Two of the biggest US sports companies brought up the same theme in their latest earnings reports: strong growth.
But under heaven, Life Time Group Holdings and Planet Fitness told very different stories about the American consumer. They showed a widening divide between high-income households who continue to spend liberally and frugal consumers are beginning to show signs of concern.
The Planet Fitness logo is seen outside its gym at Loyal Plaza in Loyalsock Township, Pennsylvania.
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Both companies reported double-digit percentage growth in revenue, membership growth and footfall expansion in 2025. Their different visions for 2026, however, point to a “K-shaped” economy, a term used to describe the division of spending patterns between the upper and lower classes. Here’s what we learned.
Life Time: Wealthy consumers continue to spend
Life Time’s earnings confirmed that the wealthiest Americans are still lagging behind, especially in terms of their health and well-being.
In the fourth part, the company Total revenue rose 12.3% year over year to $755,000. CFO Erik Weaver said the increase was due to “continued execution in our positions,” including higher earnings and stronger utilization of the middle business.
The company, which operates large-format fitness clubs with amenities such as pools, spas and cafes, increased membership fees last year. with $10 to $30 per member. Change is not too late to be needed – membership and participation continued to rise.
A growing portion of Lifetime’s revenue is coming from in-between spending, which rose $199 million in the fourth quarter. Members are taking full advantage of additional personal training, spa services and food and beverage as they treat the property as a place to live.
The average cost per average member was $882, up 10.8%.
“It’s a highly engaged membership model instead of a passive membership model,” said Life Time Group Holdings CEO Bahram Akradi. “We’re working on the perfect levels of that right now.”
Although it has fewer locations than Planet Fitness, the company generates more revenue, emphasizing the higher spending power of its customers.
“This model has shown its strength during the challenging year 2025 in which the average income has grown,” said Mizuho analyst John Baumgartner. “And see the lower risks are reduced by members who prefer families with more money and different club activities.”
The results show that high-income consumers remain immune from economic pressures and continue to prioritize health care spending.
Planet Fitness: Sales grow, but outlook is disappointing
The new Planet Fitness location is located at 226 Harvard Avenue in Allston.
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Planet Fitness also reported strong growth, adding 1.1 million new members in 2025 and delivering a 2 percent increase in revenue.
Investors, however, focused on their outlook, which fell short of Wall Street’s expectations. The company showed slower 2026 revenue growth of 9% and lower same-store sales than expected at 4% to 5%, which raised concerns.
However, Planet Fitness remained positive about the growth, saying the expected rebound in membership was temporary.
“Our enrollment trends were impacted by storms and cold weather in late January in many of our markets, and we experienced a slightly higher rate last month than we expected,” said Planet Fitness CFO Jay Stasz. “Strictly, the latest trends are coming back in line with our expectations.”
Planet Fitness has also been testing price increases in other markets, which it hopes to fully launch in spring 2026. It is also investing in new benefits such as red light therapy and other classes to increase revenue per member and attract younger members.
That approach could support long-term growth, but some analysts are skeptical, saying the “lead line” between Planet Fitness’ results and Wall Street’s expectations is mostly disappointing.
“The company is now facing a credibility problem,” said Stifel analyst Chris Cull. “Is the guidance for 2026 conservative, or are the external targets unrealistic? Until the company provides a clear direction to accelerate, we expect the stock to fall.”
The soft outlook for 2026 has fueled doubts about whether its middle class customers can stretch their money.
The expansion of the customer side
Together the results show a significant change in the US economy.
Consumers with higher incomes, reflected in Life Time performance, continue to absorb inflation and spend on primary activities. Meanwhile, Planet Fitness suggests that even though consumers feel price-conscious, they are reluctant to spend.
It is not a problem unique to sustainability and has been seen in all industries. Airlines are scrambling to create luxury offerings as affluent travelers continue to spend. Meanwhile, fast-food companies are relying on eating value to attract price-conscious consumers, reinforcing the concept of the K-shaped economy.
The performance of Planet Fitness in the upcoming areas can serve as an indication of how much spending options remain for middle-income consumers.
William Blair analyst Sharon Zackfia lowered her firm’s forecast Planet Fitness’ 2026 member growth to 800,000 from 1 million given the weakness in the first quarter, which is usually 60 percent of full-year sign-ups. However, the guidelines did not dampen the company’s expectations about the company.
“We reiterate our Outperform rating and continue to view the brand’s long-term position as strong given its industry-leading low-cost/non-threatening club structure,” said Zackfia.
Right now the fitness industry is giving a clear signal: Consumer spending remains strong, but that’s it further division.
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