Impressive Revenue Growth
Total revenue increased 18.3% to $706 million, driven by a 17.9% increase in membership dues and enrollment fees, and an 18.7% increase in incentive revenue.
Strong Membership and Revenue Metrics
Center memberships increased by 3%, reaching approximately 880,000. Average monthly dues grew 11.8% year over year to $208, and average revenue per center membership was $844, an increase of 13.3% from the prior year quarter.
Substantial Increase in Net Income and Adjusted EBITDA
Net income rose to $76.1 million, an increase of 206%. Adjusted net income increased by 189% to $88.1 million. Adjusted EBITDA was $191.6 million, an increase of 31.2%, with an adjusted EBITDA margin of 27.1%, up 260 basis points from the previous year.
Positive Free Cash Flow and Deleveraging
Net cash provided by operating activities rose 103% to $184 million. The company achieved positive free cash flow for the fourth consecutive quarter at approximately $41 million, and reduced its net debt leverage ratio to 2.0 times.
Expansion and Strategic Growth Initiatives
The company plans to deliver 10 to 12 new clubs per year and has a robust pipeline for growth. LT Digital boasts over 2 million subscribers, and Miura and LTH are progressing well.