Life Time Group Holdings Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did LTH Beat Earnings? Q3 2025 Results
Life Time Group Holdings posted a clear beat across the board in its third quarter of fiscal 2025, with earnings per share of $0.41 topping the $0.36 consensus estimate by 14.69% and revenue of $782.65 million edging past expectations by 1.41% while climbing 12.9% year-over-year. The standout driver behind that top-line momentum was the continued strength of membership dues and in-center revenue, with Dynamic Personal Training emerging as a particularly potent contributor to in-center performance. Average center revenue per membership rose 11.3% to $907, underscoring the company's ability to extract more value from its existing base even as center memberships reached 840,622. Adjusted EBITDA grew 22% to $220 million, reflecting operating leverage as revenue scaled faster than costs. Management rewarded the quarter's performance with a guidance raise, now targeting full-year revenue of $2.98 billion to $2.99 billion and adjusted EBITDA of $820 million to $824 million, while net debt leverage improved to 1.6x from 2.4x a year earlier.
- Increase in average membership dues
- Membership growth in new and ramping centers
- Higher member utilization of in-center offerings, particularly Dynamic Personal Training
- Comparable center revenue growth of 10.6% in Q3
- Average center revenue per center membership increased 11.3% to $907
- Greater flow through of increased revenue driving Adjusted EBITDA growth
“Our third quarter results reflect strong execution and continued momentum across the business. Our growth strategy remains on track. Nearly all of next year's planned 12 to 14 new clubs are currently under construction. Membership engagement continues to rise, and in-center performance remains robust. Supported by a solid balance sheet, low leverage, and strong cash generation, we are well positioned for continued growth.”
Life Time Group Holdings CEO, on the earnings call
Forward Guidance & Outlook
Life Time raised its full-year 2025 guidance. Revenue is now expected at $2,978–$2,988 million (previously $2,955–$2,985 million), representing approximately 13.8% growth over 2024 actual revenue of $2,621 million. Net income guidance raised to $304–$306 million (from $290–$293 million). Adjusted EBITDA guidance raised to $820–$824 million (from $805–$815 million). Comparable center revenue growth expectations increased to 10.8%–11.0% (from 9.5%–10.0%). The company plans to open 10 new centers in 2025 (seven already open as of November 4), complete at least $55–$65 million in additional sale-leaseback transactions in Q4, and maintain net debt leverage below 2.0x. Interest expense is expected at $81–$83 million and the provision for income tax rate is estimated at 24%.
LTH YoY Financials
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Figures from SEC filings and company reports. Not investment advice.