Life Time Group Holdings (LTH) AI Stock Analysis

• Market Cap: $6.14B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.19
• Revenue Growth: 17.25%
• EPS Growth: 93.88%
• Country: US
• Employees: 43,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Leisure
• EPS (TTM): 0.32
• Shares Outstanding: 219,996,110
• 10 Day Avg. Volume: 1,788,279
• 30 Day Avg. Volume: 2,466,431
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 8.04
• Enterprise Value/Ebitda: 15.79
• 1Y Price Target: $39.17
• Price Target Upside: 42.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $31.00 ▲(12.85% Upside)

Life Time Group Holdings has a strong earnings outlook with significant revenue and membership growth, which is the most impactful factor. Financial performance shows solid growth but needs improvement in cost management and cash flow. Technical indicators suggest caution due to bearish momentum, while valuation is moderate. The company's strategic refinancing supports financial stability.

Positive Factors

Financial Performance

Life Time posted another solid quarter, beating elevated top and bottom line expectations and raising FY25 guidance as the overall business performance continues to be robust.

Growth Initiatives

LTH is advancing on its growth initiatives with the launch of LT Health products on Amazon, refreshing packaging, and introducing Nourish, a daily multivitamin and greens supplement.

Negative Factors

Investor Concerns

Recent weakness in the stock post-earnings reflects investor concerns over potential selling by certain shareholders.

Stock Price Volatility

The stock dropped ~10% post-earnings due to a potential upcoming secondary from certain selling shareholders.

Life Time Group Holdings Business Overview & Revenue Model

Company Description

Life Time Group Holdings, Inc. (LTH) is a leading operator of fitness and wellness centers across the United States and Canada. The company focuses on providing luxury athletic resorts, offering a comprehensive range of services including fitness programs, personal training, health and wellness services, and a variety of membership options. Life Time's facilities often feature state-of-the-art equipment, pools, spa services, and spaces for social and community events, catering to individuals and families seeking a high-quality, holistic approach to health and fitness.

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	1.33B	2.32B	708.96M	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	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: Negative
• Last Price: 27.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 27.47 is below the 20-day moving average (MA) of 27.82, below the 50-day MA of 28.78, and below the 200-day MA of 28.30, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, 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	69 Neutral	$2.32B	32.96	13.16%	0.72%	8.51%	31.24%
LTH	68 Neutral	$6.14B	26.89	8.66%	―	17.25%	93.88%
Sector *	61 Neutral	$17.59B	13.29	-4.88%	3.05%	1.25%	-14.67%
HAS	61 Neutral	$11.38B	25.59	-81.67%	3.51%	-6.42%	45.85%
PLNT	52 Neutral	$8.83B	45.42	-79.88%	―	12.47%	22.74%
XPOF	52 Neutral	$409.44M	―	22.27%	―	-3.02%	-517.53%
PTON	50 Neutral	$3.10B	―	58.47%	―	-7.76%	79.66%

Life Time Group Holdings Corporate Events

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.

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.