Life Time Group Holdings (LTH) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.18
• Revenue Growth: 17.25%
• EPS Growth: 93.88%
• Country: US
• Employees: 43,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Leisure
• EPS (TTM): 0.32
• Shares Outstanding: 219,996,110
• 10 Day Avg. Volume: 3,155,262
• 30 Day Avg. Volume: 2,614,892
• PEG Ratio: 0.29
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 88.18
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 16.54
• 1Y Price Target: $39.00
• Price Target Upside: 41.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $32.00 ▲(15.94% Upside)

Life Time Group Holdings boasts strong financial performance and positive earnings call highlights, indicating robust growth and profitability. However, the technical analysis is bearish and the high P/E ratio suggests the stock may be overvalued. The absence of a dividend yield further detracts from the valuation appeal.

Positive Factors

Digital growth

The company's digital app has more than 1.7 million subscribers and is growing rapidly, which could exceed 3 million by the end of the next fiscal year.

Financial performance

LTH reached the high end of their preliminary revenue guidance and exceeded profitability metrics expectations, indicating strong financial performance.

Membership demand

LTH has pricing power and high membership demand.

Negative Factors

Market performance

The sale leaseback environment remains optimal with cap rates within acceptable ranges for LTH.

Membership growth

April adds were softer than normal, which is a lower volume period prior to high volume pool season.

Life Time Group Holdings Business Overview & Revenue Model

Company Description

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. Its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content, as well as access to Apple Fitness+ that offers members content and wellness data monitoring. The company is also involved in media activities, conducting athletic events, and provision of related services. As of December 31, 2021, it operated 151 centers in 29 states and one Canadian Province, 63 of which were owned, including ground leases and 88 of which were leased. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

How the Company Makes Money

Life Time Group Holdings generates revenue primarily through membership fees, which account for a significant portion of its income. Members pay monthly or annual fees for access to the company's comprehensive fitness and wellness facilities. Additionally, Life Time earns money from personal training services, spa services, and other in-center offerings such as cafes and retail stores. The company also hosts events and provides corporate wellness programs, contributing further to its revenue streams. Strategic partnerships and sponsorships with fitness and lifestyle brands enhance its service offerings and support its financial performance.

Life Time Group Holdings Financial Statement Overview

Summary

Life Time Group Holdings demonstrates strong financial performance, with notable revenue and profit growth, efficient operational management, and robust cash flow generation. While the company maintains a moderate level of leverage, its improving profitability and cash flow metrics suggest a positive outlook.

Income Statement

Life Time Group Holdings has shown impressive revenue growth, with a significant increase from $948 million in 2020 to $2.73 billion in TTM 2025. The gross profit margin improved to 54.3% in TTM 2025, indicating efficient management of production costs. The net profit margin also improved to 7.6%, highlighting positive profitability trends. Additionally, the EBIT and EBITDA margins reached 14.7% and 24.9%, respectively, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet is relatively stable, with a debt-to-equity ratio of 1.47 in TTM 2025, showcasing manageable leverage. The return on equity improved significantly to 7.6%, indicating effective use of shareholders' capital. However, the equity ratio of 37.4% suggests a moderate reliance on debt financing.

Cash Flow

Strong cash flow management is evident, with free cash flow growing from negative in previous years to $158 million in TTM 2025. The operating cash flow to net income ratio is 3.2, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 0.76 further underscores solid cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.62B	2.22B	1.82B	1.32B	948.38M
Gross Profit	1.65B	2.32B	708.96M	754.35M	473.95M	288.33M
EBITDA	648.77M	632.16M	469.98M	339.50M	-260.07M	-111.64M
Net Income	226.76M	156.24M	76.06M	-1.79M	-579.37M	-360.19M
Balance Sheet
Total Assets	7.60B	7.15B	7.03B	6.63B	6.26B	6.02B
Cash, Cash Equivalents and Short-Term Investments	196.25M	27.88M	29.97M	25.51M	31.64M	33.20M
Total Debt	2.59B	4.02B	4.26B	4.04B	3.76B	4.06B
Total Liabilities	4.73B	4.54B	4.78B	4.50B	4.17B	4.54B
Stockholders Equity	2.87B	2.61B	2.25B	2.12B	2.09B	1.48B
Cash Flow
Free Cash Flow	105.93M	50.58M	-230.90M	-390.21M	-348.94M	-361.60M
Operating Cash Flow	693.84M	575.12M	463.00M	200.97M	-20.03M	-95.98M
Investing Cash Flow	-369.11M	-292.74M	-574.16M	-243.54M	-269.92M	-6.12M
Financing Cash Flow	-177.99M	-284.38M	115.55M	36.80M	288.40M	87.39M

Life Time Group Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTH, the sentiment is Neutral. The current price of 27.6 is below the 20-day moving average (MA) of 28.68, below the 50-day MA of 28.82, and below the 200-day MA of 27.97, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LTH.

Life Time Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	77 Outperform	$2.17B	31.12	13.16%	0.76%	8.51%	31.24%
LTH	74 Outperform	$6.12B	27.25	8.66%	―	17.25%	93.88%
Sector *	63 Neutral	£1.73B	10.31	4.37%	3.48%	0.66%	-38.91%
HAS	60 Neutral	$10.88B	25.59	-81.67%	3.61%	-6.42%	45.85%
PLNT	59 Neutral	$8.97B	47.61	-79.88%	―	12.47%	22.74%
PTON	50 Neutral	$3.29B	―	58.47%	―	-7.76%	79.66%
XPOF	45 Neutral	$359.49M	―	22.27%	―	-3.02%	-517.53%

Life Time Group Holdings Corporate Events

Life Time Group Holdings Completes Stock Offering

On June 5, 2025, Life Time Group Holdings, Inc. entered into an underwriting agreement with J.P. Morgan Securities LLC and BofA Securities, Inc. for the sale of 20,000,000 shares of its common stock by selling stockholders at $29.50 per share. The offering closed on June 6, 2025, with the company not receiving any proceeds from the sale, and the agreement included customary legal obligations and protections for the involved parties.

The most recent analyst rating on (LTH) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Life Time Group Holdings stock, see the LTH Stock Forecast page.