This Fund Slashed a Planet Fitness Bet as the Gym Giant Resets 2026 Expectations
Key Points
Sea Cliff Partners Management sold 102,519 Planet Fitness shares in the first quarter; the estimated transaction value was $9.01 million (based on quarterly average prices).
Meanwhile, the quarter-end position value declined by $14.61 million, reflecting both share reduction and price movements.
The transaction equaled 4.65% of the fund’s 13F AUM.
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Sea Cliff Partners Management cut its Planet Fitness (NYSE:PLNT) stake by 102,519 shares in first-quarter 2026, an estimated $9.01 million trade based on quarterly average pricing, according to a May 15, 2026, SEC filing.
What happened
According to a May 15, 2026, SEC filing, Sea Cliff Partners Management reduced its Planet Fitness holding by 102,519 shares during the first quarter of 2026. The estimated transaction value was $9.01 million, based on the period’s average share price. At quarter-end, the fund reported owning 102,481 Planet Fitness shares, with the position’s value falling by $14.61 million from the prior quarter, a change reflecting both trading and stock price moves.
What else to know
- Following the sale, Planet Fitness accounted for 3.94% of Sea Cliff’s 13F AUM, moving it outside the fund’s top five holdings.
- Top holdings after the filing:
- NASDAQ: BTSG: $33.43 million (17.3% of AUM)
- NYSE: WCC: $23.59 million (12.2% of AUM)
- NYSE: LTH: $17.70 million (9.1% of AUM)
- NASDAQ: OKTA: $17.32 million (8.9% of AUM)
- NYSE: ITGR: $16.57 million (8.6% of AUM)
- As of May 14, 2026, Planet Fitness shares were priced at $51.50, down 47.4% from a year earlier and well underperforming the S&P 500, which is instead up about 25%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.38 billion |
| Net Income (TTM) | $228.79 million |
| Price (as of market close 2026-05-14) | $51.50 |
| One-Year Price Change | -47.43% |
Company Snapshot
- Planet Fitness generates revenue through franchising fitness centers, operating corporate-owned gyms, and selling fitness equipment to franchisees.
- The business model is based on recurring membership fees, franchise royalties, and equipment sales, providing a stable and diversified income stream.
- The primary customers are value-focused fitness consumers and franchise operators across the United States and international markets.
Planet Fitness, Inc. operates one of the largest networks of fitness centers, with a focus on accessible, affordable gym memberships and a highly scalable franchise model. The company leverages its strong brand and cost-efficient structure to maintain a broad presence in the fitness industry.
Its strategy centers on expanding its franchise footprint and maintaining consistent revenue from both membership and equipment sales, positioning the business for continued growth and resilience in a competitive market.
What this transaction means for investors
Planet Fitness stock has been hammered over the past year, but management’s latest comments suggest investors are still waiting for clearer signs that membership momentum can fully recover. With Sea Cliff still holding onto a non-negligible stake, this move doesn’t seem like a complete loss of confidence in the stock, but instead more like a fund trying to reduce exposure amid a tough stretch.
Planet Fitness still posted solid first-quarter numbers, which came out last week. Revenue climbed 21.9% to $337.2 million, while adjusted EBITDA rose nearly 20% to $139.9 million. The company also ended the quarter with roughly 21.5 million members and opened 15 new locations. But the bigger story was management lowering full-year expectations after a weaker-than-expected start to the peak sign-up season and pausing a planned Black Card price increase.
For long-term investors, the key question is whether this slowdown is cyclical or structural. The company still has a powerful franchise model and strong brand recognition, but future upside likely depends on reigniting membership growth without sacrificing affordability.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta, Planet Fitness, and Wesco International. The Motley Fool has a disclosure policy.
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