Industry Challenges & Opportunities - The fitness industry faces a perception problem, often viewed as a last resort career choice, leading to a negative image of fitness trainers [1] - Societal mindset undervalues fitness, with consumers readily spending on leisure but hesitating to invest in health [2][4] - Gym fees have stagnated over the past 10 years, unlike other sectors such as automobiles and fuel, hindering trainer income and industry growth [2] - The fitness industry needs to educate the public about the importance of health and fitness, starting with families and communities, to drive investment and growth [4][5] - For individuals to excel in the fitness industry, the size and scale of the industry need to be increased by bringing more people into it [6] Keys to Success for Fitness Professionals - Success in the fitness industry requires a union of three key elements: a decent physique, appropriate behavior, and solid knowledge [6][8] - A presentable physique is important for trainers to inspire confidence in potential clients [6] - Professional behavior towards clients is crucial, moving away from unprofessional conduct [7][8] - Acquiring knowledge through certifications and education is essential for trainers to excel [8] Entrepreneurial Opportunities - Individuals with a business mindset can excel in the fitness industry by focusing on entrepreneurial ventures such as clothing companies, gym chains, equipment companies, or supplement companies [8][9] - Entrepreneurs can contribute to the growth of the fitness industry by increasing its size and attracting more people [9]

Financial Data and Key Metrics Changes - The company ended Q1 2025 with 20.6 million members, an increase of approximately 900,000 from the end of 2024 [5] - System-wide same club sales grew by 6.1%, with franchisee same club sales increasing by 6.2% and corporate same club sales increasing by 5.1% [20] - Revenue for Q1 was $276.7 million, an increase of 11.5% from $248 million in the previous year [21] - Adjusted EBITDA was $117 million, reflecting a 10.1% year-over-year increase, with an adjusted EBITDA margin of 42.3% [25] Business Line Data and Key Metrics Changes - Franchise segment revenue increased by 10.7%, driven by higher royalty revenue from increased same club sales and new clubs [21] - Corporate-owned club segment revenue increased by 9.2%, primarily due to increased same club sales and sales from new clubs [22] - Equipment segment revenue increased by 28.7%, driven by higher revenue from replacement equipment sales [23] Market Data and Key Metrics Changes - Black Card penetration reached approximately 65%, a nearly 300 basis point increase from the previous year [9][21] - Members visited clubs an average of 6.7 times per month, the highest utilization in five years [10] Company Strategy and Development Direction - The company is focused on four strategic imperatives: redefining brand promise, enhancing member experience, refining product offerings, and accelerating new club growth [7] - The company plans to open between 160 and 170 new clubs in 2025, with a focus on unit economics and franchisee sentiment [27] - The company is exploring new markets for international expansion, with positive performance noted in Spain and Australia [108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate macroeconomic volatility, citing historical performance during economic downturns [6][41] - The company reiterated its growth targets for 2025, expecting continued strong performance despite potential tariff impacts [16][27] Other Important Information - The company is rolling out a "click to cancel" feature to enhance member experience, with over 50% of clubs already enabled [19] - The company is testing various promotional strategies, including a successful Black Card first month free promotion [9][33] Q&A Session Summary Question: Regarding Black Card penetration and pricing impact - Management noted that the increase in Black Card penetration is a result of a narrowed price gap and successful promotions [33][34] Question: Impact of macroeconomic conditions on business - Management indicated that the business remains resilient, with strong member growth and revenue despite macroeconomic challenges [41][45] Question: Future pricing strategies for Black Card - Management stated that pricing decisions for the Black Card will be evaluated after the Classic Card price increase anniversary [48][112] Question: Churn rates and click to cancel impact - Management confirmed that churn rates are in line with expectations and that the click to cancel feature may improve join conversions [82][56] Question: International development and franchisee sentiment - Management highlighted strong performance in international markets and positive franchisee sentiment regarding new openings [108][64]