PLNT

Planet Fitness, Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is PLNT Halal?

Franchisor and operator of fitness centers — a permissible service business, but the current securitized balance sheet fails the examined debt screen.

What You Should Know

Planet Fitness, Inc. franchises and operates fitness centers, earning royalties, franchise fees, equipment sales and membership revenue. Its March 31, 2026 Form 10-Q reports $2,479.087 million of interest-bearing debt, $375.273 million of unrestricted cash, $230.996 million of marketable and held-to-maturity debt securities, and $83.666 million of receivables against $3,104.641 million of assets. Debt/assets is 79.85%, cash plus securities/assets is 19.53%, receivables plus cash/assets is 14.78% and disclosed interest income/revenue is 1.68%. The fitness-franchising activity is generally permissible, but securitized debt and related financing make the current asset-based screen fail.

⚠️ Concerns

  • Debt/assets is 79.85%, well above the examined 33.33% asset-based limit
  • Whole-business securitized notes and related borrowings are conventional, interest-bearing financing
  • Restricted cash was excluded from unrestricted cash; marketable and held-to-maturity debt securities are included in the liquidity numerator
  • Disclosed interest income is 1.68% of quarterly revenue; purification treatment remains scholar-dependent

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
79.85%Above limit
Below 33.333% under FTSE Yasaar

2,479.087 / 3,104.641

Cash + interest-bearing securities / assets
19.53%Within limit
Below 33.333% under FTSE Yasaar

606.269 / 3,104.641

Receivables + cash / assets
14.78%Within limit
Below 50% under FTSE Yasaar

458.939 / 3,104.641

Non-compliant income / revenue
1.68%Within limit
No more than 5% under FTSE Yasaar

5.662 / 337.236

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 79.85%, above the examined 33.333% limit; liquidity/assets is 19.53%, receivables-plus-cash/assets is 14.78% and disclosed interest income is 1.68%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 79.85%, above the examined MSCI 33.33% total-assets limit; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 79.85%, above the examined Malaysia SAC financial limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored, but the asset-based debt screen fails independently.

Business-activity disclosure

Planet Fitness franchises and operates fitness clubs and sells related equipment. Fitness and franchising are generally permissible activities, but the filing does not provide a universal prohibited-revenue numerator for all club, equipment, advertising or related-party activity.

Limitation: The filing does not classify every club service, equipment product, advertising stream or related-party end use by a universal Sharia category; activity remains qualitative.

Purification

Planet Fitness discloses $5.662 million of interest income for the quarter, but ZakatInvest does not prescribe a scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Planet Fitness's March 31, 2026 Form 10-Q.
  • Interest-bearing debt is $25.750 million of current maturities plus $2,453.337 million of long-term debt, net of deferred financing costs; lease liabilities are excluded.
  • Cash and cash equivalents are $375.273 million. Interest-bearing securities include $98.533 million of short-term marketable securities, $96.963 million of long-term marketable securities and the $35.500 million held-to-maturity debt security; restricted cash, equity-method investments and restricted advertising-fund assets are excluded.
  • Receivables include $41.076 million of accounts receivable and $42.590 million of other receivables; first-quarter revenue is $337.236 million.
  • The filing reports $5.662 million of interest income for the quarter; no fixed purification percentage is prescribed.
  • Fitness-club franchising, club operations and equipment sales are generally permissible, while financing, related-party promissory notes and customer activity remain qualitative.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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