Life Time, Planet Fitness earnings show K-shaped economy
Two of the largest U.S. gym operators had the same headline in their latest earnings reports: strong growth.
But beneath the surface, Lifetime Group Holdings And Planet Sport He told very different stories about the American consumer. Them It highlighted a widening gap between high-income households, which continue to spend freely, and price-sensitive consumers, who are starting to show signs of pressure.
The Planet Fitness logo is seen outside the gym at Loyal Plaza in Loyalsock Township, Pennsylvania.
Paul Weaver | Light Rocket | Getty Images
Both companies reported double-digit percent revenue growth, membership growth, and expanding footprint in 2025. But their outlook for 2026 points to a “K-shaped” economy, a term used to describe the divide in spending trends between high- and low-income groups. Here’s what we learned.
Life Span: Wealthy consumers continue to spend
Life Time’s earnings reinforced that wealthy Americans are still spending, especially on health and wellness.
In the fourth quarter the company total revenue increased 12.3% year over year to $745.1 million. CFO Erik Weaver attributed the increase to “continued execution across our centers,” including higher average dues and stronger utilization of in-center businesses.
The company, which operates large-format fitness clubs with amenities such as pools, spas and cafes, increased membership dues last year. Roughly $10 to $30 per member. The change hasn’t slowed demand — Membership and attendance continued to grow.
A growing share of Life Time’s revenue comes from in-center expenses, which totaled more than $191 million in the fourth quarter. Members enjoy the space as a lifestyle destination, taking full advantage of additional personal training, spa services, and food and beverages.
Average revenue per center membership increased 10.8% to $882.
“This is a super-engagement membership model rather than a dormant membership model,” said Bahram Akradi, CEO of Life Time Group Holdings. “We’re basically operating at optimal levels of that right now.”
Although it has far fewer locations than Planet Fitness, the company generates significantly more revenue, underscoring the higher spending power of its customer base.
“The model has proven its resilience through the macro-challenging year 2025, where intra-center revenue is rising,” said Mizuho analyst John Baumgartner. “And we see downside risks limited due to membership bias favoring higher-income households and differentiated club activities.”
The results suggest that high-income consumers remain relatively insulated from broader economic pressures and continue to prioritize discretionary healthcare spending.
Planet Fitness: Sales rising but outlook disappointing
The powerhouse of the new Planet Fitness at 226 Harvard Boulevard in Allston.
Pat Greenhouse | Boston Globe | Getty Images
Planet Fitness also reported strong growth in 2025, adding 1.1 million new members and delivering double-digit percentage revenue growth.
But investors focused on the outlook, which fell short of Wall Street’s expectations. The company’s 9% slower revenue growth in fiscal 2026 and weaker-than-expected same-store sales of 4% to 5% have raised demand concerns.
However, Planet Fitness remained positive about growth, saying the expected decline in membership was temporary.
“Our compounding trends were impacted by storms and cold temperatures in many markets in late January, and we experienced a slightly higher than expected cancellation rate last month,” said Planet Fitness CFO Jay Stasz. “Especially recent attrition trends are returning in line with our expectations.”
Planet Fitness is also testing price increases in some markets and expects them to be fully implemented by summer 2026. It is also investing in new amenities, such as red light therapy and additional classes, to increase revenue per member and attract younger members.
This strategy could support long-term growth, but some analysts are skeptical and say the “guidance gap” between Planet Fitness’ results and Wall Street’s expectations is particularly galling.
“The company is facing a credibility hurdle right now,” said Stifel analyst Chris Cull. “Is the 2026 forecast conservative, or are off-year targets unrealistic? We expect the stock to likely decline until the company provides a clearer path to acceleration.”
The softened 2026 outlook shows there is some uncertainty about how much more core customers will be able to increase their spending.
Widening consumer divide
Together, the results underscore a broader shift in the U.S. economy.
High-income consumers continue to absorb price increases and spend on premium experiences, reflected in Life Time’s performance. Meanwhile, Planet Fitness suggests that price-sensitive customers, while busy, are more reluctant to spend.
This isn’t a fitness-specific problem, and it turns out. across industries. As high-income travelers continue to spend, airlines are racing to create luxury offerings. Meanwhile, fast-food companies are turning to value meals to attract price-sensitive customers, reinforcing the idea of a K-shaped economy.
Planet Fitness’ performance in the coming quarters could be an indicator of how much discretionary spending capacity remains for low- and middle-income consumers.
William Blair analyst Sharon Zackfia cuts her firm’s forecasts Planet Fitness’s membership count in 2026 has increased from 1 million to 800,000, given projected weakness in the first quarter; this accounts for 60% of all year enrollments overall. Still, the guidance didn’t dampen the firm’s optimism about the company.
“We reiterate our Outperform rating and continue to view the brand’s long-term outlook as solid given its industry-leading low-price/non-intimidating club format,” Zackfia said.
For now, the fitness industry is sending a clear signal: Consumer spending remains strong, but like that is becoming increasingly divided.
