Introduction

In a fitness market that's evolving faster than ever, operators need more than intuition, they need hard, actionable data. The latest "State of the Industry" report from Two Brain Business presents one of the most comprehensive analyses anywhere of gym and studio financials, client journeys and operational benchmarks.

Here at BrightCore we're committed to helping gym and studio owners build resilient and scalable businesses. In this post we'll summarise the most relevant findings from the 2025 report, interpret what they mean for European and Irish operators, and highlight the marketing, operational and revenue challenges owners face today.

Key Industry Findings You Should Know

Revenue Trends

Big Group (large group-class gyms): US$18,750 (2025) vs US$17,000 (2024)
Small Group (semi-private formats): US$16,667 (2025) vs US$11,000 (2024)
1:1 (personal-training driven): US$16,000 (2025) vs US$13,000 (2024)

The upward shift across all categories shows the business side of the fitness industry is becoming healthier.

Client Head-Count Isn't Always the Driver

Big Group: 129 clients (2025) vs 122.5 (2024)
Small Group: 80 clients (2025) vs 62 (2024)
1:1: 65 clients (2025) vs 50 (2024)

Key takeaway: bigger head-counts still matter, but value per client and retention increasingly drive success.

Average Revenue per Member (ARM) & Pricing

Big Group: US$158.54 (2024: US$150.00)
Small Group: US$240.00 (2024: US$200.00)
1:1: US$282.71 (2024: US$254.32)

Raising price or value per member is proving as meaningful, if not more, than simply adding more members.

Length of Engagement (LEG) / Retention

Europe: 25.5 months
UK: 24.8 months
U.S.: 19.0 months

Retention is now a major axis for differentiation: the longer a client stays, the higher the lifetime value.

Marketing & Lead Funnel Insights

Leads per month (median):

Big Group: 13 leads
Small Group: 19.5 leads
1:1: 10 leads

Lead sources breakdown: ~31.8% paid ads, ~28.6% referrals, ~28.9% social media, ~10.7% content.

Key problem: many gyms struggle to manage PPC effectively. The report notes that nearly 15% of gyms don't follow up with leads at all, wasting money and missing revenue. Response times, channel tracking and clarity on ROI remain major weaknesses.

What These Findings Mean for Gyms and Studios in Ireland, the UK and Europe

You don't need 300+ members to run a profitable business. Big Group gyms can be healthy around 150 members.

Focus on member value (ARM) rather than just volume. Even modest pricing or upsell increases can significantly impact revenue.

Retention (LEG) is a major lever: keeping clients longer increases lifetime value and reduces lead acquisition pressure.

Digital marketing and PPC are increasingly important but also a risk: unclear tracking, slow follow-up and wasted spend are common.

Operational cost control is crucial: staff cost as % of revenue, room utilisation, class size and membership mix all impact margins.

How BrightCore Helps You Capitalise on These Trends

Improving Member Value and Retention

Track member engagement, visit patterns, spending behaviour, and tenure. Features like automated communications, reminders, and the Bring-a-Buddy referral system help increase member engagement and loyalty.

Clear Revenue and Cost Visibility

BrightCore's dashboards show revenue trends, class occupancy, membership mix, and staff utilisation. Owners can see exactly where income is coming from and where operational costs may be affecting margins.

Efficient Class and Studio Management

From intelligent waitlists to flexible class and package management, BrightCore ensures every class slot is optimised and revenue opportunities are maximised.

Growth Through Data-Driven Decisions

While the industry shows that bigger membership numbers aren't the guaranteed route to profit, BrightCore empowers owners to make informed decisions using actionable analytics. Focus on retention, member value, and operational efficiency rather than simply chasing member numbers.

Strategic Action Steps

Benchmark your current ARM, retention, head count, and revenue mix.
Look for ways to increase value per member.
Strengthen onboarding and retention systems.
Optimise class schedules, staff utilisation, and membership management.
Review revenue streams to ensure no opportunities are missed.
Use tools that provide real-time insight across your business to make informed operational decisions.

Conclusion

The 2025 State of the Industry report from Two Brain shows that revenue and value per member are rising, but success now depends more on retention, pricing power, operational insight, and efficient management. Many gyms still struggle with under-utilised classes, staff scheduling inefficiencies, and poor visibility into revenue streams.

At BrightCore we believe the strongest operators in Ireland and Europe will be those who understand their numbers, take control of their client experience, and act on insights to maximise value and retention.

Ready to see how BrightCore can help?

Discover how BrightCore can help your gym run more efficiently, increase member value, and improve retention.

Request a Demo Today

Attribution: The data referenced in this article is derived from the State of the Industry 2025 report by Two Brain Business. Full PDF: https://twobrainbusiness.com/the-state-of-the-industry/

The State of the Fitness Industry 2025: What the Numbers Really Mean