About the Author
Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Garmin, Lululemon Athletica Inc., Peloton Interactive, and Planet Fitness. The Motley Fool has a disclosure policy.
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Peloton has 2.6 million subscribers who pay $50 per month for a connected fitness subscription. Another 500,000 people pay $16 or $29 per month for a digital-only subscription. Digital subscriptions are immensely profitable for Peloton, which has a gross margin of almost 50%.
The home gym company thrived during the COVID-19 pandemic since most people were confined to their homes. But as the pandemic subsided and gyms reopened, the company has struggled to retain subscribers, especially for its digital-only product. It's seeking to partner with commercial gyms to place its equipment in more locations in 2026.
The stock has sold off significantly since the height of the pandemic, as the tailwind turned into a massive headwind. Peloton grew its operating expenses as if the shift to home workouts were permanent. It paid for that in subsequent years. Management is now focused on improving profitability and increasing value for existing subscribers.
Sales growth has been slow in the United States, but its international growth is strong, and several key markets, such as China, remain under-penetrated by the Canadian company. International comparable store sales are growing at a double-digit pace, indicating its brand is resonating with foreign consumers.
In the U.S., management is focused on shortening lead times, which should reduce the amount of inventory markdowns. Additionally, it's revamping the retail experience and focusing on innovative products and new segments to expand its addressable market. That could ultimately lead to a strong turnaround in earnings.
As a result, it's been able to produce strong revenue growth through increased membership pricing and additional service sales such as personal training. As a luxury brand, Life Time has the opportunity to increase the value of its memberships more than low-cost gyms, such as Planet Fitness, that cater to budget-conscious consumers.
Its recent moves have resulted in very strong member retention while continuing to attract new members. Not only does that produce nice revenue growth, but it also provides strong operating margin expansion. The company saw net income increase 55% in 2024 and 62% in 2025. It sees adjusted net income climbing another 17% in 2026.
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Risks:
Gyms, connected fitness, and digital subscriptions all generate recurring revenue, which can lead to more predictable revenue growth. Subscriptions can also provide a strong revenue base for companies to sell equipment or apparel. Focusing on investing in companies with business models that generate ample cash flow is likely the most profitable approach.
The performance of gym stocks can vary seasonally, as many people focus more on their health around the New Year. But despite that potential price volatility, adding a top gym stock to your portfolio may be just the right fit for you. At the very least, buying stock in a fitness company may make you feel better about paying for an unused gym membership or a Peloton that you hang clothes on.
Staying healthy and looking good will never go out of style, and that's why gym stocks may be a great fit for your portfolio. While gym memberships and home exercise equipment cost money, you might be able to recoup that expense by investing in the most profitable gym stocks.
Gym stocks include gym owners and franchisers, equipment makers, and consumer goods companies focused on fitness. The following stocks span the full range of investment options for those looking to add exposure to the fitness industry in their stock portfolios.




| Name and ticker | Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. | Current price | Industry |
|---|---|---|---|
| Planet Fitness (NYSE:PLNT) | $4.1 billion | $52.36 | Hotels, Restaurants and Leisure |
| Peloton Interactive (NASDAQ:PTON) | $2.6 billion | $6.12 | Leisure Products |
| Lululemon Athletica Inc. (NASDAQ:LULU) | $13.2 billion | $116.49 | Textiles, Apparel and Luxury Goods |
| Garmin (NYSE:GRMN) | $48.1 billion | $249.56 | Household Durables |
| Life Time Group (NYSE:LTH) | $9.4 billion | $42.15 | Hotels, Restaurants and Leisure |
Planet Fitness (PLNT -0.98%) operates a chain of ultra-low-cost gyms with monthly fees as low as $15. With more than 20 million members and almost 3,000 locations, the company prides itself on being inclusive of all fitness levels.
Most Planet Fitness gyms are located in the U.S. Management has a long-term goal of reaching 5,000 locations in the U.S. alone, and the company has plenty of opportunity to expand internationally, where it had 292 clubs as of 2026.
Most Planet Fitness locations are franchises, but the company also directly operates about 300 clubs. The franchise business model results in a very high operating margin with low capital intensity. Strong results over the last two years have led to reaccelerating in club openings and an expanded operating margin.
Peloton (PTON -2.70%) is known for its connected stationary bikes and other home workout equipment. Although users must purchase Peloton equipment, the company earns most of its revenue from the subscriptions required to fully utilize its bikes and treadmills.
Garmin has experienced strong sales growth for its fitness trackers and watches. With specialized devices for cycling, running, rowing, and more, it can attract sports enthusiasts, as well as amateur and professional athletes.
Lower costs combined with its improved scale have helped it drive operating margins back toward relative highs over time. With its success in integrating advanced GPS and motion-tracking technology into its devices, it can continue to gain market share over time.
Life Time Group Holdings (LTH -1.61%) operates more than 190 luxury fitness centers in the U.S. and Canada. Over the last five years, Life Time has seen significant improvements in member engagement and revenue per member, driven by constant improvements and renovations. It recently capitalized on the growing interest in pickleball by dedicating space in its facilities to the sport.
Garmin (NASDAQ:GRMN) started by manufacturing global positioning system (GPS) navigation devices. Today, the company generates the bulk of its revenue from personal fitness devices such as smartwatches, fitness trackers, cycling power meters, and heart rate monitors. Consumer demand for fitness trackers continues to grow as more people look for ways to enhance their health.