Life Time Group (LTH) Q1 2025 earnings summary

Executive summary

• Revenue grew 18.3% year-over-year to $706 million, driven by higher membership dues, new center openings, and increased in-center utilization.

• Net income surged 205.6% to $76.1 million, aided by improved operations, lower interest expense, and a $14.6 million tax benefit from stock option exercises.

• Adjusted EBITDA increased 31.2% to $191.6 million, with margin expanding to 27.1% from 24.5% in the prior year.

• Memberships reached 879,751, up 3.0% year-over-year, with total memberships (including on-hold) at approximately 880,000.

• Raised full-year 2025 outlook, including comparable center revenue growth guidance to 8.5%-9.5%.

Financial highlights

• Center revenue grew 18.1% to $685.7 million; other revenue increased 25.9% to $20.4 million.

• Net cash from operating activities more than doubled to $183.9 million; free cash flow was $41.4 million, positive for the fourth consecutive quarter.

• Average monthly dues grew 11.8% to $208; average revenue per center membership rose 13.3% to $844.

• Net debt leverage ratio improved to 2.0x from 3.6x a year ago.

• Diluted EPS was $0.34; adjusted diluted EPS was $0.39 for the quarter.

Outlook and guidance

• 2025 revenue guidance raised to $2.94–$2.98 billion, up 12.9% at midpoint.

• Net income guidance $286–$293 million; Adjusted EBITDA $792–$808 million.

• Plan to open 10–12 new centers per year, focusing on affluent markets and asset-light models.

• Comparable center revenue growth expected at 8.5–9.5%, up from prior 7–8%.

• Interest expense guidance lowered due to interest rate swap; tax rate estimate reduced to 23%.