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Life Time Group Holdings (LTH)
NYSE:LTH
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Life Time Group Holdings
(NYSE:LTH)
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Rating:71Outperform
Price Target:
$31.00
▲(9.73% Upside)
Life Time Group Holdings' overall stock score is driven by strong earnings call performance and positive financial performance, despite some challenges in cash flow efficiency. Technical analysis indicates a short-term bullish trend, though caution is advised due to potential overbought conditions. Valuation is moderate, with no dividend yield to attract income investors.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Life Time's services and effective pricing strategies, supporting long-term business expansion.
Membership and Engagement Growth
Increasing memberships and engagement suggest a strong customer base and community, enhancing recurring revenue and brand loyalty.
Expansion and New Club Growth
Expansion into new locations supports long-term growth and market presence, potentially increasing revenue streams and customer reach.
Negative Factors
Free Cash Flow Challenges
Negative free cash flow growth can limit the company's ability to invest in new opportunities and manage financial obligations effectively.
Dependence on Sale-Leasebacks
Reliance on sale-leasebacks for funding may indicate cash flow constraints and could lead to increased long-term lease obligations.
Seasonal Membership Decline
Seasonal membership declines could affect revenue stability and highlight potential challenges in maintaining consistent membership growth.
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.05B
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)22.0
Beta (1Y)0.95
Revenue Growth15.77%
EPS Growth86.16%
CountryUS
Employees43,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.45
Shares Outstanding220,512,240
10 Day Avg. Volume1,262,306
30 Day Avg. Volume1,636,276
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 Cap1.67
Enterprise Value/Revenue3.47
Enterprise Value/Gross Profit7.33
Enterprise Value/Ebitda13.51
Forecast
1Y Price Target
$40.50Price Target Upside43.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 sessions, group fitness classes, nutrition coaching, and spa services. The company also earns income from retail sales of health-related products, including supplements and fitness apparel, as well as revenue from its events and competitions. Partnerships with fitness and wellness brands, as well as corporate wellness programs, contribute to its earnings. Additionally, Life Time's expansion into residential community development provides opportunities for revenue through property sales and management.
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance and optimistic outlook for the company with significant revenue and net income growth, an increase in memberships, and ambitious expansion plans. However, there is a note of caution regarding anticipated seasonal membership decline and reliance on sale-leaseback transactions for funding. Overall, the positive aspects significantly outweigh the challenges.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue increased 12.9% to $783 million with an average monthly dues growth of 10.0% year-over-year. Comparable center revenue grew 10.6%.
Significant Net Income Increase
Net income for the quarter was $102 million, an increase of 147% year-over-year, aided by a $5.7 million tax-effected gain on sale leasebacks and $16.2 million from employee retention credits.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA was $220 million, up 22%, with an adjusted EBITDA margin improvement of 210 basis points to 28.1%.
Membership and Engagement Growth
Total memberships reached approximately 891,000, and average monthly visits per membership rose 5.9% year-over-year.
Expansion and New Club Growth
Plans to deliver 12 to 14 new clubs in 2026, with 11 of these being large format. 13 clubs are already under construction.
Innovations in Digital and AI
Development of L•AI•C, an AI health companion, and expansion of digital accounts to 2.75 million, expected to cross 3 million by early 2026.
Negative Updates
Seasonal Membership Decline
An anticipated seasonal decline in membership units is expected in the fourth quarter due to high club utilization.
Dependence on Sale-Leasebacks
The company plans to complete $55 million to $65 million of additional sale-leaseback transactions before the end of the year to fund growth.
Company Guidance
During the third quarter 2025 earnings call for Life Time Group Holdings Inc., the company reported a 12.9% increase in total revenue to $783 million, with average monthly dues growing by 10% year-over-year to $218. Comparable center revenue increased by 10.6%, prompting an upward revision in full-year guidance to a range of 10.8% to 11.0%. The company ended the quarter with nearly 841,000 center memberships and approximately 891,000 total memberships. Net income surged by 147% to $102 million, benefiting from a $5.7 million tax-effected gain on sale-leasebacks and $16.2 million from tax-adjusted employee retention credits. Adjusted net income rose by 65.2% to $93 million, while adjusted EBITDA improved by 22% to $220 million, with a margin increase of 210 basis points to 28.1%. Operating cash flow increased by 66% to $251 million, and free cash flow was $63 million. The company completed a sale-leaseback transaction generating $34 million and plans additional transactions worth $55 million to $65 million by year-end. Looking forward, Life Time expects to open 12 to 14 new clubs in 2026, with a focus on large-format clubs, and continues to grow membership engagement and revenue per center membership.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 | 4.13B | 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
Positive
28.25
Price Trends
26.16
Positive
26.79
Positive
28.13
Positive
Market Momentum
0.41
Negative
67.79
Neutral
71.77
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 28.25 is above the 20-day moving average (MA) of 26.67, above the 50-day MA of 26.16, and above the 200-day MA of 28.13, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 67.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.77 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.05B | 22.03 | 10.38% | ― | 15.77% | 86.16% | |
70 Outperform | $8.70B | 43.23 | ― | ― | 14.39% | 31.64% | |
70 Outperform | $2.23B | 31.12 | 13.53% | 0.79% | 7.27% | 45.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $12.21B | -22.25 | -65.93% | 3.44% | 0.87% | 14.02% | |
54 Neutral | $397.37M | -4.94 | ― | ― | -3.55% | -111.90% | |
45 Neutral | $2.76B | -24.51 | ― | ― | -8.74% | 74.66% |
* Consumer Cyclical Sector Average
LTH
Life Time Group Holdings
28.25
4.64
19.65%
HAS
Hasbro
89.14
34.29
62.52%
PLNT
Planet Fitness
105.76
4.33
4.27%
OSW
OneSpaWorld Holdings
22.07
3.47
18.66%
PTON
Peloton Interactive
6.72
-2.14
-24.15%
XPOF
Xponential Fitness
8.13
-6.82
-45.62%
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.