Planet Fitness, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2025 and the related notes included in this Quarterly Report on Form 10-Q and our audited consolidated financial statements as of and for the year ended December 31, 2024 and the related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2025. Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to Planet Fitness, Inc. and its consolidated subsidiaries.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2025 and the related notes included in this Quarterly Report on Form 10-Q and our audited consolidated financial statements as of and for the year ended December 31, 2024 and the related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2025. Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to Planet Fitness, Inc. and its consolidated subsidiaries.

Previous wording

As of June 30, 2025, we had approximately 20.8 million members and 2,762 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. Of our 2,762 clubs, 2,479 are franchised and 283 are corporate-owned.

Current wording

As of September 30, 2025, we had approximately 20.7 million members and 2,795 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. Of our 2,795 clubs, 2,514 are franchised and 281 are corporate-owned.

Previous wording

As of June 30, 2025, we had contractual commitments to open approximately 850 new clubs.

Current wording

As of September 30, 2025, we had contractual commitments to open more than 800 new clubs.

Previous wording

We review the total amount of dues we bill to our members on a monthly basis, which allows us to assess changes in the performance of our corporate-owned and franchisee-owned clubs from period to period, any competitive pressures, local or regional membership traffic patterns and general market conditions that might impact our club performance. System-wide sales is an operating measure that includes monthly membership dues and annual fee billings by franchisees that are not revenue realized by the Company in accordance with GAAP, as well as monthly membership dues and annual fee billings by the Company’s corporate-owned clubs. While the Company does not record sales by franchisees as revenue, and such sales are not included in the Company’s consolidated financial statements, the Company believes that this operating measure aids in understanding how the Company derives its royalty revenue and is important in evaluating its performance. We typically bill monthly dues on or around the 17 th of every month and bill annual fees once per year to each member based upon when the member signed their membership agreement. System-wide sales were $1.4 billion and $1.2 billion during the three months ended June 30, 2025 and 2024, respectively, and $2.7 billion and $2.5 billion for the six months ended June 30, 2025 and 2024, respectively.

Current wording

We review the total amount of dues we bill to our members on a monthly basis, which allows us to assess changes in the performance of our corporate-owned and franchisee-owned clubs from period to period, any competitive pressures, local or regional membership traffic patterns and general market conditions that might impact our club performance. System-wide sales is an operating measure that includes monthly membership dues and annual fee billings by franchisees that are not revenue realized by the Company in accordance with GAAP, as well as monthly membership dues and annual fee billings by the Company’s corporate-owned clubs. While the Company does not record sales by franchisees as revenue, and such sales are not included in the Company’s consolidated financial statements, the Company believes that this operating measure aids in understanding how the Company derives its royalty revenue and is important in evaluating its performance. We typically bill monthly dues on or around the 17 th of every month and bill annual fees once per year to each member based upon when the member signed their membership agreement. System-wide sales were $1.3 billion and $1.2 billion during the three months ended September 30, 2025 and 2024, respectively, and $4.0 billion and $3.6 billion for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

(1) Represents severance related expenses recorded in connection with a reduction in force during the six months ended June 30, 2025 and 2024.

Current wording

(1) Represents severance related expenses recorded in connection with a reduction in force.

Previous wording

(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and stock-based compensation associated with certain equity awards granted to, the Company’s new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

Current wording

(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and equity-based compensation associated with certain equity awards granted to, the Company’s new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

Previous wording

(5) Represents gains related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

Current wording

(5) Represents a (gain) loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

Previous wording

(1) Represents severance related expenses recorded in connection with a reduction in force during the six months ended June 30, 2025 and 2024.

Current wording

(1) Represents severance related expenses recorded in connection with a reduction in force.

Previous wording

(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and stock-based compensation associated with certain equity awards granted to, the Company’s new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

Current wording

(2) Represents certain expenses recorded in connection with the departure of the former Chief Executive Officer, including costs associated with the search for, and equity-based compensation associated with certain equity awards granted to, the Company’s new Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.

Previous wording

(5) Represents gains related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

Current wording

(5) Represents a (gain) loss related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.

