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Baron Small Cap Fund points to Planet Fitness after guidance cut
Planet Fitness shares closed at $50.63 on Aug. 17, down 52.9% over 52 weeks, after the company lowered full-year guidance tied to weaker member additions.
Baron Small Cap Fund, an investment portfolio managed by Baron Capital, highlighted Planet Fitness, Inc. in its Q2 2026 investor letter, focusing on the gym operator after it reduced its full-year outlook. Yahoo Finance reports the fund gained 12.6% in the quarter, although it trailed the Russell 2000 Growth Index’s 25.7% return.
In the letter, Baron Small Cap Fund said Planet Fitness detracted from performance after the company lowered full-year guidance. The outlet reported the guidance cut was linked to weaker-than-expected member additions in the first quarter and the resulting pressure on member growth.
Baron Capital attributed the slower membership growth to several factors, including unfavorable weather, macroeconomic headwinds, increased competition in certain markets, and marketing changes that did not resonate with some customer segments. As a result, management reduced its outlook, according to the investor letter excerpt cited by Yahoo Finance.
The story also noted Planet Fitness closed at $50.63 per share on Aug. 17, with a one-month return of -7.1% and a decline of 52.9% over the past 52 weeks. Yahoo Finance said the fund’s broader quarterly performance benefited from AI-related and industrial holdings, while software and services stocks remained pressured by concerns about potential AI disruption.
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