v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments Segments
The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned clubs; and (iii) Equipment.
The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. The accounting policies of the reportable segments are the same as those described in Note 2.
The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Company records all revenues and expenses of the NAFs within the franchise segment. The Corporate-owned clubs segment includes operations with respect to all Corporate-owned clubs throughout the United States, Canada, and Spain. The Equipment segment includes the sale of equipment to franchisee-owned clubs.
The CODM evaluates the performance of the Company’s reportable segments based on revenue and Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for the impact of certain non-cash and other items that the CODM does not consider in her evaluation of ongoing performance of the segment’s core operations. The CODM utilizes Segment Adjusted EBITDA when making decisions about allocating resources to the segments as well to assess the performance for each segment by comparing the results of each segment and in the compensation of certain employees. No asset information has been provided for these reportable segments as the CODM does not regularly review asset information by reportable segment.
The following tables summarize total revenue and total Segment Adjusted EBITDA for the Company’s reportable segments.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Revenue
Franchise$135,778 $119,658 $270,245 $234,838 
Corporate-owned clubs143,862 138,989 284,484 272,658 
Equipment85,583 82,232 147,730 110,045 
Total revenue$365,223 $340,879 $702,459 $617,541 
Adjusted EBITDA
Franchise$91,737 $86,502 $186,458 $171,367 
Corporate-owned clubs57,481 56,598 103,966 102,447 
Equipment24,326 26,435 43,793 33,877 
Segment Adjusted EBITDA$173,544 $169,535 $334,217 $307,691 
The following tables summarize the significant expense categories and amounts for each of the Company’s reportable segments and align with the segment level information that is regularly provided to the CODM:
Franchise SegmentThree Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Selling, general and administrative
$9,135 $8,772 $17,550 $15,985 
National advertising fund expense32,922 22,777 65,140 44,721 
Cost of revenue2,325 2,231 3,877 3,263 
Other segment income, net⁽¹⁾(341)(624)(2,780)(498)
Total$44,041 $33,156 $83,787 $63,471 
(1) Other segment income, net for the franchise segment includes other (gains) losses, net, and other income (expense), net.
Corporate-owned Clubs SegmentThree Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Club compensation and payroll(1)
$26,152 $24,739 $52,097 $48,693 
Rent & occupancy(1)
32,412 31,703 65,122 62,735 
Marketing(1)
10,915 9,481 29,097 24,771 
Operational and other(1)
12,219 11,513 23,575 22,918 
Selling, general and administrative2,904 3,258 7,018 7,600 
Other segment expenses, net⁽²⁾1,779 1,697 3,609 3,494 
Total$86,381 $82,391 $180,518 $170,211 
(1) Club compensation and payroll, rent and occupancy, marketing, and operational and other are included within club operations expense in the condensed consolidated statements of operations. Operational and other primarily consists of repairs and maintenance expense, transaction fees, club supplies, personal property tax expense and other expenses incurred in the operation of each corporate-owned club.
(2) Other segment expenses, net for the corporate-owned clubs segment includes cost of revenue, other (gains) losses, net, and other income (expense), net.
Equipment SegmentThree Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Cost of revenue
$60,600 $55,425 $102,724 $75,304 
Other segment expenses, net⁽¹⁾657 372 1,213 864 
Total$61,257 $55,797 $103,937 $76,168 
(1) Other segment expenses, net for the equipment segment includes selling, general, and administrative expenses, other (gains) losses, net, and other income (expense), net.
Capital expenditures for the corporate-owned clubs segment were $35.8 million and $30.8 million during the three months ended June 30, 2026 and 2025, respectively, and $56.8 million and $49.9 million during the six months ended June 30, 2026 and 2025, respectively. The CODM does not review capital expenditures related to the franchise or equipment segments.
The following table reconciles total Segment Adjusted EBITDA to consolidated income before taxes:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
Segment Adjusted EBITDA$173,544 $169,535 $334,217 $307,691 
Depreciation and amortization(40,143)(38,429)(80,394)(76,710)
Interest income5,271 5,690 10,933 11,502 
Interest expense(33,401)(26,181)(66,368)(52,378)
Losses from equity-method investments, net of tax212 628 1,086 1,433 
Corporate and other unallocated expenses, net(1)
(9,354)(27,390)(31,366)(48,585)
Income before income taxes$96,129 $83,853 $168,108 $142,953 
(1) Corporate and other unallocated expenses, net includes corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment and thus are unallocated and certain other gains and charges that the CODM does not consider in her evaluation of the Company’s reportable segments.
The following table summarizes geographic information about the Company’s revenue, based on customer location:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2026202520262025
United States$352,579 $333,536 $679,940 $603,446 
Rest of world12,644 7,343 22,519 14,095 
Total revenue$365,223 $340,879 $702,459 $617,541 

The following table summarizes geographic information about the Company’s long-lived assets, net, excluding goodwill and other intangible assets:
(in thousands)
June 30, 2026December 31, 2025
United States$900,600 $913,906 
Rest of world70,285 65,609 
Total long-lived assets, net$970,885 $979,515