Life Time Group Holdings, Inc. (LTH)
NYSE:LTH
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Life Time Group Holdings
(NYSE:LTH)
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Rating:65Neutral
Price Target:
$31.00
▲(10.91% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by improving profitability and strong operating cash flow, reinforced by an upbeat earnings call featuring leverage improvement and a $500M repurchase program. These positives are tempered by still-meaningful leverage, slightly negative free cash flow amid heavy investment plans, and near-term technical softness versus the 20-day trend with moderating 2026 growth guidance.
Positive Factors
Operating cash generation
Sustained, above‑earnings operating cash flow (~$871M TTM) indicates high cash conversion from core club operations. This durable cash generation supports capex funding, sale‑leaseback financing, and the $500M buyback while enabling debt paydown and strategic reinvestment over the next 2–6 months.
Negative Factors
High capital intensity
Substantially higher growth CapEx planned for 2026 will tie up cash in work‑in‑progress and raise capitalized interest (~$33–$35M expected). Slightly negative FCF TTM highlights that heavy investment can compress free cash flow and limit near‑term optionality for deleveraging or incremental buybacks if execution or ramping slips.
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Positive Factors
Negative Factors
Operating cash generation
Sustained, above‑earnings operating cash flow (~$871M TTM) indicates high cash conversion from core club operations. This durable cash generation supports capex funding, sale‑leaseback financing, and the $500M buyback while enabling debt paydown and strategic reinvestment over the next 2–6 months.
Read all positive factors
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.20B
Dividend YieldN/A
Average Volume (3M)3.31M
Price to Earnings (P/E)15.5
Beta (1Y)0.97
Revenue Growth15.77%
EPS Growth86.16%
CountryUS
Employees43,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.54
Shares Outstanding221,805,080
10 Day Avg. Volume1,874,684
30 Day Avg. Volume3,313,214
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.85
Price to Sales (P/S)1.93
P/FCF Ratio-276.52
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit4.78
Enterprise Value/Ebitda14.76
Forecast
1Y Price Target
$40.45Price Target Upside44.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.45
Revenue Forecast (FY)$3.32B
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 fi...
How the Company Makes Money
Life Time generates revenue primarily through membership fees, which are the core of its business model. Members pay monthly or annual dues for access to the company's facilities and services. Additional revenue streams include personal training s...
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call reflects strong financial and operational performance in 2025: robust revenue and adjusted EBITDA growth, margin expansion, significant operating cash flow, improved leverage (1.6x) and a new $500 million share repurchase authorization. These positives are tempered by reliance on nonrecurring items that bolstered reported results, a clear deceleration in comparable-center guidance for 2026 (6.3%–7.3%), and substantially higher near-term growth CapEx that will tie up cash and increase capitalized interest. Management emphasizes prudent margin management to protect member experience and highlighted some execution risks (construction/permits) and mixed direct-digital monetization. On balance, the strength in core metrics, balance sheet flexibility, and shareholder return initiatives outweigh the headwinds and execution/monetization caveats.Positive Updates
Quarterly Revenue Growth
Total revenue for Q4 increased 12.3% year-over-year to $745.0 million, driven by higher average dues and utilization in centers.
Negative Updates
One-Time Items Inflating Reported Results
Q4 net income benefited from approximately $45.6 million of net tax-affected nonrecurring items; Q4 operating cash flow included $59 million and full-year operating cash flow included $94 million of nonrecurring proceeds. These one-time items materially boosted reported GAAP results and cash flow.
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Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Total revenue for Q4 increased 12.3% year-over-year to $745.0 million, driven by higher average dues and utilization in centers.
Read all positive updates
Company Guidance
For 2026 Life Time guided to full‑year comparable center revenue growth of approximately 6.3%–7.3%, with quarterly growth starting higher and gliding down; it plans $875–$915 million of growth CapEx (noting over half of that will fund clubs opening in 2027+), plus $140–$150 million of maintenance CapEx and $130–$140 million for modernization, technology and corporate investments, and expects to capitalize $33–$35 million of interest. Management intends to fund this with cash from operations, sale‑leasebacks and cash on hand, expects to complete a minimum of $300 million of sale‑leasebacks in 2026, has opened 1 of 14 planned 2026 clubs (13 under construction), plans to open up to 28 clubs across 2026–2027, is nearly doubling 2026 square footage versus 2024/2025, has approved a $500 million share repurchase program, and will manage net leverage at or below its 2.0x target (ending 2025 at 1.6x).Life Time Group Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.00B | 2.62B | 2.22B | 1.82B | 1.32B |
| Gross Profit | 2.66B | 1.23B | 1.03B | 754.35M | 473.95M |
| EBITDA | 872.11M | 632.16M | 469.98M | 339.50M | -260.07M |
| Net Income | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M |
Balance Sheet | |||||
| Total Assets | 8.79B | 7.15B | 7.03B | 6.63B | 6.26B |
| Cash, Cash Equivalents and Short-Term Investments | 232.17M | 10.88M | 29.97M | 25.51M | 31.64M |
| Total Debt | 6.75B | 3.99B | 4.26B | 4.04B | 3.76B |
| Total Liabilities | 5.66B | 4.54B | 4.78B | 4.50B | 4.17B |
| Stockholders Equity | 3.13B | 2.61B | 2.25B | 2.12B | 2.09B |
Cash Flow | |||||
| Free Cash Flow | -20.96M | 50.58M | -230.90M | -390.21M | -348.94M |
| Operating Cash Flow | 870.52M | 575.12M | 463.00M | 200.97M | -20.03M |
| Investing Cash Flow | -685.74M | -292.74M | -574.16M | -243.54M | -269.92M |
| Financing Cash Flow | 19.39M | -284.38M | 115.55M | 36.80M | 288.40M |
Life Time Group Holdings Technical Analysis
Positive
27.95
Price Trends
27.53
Positive
27.24
Positive
27.45
Positive
Market Momentum
0.28
Negative
55.50
Neutral
61.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTH, the sentiment is Positive. The current price of 27.95 is above the 20-day moving average (MA) of 26.77, above the 50-day MA of 27.53, and above the 200-day MA of 27.45, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTH.
Life Time Group Holdings Risk Analysis
Life Time Group Holdings disclosed 30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.47B | 29.88 | 13.18% | 0.79% | 7.27% | 45.12% | |
65 Neutral | $6.20B | 15.51 | 12.76% | ― | 15.77% | 86.16% | |
62 Neutral | $5.59B | 41.35 | -82.94% | ― | 14.39% | 31.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $12.91B | 14.43 | -54.74% | 3.44% | 0.87% | 14.02% | |
53 Neutral | $1.97B | -16.60 | 12.90% | ― | -8.74% | 74.66% | |
47 Neutral | $372.21M | -2.45 | ― | ― | -3.55% | -111.90% |
* Consumer Cyclical Sector Average
LTH
Life Time Group Holdings
27.80
-4.05
-12.72%
HAS
Hasbro
92.49
40.98
79.57%
PLNT
Planet Fitness
70.24
-27.35
-28.03%
OSW
OneSpaWorld Holdings
24.94
7.88
46.21%
PTON
Peloton Interactive
4.73
-0.97
-17.02%
XPOF
Xponential Fitness
7.50
0.03
0.40%
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.