Two of the largest U.S. gym operators posted the same headline in their latest earnings reports: strong growth.
But beneath the surface, Participations of the Life Time group and Planet Fitness told very different stories about the American consumer. They highlighted a widening gap between higher-income households that continue to spend freely and more price-sensitive consumers who are beginning to show signs of strain.
The Planet Fitness logo is seen outside their gym at Loyal Plaza in Loyalsock Township, Pennsylvania.
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Both companies reported double-digit percentage revenue growth, membership growth and footprint expansion in 2025. However, their respective outlooks for 2026 point to a “K-shaped” economy, a term used to describe a split in spending trends between higher and lower income groups. This is what we learned.
Life Time: Wealthy consumers keep spending
Life Time's gains reinforced the fact that wealthy Americans are still shelling out money, especially on their health and well-being.
In the fourth quarter, the company Total revenue increased 12.3% year over year to $745.1 million. Chief Financial Officer Erik Weaver attributed the increase to “continued execution in our centers,” including higher average dues and increased business utilization in the centers.
The company, which operates large-format gyms with amenities such as pools, spas and cafes, raised membership fees last year. at approximately $10 to $30 per member. The change did not curb demand. membership and engagement have continued to increase.
A growing proportion of Life Time's revenue comes from spending at the center, which topped $191 million in the fourth quarter. Members are taking full advantage of additional personal training, spa services, and food and beverage while treating the space as a lifestyle destination.
The center's average membership income was $882, an increase of 10.8%.
“It's a super-engaged membership model rather than a dead-end membership model,” said Bahram Akradi, CEO of Life Time Group Holdings. “We're basically operating at optimal levels right now.”
Despite having far fewer locations than Planet Fitness, the company generates significantly more revenue, underscoring the greater purchasing power of its customer base.
“The model proved resilient throughout a macroeconomically challenged 2025 in which downtown revenue grew,” said Mizuho analyst John Baumgartner. “And we will see downside risks limited by a bias in memberships favoring high-income households and differentiated club activities.”
The results suggest that higher-income consumers remain relatively insulated from broader economic pressures and continue to prioritize discretionary spending on well-being.
Planet Fitness: sales grow, but prospects disappoint
The strength area of the new Planet Fitness at 226 Harvard Avenue in Allston.
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Planet Fitness also reported strong growth, adding 1.1 million new members in 2025 and generating double-digit revenue percentage gains.
Investors, however, focused on its prospects, which fell short of Wall Street's expectations. The company projected slower revenue growth of 9% in fiscal 2026 and weaker-than-expected same-store sales of 4% to 5%, raising concerns about demand.
However, Planet Fitness remained optimistic about growth and said the anticipated reduction in membership was temporary.
“Our onboarding trends were impacted by late January storms and cold weather in many of our markets, and last month we experienced a slightly higher cancellation rate than anticipated,” said Planet Fitness CFO Jay Stasz. “In particular, recent attrition trends are coming back in line with our expectations.”
Planet Fitness has also been testing price increases in some markets, which it hopes to fully implement in summer 2026. It is also investing in new services like red light therapy and additional classes to increase revenue per member and attract younger members.
That strategy could support long-term growth, but some analysts are skeptical, saying the “guidance gap” between Planet Fitness' results and Wall Street expectations is particularly frustrating.
“The company now faces a credibility hurdle,” said Stifel analyst Chris Cull. “Is the 2026 guidance conservative, or are the targets for the year ahead unrealistic? Until the company provides a clearer path to acceleration, we expect the stock will likely take a hit.”
A softening outlook for 2026 suggested some uncertainty about how far its biggest customers can stretch their spending.
The growing consumption gap
Taken together, the results highlight a broader shift in the U.S. economy.
Higher-income consumers, as reflected in Life Time's performance, continue to absorb price increases and spend on premium experiences. Meanwhile, Planet Fitness suggests that while price-sensitive customers are committed, they are more reluctant to spend.
That's not a problem unique to fitness and has shown up across industries. Airlines are racing to develop luxury offerings as higher-net-worth travelers continue to spend. Meanwhile, fast food companies are leaning on affordable meals to attract more price-sensitive customers, reinforcing the idea of a K-shaped economy.
Planet Fitness's performance in the coming quarters could serve as an indicator of how much discretionary spending power remains for low- and middle-income consumers.
William Blair analyst Sharon Zackfia lowered her company's projections for Planet Fitness members growth in 2026 to 800,000 from 1 million given projected weakness in the first quarter, which typically represents 60% of full-year enrollments. Still, the guidance didn't dampen the company's optimism about the company.
“We reiterate our Outperform rating and continue to view the brand's long-term prospects as strong given its industry-leading, low-priced, non-intimidating club format,” Zackfia said.
For now, the fitness industry is offering a clear signal: consumer spending remains strong, but is increasingly divided.
