Life Time Group Holdings, Inc. (NYSE: LTH) reported fiscal 2025 fourth‑quarter revenue of $745.1 million, up 12.3% from $662.4 million in Q4 2024, and net income of $123 million, a 230.6% jump from $37.2 million a year earlier. Adjusted EBITDA for the quarter reached $202.6 million, a 14.5% increase from $176.8 million in Q4 2024. For the full year, the company posted $2.995 billion in revenue, a 14.3% rise from $2.618 billion in 2024, and net income of $373.7 million, a 139.2% increase from $156.2 million a year earlier. Adjusted EBITDA for the year climbed to $825.2 million, up 21.9% from $688.5 million in 2024.
The results beat analyst expectations on both revenue and earnings. Revenue of $745.1 million surpassed consensus estimates of $736.13 million to $744.2 million, a beat of roughly $0.9 million to $9 million. Adjusted diluted earnings per share of $0.34 exceeded the consensus range of $0.27 to $0.33, a beat of $0.01 to $0.07. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin in‑center services, including the “Dynamic Personal Training” program, which lifted in‑center spend and offset any headwinds in membership acquisition costs.
Margin expansion was evident in both quarters. Adjusted EBITDA margin rose 50 basis points in Q4 to 27.2% from 26.7% a year earlier, and the full‑year margin improved 170 basis points to 27.6% from 26.0%. The margin lift reflects pricing power in the premium club segment, efficient scaling of new club openings, and effective cost controls in operating expenses. The company’s net leverage ratio improved to 1.6x from 2.3x a year earlier, underscoring its ability to fund growth while maintaining a conservative balance‑sheet profile.
Looking ahead, Life Time guided 2026 revenue of $3.30 billion to $3.33 billion, net income of $330 million to $336 million, and adjusted EBITDA of $910 million to $925 million. The guidance signals confidence in continued demand for its high‑margin in‑center services and membership model, while the $500 million share‑repurchase program demonstrates a commitment to returning capital to shareholders. Management emphasized that the company will add nearly as much new square footage in 2026 as it opened in the past two years combined, reinforcing its expansion strategy.
CEO Bahram Akradi said, “With higher member engagement, increased dues per membership, and robust in‑center revenue growth, we delivered another year of record financial performance.” He added, “We enter 2026 with strong fundamentals and a clear plan to expand the number of our large‑format athletic country clubs. We expect to add nearly as much new square footage in 2026 as we opened in the past two years combined.” Akradi also noted the share‑repurchase program, stating, “Our strong cash generation and healthy balance sheet give us confidence in our ability to fund our accelerated club opening plan and implement our share repurchase program while remaining at or below our target 2.0x net leverage ratio.”
Investors responded positively to the earnings release, citing the earnings beat and revenue beat as key drivers of the favorable market reaction. The company’s strong performance, combined with its forward guidance and capital‑return program, reinforced investor confidence in its growth trajectory and financial discipline.
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