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Life Time Group Holdings, Inc. (LTH)
:LTH
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Life Time Group Holdings
(NYSE:LTH)
Select Model
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Rating:64Neutral
Price Target:
$30.00
▲(8.42% Upside)
The overall stock score of 64 reflects a positive earnings call with strong growth and future expansion plans, offset by technical indicators showing a bearish trend and moderate valuation. Financial performance is solid but challenged by cost management and cash flow issues.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Membership Retention
High membership retention and increased visits suggest strong customer loyalty and engagement, which are crucial for sustained revenue.
Digital Expansion
Rapid growth in digital accounts enhances the company's service offerings and market reach, supporting future growth and diversification.
Negative Factors
Declining Gross Margins
Decreasing gross margins indicate potential cost pressures, which could impact profitability if not managed effectively.
Free Cash Flow Decline
A decline in free cash flow may hinder the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.
Timing Shifts in Club Openings
Delays in new club openings could slow expansion plans, impacting revenue growth and market presence in the near to mid-term.
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.13B
Dividend YieldN/A
Average Volume (3M)2.07M
Price to Earnings (P/E)27.1
Beta (1Y)1.17
Revenue Growth17.25%
EPS Growth93.88%
CountryUS
Employees43,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.32
Shares Outstanding219,996,110
10 Day Avg. Volume2,480,354
30 Day Avg. Volume2,067,822
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.71
Price to Sales (P/S)1.70
P/FCF Ratio88.18
Enterprise Value/Market Cap1.75
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit8.04
Enterprise Value/Ebitda15.79
Forecast
1Y Price Target
$39.00Price Target Upside40.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Life Time Group Holdings Business Overview & Revenue Model
Company DescriptionLife 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 MoneyLife Time Group Holdings generates revenue primarily through membership fees, which are charged on a monthly or annual basis. The company offers various membership options that cater to different demographics and preferences, allowing for a broad customer base. In addition to membership revenue, Life Time earns money through the sale of personal training sessions, fitness classes, and wellness services, including nutrition counseling and spa treatments. The company also generates income through retail sales of health-related products and supplements within its facilities. Significant partnerships with fitness brands and wellness organizations enhance its offerings and may contribute to additional revenue streams. Furthermore, Life Time's investment in real estate, including the development of new fitness centers, provides opportunities for growth and revenue generation.
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call was overwhelmingly positive, with significant growth in revenue, net income, and memberships. The company successfully managed cash flow and financial strategy, with strong retention and membership visits. Although there was a slight timing shift in new club openings, the overall outlook remains very optimistic with future expansions and new developments.Q2-2025 Updates
Positive Updates
Revenue and Membership Growth
Total revenue increased by 14% to $761 million, with a 14% increase in membership dues and enrollment fees and a 14.4% increase in in-center revenue. Comparable center revenue grew 11.2%.
Improvement in Financial Metrics
Net income rose to $72.1 million, an increase of 36.5%, and adjusted net income was $84.1 million, up 60.5% year-over-year. Adjusted EBITDA increased by 21.6% to $211 million with an improved margin of 27.7%.
Cash Flow and Financial Strategy
Net cash provided by operating activities rose approximately 15% to $196 million. Free cash flow was $112 million for the second quarter, marking the fifth consecutive quarter of delivering positive free cash flow.
Strong Membership Retention and Visits
Visits per membership increased by 5.7%, and retention remains at record levels, improving over the prior year quarter.
Expansion and New Developments
Plans to open 12 to 14 new clubs in 2026, averaging nearly 100,000 square feet per club, primarily as ground-up developments.
Growth in Digital and Supplement Markets
Life Time Digital now has 2.3 million accounts, up 216% year-over-year. The LTH nutritional supplement line revenue increased by 31% compared to the prior year quarter.
Negative Updates
Timing Shifts in New Club Openings
The unit guide for new club openings in 2025 was narrowed from 10 to 12 units to 10, partly due to timing shifts and elongated build schedules.
