Planet Fitness (PLNT) lowered its full-year adjusted earnings outlook Thursday to reflect higher interest expense, while Peloton (PTON) forecast fiscal 2027 revenue below Wall Street's estimates following last year's subscription price hike.
Planet Fitness now projects 2026 total adjusted net income to decline about 3%, compared with its prior guidance for a 2% drop. On a per-share basis, the fitness center operator now expects adjusted net income to rise about 6%, compared with its previous guidance of a 4% growth, reflecting a decrease in adjusted diluted weighted-average shares outstanding.
"The benefit of lower share count is being partially offset by higher interest expense following the drawdown of our $75 million (variable funding note)," Planet Fitness Chief Financial Officer Sudhanshu Priyadarshi said on an earnings call, according to a FactSet transcript. The company now expects interest expense of roughly $115 million for the year, which is $4 million higher than previously projected, while revenue growth is still seen at about 7%.
Planet Fitness shares were down 6% in Thursday late-afternoon trade, bringing its year-to-date losses to nearly 51%.
For the second quarter, the company reported adjusted EPS of $0.88, compared with $0.86 a year earlier and the consensus of $0.85. Revenue grew 7.1% to $365.2 million, while analysts projected $356.2 million. System-wide same club sales advanced 1.7%.
"The fitness industry is supported by strong long-term tailwinds as more people recognize the critical role movement plays in physical and mental well-being, disease prevention, and living longer, healthier lives," Chief Executive Colleen Keating said on the call.
Separately, Peloton projected fiscal 2027 revenue in a range of $2.30 billion to $2.40 billion, below the FactSet-polled consensus of $2.43 billion.
"If we normalize last year's subscription price increase, which drove a one-time benefit in our year-over-year revenue trend, our year-over-year trajectory is actually improving in fiscal year 2027," Peloton CFO Sid Thacker said on the company's earnings call, according to a FactSet transcript.
The connected fitness company reported fiscal fourth-quarter EPS of $0.13, up from $0.05 a year earlier and ahead of the $0.12 consensus estimate. Revenue for the three-month period through June 30 improved to $607.7 million from $606.9 million, while analysts expected $596.6 million.
For the ongoing quarter, the company expects revenue of $545 million to $565 million. Analysts expect $568.3 million. "Similar to fiscal 2026, we expect (the first quarter) to be a seasonally low quarter for equipment sales," Thacker told analysts.
Peloton shares tumbled 16% intraday. The stock has lost 11% in value so far in 2026.
Price: $52.92, Change: $-3.68, Percent Change: -6.49%
