Gym membership sign-ups among Gen Zers are increasing at a faster pace post-Covid than before, according to Planet Fitness CEO.

• During the coronavirus pandemic, an increasing number of teenagers are joining Planet Fitness for their first gym memberships.
• In 2021, the fastest-growing demographic group that joined were those born between 1997 and 2012, belonging to Generation Z.
• Last year, many younger users visited the fitness centers, as school activities and sports leagues were temporarily halted.

The number of teenagers joining the gym for the first time has increased during the pandemic, contributing to the company's growth.

In 2021, Planet Fitness experienced the most significant growth in memberships among Generation Z, which comprises individuals born between 1997 and 2012, according to the gym operator's fourth-quarter results announced on Thursday.

Despite the resumption of many group activities and the return of in-person learning at schools, the trend of younger users flocking to fitness centers has continued into 2022, as CEO Chris Rondeau stated in an interview.

Membership rates remained stable during the September 2021 school sports and recreation center reopening, with Gen Zers placing a higher priority on staying active and maintaining their mental health, resulting in increased membership rates above pre-Covid levels, according to the speaker.

Memberships at Planet Fitness begin at $10 per month, making it a more budget-friendly option compared to pricier gyms such as and Equinox.

Rondeau reports that approximately 62.5% of members have upgraded to Black Card, which is increasingly popular as the company grows. The $22.99-a-month option provides customers with access to all of its 2,000-plus gyms in the U.S., as well as additional perks such as tanning beds and guest passes.

In January 2021, Planet Fitness reported 15.6 million members, exceeding its pre-pandemic high.

The net income attributable to Planet Fitness shareholders for the three-month period ended Dec. 31 decreased to $5.7 million, or 7 cents per share, compared to $8.7 million, or 11 cents a share, in the previous year. Despite this, the company's earnings per share were in line with analysts' expectations of 26 cents, based on Refinitiv data.

Sales increased by 37.3% to $183.6 million from $133.8 million the previous year, surpassing expectations of $178.8 million.

Despite falling about 1.5% year to date, Planet Fitness's market cap remains at $7.7 billion.

Find the full financial press release from Planet Fitness here.