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, 2026 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, 2025 and the related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2026. 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, 2026 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, 2025 and the related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2026. 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, 2026, we had approximately 21.5 million members and 2,930 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. Of our 2,930 clubs, 2,636 are franchised and 294 are corporate-owned.

Current wording

As of September 30, 2026, we had approximately 21.5 million members and 2,962 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. Of our 2,962 clubs, 2,660 are franchised and 302 are corporate-owned.

Previous wording

As of June 30, 2026, we had contractual commitments to open approximately 800 new clubs.

Current wording

As of September 30, 2026, we had contractual commitments to open over 650 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 during each of the three months ended June 30, 2026 and 2025, and $2.8 billion and $2.7 billion for the six months ended June 30, 2026 and 2025, 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 during each of the three months ended September 30, 2026 and 2025, and $4.2 billion and $4.0 billion for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

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

Current wording

(1) Represents severance related expenses recorded in connection with a reduction in force during the nine months ended September 30, 2025.

Previous wording

(2) Represents certain expenses recorded in connection with executive leadership transitions. During the three and six months ended June 30, 2026, amounts represent costs associated with the departure of the Company’s former Chief Financial Officer and costs associated with the search for and equity-based compensation associated with certain equity awards granted to the Company’s new Chief Financial Officer and Chief Executive Officer. During the three and six months ended June 30, 2025, amounts represent costs for equity-based compensation associated with certain equity awards granted to the Company’s 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 executive leadership transitions. During the three and nine months ended September 30, 2026, these amounts primarily represent costs associated with the Chief Financial Officer transitions. During the three and nine months ended September 30, 2025, these amounts primarily represent costs associated with the Chief Executive Officer transition.

Previous wording

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

Current wording

(1) Represents severance related expenses recorded in connection with a reduction in force during the nine months ended September 30, 2025.

Previous wording

(9)Represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, associated with intangible assets created in connection with historical acquisitions of franchisee-owned clubs.

Current wording

(10)Represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, associated with intangible assets created in connection with historical acquisitions of franchisee-owned clubs.

Previous wording

(10)Represents corporate income taxes at an assumed effective tax rate of 26.0% for each of the three and six months ended June 30, 2026 and 25.9% for each of the three and six months ended June 30, 2025, applied to adjusted income before income taxes.

Current wording

(11)Represents corporate income taxes at an assumed effective tax rate of 26.0% for each of the three and nine months ended September 30, 2026 and 25.9% for each of the three and nine months ended September 30, 2025, 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 26.0% for each of the three and six months ended June 30, 2026 and 25.9% for each of the three and six months ended June 30, 2025, applied to adjusted income before income taxes.

Current wording

(4)Represents corporate income taxes at an assumed effective tax rate of 26.0% for each of the three and nine months ended September 30, 2026 and 25.9% for each of the three and nine months ended September 30, 2025, applied to adjusted income before income taxes.

Previous wording

Franchise revenue was $102.9 million for the three months ended June 30, 2026, compared to $96.9 million for the three months ended June 30, 2025, an increase of $6.0 million, or 6.2%. Included in franchise revenue are the following:

Current wording

Franchise revenue was $97.8 million for the three months ended September 30, 2026, compared to $92.2 million for the three months ended September 30, 2025, an increase of $5.6 million, or 6.1%. Included in franchise revenue are the following:

Previous wording

Of the $4.7 million increase in royalty revenue, $1.7 million was attributable to a franchise same club sales increase of 1.7%, $2.5 million was attributable to new clubs opened since April 1, 2025 before moving into the same club sales base and $0.5 million was from higher royalties on annual fees. The $1.3 million increase in franchise and other fees was primarily attributable to higher “PF Perks” revenue.

Current wording

Of the $3.9 million increase in royalty revenue, $2.4 million was attributable to new clubs opened since July 1, 2025 before moving into the same club sales base and $1.5 million was attributable to a franchise same club sales increase of 1.5%. The $1.1 million increase in franchise and other fees was primarily attributable to higher ADA fee revenue and the $0.6 million increase in placement revenue was primarily driven by higher replacement equipment placements.

