Retail

K-shaped economy shows up at Life Time and Planet Fitness

Two gym operators illustrate a K-shaped economy in action: Life Time shows resilience among higher-income members with rising dues and in-center spend, while Planet Fitness accelerates member growth even as it tests price increases. The contrast highlights how inflation, wage growth, and consumer segmentation are reshaping discretionary spending and store footprints in 2025.

📅 February 28, 2026
⏱️ 2 min read
K-shaped economy shows up at Life Time and Planet Fitness

Key Takeaways

  • Life Time Q4 2025 revenue rose 12.3% YoY to $745.1 million.
  • Average revenue per center membership was $882, up 10.8%.
  • Planet Fitness added 1.1 million new members in 2025 and projects ~9% revenue growth in 2026.
  • Planet Fitness is testing price hikes in some markets with full rollout planned for summer 2026.
  • Both chains expanded footprints in 2025, signaling ongoing investment despite inflation.

People Involved

  • Bahram Akradi Life Time CEO
  • Erik Weaver Life Time CFO
  • John Baumgartner Mizuho analyst
  • Jay Stasz Planet Fitness CFO
  • Chris Cull Stifel analyst
  • Sharon Zackfia William Blair analyst

Entities Involved

  • Life Time Group Holdings Upscale gym operator
  • Planet Fitness Budget gym operator

MarketMoodz Analysis

For investors, the Life Time vs Planet Fitness dynamic maps to higher-income resilience versus value-oriented growth. Life Time’s Q4 2025 results show pricing power in action: revenue rose 12.3% to $745.1 million, dues climbed by roughly $10, and in-center revenue topped $191 million driven by personal training, spa services, and food/beverage. The firm’s ‘super engaged’ membership model appears to buttress ARPM and keep premium clients in the cycle.

The story sits inside a broader K-shaped economy narrative: inflation cooling and wage growth support premium, service-oriented experiences while price-sensitive consumers search for value. Both chains expanded footprints in 2025, underscoring ongoing capex despite inflation and highlighting how real estate and rent dynamics feed into discretionary spending. Analysts’ cautions—Stifel questioning 2026 guidance and William Blair trimming 2026 member growth—show the market weighing longer-term brand strength against near-term macro headwinds.

What to watch next: 2026 guidance updates and the pace of Planet Fitness’ price hike rollout, plus ARPM and churn metrics at Life Time and Planet Fitness as they scale. Pay attention to store-level profitability, rent dynamics, and how weather or storms influence near-term guidance. Interpretations of the K-shaped frame will continue to depend on consumer wage trends and inflation data. Note that forward-looking statements are subject to revision and should be verified against official earnings releases.

Source: Original Article

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