The Model

The Praxis Business Model: Clinical Health Utility Economics

Praxis Performance operates as a recurring-revenue clinical utility, not a transactional gym membership. Our unit economics are designed for predictable cash flow, high retention, and zero customer acquisition cost.

The 2:1 Collaborative Coaching Pod

The fundamental unit of revenue at Praxis is the 2:1 Collaborative Coaching Pod:

Metric                           Value

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Clients per session              2

Monthly subscription / client    $1,500

Revenue per pod-hour             $3,000

Sessions per client / week       2–3

Contract term                    12 months

Retention model                  Subscription (auto-renew)

This model creates revenue density that traditional 1:1 personal training cannot match, while the collaborative format increases client accountability and reduces cancellation rates.

Pre-Launch Traction

Metric                               Value

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Pre-qualified intakes                35

Initial pod capacity                 40 clients

Pre-launch capacity utilization      87%

Customer acquisition cost            $0 (physician referral)

Acquisition channel                  100% B2B2C referral

These 35 intakes were generated entirely through physician referral partnerships — before any marketing spend, before a public launch, and before the Phase II facility is operational.

Revenue Architecture

• Primary Revenue: Monthly subscriptions ($1,500/client/month, 12-month contractual term)

• Secondary Revenue (planned):

   • Comprehensive Metabolic & Kinematic Audit — 90-minute onboarding assessment

   • Concierge Tier — premium individualized programming

   • Digital Expansion — online platform for traveling clients and low-barrier referral entry

Debt Service Coverage

Metric                               Value

────────────────────────────────────────────────

Projected DSCR                       5.5x

Basis                                87% capacity utilization

Contract structure                   12-month recurring subscriptions

Operating reserves                   ~11 months ($140,045)

Depreciable asset base               Diagnostic tech stack (~$50,000)

The subscription model provides predictable monthly cash flow against which debt service can be modeled with high confidence. The 5.5x DSCR at 87% capacity provides substantial cushion against utilization variance.