Previous wording

NAF revenue was $32.9 million for the three months ended June 30, 2026, compared to $22.8 million for the three months ended June 30, 2025, an increase of $10.1 million, or 44.5%. This increase was primarily attributable to a 1% rate increase to NAF contributions from 2% to 3% for 2026, higher same club sales and new clubs opened since April 1, 2025.

Current wording

NAF revenue was $31.8 million for the three months ended September 30, 2026, compared to $21.4 million for the three months ended September 30, 2025, an increase of $10.4 million, or 48.5%. This increase was primarily attributable to a 1% rate increase to NAF contributions from 2% to 3% for 2026, higher same club sales and new clubs opened since July 1, 2025.

Previous wording

Corporate-owned clubs segment revenue was $143.9 million for the three months ended June 30, 2026, compared to $139.0 million for the three months ended June 30, 2025, an increase of $4.9 million, or 3.5%. This increase was primarily attributable to $5.0 million from new clubs opened since April 1, 2025 before moving into the same club sales base and $4.8 million from the corporate-owned clubs included in the same club sales base, including $3.0 million attributable to a same club sales increase of 1.7% and $1.6 million attributable to other fees. This increase was partially offset by $4.9 million of lower revenue attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025.

Current wording

Corporate-owned clubs segment revenue was $142.7 million for the three months ended September 30, 2026, compared to $137.8 million for the three months ended September 30, 2025, an increase of $4.9 million, or 3.5%. This increase was primarily attributable to $4.1 million from new clubs opened since July 1, 2025 before moving into the same club sales base and $3.4 million from the corporate-owned clubs included in the same club sales base, primarily attributable to a same club sales increase of 1.8%. This increase was partially offset by $2.5 million of lower revenue attributable to the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

Equipment segment revenue was $85.6 million for the three months ended June 30, 2026, compared to $82.2 million for the three months ended June 30, 2025, an increase of $3.4 million, or 4.1%. This increase was primarily attributable to $1.7 million of higher revenue from equipment sales to new franchisee-owned clubs and $1.6 million of higher revenue from equipment sales to existing franchisee-owned clubs. In the three months ended June 30, 2026, we had equipment sales to 21 new franchisee-owned clubs compared to 19 in the same period last year.

Current wording

Equipment segment revenue was $87.6 million for the three months ended September 30, 2026, compared to $78.8 million for the three months ended September 30, 2025, an increase of $8.8 million, or 11.1%. This increase was primarily attributable to $9.6 million of higher revenue from equipment sales to existing franchisee-owned clubs, partially offset by $0.8 million of lower revenue from equipment sales to new franchisee-owned clubs. In the three months ended September 30, 2026, we had equipment sales to 21 new franchisee-owned clubs compared to 27 in the same period last year.

Previous wording

Cost of revenue, which primarily relates to our equipment segment, was $109.8 million for the six months ended June 30, 2026, compared to $81.9 million for the six months ended June 30, 2025, an increase of $27.9 million, or 34.1%. This increase was primarily attributable to higher equipment sales to existing and new franchisee-owned clubs, as described above.

Current wording

Cost of revenue, which primarily relates to our equipment segment, was $65.4 million for the three months ended September 30, 2026, compared to $58.2 million for the three months ended September 30, 2025, an increase of $7.2 million, or 12.4%. 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, as described above.

Previous wording

Club operations expense, which relates to our corporate-owned clubs segment, was $169.9 million for the six months ended June 30, 2026, compared to $159.1 million for the six months ended June 30, 2025, an increase of $10.8 million, or 6.8%. This increase was primarily attributable to $9.7 million from new clubs opened since January 1, 2025 before moving into the same club sales base and $7.8 million from clubs included in our same club sales base, both as a result of higher marketing, payroll, and occupancy related expenses. This increase was partially offset by $6.7 million of lower club operations expense attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025.

