Life Time Group Holdings, Inc.

Second-quarter revenue increased 13.7% to $866 million. Net income was $101.4 million, up 40.6% year over year, and adjusted net income was $109.8 million, up 30.6%. Adjusted EBITDA was $246.5 million, up 16.8%, and adjusted EBITDA margin improved 80 basis points to 28.5%. Comparable center revenue grew 9.1%, with improved membership mix contributing 3.1%, price 2.9%, in-center businesses 2.9%, and volume 0.2%. Average monthly dues were $245, up approximately 12.3%, and average revenue per center membership was $993, up 11.8%. Center memberships were approximately 860,000, up 1.2%. Net cash provided by operating activities was $209.6 million, up about 7.1%, and capital expenditures were $263.3 million, up 18.6%. Guidance was raised for full-year comparable center revenue to 7.9% to 8.3% from 6.9% to 7.5%, with full-year revenue, net income, and adjusted EBITDA also increased. Management raised the midpoint of full-year adjusted EBITDA margin guidance to 28.2%, noting this includes preopening and early ramp costs from 7 clubs scheduled to open in Q4. The company said it had closed about $200 million of sale-leaseback transactions in April and expects about $400 million for the full year, supporting ongoing positive free cash flow.

Bahram Akradi struck an upbeat tone and repeatedly emphasized strong demand, better experiences, and a broad pipeline of real estate opportunities. He highlighted new offerings like CTR, Hybrid XT, LT Games, and ongoing work in MIORA as ways to deepen member engagement and expand future growth. He also said the company is becoming more disciplined and flexible with capital allocation, focused on WACC and ROIC, while staying on course with current plans.

Erik Weaver focused on the quarter’s financial strength and the mechanics behind the raised outlook. He cited revenue of $866 million, adjusted EBITDA of $246.5 million, adjusted EBITDA margin of 28.5%, net cash from operating activities of $209.6 million, and capital expenditures of $263.3 million. He said guidance was raised across revenue, net income, and adjusted EBITDA, with the full-year adjusted EBITDA margin midpoint moving to 28.2%, and noted that 7 clubs opening in Q4 will create some preopening and ramp pressure on margins. He also pointed to approximately $200 million of sale-leaseback proceeds completed in April and roughly $400 million expected for the full year.

Analysts focused on the sustainability of the 9.1% comparable center revenue growth, next-year ramp dynamics from the 14 club openings, and whether in-center contribution can stay near the 3% level. Management said the Q2 acceleration came from DPT, Spa, and stronger engagement, and that the late-year club openings have more impact on next year than this year. They also said in-center growth depends on continuing to deliver the experience, while new programs like CTR are still early and being rolled out quickly. On capital allocation and buybacks, Bahram said the company will stay disciplined on the $400 million sale-leaseback target and is evaluating future options, but would not give specific buyback plans.