Company Guidance
During the Life Time Group Holdings Second Quarter 2025 Earnings Call, the company provided updated guidance based on robust performance metrics. Total revenue surged by 14% to $761 million, with membership dues and enrollment fees up by the same percentage. The company raised its full-year guidance for comparable center revenue growth to between 9.5% and 10%, reflecting strong membership numbers, which totaled approximately 899,000, including on-hold memberships. The average monthly dues increased by 10.6% year-over-year to $219, and the average revenue per center membership rose by 11.8% to $888. Adjusted net income jumped 60.5% to $84.1 million, while adjusted EBITDA increased by 21.6% to $211 million, with an improved margin of 27.7%. Free cash flow stood at $112 million, marking the fifth consecutive quarter of positive free cash flow. The company also highlighted its successful sale leaseback of three properties, generating net proceeds of $149 million, and it plans to close another $100 million in transactions in the second half of the year. Looking forward, the company is focused on growth, targeting 12 to 14 new club openings in 2026 with an average size of nearly 100,000 square feet, and it continues to develop its digital presence with 2.3 million accounts and new initiatives like the AI-powered personal health companion.Life Time Group Holdings Financial Statement Overview
Summary
Life Time Group Holdings shows solid revenue growth and improved profitability, with a TTM net profit margin of 8.03% and an EBIT margin of 14.04%. However, challenges include declining gross margins and free cash flow, which could impact future investments. The balance sheet indicates improved leverage but moderate return on equity.Income Statement
Life Time Group Holdings has shown consistent revenue growth, with a TTM revenue growth rate of 3.43%. The company has improved its profitability, with a TTM net profit margin of 8.03% and an EBIT margin of 14.04%. However, the gross profit margin has decreased from previous years, indicating potential cost pressures.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 1.42 in the TTM period, indicating better leverage management. However, the return on equity is moderate at 8.42%, suggesting room for improvement in generating returns from equity. The equity ratio is stable, reflecting a balanced asset structure.65
Positive
Cash Flow
Operating cash flow has increased, with a TTM operating cash flow to net income ratio of 1.22, indicating strong cash generation relative to net income. However, free cash flow has declined significantly, with a negative growth rate of -33.11%, which could impact future investments and debt repayments.60
Neutral
| 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 | 1.33B | 1.23B | 1.03B | 754.35M | 473.95M | 288.33M |
| EBITDA | 679.43M | 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 | 175.51M | 27.88M | 29.97M | 25.51M | 31.64M | 33.20M |
| Total Debt | 4.09B | 3.99B | 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
Negative
27.67
Price Trends
28.33
Negative
28.79
Negative
28.65
Negative
Market Momentum
-0.13
Positive
44.62
Neutral
21.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTH, the sentiment is Negative. The current price of 27.67 is below the 20-day moving average (MA) of 28.26, below the 50-day MA of 28.33, and below the 200-day MA of 28.65, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LTH.
Life Time Group Holdings Risk Analysis
Life Time Group Holdings disclosed 32 risk factors in its most recent earnings report. Life Time Group Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Life Time Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 2.20B | 31.52 | 12.98% | 0.74% | 8.51% | 31.24% | |
64 Neutral | $6.13B | 27.08 | 8.66% | ― | 17.25% | 93.88% | |
61 Neutral | 8.70B | 46.16 | -119.08% | ― | 12.47% | 22.74% | |
56 Neutral | 3.36B | -27.26 | 28.74% | ― | -7.76% | 79.66% | |
51 Neutral | 10.55B | -18.38 | -235.71% | 3.76% | -6.42% | 45.85% | |
44 Neutral | 391.91M | -4.46 | 54.02% | ― | -3.02% | -517.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
LTH
Life Time Group Holdings
27.67
3.46
14.29%
HAS
Hasbro
75.59
6.41
9.27%
PLNT
Planet Fitness
103.39
22.91
28.47%
OSW
OneSpaWorld Holdings
21.68
5.26
32.03%
PTON
Peloton Interactive
8.42
3.61
75.05%
XPOF
Xponential Fitness
7.85
-4.44
-36.13%
Life Time Group Holdings Corporate Events
Private Placements and Financing
Life Time Group Holdings Refinances $995 Million Loan
Positive
Aug 18, 2025
On August 18, 2025, Life Time, Inc. and its subsidiaries entered into a Fifteenth Amendment to their Credit Agreement, which refinanced a $995 million term loan facility. The amendment reduced the interest rate margin by 0.25% to 2.00%, resulting in an effective fixed interest rate of 5.409% for the 2025 Term Loan Facility, which matures on November 5, 2031.
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.