Is the business good?
How good a business is PLNT?
Planet Fitness, Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
22%
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 31%
Operating margin · Leisure median 11% · 12 months to Q2 2026
- Cash conversion
- 1.10×
Cash conversion · 1.08× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 82%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 24% |
| FY2022 | 25% |
| FY2023 | 25% |
| FY2024 | 27% |
| FY2025 | 30% |
Details›
- Gross margin12 months to Q2 2026
- 82%
- Operating margin12 months to Q2 2026
- 31%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $1.41B
- Free cash flow, trailing twelve months
- $262M
- Net income, trailing twelve months
- $238M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.