The quarter landed slightly ahead of expectations. Revenue was $365.2 million versus a published consensus of roughly $363.3 million, while adjusted diluted EPS was $0.88 versus estimates ranging around $0.85–$0.86.
| Metric | Q2 2026 | Q2 2025 | Change / expectation |
|---|---|---|---|
| Revenue | $365.2M | $340.9M | +7.1%; modestly above ~$363.3M consensus |
| Adjusted EBITDA | $152.8M | $147.6M | +3.5% |
| Adjusted net income | $68.4M | $72.6M | -5.7% |
| Adjusted diluted EPS | $0.88 | $0.86 | +2.3%; above ~$0.85–$0.86 consensus |
| Same-club sales | 1.7% | — | Positive, but no reliable published comparison provided |
| Full-year adjusted EPS growth outlook | Approximately 6% | — | Raised from approximately 4% |
Underlying demand is still only modestly improving. Same-club sales rose 1.7%, contributing just $1.7 million to franchise royalty growth and $3.0 million to corporate-club revenue; most of the reported franchise revenue increase came from the higher national advertising contribution, which lifted both revenue and expense by $10.1 million without creating operating profit. (Franchise segment revenue; Corporate-owned clubs segment revenue)
The EPS beat was helped materially by share repurchases rather than stronger operating momentum. Adjusted net income fell to $68.4 million from $72.6 million, and adjusted EBITDA grew only 3.5%, but diluted adjusted shares declined to 77.5 million from 84.4 million. The company repurchased $251.3 million of stock during the first half and raised its EPS-growth outlook largely alongside a lower share-count assumption. (Adjusted net income reconciliation; Cash Flow statement; 2026 Outlook)
Segment performance was mixed beneath the headline. Franchise adjusted EBITDA increased 6.1% and corporate-owned-club adjusted EBITDA rose only 1.6%, while equipment adjusted EBITDA fell 8.0% because of replacement-equipment discount timing. The company also acknowledged it is still developing a new marketing campaign and testing pricing, member experience, and retention initiatives—evidence that the member-growth problem is being addressed, but not yet solved. (Segment Adjusted EBITDA; CEO commentary)
The net read is a narrow positive, not a clean operational reacceleration. The modest revenue and EPS beats, together with the higher EPS-growth outlook, improve the near-term picture versus expectations. However, the core same-club trend remains subdued, adjusted net income declined, and the EPS improvement depends heavily on buybacks; the filing supports a better-than-feared quarter more than it proves a durable return to stronger member growth.
Read the original 8-K on SEC EDGAR ↗