Life Time Group Holdings, Inc. (LTH) delivers extensive health, fitness, and well-being experiences to its individual clientele throughout the United States and ...
Life Time Group Holdings, Inc. (LTH) is a leading health, fitness, and wellness company that designs, builds, and operates luxury athletic country clubs in metropolitan areas across the United States and Canada. Founded by Bahram Akradi in 1992, the company has grown to over 190 locations, serving members from ages ...Life Time Group Holdings, Inc. (LTH) is a leading health, fitness, and wellness company that designs, builds, and operates luxury athletic country clubs in metropolitan areas across the United States and Canada. Founded by Bahram Akradi in 1992, the company has grown to over 190 locations, serving members from ages 90 days to 90+ years. Its clubs feature state-of-the-art fitness equipment, group fitness studios, indoor/outdoor pools, tennis and basketball courts, spa services (LifeSpa), on-site dining (LifeCafe), and childcare/Kids Academy programs. The company also offers digital wellness through Life Time Digital, providing live-streamed workouts, remote personal training, nutrition guidance, and access to Apple Fitness+. With a strong focus on healthy living, healthy aging, and healthy entertainment, Life Time has a diverse revenue stream from membership dues, personal training, spa services, food and beverage, and media/events. Financially, as of the latest TTM, the company generates approximately $3.07 billion in revenue with a net profit margin of 13%. It has a market capitalization of $9.79 billion and an EV/EBITDA of 14.82. Despite a negative free cash flow due to significant capital expenditure on new club expansions, the company maintains a strong brand and high member retention. Key leadership includes CEO Bahram Akradi and CFO Erik Weaver, driving strategic growth and innovation. Recognized as a Great Place to Work, Life Time is committed to employee culture and customer satisfaction. The company went public in 2021 and continues to expand its footprint, aiming to integrate health and wellness into every aspect of life.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.0B
+14.3%
+9.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$373.7M
+139.2%
+15.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+47.6%
+1.6%
+0.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+16.1%
+17.8%
+1.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+12.5%
+109.3%
+4.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-21.0M
-141.4%
+12.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-0.7%
-136.3%
+20.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
215.9%
+41.3%
+0.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.63x
+92.5%
+23.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Life Time Group Holdings Inc. Q2 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Connor Wienberg, Vice President, Capital Markets and Investor Relations. Connor, please go ahead.
Connor Wienberg: Good morning. Thank you for joining us for the Second Quarter 2026 Life Time Group Holdings Earnings Conference Call. With me today are Bahram Akradi, Founder, Chairman and CEO; and Erik Weaver, Executive Vice President and CFO. During the call, we will make forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from those forward-looking statements made today. There's a comprehensive discussion of risk factors in the company's SEC filings, which you are encouraged to review. The company will also discuss certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, adjusted diluted EPS, net debt to adjusted EBITDA or what we refer to as net debt leverage ratio and free cash flow. This information, along with the reconciliations to the most directly comparable GAAP measures are included when applicable, in the company's earnings release issued this morning, our 8-K filed with the SEC and on the Investor Relations section of our website. With that, I will turn the call over to Erik.
Erik Weaver: Thank you, Connor, and good morning, everyone. We appreciate you joining us for our Q2 business and financial update. Please note this morning, we posted an earnings supplement on our Investor Relations website, which includes additional detail on our membership mix and comparable center revenue. Starting with our second quarter revenue. Total revenue increased 13.7% to $866 million, driven by continued strength in performance across our clubs, including higher dues revenue and strong utilization of our in-center businesses. Comparable center revenue grew 9.1%. This was above our expectations, driven by an outperformance in our membership acquisition and in-center business performance. As outlined in our earnings supplement, there are 4 components of our comparable center revenue growth. Improved membership mix contributed 3.1% growth. Price contributed 2.9% growth. In-center businesses contributed 2.9% growth, largely driven by double-digit year-over-year growth in dynamic personal training and Life Spa. And volume contributed 0.2% to comparable center growth. As a result of our Q2 performance, we have raised our full year comparable center revenue guidance to 7.9% to 8.3%, up from 6.9% to 7.5%. Average monthly dues were $245, up approximately 12.3% year-over-year, and average revenue per center membership was $993, up 11.8% year-over-year. Growth in average dues was driven primarily by positive membership mix trends and execution of our pricing strategy. We ended the quarter with approximately 860,000 …