Previous wording

(9)Includes $3.1 million and $6.2 million for the three and six months ended June 30, 2024, respectively, of amortization for intangible assets recorded in connection with the 2012 Acquisition, other than favorable leases. During the fourth quarter of 2024, the intangible assets recorded in connection with the 2012 Acquisition became fully amortized. Also includes $9.2 million and $9.7 million for the three months ended June 30, 2025 and 2024, respectively, and $18.4 million and $19.3 million for the six months ended June 30, 2025 and 2024, respectively, of amortization for intangible assets created in connection with historical acquisitions of franchisee-owned clubs. The adjustment represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, in each period.

Current wording

(10)Includes $3.1 million and $9.3 million for the three and nine months ended September 30, 2024, respectively, of amortization for intangible assets recorded in connection with the 2012 Acquisition, other than favorable leases. During the fourth quarter of 2024, the intangible assets recorded in connection with the 2012 Acquisition became fully amortized. Also includes $9.2 million and $9.7 million for the three months ended September 30, 2025 and 2024, respectively, and $27.5 million and $29.0 million for the nine months ended September 30, 2025 and 2024, respectively, of amortization for intangible assets created in connection with historical acquisitions of franchisee-owned clubs. The adjustment represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, in each period.

Previous wording

(10)Represents corporate income taxes at an assumed effective tax rate of 25.9% for both the three and six months ended June 30, 2025 and 25.8% for both the three and six months ended June 30, 2024 applied to adjusted income before income taxes.

Current wording

(11)Represents corporate income taxes at an assumed effective tax rate of 25.9% and 25.8% for the three months ended September 30, 2025 and 2024, respectively, and 25.9% and 25.8% for the nine months ended September 30, 2025 and 2024, respectively, applied to adjusted income before income taxes.

Previous wording

(11)Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.

Current wording

(12)Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.

Previous wording

(4)Represents corporate income taxes at an assumed effective tax rate of 25.9% for both the three and six months ended June 30, 2025 and 25.8% for both the three and six months ended June 30, 2024 applied to adjusted income before income taxes.

Current wording

(4)Represents corporate income taxes at an assumed effective tax rate of 25.9% and 25.8% for the three months ended September 30, 2025 and 2024, respectively, and 25.9% and 25.8% for the nine months ended September 30, 2025 and 2024, respectively, applied to adjusted income before income taxes.

Previous wording

Total revenue was $340.9 million for the three months ended June 30, 2025, compared to $300.9 million for three months ended June 30, 2024, an increase of $39.9 million, or 13.3%.

Current wording

Total revenue was $330.3 million for the three months ended September 30, 2025, compared to $292.2 million for three months ended September 30, 2024, an increase of $38.1 million, or 13.0%.

Previous wording

Franchise segment revenue was $119.7 million for the three months ended June 30, 2025, compared to $107.8 million for three months ended June 30, 2024, an increase of $11.9 million, or 11.0%.

Current wording

Franchise segment revenue was $113.7 million for the three months ended September 30, 2025, compared to $102.4 million for three months ended September 30, 2024, an increase of $11.3 million, or 11.0%.

Previous wording

Franchise revenue was $96.9 million for the three months ended June 30, 2025, compared to $87.7 million for the three months ended June 30, 2024, an increase of $9.2 million, or 10.5%. Included in franchise revenue are the following:

Current wording

Franchise revenue was $92.2 million for the three months ended September 30, 2025, compared to $82.9 million for the three months ended September 30, 2024, an increase of $9.4 million, or 11.3%. Included in franchise revenue are the following:

Previous wording

Of the $8.0 million increase in royalty revenue, $5.0 million was attributable to a franchise same club sales increase of 8.3%, $1.6 million was attributable to new clubs opened since April 1, 2024 before moving into the same club sales base and $1.4 million was from higher royalties on annual fees. The $1.5 million increase in franchise and other fees was primarily attributable to higher join fees and the $0.7 million increase in placement revenue was primarily driven by higher replacement equipment placements. Also impacting franchise revenue was a $1.1 million decrease in revenue associated with the sale of HVAC units to franchisees.

Current wording

Of the $7.5 million increase in royalty revenue, $4.4 million was attributable to a franchise same club sales increase of 7.1%, $1.9 million was attributable to new clubs opened since July 1, 2024 before moving into the same club sales base and $1.2 million was from higher royalties on annual fees. The $1.5 million increase in franchise and other fees was primarily attributable to higher join fees and the $0.9 million increase in placement revenue was primarily driven by higher replacement equipment placements.