Current wording

Club operations expense, which relates to our corporate-owned clubs segment, was $84.3 million for the three months ended September 30, 2026, compared to $79.8 million for the three months ended September 30, 2025, an increase of $4.5 million, or 5.7%. This increase was primarily attributable to $5.9 million from new clubs opened since July 1, 2025 before moving into the same club sales base, partially offset by $1.4 million of lower club operations expense attributable to the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

NAF expense was $32.9 million for the three months ended June 30, 2026, compared to $22.8 million for the three months ended June 30, 2025, an increase of $10.1 million, or 44.5%. This increase was primarily attributable to higher advertising and marketing expenditures due to higher national advertising revenue as described above.

Current wording

NAF expense was $31.8 million for the three months ended September 30, 2026, compared to $21.4 million for the three months ended September 30, 2025, an increase of $10.4 million, or 48.5%. 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 $40.1 million for the three months ended June 30, 2026, compared to $38.4 million for the three months ended June 30, 2025, an increase of $1.7 million, or 4.5%. This increase was primarily attributable to an increase in depreciation expense, primarily from new clubs opened since April 1, 2025, partially offset by a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the current year period.

Current wording

Depreciation and amortization expense was $41.6 million for the three months ended September 30, 2026, compared to $39.1 million for the three months ended September 30, 2025, an increase of $2.5 million, or 6.3%. This increase was primarily attributable to an increase in depreciation expense, primarily from new clubs opened since July 1, 2025, partially offset by a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the current year period.

Previous wording

Other (gains) losses, net was a $12.3 million gain for the three months ended June 30, 2026, compared to a $4.9 million loss for the three months ended June 30, 2025. The current year period amount is primarily attributable to a gain recognized on the sale of our equity method investment in Australia. The prior year period amount is primarily attributable to an allowance for expected credit losses on the Company’s held-to-maturity debt security and costs incurred on the closure of the Company’s Florida Corporate Support Center located in Orlando, Florida.

Current wording

Other losses (gains), net was a $0.5 million loss for the three months ended September 30, 2026, compared to a $5.7 million gain for the three months ended September 30, 2025. The prior year period amount is primarily attributable to the gain recognized on the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

Interest expense was $33.4 million for the three months ended June 30, 2026, compared to $26.2 million for the three months ended June 30, 2025, an increase of $7.2 million, or 27.6%. This increase was primarily due to a higher principal balance and blended interest rate on our indebtedness related to the issuance of the Series 2025-1 5.274% Fixed Rate Senior Secured Notes, Class A-2-I (the “2025 Class A-2-I Notes”) with an initial principal amount of $400.0 million and Series 2025-1 5.649% Fixed Rate Senior Secured Notes, Class A-2-II (the “2025 Class A-2-II Notes,” and together with the 2025 Class A-2-I Notes, the “2025 Notes”) in December 2025 and draw down on the 2025 Variable Funding Notes (as defined below) in the current year period.

Current wording

Interest expense was $34.1 million for the three months ended September 30, 2026, compared to $26.3 million for the three months ended September 30, 2025, an increase of $7.8 million, or 29.6%. This increase was primarily due to a higher principal balance and blended interest rate on our indebtedness related to the issuance of senior secured notes in December 2025 and the draw down on one of our variable funding notes in the current year period.

Previous wording

Other income, net was a $0.4 million income for the three months ended June 30, 2026, compared to a $1.9 million income for the three months ended June 30, 2025. This decrease in other income, net was primarily attributable to a gain on the remeasurement of our tax benefit arrangements in the prior year period due to changes in our effective tax rate.

Current wording

Other income, net was a $0.3 million income for the three months ended September 30, 2026, compared to a $1.1 million income for the three months ended September 30, 2025. This decrease in other income, net was primarily attributable to a gain on the remeasurement of our tax benefit arrangements in the prior year period due to changes in our deferred state tax rate.

Previous wording

Income tax expense was $28.5 million for the three months ended June 30, 2026, compared to $24.9 million for the three months ended June 30, 2025, an increase of $3.6 million, or 14.4%. This increase is primarily attributable to higher income before taxes in the current year period.

Current wording

Income tax expense was $20.0 million for the three months ended September 30, 2026, compared to $28.0 million for the three months ended September 30, 2025, a decrease of $8.0 million, or 28.6%. This decrease is primarily attributable to higher income before taxes as a result of the gain recognized on the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

Losses from equity-method investments were $0.2 million for the three months ended June 30, 2026, compared to $0.6 million for the three months ended June 30, 2025.

