2026 Outlook

Full-Year 2026 Guidance


 


 

 

 

 

 		Percent

 		Year Ending


 		Year Ending

 		Year Ended

 		Change

 		December 31, 2026


 		December 31, 2026

 		December 31, 2025

 		(Using

 		(Guidance as of
($ in millions)(Guidance)

 		(Actual)

 		Midpoints)

 		February 24, 2026)
Total revenue$3,320 – $3,350

 		$2,995.3

 		11.3 %

 		$3,300 – $3,330
Rent$378 – $386

 		$339.2

 		12.6 %

 		$378 – $388
Net Income$340 – $345

 		$373.7

 		(8.3) %

 		$330 – $336
Adjusted net income$378 – $386

 		$325.5

 		17.4 %

 		$369 – $378
Adjusted EBITDA$925 – $940

 		$825.2

 		13.0 %

 		$910 – $925

The Company is reiterating the following expectations for fiscal 2026 as outlined in its fourth quarter and full-year 2025 results announced on February 24, 2026:

  • Open 12 to 14 new clubs, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.2 million square feet, nearly double the square footage of each of our 2024 class and 2025 class of clubs. We expect the majority of our 2026 class of clubs to open in the back half of the year, including six to seven in the fourth quarter of 2026.
  • Maintenance capital expenditures of $140 to $150 million, modernization and technology capital expenditures of $130 to $140 million, and growth capital expenditures of $875 to $915 million.  
  • Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times.
  • Provision for income tax rate estimate of 28%.

The Company is also updating the following operational and financial expectations for fiscal 2026:

  • Complete approximately $400 million of sale-leaseback transactions, increased from $300 million.
  • Comparable center revenue growth of 6.9% to 7.5%, which includes our ramping and mature centers, increased from 6.3% to 7.3%.  
  • Rent to include non-cash rent expense of $31 million to $34 million, increased from $24 million to $27 million.
  • Cash income tax expense of $80 million to $83 million, increased from $57 million to $59 million, reflecting the normalization of cash taxes following the utilization of net operating loss carryforwards in the prior year and lower tax depreciation.
  • Interest expense, net of interest income, of approximately $59 million to $63 million, and net of $28 million to $30 million of capitalized interest expense related to construction in progress. This is an increase from $56 million to $60 million, net of $33 million to $35 million of capitalized interest expense related to construction in progress.
  • Year-end weighted-average diluted common shares outstanding of approximately 228 million to 230 million, not including any incremental impact that may occur as a result of our $500 million share buyback program, decreased from 229 million to 231 million.