Previous wording

National advertising fund revenue was $22.8 million for the three months ended June 30, 2025, compared to $20.1 million for the three months ended June 30, 2024, an increase of $2.7 million, or 13.3%. This increase was primarily attributable to $2.0 million from higher same club sales and new clubs opened since April 1, 2024 and $0.7 million from the collection of national advertising fund revenue on annual fees billed to members.

Current wording

National advertising fund revenue was $21.4 million for the three months ended September 30, 2025, compared to $19.5 million for the three months ended September 30, 2024, an increase of $1.9 million, or 9.7%. This increase was primarily attributable to higher same club sales and new clubs opened since July 1, 2024.

Previous wording

Corporate-owned clubs segment revenue was $139.0 million for the three months ended June 30, 2025, compared to $125.5 million for the three months ended June 30, 2024, an increase of $13.5 million, or 10.8%. This increase was primarily attributable to $8.1 million from the corporate-owned clubs included in the same club sales base, of which $5.6 million was attributable to a same club sales increase of 7.0%, $0.8 million was attributable to higher annual fee revenue and $1.7 million was attributable to other fees. Additionally, $5.4 million was from new clubs opened since April 1, 2024 before moving into the same club sales base.

Current wording

Corporate-owned clubs segment revenue was $137.8 million for the three months ended September 30, 2025, compared to $128.1 million for the three months ended September 30, 2024, an increase of $9.7 million, or 7.6%. This increase was primarily attributable to $5.3 million from the corporate-owned clubs included in the same club sales base, of which $4.4 million was attributable to a same club sales increase of 6.0%. Additionally, $4.4 million was from new clubs opened since July 1, 2024 before moving into the same club sales base.

Previous wording

Equipment segment revenue was $82.2 million for the three months ended June 30, 2025, compared to $67.7 million for the three months ended June 30, 2024, an increase of $14.5 million, or 21.5%. This increase was primarily attributable to $14.3 million of higher revenue from equipment sales to existing franchisee-owned clubs and $0.3 million of higher revenue from equipment sales to new franchisee-owned clubs. In the three months ended June 30, 2025, we had equipment sales to 19 new franchisee-owned clubs compared to 18 in the same period last year.

Current wording

Equipment segment revenue was $78.8 million for the three months ended September 30, 2025, compared to $61.7 million for the three months ended September 30, 2024, an increase of $17.1 million, or 27.8%. This increase was primarily attributable to $12.3 million of higher revenue from equipment sales to existing franchisee-owned clubs and $4.8 million of higher revenue from equipment sales to new franchisee-owned clubs. In the three months ended September 30, 2025, we had equipment sales to 27 new franchisee-owned clubs compared to 15 in the same period last year.

Previous wording

Cost of revenue, which primarily relates to our equipment segment, was $59.4 million for the three months ended June 30, 2025, compared to $51.9 million for the three months ended June 30, 2024, an increase of $7.5 million, or 14.4%. This increase was primarily attributable to higher equipment sales to existing franchisee-owned clubs and lower costs associated with the sale of HVAC units to franchisees, as described above.

Current wording

Cost of revenue, which primarily relates to our equipment segment, was $58.2 million for the three months ended September 30, 2025, compared to $45.7 million for the three months ended September 30, 2024, an increase of $12.5 million, or 27.3%. This increase was primarily attributable to higher equipment sales to existing and new franchisee-owned clubs, as described above.

Previous wording

Club operations expense, which relates to our corporate-owned clubs segment, was $77.4 million for the three months ended June 30, 2025, compared to $70.2 million for the three months ended June 30, 2024, an increase of $7.3 million, or 10.4%. This increase was primarily attributable to $1.9 million from clubs included in our same club sales base as a result of higher payroll, rent and occupancy related expenses and $5.4 million from new clubs opened since April 1, 2024 before moving into the same club sales base, of which $2.3 million was attributable to the eight clubs open and operating in Spain.

Current wording

Club operations expense, which relates to our corporate-owned clubs segment, was $79.8 million for the three months ended September 30, 2025, compared to $71.6 million for the three months ended September 30, 2024, an increase of $8.2 million, or 11.4%. This increase was primarily attributable to $3.4 million from clubs included in our same club sales base as a result of higher payroll, marketing and rent and occupancy related expenses, $1.3 million from new clubs opened since July 1, 2024 before moving into the same club sales base, and $3.4 million from the ten clubs open and operating in Spain, of which nine clubs have been opened since July 1, 2024.

