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    What Planet Fitness (PLNT)'s US$750 Million Fixed-Rate Refinancing Means For Shareholders

    Simply Wall St·12/13/2025 14:22:34
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    • Planet Fitness, Inc. recently completed a refinancing, pricing US$750 million of Series 2025-1 Class A-2 fixed-rate senior secured notes across five- and seven-year tranches, and adding a new US$75 million variable funding note facility through a bankruptcy-remote subsidiary.
    • The transaction not only replaces existing 2022-1 debt but also frees up cash for general corporate purposes, including potential share repurchases, which could influence the company’s balance sheet mix and capital allocation priorities.
    • We’ll now consider how this fresh US$750 million securitized refinancing, with its fixed-rate structure, reshapes Planet Fitness’s investment narrative and risk profile.

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    Planet Fitness Investment Narrative Recap

    For Planet Fitness, the core shareholder case still hinges on growing an affordable, beginner-friendly gym network that can keep members engaged despite higher churn from click-to-cancel and rising competition. The new US$750 million fixed-rate refinancing looks more like balance sheet housekeeping than a change to those near term catalysts or to the biggest risk, which remains membership attrition and the health of franchise-driven expansion.

    The most relevant recent announcement here is the company’s ongoing share repurchase activity, with about US$150 million spent through September 30, 2025. With fresh refinancing capacity and a variable funding note facility in place, any future buybacks will sit alongside existing concerns about leverage, cash flow coverage and the resilience of an expansion model that leans heavily on franchisees.

    Yet behind the refinancing headlines, the bigger issue investors should be aware of is...

    Read the full narrative on Planet Fitness (it's free!)

    Planet Fitness’ narrative projects $1.6 billion revenue and $312.8 million earnings by 2028. This requires 11.6% yearly revenue growth and an earnings increase of about $123.8 million from $189.0 million.

    Uncover how Planet Fitness' forecasts yield a $130.41 fair value, a 20% upside to its current price.

    Exploring Other Perspectives

    PLNT 1-Year Stock Price Chart
    PLNT 1-Year Stock Price Chart

    Three Simply Wall St Community fair value estimates for Planet Fitness span roughly US$37 to US$130, underlining how far apart individual views can be. As you weigh those perspectives, remember that elevated churn from online cancellations and heavy reliance on new club openings both feed directly into how sustainable any growth assumptions may prove.

    Explore 3 other fair value estimates on Planet Fitness - why the stock might be worth less than half the current price!

    Build Your Own Planet Fitness Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.