Fact Check: Are gyms profitable?

Are Gyms Profitable? A Detailed Examination

Introduction

The claim that gyms are profitable has gained traction, especially as the fitness industry continues to evolve post-pandemic. Various sources provide insights into the financial health of gyms, suggesting that many are indeed generating profits. However, the profitability can vary significantly based on numerous factors, including location, management, and type of gym. This article will explore the available data and analyses to better understand the profitability of gyms without drawing a final conclusion.

What We Know

1. Profit Margins: According to SharpSheets, the average gym in the U.S. reported an operating profit margin (EBITDA) of 22.7% in 2023, indicating a healthy level of profitability for many establishments in the sector 2[3](https://sharpsheets.io/blog/fitness-industry-statistics/#:~:text=The%20average%20US%20gym%20made%2022.7%25%20in%20operating%20profit%20(EBITDA,had%20a%2022.7%25%20EBITDA%20margin.).

2. Market Size: The U.S. fitness and health club market was valued at approximately $41.8 billion in 2024, reflecting a robust industry presence 6. This growth is supported by a compound annual growth rate (CAGR) of around 12% projected from 2023 to 2028 7.

3. Membership Trends: The International Health, Racquet & Sportsclub Association (IHRSA) reported that the top 25 fitness operators in the U.S. experienced an average annual membership growth of 15% 4. This suggests a positive trend in consumer interest and engagement in gym memberships.

4. Owner Profitability: A report indicated that 73.4% of gym owners working 20-40 hours per week reported profitability, while 69.8% of those working 41-50 hours also indicated they were profitable 8. This data points to a correlation between owner involvement and gym profitability.

5. Industry Challenges: Despite the positive indicators, the fitness industry also faces challenges. The Sports & Fitness Industry Association (SFIA) noted that while 55.2% of companies reported increased profitability in 2022, 28.4% experienced declines 9. This highlights the variability in profitability across different gyms and regions.

Analysis

The data surrounding gym profitability presents a mixed picture. On one hand, the reported average EBITDA margin of 22.7% suggests that many gyms are indeed profitable, particularly larger chains that benefit from economies of scale and established brand recognition 2[3](https://sharpsheets.io/blog/fitness-industry-statistics/#:~:text=The%20average%20US%20gym%20made%2022.7%25%20in%20operating%20profit%20(EBITDA,had%20a%2022.7%25%20EBITDA%20margin.). However, this figure may not reflect the entire industry, as smaller, independent gyms often struggle with higher operational costs and competition from larger franchises.

Source Reliability

• SharpSheets: This source provides specific statistics on gym profitability but lacks detailed methodology on how the data was collected, which raises questions about its comprehensiveness and accuracy 2[3](https://sharpsheets.io/blog/fitness-industry-statistics/#:~:text=The%20average%20US%20gym%20made%2022.7%25%20in%20operating%20profit%20(EBITDA,had%20a%2022.7%25%20EBITDA%20margin.).

• IHRSA: As a leading authority in the fitness industry, IHRSA's reports are generally considered reliable. However, they may have a vested interest in portraying the industry positively, which could introduce bias 4.

• SFIA: The SFIA's report offers valuable insights into industry trends but also reflects self-reported data from companies, which can be subject to exaggeration or selective reporting 9.

• Statista: This platform aggregates data from various sources and is typically reliable, but the context and methodology behind the statistics should always be scrutinized 56.

Conflicts of Interest

Some sources, particularly industry associations like IHRSA and SFIA, may have inherent biases as they aim to promote the fitness industry. Their reports might emphasize positive trends while downplaying challenges faced by smaller or independent gyms.

Methodological Concerns

The profitability figures often rely on self-reported data from gym owners, which can vary widely based on individual management practices and market conditions. More rigorous studies that include a broader range of gyms and consider external economic factors would provide a clearer picture of profitability across the industry.

What Additional Information Would Be Helpful?

To further understand gym profitability, additional data would be beneficial, including:

• A breakdown of profitability by gym type (e.g., boutique vs. large chains).
• Longitudinal studies tracking profitability over time, especially post-pandemic.
• Insights into operational costs and how they impact profitability.
• Regional analyses to account for varying market conditions across different states.

Conclusion

Verdict: True

The evidence presented indicates that many gyms are indeed profitable, as reflected by an average operating profit margin (EBITDA) of 22.7% and positive membership growth trends. Reports from reputable sources like IHRSA and SFIA support the notion that a significant portion of gym owners report profitability, particularly those who are actively involved in their operations.

However, it is essential to recognize the variability in profitability across the industry. Factors such as gym type, location, and management practices can significantly influence financial outcomes. While larger chains may thrive, smaller or independent gyms often face challenges that can impact their profitability.

Moreover, the reliance on self-reported data introduces potential biases and limitations in the overall assessment of gym profitability. As such, while the claim that gyms are profitable is substantiated by the available evidence, it is crucial for readers to approach this information critically and consider the broader context and nuances involved.

Readers are encouraged to evaluate information independently and remain aware of the complexities surrounding profitability in the fitness industry.

Sources

1. IBISWorld. "Gym, Health & Fitness Clubs in the US." IBISWorld
2. SharpSheets. "Fitness Industry Statistics: 12,000 Gyms Data (2024)." SharpSheets
3. SharpSheets. "Fitness Industry Statistics: 12,000 Gyms Data (2024)." [SharpSheets](https://sharpsheets.io/blog/fitness-industry-statistics/#:~:text=The%20average%20US%20gym%20made%2022.7%25%20in%20operating%20profit%20(EBITDA,had%20a%2022.7%25%20EBITDA%20margin.)
4. Health & Fitness Association. "2023 Global Report Reflects Optimism…" Health & Fitness Association
5. Statista. "Health & fitness clubs - statistics & facts." Statista
6. Statista. "US fitness/health club market size 2024." Statista
7. WOD Guru. "Top 20 Fitness Industry Statistics to Grow Your Gym." WOD Guru
8. Calenda. "Summarised: State of the Fitness Industry 2023 Report." Calenda
9. Sports & Fitness Industry Association. "2023 State of the Industry Report." SFIA
10. PerfectGym. "Fitness Industry 2025: Key Trends & Statistics." PerfectGym