Two major U.S. gym operators, Life Time Group Holdings and Planet Fitness, reported robust 2025 growth, but their divergent 2026 forecasts reveal a 'K-shaped' economy where high-income consumers spend freely while lower-income groups show strain.
Life Time: Affluent Consumers Drive Resilience
Life Time, serving higher-income households, delivered strong Q4 2025 results with revenue up 12.3% year-over-year to $745.1 million. Key highlights include:
- Membership dues increased by $10 to $30 per member, with no decline in demand.
- In-center revenue (e.g., personal training, spa services) surpassed $191 million.
- Average revenue per center membership rose 10.8% to $882. CEO Bahram Akradi noted a highly engaged membership model, and analysts attribute stability to a customer base insulated from economic pressures.
Planet Fitness: Growth Amidst Cautious Outlook
Planet Fitness added 1.1 million members in 2025 and achieved double-digit revenue growth, but its 2026 projection fell short:
- Forecasted revenue growth of 9% and same-store sales rise of 4% to 5%, below Wall Street expectations.
- Temporary factors like weather affected join rates, though attrition is normalizing.
- Testing price hikes and adding amenities (e.g., red light therapy) to increase revenue per member. Analyst Chris Cull expressed skepticism about credibility, questioning whether guidance is conservative or targets unrealistic.
Analysis: Widening Consumer Divide
The contrasting performances underscore a K-shaped economic split:
- Higher-income groups maintain discretionary wellness spending, benefiting Life Time's premium model.
- Lower-income, price-sensitive consumers exhibit early signs of financial stress, impacting Planet Fitness's value segment. This divide highlights growing income inequality in U.S. consumer behavior, with budget gyms facing growth uncertainties despite expansion efforts.