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1. Company Snapshot

1.a. 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 fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas.


The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces.Its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content, as well as access to Apple Fitness+ that offers members content and wellness data monitoring.The company is also involved in media activities, conducting athletic events, and provision of related services.


As of December 31, 2021, it operated 151 centers in 29 states and one Canadian Province, 63 of which were owned, including ground leases and 88 of which were leased.The company was formerly known as LTF Holdings, Inc.and changed its name to Life Time Group Holdings, Inc.


in June 21, 2021.Life Time Group Holdings, Inc.was founded in 1992 and is headquartered in Chanhassen, Minnesota.

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1.b. Last Insights on LTH

Life Time Group Holdings, Inc. faces negative drivers, including increasing medical care costs and high medical care ratios. However, the company's Q3 earnings beat and revenue growth of 12.9% year-over-year, driven by membership growth and increased revenue per location, are positives. Additionally, the company's deleveraging efforts and improved margins support strong adjusted-EBITDA growth. Campbell & CO Investment Adviser LLC's recent acquisition of $312,000 worth of shares and IFP Advisors Inc's increased stake are also positives.

1.c. Company Highlights

2. Life Time Group Holdings Delivers Strong Q3 2025 Results

Life Time Group Holdings reported a robust third quarter 2025, with total revenue reaching $783 million, a 12.9% increase year-over-year. The company's average monthly dues grew 10.0% to $218, and comparable center revenue rose 10.6%. Adjusted EBITDA was $220 million, a 22% increase year-over-year, with an adjusted EBITDA margin of 28.1%, an improvement of 210 basis points. Earnings per share (EPS) came in at $0.41, beating estimates of $0.35. The strong financial performance was driven by the company's focus on member experiences, growing member engagement, and revenue per center membership.

Publication Date: Nov -15

📋 Highlights
  • Total Revenue Growth: Revenues rose to $783M, a 12.9% YoY increase, driven by 10.6% comparable center revenue growth.
  • Net Income Surge: Net income jumped 147% YoY to $102M, with adjusted net income up 65.2% to $93M.
  • EBITDA Margin Expansion: Adjusted EBITDA hit $220M (+22% YoY), with margins improving 210 bps to 28.1%.
  • New Club Expansion: Plans for 12–14 clubs in 2026, alongside 4–5 MIORA locations, to boost revenue per center.
  • Digital Subscriber Growth: Non-club digital accounts reached 2.75M, on track to exceed 3M by early 2026.

Revenue Growth and Membership Optimization

The company's growth strategy is centered around accelerating new club growth and optimizing membership mix. Average monthly visits per membership reached 12.5% for the quarter, up 5.9% year-over-year, indicating a successful membership optimization strategy. The company is also seeing a shift in its membership mix, with more couples and families, which is resulting in higher revenue per membership. As Bahram Akradi noted, "We're seeing great success in new markets as well as established markets."

Expansion Plans and Valuation

Life Time Group Holdings is planning to deliver 12 to 14 new clubs in 2026 and beyond, with a focus on larger clubs that will have higher average revenue but lower membership counts. The company's valuation metrics indicate a reasonable price for its shares, with a P/E Ratio of 19.46 and an EV/EBITDA of 10.68. The company's return on equity (ROE) is 10.28%, and its return on invested capital (ROIC) is 4.65%. Analysts estimate next year's revenue growth at 11.1%, which suggests a continued strong performance.

Capital Allocation and Future Prospects

The company is prioritizing its capital allocation, with a focus on remaining strong on the balance sheet. While buying back stock is on the table for discussion, no decision has been made. The company's strong financial performance and growth prospects suggest a positive outlook for the company's shares. With a P/S Ratio of 1.93, the company's shares appear reasonably valued, and the dividend yield is 0.0%, indicating that the company is reinvesting its earnings in the business.

3. NewsRoom

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Life Time's Hybrid Athlete Competition Returns in 2026: LT Games Presented by Ten Thousand Set for April in Minneapolis

Dec -04

Source: prnewswire.com

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1,433,345 Shares in Life Time Group Holdings, Inc. $LTH Bought by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

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LIFE TIME SIGNS LEASE AT 175 THIRD STREET, THE NEWEST DEVELOPMENT IN CHARNEY COMPANIES AND TAVROS' GOWANUS WHARF

Dec -01

Source: prnewswire.com

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Is Life Time Group Holdings (LTH) Stock Outpacing Its Consumer Discretionary Peers This Year?

Dec -01

Source: zacks.com

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4 Stocks With High Coverage Ratios Offer Safer Bets Going Into 2026

Dec -01

Source: zacks.com

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Contrasting Life Time Group (NYSE:LTH) and Lucky Strike Entertainment (NYSE:LUCK)

Nov -29

Source: defenseworld.net

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3 Reasons Why Growth Investors Shouldn't Overlook Life Time Group Holdings (LTH)

Nov -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.70%)

6. Segments

Membership Dues and Enrollment Fees

Expected Growth: 8.5%

Strong demand for premium fitness experiences, increasing membership rates, and successful club openings drove 8.5% growth in Membership Dues and Enrollment Fees for Life Time Group Holdings, Inc. Additionally, strategic pricing initiatives, enhanced member engagement, and a growing presence in high-growth markets contributed to this growth.

In-center Revenue

Expected Growth: 9.2%

In-center revenue growth of 9.2% from Life Time Group Holdings, Inc. is driven by increasing membership sales, expansion of high-margin services such as personal training and small group training, and strategic pricing initiatives. Additionally, the company's focus on providing a premium fitness experience, investments in digital platforms, and growing demand for wellness services also contribute to this growth.

Other

Expected Growth: 8.8%

Strong membership growth, driven by increased demand for wellness and fitness services, expansion of digital offerings, and strategic partnerships. Additionally, the company's focus on providing a unique and personalized experience, combined with its diversified revenue streams, has contributed to its impressive 8.8% growth.

7. Detailed Products

Life Time Fitness Centers

Luxury fitness centers offering a range of amenities and services, including exercise equipment, group fitness classes, personal training, and spa services.

Life Time Work

Shared workspace and coworking facilities designed for entrepreneurs, freelancers, and remote workers, offering amenities such as high-speed internet, printing services, and networking opportunities.

Life Time Living

Luxury residential communities offering high-end amenities, including fitness centers, swimming pools, and social spaces, designed for active adults and families.

Life Time Athletic Events

Organized athletic events, including running, cycling, and triathlon events, designed for athletes of all levels, offering a range of distances and challenges.

Life Time Digital

Digital fitness platform offering on-demand workouts, personalized coaching, and wellness resources, designed for individuals seeking a flexible and convenient fitness experience.

8. Life Time Group Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Life Time Group Holdings, Inc. is medium due to the availability of alternative fitness centers and gyms that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers for Life Time Group Holdings, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Life Time Group Holdings, Inc. is medium due to the presence of multiple suppliers for equipment and services.

Threat Of New Entrants

The threat of new entrants for Life Time Group Holdings, Inc. is high due to the relatively low barriers to entry in the fitness industry.

Intensity Of Rivalry

The intensity of rivalry for Life Time Group Holdings, Inc. is high due to the presence of several established competitors in the fitness industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.92%
Debt Cost 3.95%
Equity Weight 53.08%
Equity Cost 12.78%
WACC 8.64%
Leverage 88.38%

11. Quality Control: Life Time Group Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.71$

Current Price

26.71$

Potential

-0.00%

Expected Cash-Flows