Life Time Reports Second Quarter 2025 Financial Results
Life Time (NYSE:LTH) reported strong Q2 2025 financial results with total revenue increasing 14.0% to $761.5 million. The company achieved significant growth with net income rising 36.6% to $72.1 million and Adjusted EBITDA growing 21.6% to $211.0 million.
Key performance metrics showed positive momentum with center memberships reaching 849,643, up 2.0% year-over-year. The company opened four new centers during Q2, bringing the total to 184 centers. Financial position strengthened with net debt leverage ratio improving to 1.8x from 3.0x year-over-year.
Based on strong performance, Life Time raised its 2025 outlook, projecting revenue of $2,955-$2,985 million and plans to open 10 new centers this year.
Life Time (NYSE:LTH) ha riportato solidi risultati finanziari per il secondo trimestre 2025 con un fatturato totale in aumento del 14,0% a 761,5 milioni di dollari. L'azienda ha registrato una crescita significativa con un utile netto in aumento del 36,6% a 72,1 milioni di dollari e un EBITDA rettificato cresciuto del 21,6% a 211,0 milioni di dollari.
I principali indicatori di performance hanno mostrato un trend positivo con un numero di iscritti ai centri che ha raggiunto 849.643, in crescita del 2,0% su base annua. Durante il secondo trimestre, la societ脿 ha inaugurato quattro nuovi centri, portando il totale a 184 centri. La posizione finanziaria si 猫 rafforzata con un rapporto di indebitamento netto migliorato a 1,8x rispetto a 3,0x dell'anno precedente.
Grazie a queste solide performance, Life Time ha rivisto al rialzo le previsioni per il 2025, stimando un fatturato compreso tra 2.955 e 2.985 milioni di dollari e pianificando l'apertura di 10 nuovi centri entro l'anno.
Life Time (NYSE:LTH) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025 con un ingreso total que aument贸 un 14,0% hasta 761,5 millones de d贸lares. La compa帽铆a alcanz贸 un crecimiento significativo con un ingreso neto que subi贸 un 36,6% hasta 72,1 millones de d贸lares y un EBITDA ajustado que creci贸 un 21,6% hasta 211,0 millones de d贸lares.
Los principales indicadores mostraron un impulso positivo con las membres铆as en centros alcanzando 849,643, un aumento del 2,0% interanual. La empresa abri贸 cuatro nuevos centros durante el segundo trimestre, elevando el total a 184 centros. La posici贸n financiera se fortaleci贸 con una relaci贸n de apalancamiento de deuda neta mejorando a 1,8x desde 3,0x a帽o tras a帽o.
Bas谩ndose en este desempe帽o s贸lido, Life Time elev贸 sus perspectivas para 2025, proyectando un ingreso de 2,955 a 2,985 millones de d贸lares y planea abrir 10 nuevos centros este a帽o.
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Life Time (NYSE:LTH) a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025 avec un chiffre d'affaires total en hausse de 14,0 % 脿 761,5 millions de dollars. L'entreprise a r茅alis茅 une croissance significative avec un b茅n茅fice net en hausse de 36,6 % 脿 72,1 millions de dollars et un EBITDA ajust茅 en croissance de 21,6 % 脿 211,0 millions de dollars.
Les indicateurs cl茅s de performance ont montr茅 une dynamique positive avec un nombre d'abonnements aux centres atteignant 849 643, soit une augmentation de 2,0 % en glissement annuel. La soci茅t茅 a ouvert quatre nouveaux centres au cours du deuxi猫me trimestre, portant le total 脿 184 centres. La position financi猫re s'est renforc茅e avec un ratio d'endettement net am茅lior茅 脿 1,8x contre 3,0x l'ann茅e pr茅c茅dente.
Fortes de ces performances, Life Time a relev茅 ses pr茅visions pour 2025, anticipant un chiffre d'affaires compris entre 2 955 et 2 985 millions de dollars et pr茅voit d'ouvrir 10 nouveaux centres cette ann茅e.
