Could Planet Fitness (PLNT) Rebound Despite Slower Member Growth?

Baron Capital's Q2 2026 investor letter for the Baron Small Cap Fund discusses the performance of a number of small-cap stocks, including Planet Fitness, Inc. (NYSE:PLNT). The small-cap fund gained 12.57% in the second quarter, but underperformed the Russell 2000 Growth Index, which returned 25.71%. Planet Fitness, Inc., the leading high-value, low-cost gym operator, saw its shares close at $50.63 on August 17, 2026, marking a one-month return of -7.10% and a 52-week loss of -52.88%.

The company's member growth slowed due to factors such as unfavorable weather, macroeconomic headwinds, increased competition, and marketing changes that failed to appeal to certain customer segments. As a result, Planet Fitness lowered its full-year guidance and paused announced price increases. Despite these challenges, the company remains the category leader due to its scale advantages, which could help it capitalize on long-term health and wellness trends.

Planet Fitness is not among the 40 Most Popular Stocks Among Hedge Funds, which preferred AI stocks for greater upside potential and lower downside risk.