Planet Fitness, Inc. (NYSE:PLNT) announced Monday it has entered into a $350 million accelerated share repurchase agreement (ASR) with Citibank, N.A., utilizing funds from its previously authorized $500 million share repurchase program. The fitness chain, currently valued at $9.13 billion, is executing this buyback with its stock trading at $109.88, near its 52-week high of $114.47.
Under the agreement, Planet Fitness will initially receive approximately 2.5 million shares of its Class A common stock, representing about 80% of the expected total repurchase. The final number of shares will be determined based on the average daily volume-weighted average prices during the term of the transaction, with final settlement expected no later than the first quarter of 2026. According to InvestingPro data, Planet Fitness maintains a healthy liquidity position with a current ratio of 2.08, indicating its liquid assets comfortably exceed short-term obligations—a positive sign for investors considering the company’s capital allocation decisions.
As of September 30, Planet Fitness reported approximately 20.7 million members across 2,795 clubs in all 50 U.S. states and several international locations including Canada, Mexico, Australia, and Spain. The company has generated $1.2 billion in revenue over the last twelve months, with impressive 14.63% revenue growth and an outstanding gross profit margin of 59.2%.