The 2024 BFS State of the Industry Report is the most comprehensive, data-driven snapshot of the independent studio landscape to date. Built from in-depth survey responses gathered between September 1, 2024 and January 31, 2025, this year’s report analyzes financial and operational data from hundreds of boutique fitness studios across the U.S., Canada and 14 other countries, spanning every major modality and market type.
More than a snapshot, it’s a roadmap—revealing the common practices of studios that are not only surviving but thriving, with profit margins of 20% or more. We evaluated data by market (city vs suburb) and by modality (Pilates-inspired, Strength, Yoga).
For the first time, BFS is introducing a standardized scorecard for studio success: the BFS Scorecard features the five most critical business metrics that were selected by our BFS CEO Peer Network Members. Every studio that completes the Business Assessment receives a personalized version of this Scorecard which enables them to compare their metrics to the industry's most successful operators.
Whether you’re a single-location owner or scaling a multi-studio business, this Report will reveal what the most profitable studios are doing—and what’s actually driving those results. The Report includes real-world benchmarks and strategies, grounded in actual studio performance data.
Want to know what separates a studio that has a 10% profit margin from a studio with a 20%+ profit margin? Here’s what the data says.
Profitability isn't an elusive destination; it’s within reach for the majority of studio owners. The data shows that profitability is often a result of the consistent application of proven business methods as well as small operational improvements, better lead flow, and a more effective pricing strategy. These are realistic tactics that any studio owner can implement.
“Stop searching for something shiny and new. The way you reach your goals is boring, steady and unsexy: identify the proven business systems then consistently and rigorously implement those methods to reach maximum profitability.”
— from The 2024 Annual Letter from our Founders
The majority of studios (profitable or not) make under $500K annually. For those that are profitable, the majority have a profit margin between 1-19% and charge their members between $100–$249/month. The good news? There’s a realistic and hopeful path forward—studios that fit this profile can absolutely reach 20% profitability with a few small, consistent steps.
Here’s the Breakdown:
That’s a $50K delta—about $4,167/month. With average monthly revenue per member around $175, that’s just 24 net new recurring members per year—or 2 per month for 12 months until you start operating with 20% profit margin.
“This isn’t about reinvention. It’s about consistency. Two new members a month can change your business...and your life, fundamentally."
— Julian Barnes
Referrals were the top-reported source of new leads for profitable studios. They’re simple, organic, personal—and they don’t require an expensive advertising budget or marketing agency.
Paid ads was the second most effective lead generation tactic among profitable studios which demonstrates that growth-oriented studio owners should include paid ads in their marketing plan as soon as they can afford to do so.
Studios that bring in 50+ new leads per month are more than three times as likely to have 20%+ profit margins—45% hit that benchmark, compared to just 14% of studios with profit margins under 10%.
Among studios with the highest number of first-time visits per week (61+), 50% reported high-profit (20%+) margin, compared to 17% of low-profit (1–9%) studios.
The majority of profitable studios have a 30%+ conversion rate for leads to first time visitors and first time visitors to a second purchase. These conversion rates are consistent across all profit levels, suggesting high-profit studios aren’t converting better, just reaching more people. More leads + more visits = more new clients.
“Studios hitting 20%+ profit margins aren’t just lucky—they're disciplined. They’ve built systems to consistently identify new leads, nurture them, and guide them through the door. When you implement and execute those systems with precision, higher margins follow”
— Julian Barnes
62% of all profitable studios reported churn below 5%, and 44% said their average member lifetime value was more than two years. Profitable studios retain their members.
"Retention is your silent growth engine. When you deliver consistent value your members stick, and that’s what fuels long-term profit."
— Nt Etuk
City studios often outperform suburban peers in revenue, likely driven by pricing power—not cost differences. Studios located in cities have a greater probability of generating $1M+ in revenue while maintaining high-profit (20%+) margins.
“Yoga studios have the same team structure as Pilates, but lower prices, bigger spaces, and tighter margins. It’s a structural issue, not a talent issue."
— Mia Bjorkroos
The path to 20% profitability is clearer than ever—and the best part? It's accessible and attainable by any studio owner, regardless of their size of market or modality, who is willing to rigorously and consistently implement systems that FIND leads, ENROLL the leads into Members and RETAIN those Members (F.E.R.).
Furthermore, because the majority of studios in our Report earn less than $500K annually, the difference between 10% profitability and 20% profitability is only $50K ($4,166/mo). If you add two net new members each month for 12 months and they pay $175/mo, your gross monthly revenue will have increased by $4,200 by the end of the year, and your profit margin will increase from 10% to 20%.
Get the full picture of where the industry stands—and where it’s headed!
Join our public live presentation to discover key insights from the BFS State of the Industry survey. CEO Julian Barnes will reveal crucial data on lead generation, pricing trends, and operational benchmarks.
RSVP HERE>>