Current wording

Losses from equity-method investments were $0.6 million for each of the three months ended September 30, 2026 and 2025.

Previous wording

Corporate-owned clubs Segment Adjusted EBITDA was $57.5 million for the three months ended June 30, 2026, compared to $56.6 million for the three months ended June 30, 2025, an increase of $0.9 million, or 1.6%. This increase in Adjusted EBITDA was primarily attributable to $1.6 million from clubs included in the same club sales base, $0.4 million of lower selling, general and administrative expenses primarily from the closure of the Company’s Florida Corporate Support Center in the prior year period and $0.3 million from new clubs opened since April 1, 2025 before moving into the same club sales base, partially offset by $1.3 million of lower Adjusted EBITDA attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025.

Current wording

Corporate-owned clubs Segment Adjusted EBITDA was $53.5 million for the three months ended September 30, 2026, compared to $53.7 million for the three months ended September 30, 2025, a decrease of $0.2 million, or 0.4%. This decrease in Adjusted EBITDA was primarily attributable to $1.9 million of higher operational expenses from new clubs opened since July 1, 2025 before moving into the same club sales base and $1.0 million of lower Adjusted EBITDA attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025, partially offset by $3.3 million of higher Adjusted EBITDA from clubs included in the same club sales base and $0.4 million of higher selling, general and administrative expense.

Previous wording

Franchise revenue was $205.1 million for the six months ended June 30, 2026, compared to $190.1 million for the six months ended June 30, 2025, an increase of $15.0 million, or 7.9%. Included in franchise revenue are the following:

Current wording

Franchise revenue was $302.9 million for the nine months ended September 30, 2026, compared to $282.4 million for the nine months ended September 30, 2025, an increase of $20.6 million, or 7.3%. Included in franchise revenue are the following:

Previous wording

Of the $10.7 million increase in royalty revenue, $4.5 million was attributable to a franchise same club sales increase of 2.6%, $4.7 million was attributable to new clubs opened since January 1, 2025 before moving into the same club sales base and $1.5 million was from higher royalties on annual fees. The $2.6 million increase in franchise and other fees was primarily attributable to higher “PF Perks” revenue and ADA fees and the $1.8 million increase in placement revenue was primarily driven by higher replacement equipment placements.

Current wording

Of the $14.7 million increase in royalty revenue, $7.1 million was attributable to new clubs opened since January 1, 2025 before moving into the same club sales base, $6.0 million was attributable to a franchise same club sales increase of 2.3%, and $1.6 million was from higher royalties on annual fees. The $3.7 million increase in franchise and other fees was primarily attributable to higher ADA fee and “PF Perks” revenue and the $2.4 million increase in placement revenue was primarily driven by higher replacement equipment placements.

Previous wording

NAF revenue was $65.1 million for the six months ended June 30, 2026, compared to $44.7 million for the six months ended June 30, 2025, an increase of $20.4 million, or 45.7%. This increase was primarily attributable to a 1% rate increase to NAF contributions from 2% to 3% for 2026, higher same club sales and new clubs opened since January 1, 2025.

Current wording

NAF revenue was $97.0 million for the nine months ended September 30, 2026, compared to $66.2 million for the nine months ended September 30, 2025, an increase of $30.8 million, or 46.6%. This increase was primarily attributable to a 1% rate increase to NAF contributions from 2% to 3% for 2026, higher same club sales and new clubs opened since January 1, 2025.

Previous wording

Corporate-owned clubs segment revenue was $284.5 million for the six months ended June 30, 2026, compared to $272.7 million for the six months ended June 30, 2025, an increase of $11.8 million, or 4.3%. This increase was primarily attributable to $11.7 million from the corporate-owned clubs in the same club sales base, including $7.3 million attributable to a same club sales increase of 2.6% and $4.3 million attributable to other fees. Additionally, $9.9 million was from new clubs opened since January 1, 2025 before moving into the same club sales base. This increase was partially offset by $9.8 million of lower revenue attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025.

