Financial Data and Key Metrics Changes - The company reported a net member growth of 20.8 million members by the end of 2025, with 181 new unit openings, primarily domestic franchises [3][10] - The company achieved a same-store sales growth of 6.7% for the year [9] - The Classic Card price increase from $10 to $15 has been successful, contributing to overall revenue growth [13][18] Business Line Data and Key Metrics Changes - The company optimized its club formats, with about 80% of its estate on some version of an optimized format by the end of 2025, enhancing the balance of strength and cardio equipment [5][6] - The rejoin rate for members who lapse is consistently around mid-30%, indicating strong member retention [5] Market Data and Key Metrics Changes - The company noted a slight easing in real estate availability, with vacancies improving to 4.3%-4.4%, although it does not expect a significant increase in new openings [19][21] - The company is well-positioned to capitalize on retail space becoming available due to closures in other sectors, enhancing its growth potential [21] Company Strategy and Development Direction - The company aims for 6%-7% unit growth over the planning horizon, with expectations of accelerating unit openings in 2026 [22][25] - The company is focusing on international expansion, particularly in Spain, where it plans to refranchise operations to enhance growth [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fitness industry's growth, citing increased consumer awareness and participation in fitness activities [45][46] - The company is leveraging its brand awareness and marketing strategies to attract younger demographics, particularly Gen Z [46] Other Important Information - The company is committed to maintaining a capital-light model, with 90% of its operations being franchise-based [41] - The company has initiated a $350 million accelerated share repurchase program, reflecting its commitment to returning value to shareholders [44] Q&A Session Summary Question: How did the year-end metrics perform against internal expectations? - Management expressed satisfaction with the year-end metrics, including the strong net member growth and unit openings [8][10] Question: What is the outlook for January member growth? - Management refrained from discussing January specifics but emphasized confidence in their marketing strategies and brand messaging [11] Question: How does the company plan to handle price increases for the Black Card? - Management believes the Black Card price increase to $29.99 will be well-received due to strong consumer demand and the value offered [13][18] Question: What is the sentiment among franchisees regarding growth? - Franchisee sentiment is strong, as indicated by the significant growth in domestic franchise openings and ongoing investments in equipment [23][25] Question: What are the expectations for international market expansion? - The company plans to continue its international expansion thoughtfully, focusing on strong market presence and potential franchise partnerships [33][36]