1Q Prints Update: Revenue Resilient, Margins Bifurcated, Guides Intact

Research evidence excerpt

1Q Prints Update: Revenue Resilient, Margins Bifurcated, Guides Intact

Lifestyle & Growth Platforms

Equity Research

May 19, 2026

Subsector Scorecards

Leisure & Experiences: Experiential Demand Is the Clear Winner This Cycle. This

subsector is the highest-conviction pocket in the coverage and naturally tariff-insulated.

LTH delivered revenue +11.7% with comparable center revenue +8.6%, broken down

as membership mix +3.5%, pricing +3.0%, in-center businesses +2.3%, and volume

only -0.2%. Average monthly dues reached $230 (+10.5% YoY) and EBITDA margin

expanded +160bps to 28.7%, with the FY midpoint now at 28%. PLNT added 700K+ net

new members and grew revenue 22%, with equipment revenue +123% reflecting strong

franchise investment appetite; that said, the company paused its national Black Card

price increase, withdrew its three-year algorithm, and selected a new creative agency,

making the forward trajectory worth monitoring closely. TKO grew revenue 26% and

EBITDA 32% with UFC media rights +23% and WWE live events +62%; Q1 free cash flow

was $675M (123% EBITDA conversion), and the company returned ~$1B to shareholders.

OSW and LUCK printed solid but less differentiated results. Net: services models are

tariff-insulated and demand remains robust.

Chart 1 - Leisure & Experiences Indexed QTD Performance vs SPX & XLY

Apr-26 May-26

SPX XLY LTH LUCK OSW PLNT TKO

.

Source: FactSet, Jefferies

Branded Consumer & Hardgoods: Strong Execution, Tariff Headwinds Manageable.

The standout story here is that the best operators are managing through tariffs while

still delivering growth and raising guidance. SN grew revenue 15.6% with broad category

strength (cleaning +17%, cooking +19.8%, beauty/home +40.8%), raised guidance, and

authorized a $750M buyback.