K-Shaped Economy Evident in Gym Industry: Life Time Thrives While Planet Fitness Faces Headwinds
The fitness industry is offering a clear signal about the broader U.S. Economy: consumer spending remains strong, but is increasingly divided. Recent earnings reports from Life Time Group Holdings and Planet Fitness highlight a widening gap between higher-income and more price-sensitive consumers, mirroring a “K-shaped” economic recovery.
Life Time: Affluent Consumers Continue to Spend
Life Time reported a 12.3% year-over-year increase in total revenue in the fourth quarter, reaching $745.1 million . The company attributes this growth to strong performance at its centers, including higher average dues and increased utilization of in-center services. Full-year revenue increased 14.3% to $2,995.3 million.
Life Time has seen a growing share of revenue coming from in-center spending, which topped $191 million in the fourth quarter. Members are increasingly utilizing personal training, spa services, and food and beverage options, treating the clubs as lifestyle destinations. Average revenue per center membership rose 10.8% to $882.
Despite having fewer locations than Planet Fitness, Life Time generates significantly more revenue, demonstrating the higher spending power of its customer base. The company’s CEO, Bahram Akradi, noted the company is operating at optimal levels of member engagement. Life Time announced a $500 million share repurchase program.
Planet Fitness: Growth Continues, But Outlook Disappoints
Planet Fitness as well experienced strong growth in 2025, adding 1.1 million new members and achieving double-digit percentage revenue gains. However, investors reacted negatively to the company’s 2026 outlook, which fell short of Wall Street expectations.
Planet Fitness projects 9% revenue growth for fiscal 2026, with same-store sales expected to be in the 4% to 5% range. CFO Jay Stasz attributed a slight increase in cancel rates and impact from storms and cold weather in January to the more conservative outlook. The company is testing price increases and investing in new amenities like red light therapy and additional classes to attract younger members and boost revenue per member.
Some analysts express concern about the company’s guidance, questioning whether its long-term targets are realistic.
The Widening Consumer Divide
The contrasting performances of Life Time and Planet Fitness underscore a broader trend in the U.S. Economy. Affluent consumers, as demonstrated by Life Time’s results, continue to spend on premium experiences, while more price-sensitive consumers are showing signs of strain, as reflected in Planet Fitness’s outlook.
This “K-shaped” economy is also visible in other industries, with airlines focusing on luxury offerings for high-income travelers and prompt-food companies emphasizing value meals to attract budget-conscious customers.
Planet Fitness’s performance in the coming quarters will be a key indicator of the discretionary spending capacity of lower- and middle-income consumers.