Current wording

Corporate-owned clubs segment revenue was $427.2 million for the nine months ended September 30, 2026, compared to $410.5 million for the nine months ended September 30, 2025, an increase of $16.7 million, or 4.1%. This increase was primarily attributable to $15.1 million from the corporate-owned clubs in the same club sales base, including $10.6 million attributable to a same club sales increase of 2.3% and $4.7 million attributable to other fees. Additionally, $14.0 million was from new clubs opened since January 1, 2025 before moving into the same club sales base. This increase was partially offset by $12.3 million of lower revenue attributable to the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

Equipment segment revenue was $147.7 million for the six months ended June 30, 2026, compared to $110.0 million for the six months ended June 30, 2025, an increase of $37.7 million, or 34.2%. This increase was primarily attributable to $33.7 million of higher revenue from equipment sales to existing franchisee-owned clubs and $4.0 million of higher revenue from equipment sales to new franchisee-owned clubs. In the six months ended June 30, 2026, we had equipment sales to 35 new franchisee-owned clubs compared to 29 in the six months ended June 30, 2025.

Current wording

Equipment segment revenue was $235.3 million for the nine months ended September 30, 2026, compared to $188.9 million for the nine months ended September 30, 2025, an increase of $46.5 million, or 24.6%. This increase was primarily attributable to $43.2 million of higher revenue from equipment sales to existing franchisee-owned clubs and $3.2 million of higher revenue from equipment sales to new franchisee-owned clubs. In the each of the nine months ended September 30, 2026 and 2025, we had equipment sales to 56 new franchisee-owned clubs.

Previous wording

Cost of revenue, which primarily relates to our equipment segment, was $64.5 million for the three months ended June 30, 2026, compared to $59.4 million for the three months ended June 30, 2025, an increase of $5.1 million, or 8.5%. This increase was primarily attributable to higher equipment sales to new and existing franchisee-owned clubs, as described above.

Current wording

Cost of revenue, which primarily relates to our equipment segment, was $175.2 million for the nine months ended September 30, 2026, compared to $140.1 million for the nine months ended September 30, 2025, an increase of $35.1 million, or 25.1%. 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 $81.7 million for the three months ended June 30, 2026, compared to $77.4 million for the three months ended June 30, 2025, an increase of $4.3 million, or 5.5%. This increase was primarily attributable to $4.6 million from new clubs opened since April 1, 2025 before moving into the same club sales base and $3.2 million from clubs included in our same club sales base, both as a result of higher marketing, payroll, and occupancy related expenses. This increase was partially offset by $3.5 million of lower club operations expense attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025.

Current wording

Club operations expense, which relates to our corporate-owned clubs segment, was $254.2 million for the nine months ended September 30, 2026, compared to $238.9 million for the nine months ended September 30, 2025, an increase of $15.3 million, or 6.4%. This increase was primarily attributable to $15.6 million from new clubs opened since January 1, 2025 before moving into the same club sales base and $7.9 million from clubs included in our same club sales base, both as a result of higher payroll, occupancy and marketing related expenses. This increase was partially offset by $8.2 million of lower club operations expense attributable to the sale of eight clubs located in California to a franchisee in August 2025.

Previous wording

Selling, general and administrative expenses were $34.4 million for the three months ended June 30, 2026, compared to $35.5 million for the three months ended June 30, 2025, a decrease of $1.1 million, or 3.1%. This decrease was primarily attributable to lower costs relating to consulting and marketing partially offset by higher rent expense associated with our new Boston office, which has not yet opened.

Current wording

Selling, general and administrative expenses were $103.5 million for the nine months ended September 30, 2026, compared to $100.3 million for the nine months ended September 30, 2025, an increase of $3.2 million, or 3.1%. This increase was primarily attributable to higher payroll and severance related expenses attributed to the executive leadership transition partially offset by lower costs relating to consulting and marketing.

Previous wording

NAF expense was $65.1 million for the six months ended June 30, 2026, compared to $44.7 million for the six months ended June 30, 2025, an increase of $20.4 million, or 45.7%. This increase was primarily a result of higher advertising and marketing expenditures due to higher national advertising revenue, as described above.

