Two of the largest gym operators in the United States delivered the same headline in their latest earnings reports: strong growth.
But beneath the surface, Songs from the group Life Time And Planet Fitness told very different stories about the American consumer. They has highlighted a growing divide between higher-income households who continue to spend freely and more price-sensitive consumers who are starting to show signs of strain.
The Planet Fitness logo is seen outside its gym at Loyal Plaza in Loyalsock Township, Pennsylvania.
Paul Tisserand | Light flare | Getty Images
Both companies reported double-digit revenue growth, membership growth and footprint expansion in 2025. Their respective outlooks for 2026, however, point to a “K-shaped” economy, a term used to describe a split in spending trends between high- and low-income groups. Here’s what we learned.
Lifespan: Affluent consumers continue to spend
Life Time’s profits have reinforced the fact that affluent Americans continue to spend, particularly 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 at our centers,” including higher average dues and greater utilization of center activities.
The company, which runs high-profile fitness clubs with amenities such as swimming pools, spas and cafes, increased its membership fees last year. approximately $10 to $30 per member. The change hasn’t slowed demand — membership and engagement continued to increase.
A growing share of Life Time’s revenue comes from internal expenses, which exceeded $191 million in the fourth quarter. Members take full advantage of additional personal training, spa services, and food and beverages while treating the space as a lifestyle destination.
The average revenue per center membership was $882, up 10.8%.
“This is a very engaged membership model instead of a no-use membership model,” said Bahram Akradi, CEO of Life Time Group Holdings. “We are currently operating at optimal levels.”
Although it has far fewer locations than Planet Fitness, the company generates significantly more revenue, highlighting the higher spending power of its customer base.
“The model has proven its resilience throughout a macro-challenged 2025 in which center revenues grew,” said Mizuho analyst John Baumgartner. “And see downside risks limited by membership bias favoring higher-income households and differentiated club activities.”
The findings suggest that higher-income consumers remain relatively insulated from broader economic pressures and continue to prioritize discretionary wellness spending.
Planet Fitness: sales increase, but outlook disappoints
The strength zone of the new Planet Fitness at 226 Harvard Avenue in Allston.
Greenhouse Pat | Boston Globe | Getty Images
Planet Fitness has also seen strong growth, adding 1.1 million new members in 2025 and generating double-digit revenue gains.
Investors, however, focused on its prospects, which fell short of Wall Street’s expectations. The company forecast slower fiscal 2026 revenue growth of 9% and weaker-than-expected same-store sales of 4% to 5%, raising demand concerns.
However, Planet Fitness remained positive about growth, saying the planned shrinkage of members was temporary.
“Our membership trends were impacted by storms and cold weather in late January in many of our markets, and we experienced a slightly higher cancellation rate last month than expected,” said Jay Stasz, chief financial officer of Planet Fitness. “Notably, recent attrition trends are returning in line with our expectations. »
Planet Fitness has also been testing price increases in select markets, which are expected to be fully rolled out in summer 2026. It is also investing in new equipment 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, saying the “guidance gap” between Planet Fitness’s results and Wall Street’s expectations is particularly frustrating.
“The company now faces a credibility hurdle,” said Chris Cull, an analyst at Stifel. “Are the forecasts for 2026 conservative, or are the goals for the year unrealistic? Until the company provides a clearer path to acceleration, we expect the stock to be likely to collapse.”
A relaxed outlook for 2026 suggests some uncertainty over the extent to which its major customers can increase spending.
The growing divide between consumers
Together, the results highlight a broader shift in the U.S. economy.
Higher-income consumers, as evidenced by Life Time’s performance, continue to absorb price increases and spend on premium experiences. Meanwhile, Planet Fitness suggests that while price-sensitive customers are engaged, they are more reluctant to spend.
This is not a problem unique to fitness and has appeared across all industries. Airlines are racing to develop luxury offerings as higher-income travelers continue to spend. Meanwhile, fast food companies rely on cheap meals to attract more price-sensitive customers, reinforcing the idea of a K-shaped economy.
Planet Fitness’ performance over the next few quarters could serve as an indicator of remaining discretionary spending capacity for low- and middle-income consumers.
William Blair analyst Sharon Zackfia lowered her firm’s forecast for Planet Fitness membership in 2026 increases from 1 million to 800,000, given the expected weakness in the first quarter, which typically accounts for 60% of full-year registrations. However, these forecasts have not dampened the company’s optimism about the company.
“We reiterate our Outperform rating and continue to view the brand’s long-term outlook as strong given its industry-leading, low-cost, non-intimidating club format,” Zackfia said.
For now, the fitness industry is sending a clear signal: consumer spending remains strong, but East increasingly divided.