Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Planet Fitness Inc Cl A / Equity Bottom-Up

<div><ul><li>Our 2026E EPS is +4% to $3.18, in line with the company’s guidance for growth of ~4%. </li><li>Management has alluded to growth acceleration in 2027, after disappointing net new members in 1Q26 and a pivot in the marketing message that is aimed to better target PLNT’s core customer.</li><li>Our 2027E EPS is +15% to $3.67, above FactSet consensus of $3.60, and our 2028E EPS is +15% to $4.22.</li></ul></div>

Our 2026E EPS is +4% to $3.18, in line with the company’s guidance for growth of ~4%. Management has alluded to growth acceleration in 2027, after disappointing net new members in 1Q26 and a pivot in the marketing message that is aimed to better target PLNT’s core customer.Our 2027E EPS is +15% to $3.67, above FactSet consensus of $3.60, and our 2028E EPS is +15% to $4.22.

PLNT: Initiating Coverage; Growth Expected to Accelerate in 2027