Life Time Group Holdings Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did LTH Beat Earnings? Q1 2025 Results
Life Time Group Holdings delivered a standout first quarter, posting earnings of $0.39 per share and revenue of $706.04 million as the premium fitness operator beat analyst estimates and demonstrated that its shift toward revenue-per-member growth over raw membership volume is paying off. Total revenue climbed 18.3% year-over-year, while net income surged 205.6% to $76.14 million, aided in part by a $14.60 million tax benefit from stock option exercises. The single most telling metric may be average center revenue per membership, which rose 13.3% to $844, reflecting the company's deliberate strategy of monetizing existing members more deeply rather than simply filling clubs. Adjusted EBITDA expanded 31.2% to $191.59 million, pushing the margin to 27.1% from 24.5% a year ago. Free cash flow turned positive at $41.37 million, the fourth consecutive quarter in that territory, and net debt leverage improved sharply to 2.0x from 3.6x. Looking ahead, Life Time raised its full-year 2025 revenue guidance to $2.94 to $2.98 billion and lifted comparable center revenue growth expectations to 8.5% to 9.5%.
- Increase in average membership dues driving revenue growth
- Membership growth in new and ramping centers
- Higher member utilization of in-center offerings
- Comparable center revenue growth of 12.9%
- Average center revenue per membership increased 13.3% to $844
- Structural improvements to business improving margins
- $14.6 million tax benefit from excess tax deduction on stock option exercises
- Net income margin expanded to 10.8% from 4.2%
- Adjusted EBITDA margin expanded to 27.1% from 24.5%
“We continue to see increased member engagement, with visits and revenue per membership at new highs. The desirability of the Life Time brand is evident in our ongoing success in attracting and retaining increasingly higher quality memberships to our centers. We are also excited to leverage the strength of our brand as we expand our LTH nutritional products and enhance our digital offering, including our L.AI.C companion. Our balance sheet is strong, positioning us well to capitalize on the opportunities ahead.”
Life Time Group Holdings CEO, on the earnings call
Forward Guidance & Outlook
Life Time raised its full-year 2025 guidance: revenue of $2,940–$2,980 million (up from $2,925–$2,975 million), net income of $286–$293 million (up from $277–$284 million), and Adjusted EBITDA of $792–$808 million (up from $780–$800 million). Comparable center revenue growth expectations increased to 8.5%–9.5% from the prior 7%–8%. The company plans to open 10–12 new centers, maintain net debt leverage at or below 2.0x, and expects interest expense of $80–$84 million (reduced from $90–$94 million) reflecting a new interest rate swap. The provision for income tax rate estimate was revised down to 23% from 27%, and cash income taxes are expected at $39–$41 million (down from $58–$62 million). Depreciation and amortization is guided at $286–$294 million (up from $265–$273 million).
LTH YoY Financials
LTH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.