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Investments
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Marketable securities
The following tables summarize the amortized cost, net unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s available-for-sale investments in marketable securities. As of September 30, 2024, the marketable securities had maturity dates that range from less than 1 month to approximately 23 months. Realized gains and losses were insignificant for the three and nine months ended September 30, 2024 and 2023.
Amortized CostUnrealized Gains, Net
Fair Value(1)
Level 1Level 2
September 30, 2024
Cash equivalents
Money market funds$1,260 $— $1,260 $1,260 $— 
Total cash equivalents1,260 — 1,260 1,260 — 
Short-term marketable securities
Commercial paper17,731 33 17,764 — 17,764 
Corporate debt securities83,339 330 83,669 — 83,669 
U.S. treasury securities1,976 — 1,976 — 1,976 
U.S. government agency securities5,207 13 5,220 — 5,220 
Total short-term marketable securities108,253 376 108,629 — 108,629 
Long-term marketable securities
Corporate debt securities52,616 418 53,034 — 53,034 
U.S. government agency securities2,500 1 2,501 — 2,501 
Total long-term marketable securities55,116 419 55,535 — 55,535 
Total marketable securities$164,629 $795 $165,424 $1,260 $164,164 
Amortized CostUnrealized Gains (Losses), Net
Fair Value(1)
Level 1Level 2
December 31, 2023
Cash equivalents
Money market funds$761 $— $761 $761 $— 
U.S. treasury securities2,997 1 2,998 — 2,998 
Total cash equivalents3,758 1 3,759 761 2,998 
Short-term marketable securities
Commercial paper37,063 24 37,087 — 37,087 
Corporate debt securities34,632 (38)34,594 — 34,594 
U.S. government agency securities3,210 10 3,220 — 3,220 
Total short-term marketable securities74,905 (4)74,901 — 74,901 
Long-term marketable securities
Corporate debt securities47,388 328 47,716 — 47,716 
U.S. government agency securities3,151 19 3,170 — 3,170 
Total long-term marketable securities50,539 347 50,886 — 50,886 
Total marketable securities$129,202 $344 $129,546 $761 $128,785 
(1) Fair values were determined using market prices obtained from third-party pricing sources.
For marketable securities with unrealized loss positions, the Company does not intend to sell these securities before maturity and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of September 30, 2024 and December 31, 2023.
Held-to-maturity debt security
As of September 30, 2024, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.
The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimates using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis, the Company recorded a credit loss expense of $292 and a gain on the reversal of credit loss allowance of $101 during the three months ended September 30, 2024 and 2023, respectively, and a credit loss expense of $849 and a gain on the reversal of credit loss allowance of $6 during the nine months ended September 30, 2024 and 2023, respectively, on the adjustment of its allowance for credit losses within other (gains) losses, net on the condensed consolidated statements of operations.
The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investment was $31,961 and $30,343 and the allowance for expected credit losses was $18,538 and $17,689, as of September 30, 2024 and December 31, 2023, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. The Company recognized dividend income of $553 and $511 during the three months ended September 30, 2024 and 2023, respectively, and $1,618 and $1,490 during the nine months ended September 30, 2024 and 2023, respectively, within other income, net on the condensed consolidated statements of operations.
The Company’s held-to-maturity investment has a contractual maturity in 2026.
A roll forward of the Company’s allowance for expected credit losses on its held-to-maturity investment is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Beginning allowance for expected credit losses$18,246 $15,052 $17,689 $14,957 
Loss (gain) on adjustment of allowance for expected credit losses292 (101)849 (6)
Write-offs, net of recoveries— — — — 
Ending allowance for expected credit losses$18,538 $14,951 $18,538 $14,951 
Equity method investments
For the following investments, the Company recorded its proportionate share of the investees’ earnings, prepared in accordance with GAAP, on a one-month lag, with an adjustment to eliminate unrealized profits on intra-entity sales, if any, and the amortization of basis differences, within losses from equity-method investments, net of tax on the condensed consolidated statements of operations. As of September 30, 2024, the Company determined that no impairment of its equity method investments existed.
As of September 30, 2024 and December 31, 2023, the Company held a 21.8% ownership interest in Bravo Fit Holdings Pty Ltd, a franchisee of the Company and club operator in Australia, which is deemed to be a related party, for a total investment carrying value of $12,080 and $13,220, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $5,287 and $6,812 as of September 30, 2024 and December 31, 2023, respectively. This basis difference is primarily attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. The Company’s proportionate share of the losses in accordance with the equity method was $674 and $94 for the three months ended September 30, 2024 and 2023, respectively, and $1,140 and $432 for the nine months ended September 30, 2024 and 2023, respectively, which included the amortization of basis differences of $66, $65, $198 and $195, respectively.
As of September 30, 2024 and December 31, 2023, the Company held a 33.2% ownership interest in Planet Fitmex, LLC, a franchisee of the Company and club operator in Mexico, which is deemed to be a related party and classified as an equity method investment as a result of its organizational structure, for a total investment carrying value of $49,575 and $51,633, respectively. The difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $20,060 and $17,458 as of September 30, 2024 and December 31, 2023, respectively. This basis difference is primarily attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. The Company’s proportionate share of the losses in accordance with the equity method was $108 and $148 for the three months ended September 30, 2024 and 2023, respectively, and $2,058 and $148 for the nine months ended September 30, 2024 and 2023, respectively, which included the amortization of basis differences of $174, $56, $511, and $56 respectively.