Planet Fitness Grew Revenue 22%, So Why Did One Investor Trim $20 Million?

Dorsal Capital Management, LP reduced its position in Planet Fitness (NYSE:PLNT) during the first quarter, selling an estimated $19.78 million based on quarterly average pricing, according to a May 15, 2026, SEC filing.

What happened

Dorsal Capital Management, LP disclosed in a U.S. Securities and Exchange Commission (SEC) filing dated May 15, 2026, that it sold 225,000 shares of Planet Fitness in the first quarter. The estimated transaction value is $19.78 million based on the average closing price over the quarter. The quarter-end value of the stake decreased by $110.48 million, a figure that includes both trading activity and price changes.

What else to know

• Dorsal Capital’s sale reduced its Planet Fitness holding to 7.3% of 13F reportable assets under management.
• Top holdings after the filing:
  • NYSE: TSM: $245.01 million (9.7% of AUM)
  • NASDAQ: AMZN: $197.86 million (7.9% of AUM)
  • NYSE: PLNT: $187.81 million (7.3% of AUM)
  • NASDAQ: FWONK: $172.17 million (6.8% of AUM)
  • NYSE: HD: $164.44 million (6.5% of AUM)
• As of Friday, Planet Fitness shares were priced at $52.05, down 50% over the past year and well underperforming the S&P 500, which is instead up about 28% in the same period.

Company Overview

Company Snapshot

• Planet Fitness offers fitness center memberships and related services through franchise and corporate-owned locations, with additional revenue from equipment sales to franchisees.
• The firm operates a predominantly franchise-based model, generating income from franchise fees, royalties, equipment sales, and company-operated gyms.
• It operates fitness centers across the United States and select international markets, including Puerto Rico, Canada, Panama, Mexico, and Australia.

Planet Fitness, Inc. is a leading operator and franchisor of fitness centers, with a broad network spanning the United States and several international locations. The company leverages a high-volume, low-cost model to attract a wide demographic, focusing on accessibility and affordability in the fitness industry. Its scale and franchise-driven strategy provide a competitive advantage in expanding market reach and maintaining consistent revenue streams.

What this transaction means for investors

Even after the reduction, Planet Fitness remains one of Dorsal Capital's largest holdings at 7.3% of assets, suggesting that conviction hasn't disappeared.

What's interesting is that the stock's weakness comes despite a business that is still growing. First-quarter revenue climbed 22% year over year to $337.2 million, while adjusted EBITDA increased nearly 20% to $139.9 million. System-wide same-club sales rose 3.5%, total membership reached roughly 21.5 million, and the company opened 15 new locations during the quarter.

Management did acknowledge some near-term challenges. CEO Colleen Keating said 2026 has gotten off to a "slower than expected start" for net member growth, prompting the company to sharpen its marketing efforts and pause a planned Black Card price increase. At the same time, she emphasized that Planet Fitness' long-term thesis remains intact and that the company is well-positioned to benefit from growing interest in health and wellness.

For long-term investors, the key question is whether today's slowdown proves temporary. If Planet Fitness can continue expanding its club base while converting more consumers into recurring memberships, the recent stock decline could eventually look disconnected from the underlying business.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Home Depot, Planet Fitness, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.