Dorsal Capital Reduces Stake in Planet Fitness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 55 minutes ago
0mins
Source: NASDAQ.COM
- Stake Reduction: Dorsal Capital sold 225,000 shares of Planet Fitness in Q1, with an estimated transaction value of $19.78 million, indicating a potential decline in market confidence towards the company.
- Value Decline: The quarter-end value of Dorsal Capital's position in Planet Fitness decreased by $110.48 million, reflecting the negative impact of trading activities and price fluctuations on the investment portfolio.
- Performance Growth: Despite facing challenges, Planet Fitness reported a 22% year-over-year revenue increase to $337.2 million in Q1, while adjusted EBITDA rose nearly 20%, demonstrating the company's ongoing growth potential.
- Market Outlook and Challenges: CEO Colleen Keating noted that net member growth has started slower than expected in 2026; however, Planet Fitness's long-term strategy remains solid, positioning the company to benefit from the growing health and wellness trend.
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Analyst Views on PLNT
Wall Street analysts forecast PLNT stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 50.480
Low
120.00
Averages
133.25
High
185.00
Current: 50.480
Low
120.00
Averages
133.25
High
185.00
About PLNT
Planet Fitness, Inc. is a franchisor and operator of fitness centers in the world. The Company operates in three segments: Franchise, Corporate-owned club, and Equipment. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Corporate-owned clubs segment includes operations with respect to all Corporate-owned clubs throughout the United States, Canada, and Spain. The Equipment segment includes the sale of equipment to franchisee-owned clubs. The Company's subsidiaries operate three lines of business, which include licensing and selling franchises under the Planet Fitness trade name, owning, and operating fitness centers, and selling fitness-related equipment to franchisee-owned stores. It operates 2,735 clubs in all 50 states: the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Planet Fitness Issues Weaker Earnings Outlook, Investors Urged to Act
- Earnings Outlook Downgrade: Planet Fitness's FY 2026 earnings outlook was revised downward, projecting only 9%-10% adjusted EPS growth, which significantly undermined investor confidence and led to a sharp drop in stock price.
- Revenue Growth Expectations: Although CFO Jay Stasz previously indicated a projected 9% total revenue growth for 2026 during the Q4 2025 earnings call, actual performance may fall well short due to an extended equipment replacement cycle and other adverse factors.
- Shareholder Loss Investigation: Levi & Korsinsky is investigating whether Planet Fitness failed to disclose material information to investors, resulting in significant losses for shareholders after the stock price decline, potentially facing securities fraud allegations.
- Future Plans Hampered: The company plans to repurchase approximately $150 million in shares in 2026, but the sale of eight corporate-owned clubs in California and weather-related disruptions may severely impact future equipment placements and financial health.
See More
Torque Asset Management Acquires Stake in Planet Fitness
- New Investment Move: Torque Asset Management disclosed in its SEC filing on May 15, 2026, that it acquired 49,500 shares of Planet Fitness, with an estimated transaction value of $4.35 million, indicating confidence in the company's future.
- Position Value Analysis: As of March 31, 2026, the value of Planet Fitness's position was $3.68 million, representing 1.45% of Torque's 13F assets under management, highlighting its significance in the investment portfolio.
- Market Performance Review: As of May 20, 2026, Planet Fitness shares traded at $50.24, down 51.6% over the past year and underperforming the S&P 500 by 76 percentage points, reflecting market concerns regarding its growth prospects.
- Growth Potential: Despite facing challenges, Planet Fitness plans to open 180 to 190 new gyms in 2026 and expects same-store sales to remain positive, indicating potential for business recovery moving forward.
See More
Dorsal Capital Reduces Stake in Planet Fitness
- Stake Reduction Details: Dorsal Capital Management disclosed a reduction in its position in Planet Fitness during Q1 2026, selling 225,000 shares valued at approximately $19.78 million, indicating a potential decrease in confidence in the stock.
- Holding Proportion Change: Following the sale, Dorsal Capital's stake in Planet Fitness decreased to 7.3%, suggesting that despite the reduction, it remains one of their largest investments, reflecting ongoing interest in the company.
- Financial Performance Insights: Despite a 50% drop in stock price, Planet Fitness reported a 22% year-over-year revenue increase to $337.2 million in Q1, with adjusted EBITDA rising nearly 20%, showcasing the company's growth potential amidst market challenges.
