Life Time and Planet Fitness’ earnings show a K-shaped economy

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

But beneath the surface, Lifetime Holding Group and Planet Fitness It told very different stories about the American consumer. they It highlighted the widening gap between higher-income households who continue to spend freely and more price-sensitive consumers who are beginning to show signs of stress.

Both companies reported double-digit percent revenue growth, increased membership and expanded footprint in 2025. However, their respective forecasts for 2026 point to a “K-shaped” economy, a term used to describe the split in spending trends between higher- and lower-income groups. Here’s what we learned.

Lifetime’s profits reinforced that wealthy Americans are still spending their money, especially on their health and wellness.

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

The company, which operates high-volume fitness clubs with amenities such as pools, spas and cafes, increased membership fees last year. About $10 to $30 per member. The change has not slowed down demand – Membership and participation continued to climb.

An increasing share of Life Time’s revenue comes from central spending, which exceeded $191 million in the fourth quarter. Members take full advantage of additional personal training, spa services, and food and beverage as they treat the space as a lifestyle destination.

The center’s average revenue per membership was $882, an increase of 10.8%.

“It’s a super-engaged membership model rather than a passive membership model,” said Bahram Akradi, CEO of Life Time Group Holdings. “We’re basically working at optimal levels for that right now.”

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

“The model has proven its resilience throughout a challenging macro year 2025 in which central revenues grew,” said John Baumgartner, an analyst at Mizuho. “We see limited downside risk due to the skewing of memberships in favor of higher-income households and diversified club activities.”

The findings suggest that high-income consumers remain relatively insulated from broader economic pressures and continue to prioritize discretionary spending over wellness.

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

However, investors focused on his forecast, which fell short of Wall Street’s expectations. The company forecast fiscal 2026 revenue growth to slow by 9% and weaker-than-expected same-store sales of 4% to 5%, raising concerns about demand.

However, Planet Fitness remained positive about the growth, saying the expected decline in membership was temporary.

“Our joining trends were impacted by storms and cold weather in late January in many of our markets, and we saw a slightly higher cancellation rate last month than expected,” said Planet Fitness CFO Jay Stasz. “It is worth noting that recent attrition trends are back in line with our expectations.”

Planet Fitness is also testing higher prices in some markets, which it expects to fully roll out in summer 2026. It is also investing in new amenities like 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,” Stifel analyst Chris Cole said. “Is 2026 guidance conservative, or are off-year targets unrealistic? Until the company provides a clearer path for acceleration, we expect the stock will likely decline.”

The tempered outlook for 2026 suggests some uncertainty about how much its core customers will be able to increase their spending.

Taken together, the findings highlight a broader shift in the US economy.

Higher-income consumers, reflected in Life Time’s performance, continue to absorb price increases and spend on premium experiences. Meanwhile, Planet Fitness notes that while price-sensitive customers engage, they are more reluctant to spend.

This is not a problem limited to fitness and has appeared in various industries. Airlines are racing to offer luxury offerings as high-income travelers continue to spend. Meanwhile, fast food companies are relying on value meals to attract more price-sensitive customers, reinforcing the idea of ​​a K-shaped economy.

Planet Fitness’s performance in the coming quarters could serve as an indicator of how much discretionary spending power remains for low- and middle-income consumers.

Sharon Zakvia, an analyst at William Blair, lowered her company’s forecast for… Planet Fitness membership growth for 2026 to 800,000 from 1 million members due to expected weakness in Q1, which typically represents 60% of signups for the full year. However, the guidance did not dampen 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 our industry-leading low-price/non-intimidating club format,” Zackfia said.

Right now, the fitness industry is giving a clear signal: Consumer spending remains strong, however He is Increasingly divided.