Previous wording

National advertising fund expense was $22.8 million for the three months ended June 30, 2025, compared to $20.1 million for the three months ended June 30, 2024, an increase of $2.7 million, or 13.3%. This increase was primarily attributable to higher advertising and marketing expenditures due to higher national advertising revenue as described above.

Current wording

National advertising fund expense was $21.4 million for the three months ended September 30, 2025, compared to $19.7 million for the three months ended September 30, 2024, an increase of $1.7 million, or 8.7%. This increase was primarily attributable to higher advertising and marketing expenditures due to higher national advertising revenue as described above.

Previous wording

Depreciation and amortization expense was $38.4 million for the three months ended June 30, 2025, compared to $39.8 million for the three months ended June 30, 2024, a decrease of $1.4 million, or 3.5%. This decrease was primarily attributable to a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the fourth quarter of 2024, partially offset by an increase in depreciation expense primarily from new clubs opened since April 1, 2024.

Current wording

Depreciation and amortization expense was $39.1 million for the three months ended September 30, 2025, compared to $41.0 million for the three months ended September 30, 2024, a decrease of $1.9 million, or 4.7%. This decrease was primarily attributable to a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the fourth quarter of 2024, partially offset by an increase in depreciation expense primarily from new clubs opened since July 1, 2024.

Previous wording

Interest income was $5.7 million for the three months ended June 30, 2025, compared to $5.6 million for the three months ended June 30, 2024, an increase of $0.1 million, or 1.3%.

Current wording

Interest income was $5.9 million for the three months ended September 30, 2025, compared to $5.6 million for the three months ended September 30, 2024, an increase of $0.3 million, or 5.8%.

Previous wording

Income tax expense was $24.9 million for the three months ended June 30, 2025, compared to $19.0 million for the three months ended June 30, 2024, an increase of $6.0 million, or 31.4%. This increase is primarily attributable to our higher income before taxes in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, as well as a higher effective tax rate.

Current wording

Income tax expense was $28.0 million for the three months ended September 30, 2025, compared to $16.5 million for the three months ended September 30, 2024, an increase of $11.5 million, or 69.3%. This increase is primarily attributable to our higher income before taxes in the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, as well as a higher effective tax rate.

Previous wording

The Company’s effective tax rate was 29.7% for the three months ended June 30, 2025, compared to 27.3% in the prior year period. The increase in the effective income tax rate was primarily due to non-deductible compensation and remeasurement of deferred tax assets.

Current wording

The Company’s effective tax rate was 31.9% for the three months ended September 30, 2025, compared to 27.7% in the prior year period. The increase in the effective income tax rate was primarily due to the remeasurement of deferred tax assets, the sale of our corporate-owned clubs, and an increase in the valuation allowance.

Previous wording

Franchise Segment Adjusted EBITDA was $86.5 million for the three months ended June 30, 2025, compared to $77.5 million for the three months ended June 30, 2024, an increase of $9.0 million, or 11.7%. This increase was primarily attributable to higher franchise and NAF revenue of $9.2 million and $2.7 million, respectively, as described above, partially offset by $2.7 million of higher NAF expense.

Current wording

Franchise Segment Adjusted EBITDA was $82.4 million for the three months ended September 30, 2025, compared to $72.8 million for the three months ended September 30, 2024, an increase of $9.6 million, or 13.2%. This increase was primarily attributable to higher franchise and NAF revenue of $9.4 million and $1.9 million, respectively, as described above, partially offset by $1.7 million of higher NAF expense.

Previous wording

Corporate-owned clubs Segment EBITDA was $56.6 million for the three months ended June 30, 2025, compared to $49.6 million for the three months ended June 30, 2024, an increase of $7.0 million, or 14.2%. This increase was primarily attributable to $5.8 million from the corporate-owned same clubs sales increase of 7.0% and $1.5 million of lower selling, general and administrative expenses. This increase was partially offset by $1.0 million of lower Adjusted EBITDA from the eight clubs open and operating in Spain, all of which are yet to be included in the same club sales base.

