Planet Fitness, Inc.PLNT

Planet Fitness, Inc. Revenue Disclosure

10-KFiled Feb 25, 20262 min read
Revenue from contracts with customers
Contract liabilities consist primarily of deferred revenue resulting from franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are corporate-owned club enrollment fees, annual fees and monthly fees as well as deferred
equipment rebates relating to our equipment business. The Company classifies these contract liabilities as deferred revenue in our consolidated balance sheets.
The following table reflects the change in contract liabilities between December 31, 2024 and December 31, 2025:
(in thousands)
Amount
Balance at December 31, 2024
$94,101 
Revenue recognized that was included in the contract liability at the beginning of the year(62,752)
Increase, excluding amounts recognized as revenue during the period56,901 
Balance at December 31, 2025
$88,250 

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations from contract liabilities that are unsatisfied, or partially unsatisfied, as of December 31, 2025. The Company has elected to exclude short term contracts, sales and usage based royalties and any other variable consideration recognized on an “as invoiced” basis.
(in thousands)Amount
2026$58,593 
20274,481 
20283,388 
20293,026 
20302,694 
Thereafter16,068 
Total$88,250 
The summary set forth below represents the balances in deferred revenue:
As of December 31,
(in thousands)20252024
Prepaid membership fees$17,319 $17,224 
Enrollment fees3,294 3,348 
Equipment discount262 3,235 
Annual membership fees34,577 34,956 
Area development and franchise fees32,798 35,338 
Total deferred revenue88,250 94,101 
Long-term portion of deferred revenue29,657 31,990 
Current portion of deferred revenue$58,593 $62,111 
Equipment deposits received in advance of delivery as of December 31, 2025 were $10.2 million and are expected to be recognized as revenue in the next 12 months.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Feb 28, 2020
2018Mar 1, 2019
2017Mar 1, 2018
2016Mar 6, 2017
2015Mar 4, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance