Diverging Paths: Life Time and Planet Fitness Earnings Highlight Economic Disparities

Recent earnings reports from Life Time Group Holdings and Planet Fitness illustrate contrasting trajectories within the fitness industry, reflecting broader economic trends. Life Time reported a 12.3% year-over-year increase in total revenue, reaching $745.1 million in the fourth quarter of 2025. This growth was attributed to higher average membership dues, which increased by approximately $10 to $30 per member, and a significant rise in in-center spending, which surpassed $191 million. Life Time's model, which caters to affluent consumers, has proven resilient, with CEO Bahram Akradi noting that the company operates at "optimal levels" due to a highly engaged membership base.

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In contrast, Planet Fitness also experienced growth, adding 1.1 million new members and achieving double-digit revenue gains. However, the company's outlook for fiscal 2026 fell short of Wall Street expectations, projecting only 9% revenue growth and weaker same-store sales of 4% to 5%. This disparity raised concerns about demand and the sustainability of its growth trajectory.

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Life Time's success can be attributed to its focus on high-income households, which have remained relatively insulated from economic pressures. Mizuho analyst John Baumgartner highlighted that the company's revenue growth is supported by a membership model that favors affluent consumers and offers differentiated club activities. The average revenue per center membership rose by 10.8%, underscoring the spending power of its clientele.

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On the other hand, Planet Fitness faced challenges, including adverse weather conditions that impacted membership trends and a slight increase in cancellation rates. CFO Jay Stasz acknowledged these factors but expressed optimism about returning to expected attrition trends. The company is also testing price hikes and investing in new amenities, such as red light therapy, to enhance revenue per member and attract younger demographics.

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Despite Planet Fitness's growth, analysts have expressed skepticism regarding its future guidance. Stifel analyst Chris Cull noted a "credibility hurdle" for the company, questioning whether its conservative guidance reflects realistic expectations or an inability to meet future targets. This uncertainty has led to frustration among investors, particularly given the gap between the company's results and Wall Street forecasts.

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Life Time's CFO Erik Weaver attributed the company's revenue increase to "continued execution in our centers," emphasizing the strong engagement of its members. Meanwhile, Planet Fitness's leadership remains hopeful, with Stasz stating, "Notably, recent attrition trends are returning in line with our expectations," indicating a potential recovery in membership stability.

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• "It's a super engaged membership model instead of a non-use membership model." — Bahram Akradi, CEO, Life Time Group Holdings

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• "The model proved its resilience throughout a macro-challenged 2025." — John Baumgartner, Analyst, Mizuho

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• "The company now faces a credibility hurdle." — Chris Cull, Analyst, Stifel

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The earnings reports from Life Time and Planet Fitness highlight a K-shaped economic recovery, where affluent consumers continue to invest in wellness, while budget-conscious segments face challenges. As both companies navigate their respective paths, the fitness industry reflects broader economic disparities that may influence future growth strategies.

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