Life Time Group Holdings (LTH) AI Stock Analysis

• Market Cap: $5.60B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.01
• Revenue Growth: 15.77%
• EPS Growth: 86.16%
• Country: US
• Employees: 43,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.45
• Shares Outstanding: 220,512,240
• 10 Day Avg. Volume: 2,610,120
• 30 Day Avg. Volume: 2,202,202
• 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: 1.81
• Enterprise Value/Revenue: 3.47
• Enterprise Value/Gross Profit: 7.33
• Enterprise Value/Ebitda: 13.51
• 1Y Price Target: $41.43
• Price Target Upside: 65.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $2.98B

• Rating: 67 Neutral
• Price Target: $28.00 ▲(11.69% Upside)

Life Time Group Holdings demonstrates strong financial performance with notable revenue and profitability improvements. The positive earnings call further supports the stock's outlook, despite technical indicators showing a bearish trend. Valuation is moderate, with room for improvement in cash flow efficiency.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and increasing demand for services, supporting long-term expansion.

Membership and Engagement Growth

Rising memberships and engagement suggest a robust customer base and enhanced service value, driving sustained revenue.

Expansion and New Club Growth

Strategic expansion into new locations supports market penetration and long-term growth potential, enhancing competitive positioning.

Negative Factors

Gross Margin Decline

Declining gross margins may reflect rising costs, which could pressure profitability if not managed effectively over the long term.

Dependence on Sale-Leasebacks

Reliance on sale-leasebacks for funding may indicate cash flow constraints, potentially impacting financial flexibility and stability.

Free Cash Flow Decline

A decline in free cash flow can limit the ability to invest in growth opportunities and manage debt, affecting long-term financial health.

Life Time Group Holdings Business Overview & Revenue Model

Company Description

Life Time Group Holdings (LTH) is a leading health and wellness company that operates a chain of health clubs and fitness centers across the United States and Canada. The company focuses on providing a comprehensive range of services that include fitness classes, personal training, nutrition coaching, and spa services. Life Time also offers various membership tiers that provide access to its facilities, which often include pools, courts, and recreational spaces, fostering a community-oriented environment dedicated to healthy living.

How the Company Makes Money

Life 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 Financial Statement Overview

Summary

Life Time Group Holdings has shown solid revenue growth and improved profitability metrics, with a strong gross profit margin and net profit margin. However, challenges in free cash flow generation and a slight decrease in EBIT margin suggest areas for improvement.

Income Statement

Life Time Group Holdings has shown a consistent improvement in its revenue with a TTM growth rate of 3.17%. The gross profit margin has increased significantly to 58.60% in TTM, indicating strong cost management. The net profit margin has also improved to 9.88%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.88 in TTM, indicating better leverage management. Return on equity has increased to 10.28%, showcasing improved profitability. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to financing.

Cash Flow

Operating cash flow has increased, with a strong coverage ratio of 1.29 in TTM. However, free cash flow growth is negative at -33.44%, indicating potential challenges in generating cash after capital expenditures. The free cash flow to net income ratio remains low, suggesting limited cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.91B	2.62B	2.22B	1.82B	1.32B	948.38M
Gross Profit	1.38B	1.23B	1.03B	754.35M	473.95M	288.33M
EBITDA	749.28M	632.16M	469.98M	339.50M	-260.07M	-111.64M
Net Income	287.83M	156.24M	76.06M	-1.79M	-579.37M	-360.19M
Balance Sheet
Total Assets	7.83B	7.15B	7.03B	6.63B	6.26B	6.02B
Cash, Cash Equivalents and Short-Term Investments	241.44M	10.88M	29.97M	25.51M	31.64M	33.20M
Total Debt	2.64B	3.99B	4.26B	4.04B	3.76B	4.06B
Total Liabilities	4.84B	4.54B	4.78B	4.50B	4.17B	4.54B
Stockholders Equity	2.99B	2.61B	2.25B	2.12B	2.09B	1.48B
Cash Flow
Free Cash Flow	70.50M	50.58M	-230.90M	-390.21M	-348.94M	-361.60M
Operating Cash Flow	793.81M	575.12M	463.00M	200.97M	-20.03M	-95.98M
Investing Cash Flow	-566.72M	-292.74M	-574.16M	-243.54M	-269.92M	-6.12M
Financing Cash Flow	-122.71M	-284.38M	115.55M	36.80M	288.40M	87.39M

Life Time Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 25.07 is below the 20-day moving average (MA) of 25.52, below the 50-day MA of 26.87, and below the 200-day MA of 28.99, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 38.12 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	70 Outperform	$2.27B	31.36	13.53%	0.69%	7.27%	45.12%
LTH	67 Neutral	$5.60B	19.55	10.38%	―	15.77%	86.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	61 Neutral	$7.72B	46.10	―	―	14.39%	31.64%
HAS	56 Neutral	$10.78B	―	-65.93%	3.59%	0.87%	14.02%
PTON	40 Underperform	$2.91B	―	―	―	-8.74%	74.66%
XPOF	40 Underperform	$306.72M	―	―	―	-3.55%	-111.90%

Life Time Group Holdings Corporate Events

Life Time Group Holdings Reports Strong Q3 2025 Growth

Life Time Group Holdings, Inc., a prominent operator of athletic country clubs across the U.S. and Canada, reported robust financial results for the third quarter of 2025, showcasing significant growth in revenue and net income.

Life Time Group Holdings Reports Strong Growth and Expansion Plans

The recent earnings call for Life Time Group Holdings, Inc. showcased a robust performance and an optimistic outlook, marked by significant revenue and net income growth, an increase in memberships, and ambitious expansion plans. Despite some caution regarding anticipated seasonal membership decline and reliance on sale-leaseback transactions for funding, the positive aspects significantly outweigh the challenges, painting a promising picture for the company’s future.

Life Time Group Holdings Refinances $995 Million Loan

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.

Life Time Group Holdings Reports Strong Q2 2025 Results

Life Time Group Holdings, Inc., a prominent player in the health and wellness sector, operates a network of over 180 athletic country clubs across the United States and Canada, offering a comprehensive range of healthy living programs and services.

Life Time Group Holdings Reports Strong Q2 Earnings

The recent earnings call for Life Time Group Holdings, Inc. exuded a generally positive sentiment, underscored by strong financial performance and strategic expansion plans. The company reported impressive membership growth and robust financial metrics. However, there were some concerns regarding typical seasonality affecting future membership trends and a slight adjustment in unit guidance for the current year. Overall, the company’s performance and outlook remain robust, reflecting confidence in its strategic direction.