The Health & Fitness Association (HFA) released its 2025 Fitness Industry Benchmarking Report, which found that U.S. facility operators reported median revenue grew 9.9 percent in 2024, alongside an average EBITDA margin of 23.6 percent, signaling that most clubs, gyms and fitness boutiques are growing while maintaining healthy profitability.

On the operating side, fitness facilities averaged net membership growth of 5.5 percent year-over-year and retained 66.4 percent of membership.

“The 2025 Fitness Industry Benchmarking Report confirms what we’ve long known: Fitness is good business,” said Liz Clark, president and CEO of the Health & Fitness Association, in a statement. “The benchmarks in this report highlight not only the industry’s profitability but also the investments operators are making in facilities, services and member experiences to ensure sustainable growth.”

Marking HFA’s first operations and financial data survey and accompanying publication since 2019, the “findings are based on confidential data from 175 global firms, representing more than 17,000 fitness facilities,” the HFA reported in a media release.

Financial Performance Highlights

  • Revenue Per Club: Among those companies that responded to the survey, the median was $2.0 million per club, while U.S. companies reported higher earnings near $3.0 million, reflecting larger facility footprints and higher dues levels. High-profit clubs reported stronger results, nearly $2.2 million per club among all respondents and exceeding $4.3 million among U.S. respondents. Because international figures are converted into U.S. dollars, exchange rate fluctuations may modestly influence these comparisons, the HFA noted.
  • Revenue Mix: For all respondents, club membership dues accounted for 76.5 percent of revenue, with 23.5 percent from non-dues sources such as personal training, wellness and ancillary services. For U.S. respondents, non-dues sources accounted for a larger share, 29.5 percent, reflecting stronger diversification.
  • Revenue Growth: Median year-over-year revenue growth was 9.9 percent for all respondents (worldwide, including U.S. operators), led by high-profit clubs at 12.8 percent and large facilities at more than 11 percent. For U.S. respondents, growth was slightly lower at 9.3 percent, while high-profit facility operators reported 10.1 percent growth. Smaller U.S. clubs under $1.5 million reported the weakest performance at just 4.3 percent, underscoring the challenges independents face relative to larger competitors. HFA said in the study, “These results highlight the industry’s resilience, as clubs maintained near double-digit growth despite a cooling economic environment, with demand supported by consumer prioritization of health and wellness.”
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Clubs generally achieved positive operating margins. Nearly one-third, however, reported negative EBITDA change in the past year, underscoring ongoing margin pressures. Overall, the industry remains resilient, built on predictable revenue streams that, when paired with disciplined expense management, produce favorable EBITDA margins compared with many other industries. Median EBITDA margins were 23.6 percent for all respondents and 21.3 percent for U.S. respondents. Pre-tax earnings narrowed further due to financing and depreciation, averaging 12.8 percent and 13.6 percent, respectively.
  • Reinvestment: Median reinvestment was about 6 percent of revenue across all respondents , with high-profit operators closer to 10 percent and the largest clubs exceeding 11 percent.
  • Financial Health: The median debt-to-equity ratio of 1.9 for all respondents (2.2 for U.S. respondents) and the current ratio of 1.2 (1.6 for U.S. respondents) indicate generally stable liquidity and leverage positions.
  • Labor Costs: Payroll remains the largest expense for facility operators, accounting for a median of 38.4 percent of total revenue, underscoring the importance of staffing efficiency and productivity.
  • Wellness & Recovery: Amenities such as recovery services have become mainstream, with, for example, 25 percent of clubs offering cold plunge pools and 8 percent cryotherapy. These additions are expanding the non-dues base and reshaping member expectations.

Membership and Pricing

  • Pricing and Performance: Higher-priced clubs ($70+ per month), typically multipurpose and premium facilities, reported the strongest revenue per location at $3.8 million, though EBITDA margins were more moderate at 23 percent. Lower-priced clubs ($40 or less) generated $1.2 million per club, with EBITDA margins of 24 percent. Mid-market facilities ($41 to $69) achieved $1.8 million per club and the highest EBITDA margins at 27 percent, striking a balance between affordability and profitability.
  • Retention: Median annual retention was 66 percent, with top-performing clubs in retention exceeding 75 percent.
  • Net Growth: Median net membership growth was 5.5 percent for all surveyed, with U.S. respondents slightly lower. Growth is strongly seasonal, concentrated in January and Q1.

Profitability Segmentation

  • High-Profit Clubs: Defined as the top half of respondents by profitability, these clubs reported a median EBITDA margin of 32 percent, more than double the level of low-profit peers. Their advantage is supported by stronger payroll efficiency, lower occupancy costs and reinvestment levels of 9.5 percent of revenue, which help sustain competitive positioning over time. Importantly, their revenue mix is more heavily weighted toward dues, reinforcing the stability of recurring income while selectively leveraging non-dues services to enhance margins rather than relying on them as a primary revenue source.
  • Low-Profit Clubs: Defined as the bottom half of respondents based on EBITDA as a percentage of revenue, these clubs achieved much thinner profitability with EBITDA margins of 13 percent. Despite generating revenue per club ($2.1 million) similar to high-profit peers, their lower reinvestment (3.7 percent of revenue), higher payroll, and higher occupancy costs present headwinds to profitability growth and long-term sustainability. Additionally, heavier reliance on non-dues revenue is not translating into stronger margins, suggesting that ancillary services often carry smaller profitability. This underscores the importance of effectively pricing dues as the foundation for attracting and retaining members.
  • Revenue Size Matters: Clubs with over $5 million in annual sales significantly outperform small operations with less than $1.5 million in annual sales in profitability and stability.

Key Trends & Outlook

  • Polarization of the Market: Premium multipurpose clubs and larger operators reported stronger performance, particularly in revenue per square foot and EBITDA, creating a widening differentiation with smaller independents, who often compete through community focus and member loyalty.
  • Membership Seasonality: Retention pressures peak in late summer and early fall, making Q3 retention campaigns vital to sustaining net growth.
  • Scale Advantage: Multi-site operators report stronger profitability and resilience than single-site clubs.
  • Financial Stability: Balance sheets remain generally stable, though higher leverage leaves some operators more exposed to shifts in interest rates and credit conditions.

Image courtesy Life Time Fitness