Each quarter, I sit down with industry veterans Juliet Starrett (Co-founder of The Ready State) and Alex Alimanestianu (former CEO of Town Sports International) to analyze the latest fitness industry developments. Here's what's shaping our industry in early 2025.The Wall Street Scorecard: Clear Winners and Strategic Pivots
Life Time: The Premium Model Validates Itself
Life Time is delivering exceptional results that validate the premium fitness model:
Stock up 40% year-to-date
Same-club growth of 14%
EBITDA growth of 29%
Lowest membership churn in their 30+ year history
What's most striking is their revenue per member: an impressive $3,200 annually ($200/month plus ancillary spending). Members are visiting approximately 12 times per month (3 times weekly), showing deep engagement.
As a former gym owner, I've seen firsthand that when you focus on revenue per member and lifetime value instead of just acquisition, business performance transforms. Life Time's strategic investments in pickleball, longevity services, and premium amenities are clearly resonating with their target demographic.
Planet Fitness: Solid Growth Not Enough for Wall Street
Planet added approximately one million new members and opened 160-170 locations—impressive figures by any reasonable standard. However, Wall Street remains underwhelmed as these numbers fall short of their pre-COVID growth rate.
New CEO Colleen Keating is building her executive team and implementing her strategy, which includes international expansion into Spain and adding more strength equipment. The challenge will be balancing Wall Street's growth expectations with sustainable expansion.
The contrast between Life Time and Planet highlights an industry that's effectively serving different market segments through divergent approaches—premium experience versus maximum accessibility.
Peloton: New Leadership Focuses on Member Happiness
Peloton's new CEO Pete Stern, who joined January 1st, 2025, is taking a refreshing approach by emphasizing member happiness over immediate growth. While membership is flat to slightly declining at approximately 2.9 million, churn remains low, indicating strong engagement.
Interestingly, Peloton has significantly expanded its strength content, which now represents approximately 75% as many workouts as their cycling classes. This pivot recognizes the growing interest in strength training across all demographics.
The Dark Horse: Garmin's Surprising Dominance
Perhaps the most eye-opening part of our analysis was Garmin's remarkable performance. With a market capitalization around $40 billion, they're operating at a scale that dwarfs traditional fitness companies.
Their 20% dividend increase is backed by a staggering $3.7 billion cash balance. While many don't immediately categorize Garmin as a "fitness company," their fitness category is growing rapidly alongside their outdoor, aviation, and marine segments.
What drives such customer loyalty? Battery life of 1-2 weeks versus competitors' daily charging requirement is a major factor. But deeper than that, Garmin excels by creating highly specialized products developed by passionate team members who actively use what they create.
As connected fitness continues to evolve, Garmin's approach of reliable functionality over flashy features offers valuable lessons for the entire industry.
GLP-1 Medications: Early Data Challenges Assumptions
Many industry leaders (myself included) have questioned whether GLP-1 medications would drive gym attendance or simply replace exercise as a weight management strategy. Early data is challenging these assumptions.
A Washington Post report revealed:
35% of GLP-1 users are exercising for the first time or more than before
16% hired a personal trainer for the first time or increased training frequency
Goldman Sachs predicts 60 million Americans could be using these medications by 2028
These statistics suggest behavior change that could benefit fitness providers. However, concerns remain about lean muscle mass loss, sustainability of the medications, energy issues from reduced caloric intake, and economic disparities in access.
The fitness industry now faces an opportunity to develop specialized programming for GLP-1 users that addresses their unique needs—particularly preventing muscle loss through properly designed strength training.
Policy Developments: The "Make America Healthy Again" Effect
The appointment of Robert F. Kennedy Jr. as Secretary of Health and Human Services has sparked significant discussion about potential policy changes affecting fitness.
The executive order establishing a "Make America Healthy Again" (MAHA) commission aims to investigate rising chronic childhood diseases and assess the impact of various medications. While the goals align with fitness industry interests, reactions to RFK Jr.'s appointment remain mixed.
Potential positive developments include:
Possible revival of the PHIT Act allowing tax-free dollars for fitness expenses
Increased funding for aging research beyond Alzheimer's disease
Greater emphasis on preventative health measures and physical activity
However, significant questions remain about the political viability of implementing meaningful changes against entrenched interests in food and pharmaceuticals.
The Fundamental Challenge: Humans and Exercise
Perhaps the most thought-provoking insight from our discussion addressed a fundamental challenge: humans may not have evolved specifically to exercise in structured ways.
As Alex noted, "Just this resistance that human beings have to effort when it's not effort that is directed at a critical need" represents an ongoing challenge for our industry. While approximately 20% of the population seems to have an affinity for structured exercise, reaching the other 80% remains our industry's greatest opportunity.
Research suggests there may be genetic components to exercise motivation, with some individuals having a higher innate drive to move. Understanding this fundamental challenge is crucial to developing effective strategies for engaging those who don't naturally gravitate toward fitness activities.
Looking Ahead: Strategic Implications
These trends have several strategic implications for fitness professionals and businesses:
Value pricing works: Life Time's success demonstrates consumers will pay premium prices for perceived value and results.
Strength training education is needed: As more women embrace strength training, there's confusion between "fitnessing with weights" versus effective muscle-building approaches.
Outcome-focused models have advantages: Businesses that measure and deliver tangible results have natural advantages in retention and growth.
GLP-1 users need specialized programming: Fitness facilities should develop specific approaches for the growing population using these medications.
Technology should enhance, not replace: Garmin's success shows consumers value reliable technology that improves rather than complicates their experience.
Final Thought
The fitness industry has successfully navigated the pandemic's challenges and appears healthy moving forward. Companies focusing on tangible outcomes, premium experiences, and technological enhancements that genuinely improve the user experience are showing the strongest results.
The convergence of pharmaceutical innovations like GLP-1s, policy developments, and evolving consumer priorities creates both challenges and opportunities. Businesses that can adapt to these changes while addressing the fundamental challenge of human motivation for movement will be best positioned for long-term success.
What trends are you seeing in your segment of the fitness industry? Are you experiencing impacts from GLP-1 medications among your clients? I'd love to hear your observations in the comments.
Eric Malzone is host of the Future of Fitness podcast, co-founder of Podcast Collective, and a fitness industry veteran with 16+ years of experience. He interviews industry leaders quarterly with Juliet Starrett and Alex Alimanestianu to provide data-driven insights on fitness industry trends.