Life Time (NYSE:LTH) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Gesamtumsatzanstieg von 14,0 % auf 761,5 Millionen US-Dollar. Das Unternehmen erzielte ein deutliches Wachstum mit einem Nettoeinkommen, das um 36,6 % auf 72,1 Millionen US-Dollar stieg, und einem bereinigten EBITDA, das um 21,6 % auf 211,0 Millionen US-Dollar wuchs.
Wichtige Leistungskennzahlen zeigten eine positive Dynamik, wobei die Mitgliederzahl der Zentren 849.643 erreichte, ein Anstieg von 2,0 % im Jahresvergleich. Im zweiten Quartal er枚ffnete das Unternehmen vier neue Zentren, womit die Gesamtzahl auf 184 Zentren stieg. Die finanzielle Lage verbesserte sich mit einer Nettoverschuldungsquote, die sich von 3,0x auf 1,8x verbesserte.
Aufgrund der starken Leistung hob Life Time seine Prognose f眉r 2025 an und erwartet einen Umsatz von 2.955 bis 2.985 Millionen US-Dollar und plant die Er枚ffnung von 10 neuen Zentren in diesem Jahr.
- Revenue increased 14.0% to $761.5 million in Q2 2025
- Net income grew 36.6% to $72.1 million
- Adjusted EBITDA rose 21.6% to $211.0 million
- Net debt leverage ratio improved to 1.8x from 3.0x year-over-year
- Achieved positive free cash flow for fifth consecutive quarter
- Total visits and retention reached all-time highs
- Raised full-year 2025 guidance
- General, administrative and marketing expenses increased 16.0% to $61.7 million
- Tax-effected net loss of $9.0 million on sale-leaseback transaction
- Capital expenditures increased 53.8% to $222.0 million in Q2
Insights
Life Time delivered impressive Q2 2025 results with 14% revenue growth and 36.6% net income increase, showing strong operational execution.
Life Time's Q2 2025 results demonstrate robust financial performance across all key metrics. Revenue jumped
What's particularly impressive is Life Time's ability to translate top-line growth into amplified profitability. Their adjusted net income soared
The company's membership metrics reflect healthy consumer demand, with total center memberships reaching 849,643 (up
Life Time's balance sheet continues to strengthen, with their net debt leverage ratio improving dramatically to 1.8x from 3.0x a year ago. Combined with
Management's decision to raise full-year guidance reflects confidence in their business momentum. Their execution of strategic initiatives is evident in their comparable center revenue growth of
The recent credit rating upgrade from S&P (to 'BB-' from 'B+') further validates Life Time's improved financial profile and will reduce interest expenses going forward, with the term loan facility margin improving by 25 basis points.
- Total revenue of
$761.5 million 14.0% over the prior year quarter - Net income of
$72.1 million 36.6% over the prior year quarter - Diluted EPS of
$0.32 23.1% over the prior year quarter - Adjusted net income of
$84.1 million 60.5% over the prior year quarter - Adjusted EBITDA of
$211.0 million 21.6% over the prior year quarter - Adjusted diluted EPS of
$0.37 48.0% over the prior year quarter - Achieved positive free cash flow for the fifth consecutive quarter
- Reduced net debt leverage ratio to 1.8 times
- Raised 2025 outlook
Bahram Akradi, Founder, Chairman and CEO, stated:听"We are pleased with our second quarter results and the momentum we are seeing in our business. Total visits, visits per membership, and retention continued to achieve all-time highs. Our business performance, combined with the strength of our balance sheet and cash flow, positions us well to continue to grow, including modestly accelerated new club growth in 2026 from our robust club development pipeline."
