Life Time, Planet Fitness earnings show K-shaped economy

Two of the largest U.S. gym operators delivered the same headline in their latest earnings reports: strong growth.

But beneath the surface, Life Time Group Holdings and Planet Fitness told very different stories about the American consumer. They highlighted a widening divide between higher-income households that continue to spend freely and more price-sensitive consumers who are beginning to show signs of strain.

Both companies reported double-digit percentage revenue growth, rising memberships and expanding footprints 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 higher and lower-income groups. Here’s what we learned.

Life Time’s earnings reinforced that affluent Americans are still shelling out, especially on their health and wellness.

In the fourth quarter, the company’s total revenue rose 12.3% year over year to $745.1 million. CFO Erik Weaver attributed the increase to “continued execution in our centers,” including higher average dues and stronger utilization of in-center businesses.

The company, which operates large-format fitness clubs with amenities like pools, spas and cafes, increased membership dues last year by roughly $10 to $30 per member. The change did not slow demand — membership and engagement have continued to climb.

A growing share of Life Time’s revenue is coming from in-center spending, which topped $191 million in the fourth quarter. Members are taking full advantage of additional personal training, spa services and food and beverage as they treat the space as a lifestyle destination.

Average revenue per center membership was $882, up 10.8%. 

“It’s a super engaged membership model instead of a non-use membership model,” said Life Time Group Holdings CEO Bahram Akradi. “We are basically operating at optimal levels of that right now.”

Despite having far fewer locations than Planet Fitness, the company generates significantly more revenue, underscoring the higher spending power of its customer base.

“The model proved its resilience throughout a macro-challenged 2025 in which in-center revenue grew,” said Mizuho analyst John Baumgartner. “And see downside risks limited by a memberships skew favoring high-income households and differentiated club activities.”

The results suggest higher-income consumers remain relatively insulated from broader economic pressures and continue prioritizing discretionary wellness spending.

Planet Fitness also reported strong growth, adding 1.1 million new members in 2025 and delivering double-digit percentage revenue gains.

Investors,…