- Market Challenges and Outlook: Management acknowledged a slower-than-expected start to 2026 for member growth, prompting a pause on planned price increases, yet the CEO emphasized a positive long-term outlook, anticipating benefits from rising health and wellness trends.
See More
Dorsal Capital Reduces Stake in Planet Fitness
- Stake Reduction: Dorsal Capital sold 225,000 shares of Planet Fitness in Q1, with an estimated transaction value of $19.78 million, indicating a potential decline in market confidence towards the company.
- Value Decline: The quarter-end value of Dorsal Capital's position in Planet Fitness decreased by $110.48 million, reflecting the negative impact of trading activities and price fluctuations on the investment portfolio.
- Performance Growth: Despite facing challenges, Planet Fitness reported a 22% year-over-year revenue increase to $337.2 million in Q1, while adjusted EBITDA rose nearly 20%, demonstrating the company's ongoing growth potential.
- Market Outlook and Challenges: CEO Colleen Keating noted that net member growth has started slower than expected in 2026; however, Planet Fitness's long-term strategy remains solid, positioning the company to benefit from the growing health and wellness trend.
See More
Planet Fitness Issues Weaker-Than-Expected Earnings Outlook
- Earnings Outlook Downgrade: Planet Fitness's FY 2026 earnings outlook was revised downward, projecting adjusted EPS growth of only 9%-10%, contrary to CFO Jay Stasz's earlier guidance, resulting in a significant drop in investor confidence and stock price.
- Revenue Growth Expectations: While the company had previously anticipated approximately 9% total revenue growth for 2025, the extended equipment replacement cycle, sale of eight corporate-owned clubs in California, and weather disruptions affecting around 2,000 clubs have severely impacted the 2026 earnings forecast, undermining market performance.
- Share Buyback Plan: Planet Fitness plans to repurchase approximately $150 million worth of shares in 2026, aiming to bolster investor confidence and stabilize stock prices; however, this initiative is overshadowed by the negative market reaction to the downgraded outlook.
- Legal Investigation Initiated: Levi & Korsinsky LLP is investigating whether Planet Fitness failed to adequately disclose material information when issuing its initial earnings guidance, potentially leading to investor losses and exacerbating market unease.
See More
Torque Asset Management Increases Stake in Planet Fitness
- New Stake Established: Torque Asset Management disclosed in its SEC filing on May 15, 2026, that it acquired 49,500 shares of Planet Fitness, with an estimated transaction value of $4.35 million, indicating confidence in the company's potential.
- Quarter-End Value Increase: The new shares contributed to a $3.68 million increase in the position's quarter-end value, reflecting both the purchase and price changes during the reporting period, although the stock underperformed the S&P 500 by 76 percentage points.
- Market Performance Analysis: Planet Fitness shares have dropped 51.6% over the past year, exacerbated by a 30% single-day decline in May following the Q1 earnings report, raising concerns about future growth, despite a 3.5% increase in same-store sales.
- Strategic Outlook: Although the company withdrew its three-year sales growth guidance, Torque's purchase is viewed as a
See More
Planet Fitness Issues Weaker Earnings Outlook, Investors Urged to Act
- Earnings Outlook Downgrade: Planet Fitness's FY 2026 earnings outlook was revised downward, projecting only 9%-10% adjusted EPS growth, which significantly undermined investor confidence and led to a sharp drop in stock price.
- Revenue Growth Expectations: Although CFO Jay Stasz previously indicated a projected 9% total revenue growth for 2026 during the Q4 2025 earnings call, actual performance may fall well short due to an extended equipment replacement cycle and other adverse factors.
- Shareholder Loss Investigation: Levi & Korsinsky is investigating whether Planet Fitness failed to disclose material information to investors, resulting in significant losses for shareholders after the stock price decline, potentially facing securities fraud allegations.
- Future Plans Hampered: The company plans to repurchase approximately $150 million in shares in 2026, but the sale of eight corporate-owned clubs in California and weather-related disruptions may severely impact future equipment placements and financial health.
See More
Torque Asset Management Acquires Stake in Planet Fitness
- New Investment Move: Torque Asset Management disclosed in its SEC filing on May 15, 2026, that it acquired 49,500 shares of Planet Fitness, with an estimated transaction value of $4.35 million, indicating confidence in the company's future.