Current wording

Corporate-owned clubs Segment Adjusted EBITDA was $53.7 million for the three months ended September 30, 2025, compared to $50.4 million for the three months ended September 30, 2024, an increase of $3.3 million, or 6.6%. This increase was primarily attributable to $2.1 million from new clubs opened since July 1, 2024 before moving into the same club sales base, $1.4 million from the corporate-owned same clubs sales increase of 6.0% and $1.2 million of lower selling, general and administrative expenses. This increase was partially offset by $1.5 million of lower Adjusted EBITDA from the ten clubs open and operating in Spain, of which nine clubs have been opened since July 1, 2024.

Previous wording

Equipment Segment EBITDA was $26.4 million for the three months ended June 30, 2025, compared to $18.6 million for the three months ended June 30, 2024, an increase of $7.9 million, or 42.3%. This increase was primarily attributable to higher equipment sales to new and existing franchisee-owned clubs, as described above, and higher margin equipment sales related to an updated equipment mix as a result of the adoption of the franchise growth model.

Current wording

Equipment Segment Adjusted EBITDA was $23.7 million for the three months ended September 30, 2025, compared to $18.5 million for the three months ended September 30, 2024, an increase of $5.2 million, or 28.3%. This increase was primarily attributable to higher equipment sales to new and existing franchisee-owned clubs, as described above.

Previous wording

Franchise segment revenue was $234.8 million for the six months ended June 30, 2025, compared to $211.8 million for six months ended June 30, 2024, an increase of $23.0 million, or 10.9%.

Current wording

Franchise segment revenue was $348.5 million for the nine months ended September 30, 2025, compared to $314.2 million for nine months ended September 30, 2024, an increase of $34.3 million, or 10.9%.

Previous wording

Franchise revenue was $190.1 million for the six months ended June 30, 2025, compared to $171.9 million for the six months ended June 30, 2024, an increase of $18.2 million, or 10.6%. Included in franchise revenue are the following:

Current wording

Franchise revenue was $282.4 million for the nine months ended September 30, 2025, compared to $254.8 million for the nine months ended September 30, 2024, an increase of $27.6 million, or 10.8%. Included in franchise revenue are the following:

Previous wording

Of the $14.0 million increase in royalty revenue, $8.6 million was attributable to a franchise same club sales increase of 7.3%, $3.0 million was attributable to new clubs opened since January 1, 2024 before moving into the same club sales base and $2.4 million was from higher royalties on annual fees. The $4.4 million increase in franchise and other fees were primarily attributable to higher join fees and PF Perks revenue and the $1.2 million increase in placement revenue was primarily driven by higher replacement equipment placements. Also impacting franchise revenue was a $1.4 million decrease in revenue associated with the sale of HVAC units to franchisees.

Current wording

Of the $21.5 million increase in royalty revenue, $13.0 million was attributable to a franchise same club sales increase of 7.2%, $4.9 million was attributable to new clubs opened since January 1, 2024 before moving into the same club sales base and $3.6 million was from higher royalties on annual fees. The $5.9 million increase in franchise and other fees were primarily attributable to higher join fees and PF Perks revenue and the $2.0 million increase in placement revenue was primarily driven by higher replacement equipment placements.

Previous wording

National advertising fund revenue was $44.7 million for the six months ended June 30, 2025, compared to $39.9 million for the six months ended June 30, 2024, an increase of $4.8 million, or 12.1%. This increase was primarily attributable to $3.6 million from higher same club sales and new clubs opened since January 1, 2024 and $1.3 million from the collection of national advertising fund revenue on annual fees billed to new members.

Current wording

National advertising fund revenue was $66.2 million for the nine months ended September 30, 2025, compared to $59.4 million for the nine months ended September 30, 2024, an increase of $6.7 million, or 11.3%. This increase was primarily attributable to higher same club sales and new clubs opened since January 1, 2024.

Previous wording

Corporate-owned clubs segment revenue was $272.7 million for the six months ended June 30, 2025, compared to $247.8 million for the six months ended June 30, 2024, an increase of $24.8 million, or 10.0%. This increase was primarily attributable to $14.6 million from the corporate-owned clubs in the same club sales base, of which $10.2 million was attributable to a same club sales increase of 6.1%, $2.3 million was attributable to higher annual fee revenue and $2.1 million was attributable to other fees. Additionally, $10.2 million was from new clubs opened since January 1, 2024 before moving into the same club sales base.

