Second-quarter results released August 6 showed revenue of $365.2 million, up 7.1% year over year, and adjusted EBITDA of $152.8 million, up 3.5%. System-wide same-club sales rose 1.7%, driven entirely by rate increases rather than volume growth. Total members reached 21.5 million, a 3.6% year-over-year increase but flat sequentially. Black Card penetration climbed to 68%, up 210 basis points. The company repurchased and retired approximately 4.0 million shares for $200 million at an average price of $50.44, reducing Class A shares outstanding to 75.2 million from 80.4 million at year-end 2025. Cash and marketable securities stood at $544.4 million as of June 30.
Management reiterated full-year revenue growth guidance of approximately 7% and adjusted EBITDA growth of approximately 6%, while raising adjusted diluted EPS growth expectations to about 6% from a prior 4% outlook, aided by the share count reduction. The National Advertising Fund contribution rate was increased from 2% to 3% to support elevated marketing initiatives, adding $10.1 million to both revenue and expense in the quarter.
Analyst sentiment remains mixed. Twenty-two brokerages covering the stock carry an average "Moderate Buy" rating with a mean 12-month price target of $70.03. KeyCorp lowered its target to $65 from $100, while Canaccord Genuity raised its objective to $82 from $80.