Fitness Chains Report Strong 2025 Financials

- Planet Fitness reported a 12.1% increase in total revenue to $1.3 billion for fiscal year 2025, with same-club sales growing 6.7%. The company added 1.1 million net new members, reaching a total of approximately 20.8 million. For 2026, the company projects revenue to increase by about 9% and plans to open 180 to 190 new locations. - Life Time's full-year 2025 revenue increased by 14.3% to nearly $3 billion, with net income rising 139.2% to $373.7 million. The company ended the year with over 822,000 center memberships. Life Time's board of directors approved a $500 million share repurchase program. - The broader U.S. fitness industry demonstrated a strong rebound, with 2025 revenue estimates reaching approximately $45.7 billion, surpassing pre-pandemic levels. Health club memberships grew to almost 77 million in 2024. - A significant industry trend is the shift towards holistic wellness, which integrates mental and physical health. Strength training has become a dominant trend, particularly among younger demographics and women, leading operators like Planet Fitness to dedicate more space to free weights and functional training areas. - Technology continues to reshape the fitness landscape, with wearable technology and mobile exercise apps ranked as the top two trends for 2025. The digital fitness market is projected to see app downloads exceed 5 billion globally. - Life Time's Chairman and CEO, Bahram Akradi, noted that the company's record financial performance was driven by higher member engagement, increased dues, and strong growth in in-center revenue. The company plans to significantly increase its new club openings in 2026. - Despite beating analyst expectations for earnings and revenue, Planet Fitness's stock declined over 5% in pre-market trading following the announcement. The company is framing 2026 as a "reset" year due to equipment replacement cycles. - On average, Americans spent $101.80 per month on gym memberships in 2025, a 19% increase from 2024. Projections show that total spending on fitness is expected to reach $60 billion in 2026, indicating consumers view it as essential spending.