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what it is
Life Time runs premium health clubs, wellness centers, and a digital ecosystem for nearly 1.5 million members.
how it gets paid
Last year Life Time made $3.0B in revenue. Membership dues was the main engine at $1.8B, or 60% of sales.
why it's growing
Revenue grew 14.3% last year. The 80.0% beat matters because it shows pricing and club demand outran expectations.
what just happened
Life Time beat by 80.0% last quarter, with EPS at $0.54 versus $0.30 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
18.9x trailing p/e — priced about right
7.5% return on capital — nothing to write home about
xvary composite: 54/100 — below average
$1.60 fy2026 eps est
What they do
Life Time runs premium health clubs, wellness centers, and a digital ecosystem for nearly 1.5 million members.
Life Time has nearly 1.5 million members across more than 800,000 memberships. That is 1.5 million people paying to keep a routine alive. It also has more than 170 centers in 29 states and one Canadian province, so your gym habit is backed by a national network.
How they make money
$3.0B
annual revenue · their business grew +14.3% last year
Membership dues
$1.8B
+12.0%
In-center services
$0.6B
+18.0%
Food and beverage
$0.3B
+10.0%
Retail and other
$0.3B
+8.0%
The products that matter
operates premium fitness clubs
Membership & Club Operations
$3.0B revenue
it's the entire disclosed $3.0B revenue base. that's the business: memberships, in-club spending, and the economics of keeping nearly 1 million members engaged.
core
expands beyond core club use
Other Ventures
$300M · 10% of revenue
this $300M bucket equals 10% of revenue, but disclosure here is thin. that's fine to say out loud. if it grows, it helps diversify the story beyond straight membership fees.
adjacent growth
Key numbers
$1.60
fy2026 eps est
$4B
fy2028 rev est
18.9x
trailing p/e
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $1.5B (21% of capital)
- net profit margin 10.2% — keeps 10 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LTH right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Life Time beat by 80.0% last quarter, with EPS at $0.54 versus $0.30 expected.
Revenue hit $2.3B, and the business also showed margin pressure relief. Adjusted EBITDA rose more than 20% from the year-ago period.
$2.3B
revenue
$0.54
eps
80.0%
surprise
EPS surprise
The 80.0% beat matters because it shows pricing and club demand outran expectations.
-
life time group holdings turned in another solid quarterly performance, and the stock has advanced nearly 10% in value since our last review in october.third-quarter revenue of roughly $783 million landed close to our estimate, while earnings of $0.45 per share comfortably exceeded expectations. operating results were driven by healthy member engagement, firm pricing, and continued expense discipline. comparable center revenue again posted double-digit growth, reflecting higher average dues and strong in-center spending.
-
margin expansion remained a highlight, with adjusted ebitda rising more than 20% from the year-ago period.
-
business fundamentals continue to trend positively.
-
management lifted its full-year outlook for comparable center revenue growth to around 11%, pointing to sustained utilization levels and ongoing improvement in revenue per membership.visit frequency increased, and ancillary in-center offerings remained a meaningful contributor to growth. the digital platform is also gaining momentum, with expanding adoption of life time's app and its ai-enabled health tools among both members and nonmembers. taken together, these factors support our view that profitability can continue to improve even without aggressive membership growth. The company's financial position provides additional support to the story.
-
free cash flow remains positive, liquidity is ample, and leverage continues to move lower.management outlined plans for a steady pace of new club development, targeting 12 to 14 openings per year, which suggests confidence in long-term demand for the brand. while some seasonal moderation in memberships is expected late in the year, underlying trends in engagement and pricing remain intact. overall, life time appears positioned to deliver consistent results through disciplined expansion, operating leverage, and continued investment in its premium, digital offerings.
source: company earnings report, 2026
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What could go wrong
the #1 risk is premium gym demand softening while club expansion keeps spending high.
high
premium gym demand softening
all $3.0B of disclosed revenue ultimately depends on members continuing to pay for a premium experience. if consumer budgets tighten, this is not the last bill people cut.
this risk reaches essentially 100% of the revenue base.
high
expansion execution on 12–14 new clubs
opening 12–14 clubs is the growth story. it is also the execution risk. new locations need capital, ramp time, and member demand to justify the spend.
if new clubs miss targets, margins and return on capital can stay under pressure.
med
balance sheet drag
$1.5B in long-term debt and a B+ balance sheet are manageable, but they leave less room for error than a cash-rich model would.
debt does not break the story today. it makes mistakes more expensive.
med
equity dilution
a recent 12 million share offering at $21.75 raised capital, but it also increased the share count. that's helpful for liquidity and unhelpful if you wanted cleaner per-share compounding.
more shares outstanding can mute EPS growth even when the business itself is improving.
between a $3.0B revenue base tied to discretionary spending, $1.5B in debt, and fresh share issuance, this stock needs operating momentum to stay intact.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth after the 33.1% jump
33.1% growth is the headline. the next question is whether growth stays high enough to justify a stock still trading much closer to its high than its low.
calendar
next earnings report
watch whether quarterly revenue stays near the recent $783M level and whether EPS keeps building from the latest $0.45 print.
trend
club opening cadence
management said 12–14 new clubs. that's the expansion engine. if openings slip, the growth narrative gets thinner fast.
risk
member demand vs. premium pricing
this business depends on customers continuing to pay up. if the premium consumer weakens, a 9.5% net margin can compress quickly.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a stock acting normal, not one with obvious near-term upside momentum.
risk profile
average
stability score 3 means typical risk on paper, but the 20 / 100 price stability score tells you the ride can still get bumpy.
chart momentum
average
technical score 3 means the chart is not sending a dramatic message. welcome to a stock waiting for its next catalyst.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 164 buyers vs. 150 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$44
$27
current price
$32
target midpoint · +17% from current · 3-5yr high: $60 (+120% · 22% ann'l return)
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