Two of America’s largest gym operators issued similar headlines in their latest earnings reports: strong growth.
However, beneath the surface, Lifetime Group Holdings and planet fitness It told a very different story about the American consumer. They highlighted the widening gap between high-income households, which continue to spend freely, and price-sensitive consumers, who are beginning to show signs of strain.
The Planet Fitness logo can be seen outside the gym at Royal Plaza in Loyalsock Township, Pennsylvania.
Paul Weaver | Light Rocket | Getty Images
Both companies reported double-digit revenue growth, membership growth, and footprint expansion in 2025. But each 2026 outlook points to a “K-shaped” economy, a term that describes a dichotomy in the spending habits of high- and low-income groups. Here’s what we learned.
Lifetime: Wealthy consumers keep spending
Life Time’s earnings confirmed that wealthy Americans continue to spend high amounts of money, especially on health.
The company’s total revenue for the fourth quarter was $745.1 million, an increase of 12.3% year over year. CFO Eric Weaver said the increase was driven by “continued execution within the center,” including increased average dues and increased use of in-center business.
Last year, the company, which operates large fitness clubs with pools, spas, cafes and other facilities, raised membership fees by about $10 to $30 per member. This change did not slow demand, and membership and engagement continued to grow.
In-center spending as a percentage of Life Time’s revenue has increased, exceeding $191 million in the fourth quarter. Members treat this space as a lifestyle destination and take full advantage of additional personal training, spa services, and food and beverage options.
Average revenue per center member was $882, an increase of 10.8%.
“It’s not a passive membership model, it’s a very engaged membership model,” said Bahram Akdi, CEO of Lifetime Group Holdings. “Right now, we’re basically operating at that optimal level.”
Despite having far fewer stores than Planet Fitness, the company generates significantly more revenue, highlighting the greater purchasing power of its customer base.
“The model has proven its resilience through 2025 in the face of macro challenges with intra-center revenue growth,” said Mizuho analyst John Baumgartner. “And look at the skewed membership that favors high-income households and differentiated club activities that limit downside risk.”
This result suggests that high-income consumers remain relatively insulated from broader economic pressures and continue to prioritize discretionary wellness spending.
Planet Fitness: Sales grow but outlook is disappointing
Strengthening area at the new Planet Fitness located at 226 Harvard Avenue in Allston.
Pat Greenhouse | Boston Globe | Getty Images
Planet Fitness also reported strong growth, adding 1.1 million new members in 2025 and achieving double-digit revenue growth.
However, investors focused on the company’s outlook, which fell short of Wall Street expectations. The company expected sales growth to slow to 9% in fiscal 2026 and same-store sales to be 4% to 5% lower than expected, raising concerns about demand.
However, Planet Fitness maintained that the expected decline in membership would be temporary and remained positive about growth.
“Our participation trends were impacted by late January storms and cold in many markets, resulting in slightly higher than expected cancellation rates last month,” said Planet Fitness Chief Financial Officer Jay Stasz. “Notably, recent attrition trends are back in line with our expectations.”
Planet Fitness is also testing price increases in select markets, with plans to roll out in summer 2026. The company is also investing in new amenities, such as red light therapy and additional classes, to increase revenue per member and attract younger members.
The strategy could support long-term growth, but some analysts are skeptical, saying the “guidance gap” between Planet Fitness’ performance and Wall Street expectations is particularly frustrating.
“The company is currently facing reliability hurdles,” said Stifel analyst Chris Cull. “Is the 2026 guidance conservative, or are out-of-year targets unrealistic? We expect the stock price to likely be volatile until the company provides a clearer path to acceleration.”
The soft outlook for 2026 suggested some uncertainty about how far the company’s core customers can stretch their spending.
Expanding consumer disparity
Taken together, these results highlight broader changes in the U.S. economy.
As reflected in Lifetime’s results, high-income consumers absorb price increases and continue to spend on premium experiences. Meanwhile, Planet Fitness suggests that price-sensitive customers are engaged but reluctant to spend.
This isn’t a fitness-specific problem, it happens in every industry. Airlines are racing to expand their luxury offerings as high-income travelers continue to spend. Fast food companies, on the other hand, are relying on value meals to attract more price-sensitive customers, reinforcing the idea of a K-shaped economy.
Planet Fitness’ results in the coming quarters could be an indicator of how much discretionary spending power remains among low- and moderate-income consumers.
William Blair analyst Sharon Zakfir lowered her company’s forecast for Planet Fitness’ 2026 membership growth from 1 million to 800,000, citing weak expectations for the first quarter, which typically accounts for 60% of full-year memberships. Still, the guidance didn’t dampen its 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 cost and non-intimidating club format,” Zakfir said.
For now, the fitness industry is sending clear signals. Consumer spending remains strong, but fragmentation is becoming more severe.
