Bloomberg Audio Studios, Podcasts Radio News got now for our socc at the Hour taking a look at Shares a Planet business. They've been under pressure all day long, the biggest drop going back to twenty twenty three. Fourth quarter results for the company actually did come in above estimates both on a revenue basis and on the bottom line, but the forecast that the company gave going forward here implies maybe slightly below what the street was looking for.
Joining us right now to talk about the health of the business and where it goes next is Colleen King. She's a CEO over at Planet Fitness. All right, Colleen, I got to start with the forecast here because that seems to be what the market's reacting to. The EBODOC growth number, about ten percent growth on an adjusted basis,
but that's below what the street was expecting. There seemed to be this expectation that with some of the pricing changes that you've made, the rollout of the black card program, that we would maybe see a little bit more meaningful growth on the bottom line.
What's going on, well, Remaine, we landed a very strong twenty twenty five and think that's much reflective of the momentum in the business and evidence that our strategic comparatives
are delivering. You know, our first imperative was our brand promise and pulling it through our marketing, and that resulted in one point one million net new members for twenty twenty five, a ten percent lift versus the prior year, and that was on top of a fifty percent lift in our entry price point, the classic price point from ten dollars to fifteen dollars for the full year twenty twenty five. From a member experience standpoint, we're seeing members
utilizing our clubs more frequently. Utilization is up, as is the percentage of members who are rejoining. We're seeing a mid thirty percent rejoin rate. Our format optimization is resonating.
We finished the year with eighty percent or nearly eighty percent of our estate with some version of an optimized format and new equipment package, and all of this culminates in growth, and we had our highest fourth quarter unit openings number in the history of the company in the fourth quarter of twenty twenty five and finished the year
with one hundred and eighty one units. So strong, strong growth, and we remain confident in the three year Kaiger that we outlined at our investor a day in November, So you know, strong momentum.
Well, that's what I'm curious about. I mean, you're obviously going through a bit of a transition here, kind of reimagining the space of what meaning the physical space and just really the ethos of what planet Fitness is. I assume there are costs associated with that. Are those costs permanent or is this just kind of a temporary thing with regards to the revamping of the locations in any marketing costs associated with it.
Yeah. One of the beautiful things about our model is its high efficiency, and our franchisees have invested, have made the investments in the equipment packages to optimize the format. That said, one of the things that we rolled out in twenty twenty four was our new growth model, and this was to help our franchisees with their unit economics and their IRRs. That is one of the things that's influencing our guidance for twenty twenty six. This is the first year we'll see a little bit of a push
out in equipment in equipment revenue. That was intentional and again that was anticipated in the three year projections that we rolled out.
Now, Colleen, I also want to dig into your membership growth a little bit. You did mention an uplift there twenty million use more than twenty million members at the moment. Where do you think the next leg of membership growth comes from? Is it a matter of improving the pricing or perhaps finding you customer segments to penetrate, maybe adding more units.
So a couple of things. So we finished at twenty point eight million members or nearly twenty one million members, and our you know, our reach is on paralleled. We have a club within twelve minutes of one hundred and seventy million of the US population. And at the same time, we are in the golden age of fitness. I mean, you can't open a news feed without reading about the importance of fitness and wellness and how it contributes to mental health as well. So interest in interest in working
out and fitness and wellness has never been higher. We know that there are about fifty to sixty million people adults in the US are that think about a gym membership and express a willingness to pay. And there are also about fifty to sixty million people in the US who who have a gym membership. Who you know are in the tam that that you know we could convert to Planet Fitness as well. So a tremendous opportunity to continue growing membership.
Calling only about a minute left. But I am curious as to who you're positioning yourself against. You're like, who are your competitors? Are you going up against the big global jams, the boutique kind of fitness craze that's popped up.
Who we you know? We are solidly the industry leader in the high value, low price space at a very approachable price point. We democratized access to fitness while bringing to bear a great offering of top shelf equipment. And what makes us unique is that we have a judgment free, no you know, no gym timidation environment that's welcoming to all fitness levels.
All right, Colleen, I have to leave it there. I really appreciate you joining us today, Colleen getting CEO over aad Planet Fitness