Life Time Group Holdings, Inc. (LTH)
NYSE:LTH
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Life Time Group Holdings
(NYSE:LTH)
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Rating:74Outperform
Price Target:
$36.00
▲(29.96% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong earnings-call guidance and momentum (double-digit revenue growth outlook, ~28% EBITDA margin, and a clearer path to positive free cash flow), supported by positive technical trend signals. Offsetting these are lingering balance-sheet leverage risk and currently negative/volatile free cash flow, while valuation is reasonable but not meaningfully discounted and offers no dividend support.
Positive Factors
Pricing Power / ARPM
Sustained ability to raise dues and lift average revenue per membership indicates durable pricing power and higher lifetime value. Recurring membership billing plus ARPM expansion bolster predictable revenue and improve margin sustainability versus pay-per-use peers.
Negative Factors
Elevated Leverage
Sizable absolute debt leaves the company exposed in downturns and limits strategic flexibility. Even with improving metrics, elevated leverage constrains capital allocation choices, increases interest burden risk, and makes sustained investments or buybacks contingent on cash conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Pricing Power / ARPM
Sustained ability to raise dues and lift average revenue per membership indicates durable pricing power and higher lifetime value. Recurring membership billing plus ARPM expansion bolster predictable revenue and improve margin sustainability versus pay-per-use peers.
Read all positive factors
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.37B
Dividend YieldN/A
Average Volume (3M)3.14M
Price to Earnings (P/E)19.2
Beta (1Y)1.01
Revenue Growth12.73%
EPS Growth73.50%
CountryUS
Employees43,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.76
Shares Outstanding222,602,740
10 Day Avg. Volume2,967,544
30 Day Avg. Volume3,140,118
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 Cap1.55
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit6.39
Enterprise Value/Ebitda13.68
Forecast
1Y Price Target
$40.09Price Target Upside44.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.51
Revenue Forecast (FY)$3.33B
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 primarily makes money by selling access to its clubs and related services. The company’s largest revenue stream is membership dues, which are typically billed on a recurring basis (e.g., monthly) and provide members access to Life Time a...
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: double‑digit revenue growth, expanding margins, rising average dues/ARPM, robust adjusted EBITDA growth, improving operating cash flow, and a clear plan to convert real estate sale‑leasebacks into visible positive free cash flow. Management framed sustained demand for new clubs, high ROIC on openings, successful ancillary offerings (notably dynamic personal training), and a large development pipeline. Near‑term challenges are manageable and mostly strategic: deliberate reduction of low‑dues qualified medical memberships (which compresses reported membership growth), elevated capex for new club construction, and preopening costs that modestly pressure near‑term margins. Overall the positives materially outweigh the issues.Positive Updates
Revenue Growth
Total revenue increased 11.7% year-over-year to $789 million in Q1 2026.
Negative Updates
Qualified Medical Membership Reduction
Qualified medical memberships declined by ~15,000 (-14.9% year-over-year), which reduced total membership growth and contributed a slight negative volume impact (-0.2%) to comparable center revenue; qualified medicals now represent ~3.4% of dues revenue and are expected to be ~3% by year-end.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 11.7% year-over-year to $789 million in Q1 2026.