Financial Summary
Three Months Ended | Six Months Ended | ||||||||||
($ in millions, except for Average center revenue per center membership data) | June 30, | June 30, | |||||||||
2025 | 2024 | Percent | 2025 | 2024 | Percent | ||||||
Total revenue | 14.0听% | 16.1听% | |||||||||
Center operations expenses | 13.6听% | 14.4听% | |||||||||
Rent | 11.1听% | 11.7听% | |||||||||
General, administrative and marketing expenses (1) | 16.0听% | 17.0听% | |||||||||
Net income | 36.6听% | 90.7听% | |||||||||
Adjusted net income | 60.5听% | 106.7听% | |||||||||
Adjusted EBITDA | 21.6听% | 26.0听% | |||||||||
Comparable center revenue (2) | 11.2听% | 12.0听% | 12.0听% | 11.6听% | |||||||
Center memberships, end of period | 849,643 | 832,636 | 2.0听% | 849,643 | 832,636 | 2.0听% | |||||
Average center revenue per center membership | 11.8听% | 12.5听% | |||||||||
(1) | The three months ended June 30, 2025 and 2024 included non-cash share-based compensation expense of |
(2) | The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation. |
Second Quarter 2025 Information
- Revenue increased
14.0% to$761.5 million - Center memberships of 849,643 increased by 17,007, or
2.0% , when compared to June 30, 2024, and increased by 23,269, or2.8% , from March 31, 2025, which sequential growth was due in part to typical seasonality. - Total subscriptions, which include center memberships and on-hold memberships, of 898,850 increased
2.3% compared to June 30, 2024. - Center operations expenses increased
13.6% to$403.9 million - General, administrative and marketing expenses increased
16.0% to$61.7 million - Net income increased
36.6% to$72.1 million $9.3 million $9.0 million $6.0 million $3.4 million - Adjusted net income increased
60.5% to$84.1 million 21.6% to$211.0 million
Six-Month 2025 Information
- Revenue increased
16.1% to$1,467.5 million - Center operations expenses increased
14.4% to$774.9 million - General, administrative and marketing expenses increased
17.0% to$119.5 million - Net income increased
90.7% to$148.2 million $15.0 million $10.5 million $10.2 million $5.8 million $3.3 million - Adjusted net income increased
106.7% to$172.4 million 26.0% to$402.6 million
New Center Openings
- We opened four new centers during the second quarter of 2025.
- As of June 30, 2025, we operated a total of 184 centers.
Cash Flow Highlights
- Net cash provided by operating activities for the six months ended June 30, 2025 was
$379.6 million 45.5% compared to the prior year period. - We achieved positive free cash flow of
$112.5 million $138.8 million $153.8 million - Our capital expenditures by type of expenditure were as follows:
Three Months Ended | Six Months Ended | ||||||||||
($ in millions) | June 30, | June 30, | |||||||||
2025 | 2024 | Percent | 2025 | 2024 | Percent | ||||||
Growth capital expenditures (1) | 53.8听% | 22.0听% | |||||||||
Maintenance capital expenditures (2) | 31.5听% | 35.1听% | |||||||||
Modernization and technology capital expenditures (3) | 127.4听% | (1.3)听% | |||||||||
Total capital expenditures | 53.8听% | 21.1听% | |||||||||
(1) | Consist of new center land and construction, initial major remodels of acquired centers, major remodels of existing centers that expand existing square footage, asset acquisitions including the purchase of previously leased centers and other growth initiatives. |
(2) | Consist of general maintenance of existing centers. |
(3) | Consist of modernization of existing centers and technology. |
Liquidity and Capital Resources
- Our net debt leverage ratio improved to 1.8 times as of June 30, 2025, from 3.0 times as of June 30, 2024.
- As of June 30, 2025, our total available liquidity was
$794.0 million $618.5 million $650.0 million $175.5 million $31.5 million $175.5 million - Effective April 8, 2025, we entered into interest rate swap agreements for our entire term loan facility notional amount of
$997.5 million 3.409% , plus the applicable margin that was reduced0.25% to2.25% effective June 19, 2025. - On June 18, 2025, S&P Global Ratings upgraded the Company's issuer credit rating to 'BB-' from 'B+'. As a result, our term loan facility margin improved by 25 basis points as described immediately above and our revolving credit facility improved by 25 basis points to Secured Overnight Financing Rate (SOFR) plus
2.00% , or the Base Rate plus1.00% .
