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.
- 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.
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- 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.
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- 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.
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- 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
- 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.
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- 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
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