Read all positive updates
Company Guidance
Management guided to 10–12% revenue growth for each quarter and the full year and updated the midpoint of full‑year adjusted EBITDA margin guidance to 28% (Q1 adj. EBITDA margin was 28.7%; adj. EBITDA $227M, +18.3% YoY). Membership guidance: total center membership growth of 0.5–1.0% in Q2, 1.0–1.5% in Q3 and 2.0–3.0% in Q4, and excluding qualified medicals: 3.5–3.8% in Q2 and 4–5% in Q3–Q4. Q1 operating metrics included ~838k center memberships (+1.4%), total revenue $789M (+11.7%), comparable center revenue +8.6% (membership mix +3.5%, price +3.0%, in‑center businesses +2.3%, volume ‑0.2%), average monthly dues $230 (+10.5% YoY), average revenue per center membership $930 (+10.2% YoY), qualified medicals at 3.4% of dues revenue (expected ~3% by year‑end) after a ~15k (‑14.9% YoY) decline, net income $88M (+15.8%), adjusted net income $96M (+27.4%), net cash from operations $199M (+~8%), and Q1 CapEx $260M (+82% YoY). They closed ~$200M of sale‑leasebacks in April, expect ~$400M for the year to support positive free cash flow in 2026 (and growing thereafter, with long‑range FCF >$400M by ~2030), and emphasized a strong balance sheet with very low leverage (well below 2.0x net debt/EBITDA), zero revolver balance and several hundred million of cash.Life Time Group Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 3.00B | 2.62B | 2.22B | 1.82B | 1.32B |
| Gross Profit | 1.79B | 1.43B | 1.23B | 1.03B | 754.35M | 473.95M |
| EBITDA | 836.72M | 777.64M | 632.16M | 469.98M | 339.50M | -260.07M |
| Net Income | 385.63M | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M |
Balance Sheet | ||||||
| Total Assets | 8.11B | 8.79B | 7.15B | 7.03B | 6.63B | 6.26B |
| Cash, Cash Equivalents and Short-Term Investments | 150.18M | 232.17M | 10.88M | 29.97M | 25.51M | 31.64M |
| Total Debt | 4.16B | 6.75B | 3.99B | 4.26B | 4.04B | 3.76B |
| Total Liabilities | 4.89B | 5.66B | 4.54B | 4.78B | 4.50B | 4.17B |
| Stockholders Equity | 3.22B | 3.13B | 2.61B | 2.25B | 2.12B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | -123.56M | -20.96M | 50.58M | -230.90M | -390.21M | -348.94M |
| Operating Cash Flow | 885.46M | 870.52M | 575.12M | 463.00M | 200.97M | -20.03M |
| Investing Cash Flow | -804.20M | -685.74M | -292.74M | -574.16M | -243.54M | -269.92M |
| Financing Cash Flow | -8.49M | 19.39M | -284.38M | 115.55M | 36.80M | 288.40M |
Life Time Group Holdings Technical Analysis
Positive
27.70
Price Trends
29.01
Positive
28.49
Positive
27.64
Positive
Market Momentum
1.31
Positive
63.73
Neutral
54.32
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 27.7 is below the 20-day moving average (MA) of 31.90, below the 50-day MA of 29.01, and above the 200-day MA of 27.64, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.48B | 31.90 | 14.09% | 0.79% | 9.47% | 18.45% | |
74 Outperform | $7.37B | 19.23 | 12.64% | ― | 12.73% | 73.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.59B | 109.62 | -6.18% | ― | -3.26% | ― | |
58 Neutral | $12.45B | -54.79 | -48.30% | 3.44% | 12.74% | -152.25% | |
54 Neutral | $4.13B | 18.40 | -69.35% | ― | 14.41% | 31.33% | |
44 Neutral | $258.34M | -6.55 | 14.36% | ― | -5.80% | 32.11% |
* Consumer Cyclical Sector Average
LTH
Life Time Group Holdings
33.42
4.82
16.85%
HAS
Hasbro
86.38
21.31
32.75%
PLNT
Planet Fitness
52.90
-49.93
-48.56%
OSW
OneSpaWorld Holdings
24.30
5.61
30.00%
PTON
Peloton Interactive
6.04
-1.06
-14.93%
XPOF
Xponential Fitness
5.82
-3.19
-35.41%
Life Time Group Holdings Corporate Events
Business Operations and StrategyStock Buyback
Life Time Group Completes Major Share Repurchase Transaction
Positive
May 7, 2026
On May 7, 2026, Life Time Group Holdings, Inc. completed a previously announced share repurchase from certain major shareholders, including affiliates of Leonard Green Partners, TPG Inc. and Partners Group (USA) Inc., under an agreement dated May...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Life Time Reshapes Ownership Through Buyback, Atairos Investment
Positive
May 6, 2026
On May 5, 2026, Life Time Group Holdings agreed to repurchase 2,192,500 shares of its common stock at $28.60 per share, for a total of about $62.7 million, in a private transaction with existing shareholders, funded with cash on hand under its Feb...
Executive/Board ChangesShareholder Meetings
Life Time Group Shareholders Back Board and Governance Plans
Positive
Apr 24, 2026
On April 22, 2026, Life Time Group Holdings, Inc. held its 2026 annual meeting of stockholders, where shareholders elected five Class II directors to serve until the 2029 annual meeting. All nominees, including Joel Alsfine, Jonathan Coslet, J. Kr...
Executive/Board Changes
Life Time Group Announces Board Director Resignation Effective March
Neutral
Mar 12, 2026
On March 9, 2026, Life Time Group Holdings, Inc. announced that Class I director Alejandro Santo Domingo notified the company of his intention to resign from its Board of Directors, effective March 31, 2026. The departure of a Class I board member...
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.