for the nine months ended September 30, 2024 and 2023, respectively, which included the amortization of basis differences of $66, $65, $198 and $195, respectively.
As of September 30, 2024 and December 31, 2023, the Company held a 33.2% ownership interest in Planet Fitmex, LLC, a franchisee of the Company and club operator in Mexico, which is deemed to be a related party and classified as an equity method investment as a result of its organizational structure, for a total investment carrying value of $49,575 and $51,633, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $20,060 and $17,458 as of September 30, 2024 and December 31, 2023, respectively. This basis difference is primarily attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. The Company’s proportionate share of the losses in accordance with the equity method was $108 and $148 for the three months ended September 30, 2024 and 2023, respectively, and $2,058 and $148 for the nine months ended September 30, 2024 and 2023, respectively, which included the amortization of basis differences of $174, $56, $511, and $56 respectively.
(4) Acquisition
Florida Acquisition
On April 16, 2023, the Company purchased from one of its franchisees a majority of the assets associated with four franchisee clubs operating in Florida (the “Florida Acquisition”) for cash consideration of $26,264. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $110, which is included in other losses, net on the condensed consolidated statement of operations. The loss incurred reduced the net purchase price to $26,154. The Company financed the purchase through cash on hand. The acquired clubs are included in the Corporate-owned clubs segment.
15
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
The allocation of the purchase consideration was as follows:
Amount
Property and equipment$3,851 
Right of use assets5,424 
Other long-term assets95 
Intangible assets6,880 
Goodwill14,812 
Deferred revenue(687)
Other current liabilities(17)
Lease liabilities(4,204)
Total
$26,154 
The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the clubs acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.
The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
$6,650 6.8
Customer relationships (2)
230 6.0
Total intangible assets subject to amortization$6,880 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
The acquisition did not have a material effect on the results of operations of the Company.
(5) Goodwill and intangible assets
Goodwill and related changes in its carrying amount were as follows:
Amount
Goodwill at December 31, 2023
$717,502 
Acquisition1,572 
Foreign currency translation53 
Goodwill at September 30, 2024
$719,127 
The Company completed an immaterial acquisition of an operating entity in Spain during the first quarter of fiscal 2024, which resulted in the addition of $1,572 in the carrying value of goodwill. During the nine months ended September 30, 2024, the Company issued stock of the subsidiary holding the operating entity in Spain to a third-party investor which resulted in the creation of a non-controlling interest of such subsidiary holding company and the subsidiary operating entity. The Company intends to operate corporate-owned clubs through this entity.

16
Planet Fitness, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
(Amounts in thousands, except share and per share amounts)
A summary of intangible assets is as follows:
September 30, 2024December 31, 2023
Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount		Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount
Finite-lived intangible assets:
Customer relationships$199,043 $(180,952)$18,091 $199,043 $(169,155)$29,888 
Reacquired franchise rights274,708 (105,163)169,545 274,708 (78,689)196,019 
Total finite-lived intangible assets473,751 (286,115)187,636 473,751 (247,844)225,907 
Indefinite-lived intangible assets:
Trade and brand names146,600 — 146,600 146,600 — 146,600 
Total intangible assets$620,351 $(286,115)$334,236 $620,351 $(247,844)$372,507 
The Company determined that no impairment charges were required during any periods presented.
Amortization expense related to the finite-lived intangible assets totaled $12,768 and $12,965 for the three months ended September 30, 2024 and 2023, respectively, and $38,304 and $38,517 for the nine months ended September 30, 2024 and 2023, respectively. The anticipated amortization expense related to intangible assets to be recognized in future periods as of September 30, 2024 is as follows:
 Amount
Remainder of 2024$10,918 
202536,713 
202632,079 
202727,956 
202827,300 
Thereafter52,670 
Total$187,636 
(6) Long-term debt
Long-term debt consists of the following: 
 September 30, 2024December 31, 2023
2018-1 Class A-2-II notes$— $592,187 
2019-1 Class A-2 notes523,875 528,000 
2022-1 Class A-2-I notes414,375 417,563 
2022-1 Class A-2-II notes463,125 466,688 
2024-1 Class A-2-I notes425,000 — 
2024-1 Class A-2-II notes375,000 — 
Total debt, excluding deferred financing costs2,201,375 2,004,438 
Deferred financing costs, net of accumulated amortization