Current wording

NAF expense was $97.0 million for the nine months ended September 30, 2026, compared to $66.2 million for the nine months ended September 30, 2025, an increase of $30.8 million, or 46.6%. This increase was primarily a result of higher advertising and marketing expenditures due to higher national advertising revenue, as described above.

Previous wording

Depreciation and amortization expense was $80.4 million for the six months ended June 30, 2026, compared to $76.7 million for the six months ended June 30, 2025, an increase of $3.7 million, or 4.8%. This increase was primarily attributable to an increase in depreciation expense primarily from new clubs opened since January 1, 2025, partially offset by a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the current year period.

Current wording

Depreciation and amortization expense was $122.0 million for the nine months ended September 30, 2026, compared to $115.8 million for the nine months ended September 30, 2025, an increase of $6.1 million, or 5.3%. This increase was primarily attributable to an increase in depreciation expense primarily from new clubs opened since January 1, 2025, partially offset by a decrease in amortization expense as a result of certain intangible assets becoming fully amortized during the current year period.

Previous wording

Other (gains) losses, net was a $13.8 million gain for the six months ended June 30, 2026, compared to a $3.7 million loss for the six months ended June 30, 2025. The current year period amount is primarily attributable to a gain recognized on the sale of our equity method investment in Australia and on fees received in connection with the transfer of clubs between franchisee groups. The prior year period amount is primarily attributable to an allowance for expected credit losses on the Company’s held-to-maturity debt security and costs incurred on the closure of the Company’s Florida Corporate Support Center located in Orlando, Florida.

Current wording

Other gains, net was a $13.4 million gain for the nine months ended September 30, 2026, compared to a $2.1 million gain for the nine months ended September 30, 2025. The current year period amount is primarily attributable to a gain recognized on the sale of our equity method investment in Australia and on fees received in connection with the transfer of clubs between franchisee groups, partially offset by an allowance for expected credit losses on the Company’s held-to-maturity debt security. The prior year period amount is primarily attributable to a gain on the sale of corporate-owned clubs and a gain on insurance proceeds, partially offset by an allowance for expected credit losses on the Company’s held-to-maturity debt security and costs incurred on the closure of the Company’s Florida Corporate Support Center located in Orlando, Florida.

Previous wording

Interest expense was $66.4 million for the six months ended June 30, 2026, compared to $52.4 million for the six months ended June 30, 2025, an increase of $14.0 million, or 26.7%. This increase was primarily attributable to a higher principal balance and blended interest rate on our indebtedness related to the issuance of the 2025 Notes in December 2025 and draw down on the Variable Funding Notes in the current year period.

Current wording

Interest expense was $100.5 million for the nine months ended September 30, 2026, compared to $78.7 million for the nine months ended September 30, 2025, an increase of $21.8 million, or 27.7%. This increase was primarily attributable to a higher principal balance and blended interest rate on our indebtedness related to the issuance of the 2025 Notes in December 2025 and draw down on the Variable Funding Notes in the current year period.

Previous wording

Other income, net was $1.1 million for the six months ended June 30, 2026, compared to $2.2 million for the six months ended June 30, 2025. This decrease in other income was primarily attributable to a gain on the remeasurement of our tax benefit arrangements in the prior year period due to changes in our effective tax rate.

Current wording

Other income, net was $1.4 million for the nine months ended September 30, 2026, compared to $3.3 million for the nine months ended September 30, 2025. This decrease in other income was primarily attributable to a gain on the remeasurement of our tax benefit arrangements in the prior year period due to changes in our deferred state tax rate.

Previous wording

The Company’s effective tax rate was 28.4% for the six months ended June 30, 2026, compared to 28.8% for the six months ended June 30, 2025. The decrease in the effective income tax rate was primarily due to the remeasurement of deferred tax assets in the prior year period.

Current wording

The Company’s effective tax rate was 28.1% for the nine months ended September 30, 2026, compared to 30.0% for the nine months ended September 30, 2025. The decrease in the effective income tax rate was primarily attributable to the remeasurement of deferred tax assets and a higher gain in the prior year period, as described above, partially offset by increased valuation allowance in the current year period.