Planet Fitness shares fell more than 30% on Thursday after the fitness chain announced a significant reduction in its financial guidance and scrapped plans to raise membership fees.
The stock hit its lowest point in its history by midday trading, signaling a major shift in investor sentiment.
The company cited a slowdown in new sign-ups as a key factor behind the revised outlook.
Despite efforts to adjust to market conditions, the move has raised concerns about the company's ability to maintain growth and profitability.
The decision to cancel the price hikes, which had been part of the company's strategy to boost revenue, has further fueled uncertainty.
Analysts are now reevaluating the company's financial trajectory and its ability to adapt to changing consumer behavior in the fitness industry.