Current wording

Corporate-owned clubs segment revenue was $410.5 million for the nine months ended September 30, 2025, compared to $376.0 million for the nine months ended September 30, 2024, an increase of $34.5 million, or 9.2%. This increase was primarily attributable to $20.6 million from the corporate-owned clubs in the same club sales base, of which $15.3 million was attributable to a same club sales increase of 6.0%, $2.9 million was attributable to higher annual fee revenue and $2.5 million was attributable to other fees. Additionally, $13.9 million was from new clubs opened since January 1, 2024 before moving into the same club sales base.

Previous wording

Equipment segment revenue was $110.0 million for the six months ended June 30, 2025, compared to $89.3 million for the six months ended June 30, 2024, an increase of $20.7 million, or 23.2%. This increase was primarily attributable to $23.2 million of higher revenue from equipment sales to existing franchisee-owned clubs, partially offset by $2.5 million of lower revenue from equipment sales to new franchisee-owned clubs. In the six months ended June 30, 2025, we had equipment sales to 29 new franchisee-owned clubs compared to 32 in the six months ended June 30, 2024.

Current wording

Equipment segment revenue was $188.9 million for the nine months ended September 30, 2025, compared to $151.0 million for the nine months ended September 30, 2024, an increase of $37.9 million, or 25.1%. This increase was primarily attributable to $35.5 million of higher revenue from equipment sales to existing franchisee-owned clubs and $2.3 million of higher revenue from equipment sales to new franchisee-owned clubs. In the nine months ended September 30, 2025, we had equipment sales to 56 new franchisee-owned clubs compared to 47 in the nine months ended September 30, 2024.

Previous wording

Cost of revenue, which primarily relates to our equipment segment, was $81.9 million for the six months ended June 30, 2025, compared to $70.9 million for the six months ended June 30, 2024, an increase of $11.0 million, or 15.5%. This increase was primarily attributable to higher equipment sales to existing franchisee-owned clubs, partially offset by lower equipment sales to new franchisee-owned clubs and lower costs associated with the sale of HVAC units to franchisees, as described above.

Current wording

Cost of revenue, which primarily relates to our equipment segment, was $140.1 million for the nine months ended September 30, 2025, compared to $116.6 million for the nine months ended September 30, 2024, an increase of $23.4 million, or 20.1%. This increase was primarily attributable to higher equipment sales to existing franchisee-owned clubs, as described above.

Previous wording

Club operations expense, which relates to our corporate-owned clubs segment, was $159.1 million for the six months ended June 30, 2025, compared to $144.5 million for the six months ended June 30, 2024, an increase of $14.6 million, or 10.1%. This increase was primarily attributable to $4.1 million from clubs included in our same club sales base as a result of higher payroll, rent and occupancy, and other operational expenses and $10.5 million from new clubs opened since January 1, 2024 before moving into the same club sales base, of which $4.0 million was attributable to the eight clubs open and operating in Spain.

Current wording

Club operations expense, which relates to our corporate-owned clubs segment, was $238.9 million for the nine months ended September 30, 2025, compared to $216.1 million for the nine months ended September 30, 2024, an increase of $22.8 million, or 10.5%. This increase was primarily attributable to $7.7 million from clubs included in our same club sales base as a result of higher payroll, rent and occupancy, marketing and other operational expenses, $7.7 million from new clubs opened since January 1, 2024 before moving into the same club sales base and $7.4 million from the ten clubs open and operating in Spain, all of which have been opened since January 1, 2024.

Previous wording

Selling, general and administrative expenses were $69.8 million for the six months ended June 30, 2025, compared to $60.8 million for the six months ended June 30, 2024, an increase of $9.0 million, or 14.8%. This increase was primarily attributable to $6.6 million of higher payroll costs, of which $3.3 million was related to stock-based compensation expense, and $1.7 million of higher costs relating to professional and consulting fees and travel expenses.

Current wording

Selling, general and administrative expenses were $100.3 million for the nine months ended September 30, 2025, compared to $93.5 million for the nine months ended September 30, 2024, an increase of $6.9 million, or 7.4%. This increase was primarily attributable to $7.1 million of higher payroll costs, of which $3.1 million was related to equity-based compensation expense, and $1.5 million of higher costs relating to professional and consulting fees and travel expenses partially offset by $1.7 million of lower marketing expenses.