Publicly traded gym brands posted mixed results to close out Q2 ’24.
By the numbers:
- Life Time’s Q2 YoY revenue grew 19%, net income by 210%, and memberships by 5.4%.
- Planet Fitness revenue rose by 5% and net income 11%, but memberships inched 0.5%.
- Xponential Fitness recorded a 1% revenue drop and 83% decrease in adj. net income, yet a 17% membership bump.
Representing different business models, each outcome reflects shifting club economics.
$LTH. Higher dues are driving revenue, but Life Time also invested 17.5% more on club improvements, including renovating an acquisition in Tampa (now carrying a 10K-person waiting list) and sports star-hosted clinics.
Notching higher member utilization, center revenue per membership grew ~$100 to $794/qtr.
$PLNT. Before hiring a new CEO, Planet Fitness raised its base rates for the first time, and it also hiked royalties on its franchisees. While traffic is up 6.3%, its post-January decline is typical.
After refinancing, PF will align growth behind a new franchise strategy that lowers startups costs while testing smaller-format gyms at home and internationally.
$XPOF. Amassing losses from a tumultuous CEO transition and lawsuits, Xponential is right-sizing to maximize in-store recurring revenue.
Divesting from Row House and Stride, it also took a $4.9M impairment charge for CycleBar on flagging demand. Selling higher-price treatments, it’s rapidly scaling weight loss clinic Lindora.
Elsewhere… Privately held brick-and-mortar brands Crunch, EōS, Equinox, and others are capitalizing on demand for IRL workouts.
Takeaway: While some exercisers are being priced out, many more would line up for memberships that enrich their lives — and fewer would pay more for a basic experience.