- Position Value Analysis: As of March 31, 2026, the value of Planet Fitness's position was $3.68 million, representing 1.45% of Torque's 13F assets under management, highlighting its significance in the investment portfolio.
- Market Performance Review: As of May 20, 2026, Planet Fitness shares traded at $50.24, down 51.6% over the past year and underperforming the S&P 500 by 76 percentage points, reflecting market concerns regarding its growth prospects.
- Growth Potential: Despite facing challenges, Planet Fitness plans to open 180 to 190 new gyms in 2026 and expects same-store sales to remain positive, indicating potential for business recovery moving forward.
See More
Dorsal Capital Reduces Stake in Planet Fitness
- Stake Reduction Details: Dorsal Capital Management disclosed a reduction in its position in Planet Fitness during Q1 2026, selling 225,000 shares valued at approximately $19.78 million, indicating a potential decrease in confidence in the stock.
- Holding Proportion Change: Following the sale, Dorsal Capital's stake in Planet Fitness decreased to 7.3%, suggesting that despite the reduction, it remains one of their largest investments, reflecting ongoing interest in the company.
- Financial Performance Insights: Despite a 50% drop in stock price, Planet Fitness reported a 22% year-over-year revenue increase to $337.2 million in Q1, with adjusted EBITDA rising nearly 20%, showcasing the company's growth potential amidst market challenges.
- Market Challenges and Outlook: Management acknowledged a slower-than-expected start to 2026 for member growth, prompting a pause on planned price increases, yet the CEO emphasized a positive long-term outlook, anticipating benefits from rising health and wellness trends.
See More
Dorsal Capital Reduces Stake in Planet Fitness
- Stake Reduction: Dorsal Capital sold 225,000 shares of Planet Fitness in Q1, with an estimated transaction value of $19.78 million, indicating a potential decline in market confidence towards the company.
- Value Decline: The quarter-end value of Dorsal Capital's position in Planet Fitness decreased by $110.48 million, reflecting the negative impact of trading activities and price fluctuations on the investment portfolio.
- Performance Growth: Despite facing challenges, Planet Fitness reported a 22% year-over-year revenue increase to $337.2 million in Q1, while adjusted EBITDA rose nearly 20%, demonstrating the company's ongoing growth potential.
- Market Outlook and Challenges: CEO Colleen Keating noted that net member growth has started slower than expected in 2026; however, Planet Fitness's long-term strategy remains solid, positioning the company to benefit from the growing health and wellness trend.
See More
Planet Fitness Issues Weaker-Than-Expected Earnings Outlook
- Earnings Outlook Downgrade: Planet Fitness's FY 2026 earnings outlook was revised downward, projecting adjusted EPS growth of only 9%-10%, contrary to CFO Jay Stasz's earlier guidance, resulting in a significant drop in investor confidence and stock price.
- Revenue Growth Expectations: While the company had previously anticipated approximately 9% total revenue growth for 2025, the extended equipment replacement cycle, sale of eight corporate-owned clubs in California, and weather disruptions affecting around 2,000 clubs have severely impacted the 2026 earnings forecast, undermining market performance.
- Share Buyback Plan: Planet Fitness plans to repurchase approximately $150 million worth of shares in 2026, aiming to bolster investor confidence and stabilize stock prices; however, this initiative is overshadowed by the negative market reaction to the downgraded outlook.
- Legal Investigation Initiated: Levi & Korsinsky LLP is investigating whether Planet Fitness failed to adequately disclose material information when issuing its initial earnings guidance, potentially leading to investor losses and exacerbating market unease.
See More
Torque Asset Management Increases Stake in Planet Fitness
- New Stake Established: Torque Asset Management disclosed in its SEC filing on May 15, 2026, that it acquired 49,500 shares of Planet Fitness, with an estimated transaction value of $4.35 million, indicating confidence in the company's potential.
- Quarter-End Value Increase: The new shares contributed to a $3.68 million increase in the position's quarter-end value, reflecting both the purchase and price changes during the reporting period, although the stock underperformed the S&P 500 by 76 percentage points.
- Market Performance Analysis: Planet Fitness shares have dropped 51.6% over the past year, exacerbated by a 30% single-day decline in May following the Q1 earnings report, raising concerns about future growth, despite a 3.5% increase in same-store sales.
- Strategic Outlook: Although the company withdrew its three-year sales growth guidance, Torque's purchase is viewed as a
See More