2025 Outlook
Full-Year 2025 Guidance
Percent | Year Ending | ||||||
Year Ending | Year Ended | Change | December 31, 2025 | ||||
December 31, 2025 | December 31, 2024 | (Using | (Guidance as of | ||||
($ in millions) | (Guidance) | (Actual) | Midpoints) | May 8, 2025) | |||
Revenue | 13.3听% | ||||||
Net Income | 86.6听% | ||||||
Adjusted EBITDA | 19.7听% | ||||||
Rent | 11.5听% |
The Company is also reiterating or updating the following operational and financial guidance for full-year fiscal 2025:
- Open 10 new centers.
- Manage our net debt leverage ratio to remain at or below 2.00 times.
- Comparable center revenue growth of
9.5% to10.0% , increased from our previous expectations of8.5% to9.5% . - Adjusted EBITDA growth driven primarily by dues revenue growth and expanded operating leverage.
- Rent to include non-cash rent expense of
$34 million $37 million $35 million $38 million - Interest expense, net of interest income and capitalized interest, of approximately
$80 million $84 million - Provision for income tax rate estimate of
24% , increased from our previous expectations of23% . - Cash income tax expense of
$25 million $27 million $39 million $41 million - Depreciation and amortization expense of
$288 million $294 million $286 million $294 million - Complete
$100 million $250 million
Conference Call Details
A conference call to discuss our second quarter financial results is scheduled for today:
- Date: Tuesday, August 5, 2025
- Time: 10:00 a.m. ET (9:00 a.m. CT)
U.S. dial-in number: 1-877-451-6152- International dial-in number: 1-201-389-0879
- Webcast:
- A link to the live audio webcast of the conference call will be available at https://ir.lifetime.life.
Replay Information
Webcast听鈥� A recorded replay of the webcast will be available within approximately three hours of the call's conclusion and may be accessed at: .
Conference Call 鈥� A听replay of the conference call will be available after 1:00 p.m. ET the same day through August 19, 2025:
U.S. replay number: 1-844-512-2921- International replay number: 1-412-317-6671
- Replay ID: 1375 4608
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 180 athletic country clubs across
Use of Non-GAAP Financial Measures and Key Performance Indicators
This press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted net income per common share, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net income per common share, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our net debt leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.
The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.
The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its financial outlook for fiscal year 2025, growth, business initiatives, cost efficiencies and margin expansion, capital expenditures and free cash flow, improvements to its balance sheet, net debt and leverage, interest expense, consumer demand, industry and economic trends, tax rates and expense, rent expense, expected number and timing of new center openings and successful signings and closings of center takeovers and sale-leaseback transactions (including the amount, pricing and timing thereof). These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC") on February 27, 2025 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at . These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Revenue: | ||||||||||||||
Center revenue | $听听听听听听听听听听 735,865 | $听听听听听听听听 645,007 | $听听听听 1,421,519 | $听听听听 1,225,492 | ||||||||||
Other revenue | 25,604 | 22,754 | 45,991 | 38,986 | ||||||||||
Total revenue | 761,469 | 667,761 | 1,467,510 | 1,264,478 | ||||||||||
Operating expenses: | ||||||||||||||
Center operations | 403,925 | 355,510 | 774,912 | 677,410 | ||||||||||
Rent | 83,190 | 74,947 | 164,355 | 147,229 | ||||||||||
General, administrative and marketing | 61,674 | 53,246 | 119,521 | 102,099 | ||||||||||
Depreciation and amortization | 72,988 | 69,714 | 143,907 | 135,617 | ||||||||||
Other operating expense | 31,243 | 9,588 | 48,696 | 25,310 | ||||||||||
Total operating expenses | 653,020 | 563,005 | 1,251,391 | 1,087,665 | ||||||||||
Income from operations | 108,449 | 104,756 | 216,119 | 176,813 | ||||||||||
Other (expense) income: | ||||||||||||||
Interest expense, net of interest income | (21,784) | (37,669) | (46,891) | (75,072) | ||||||||||
Equity in earnings (loss) of affiliates | 37 | (464) | 21 | (287) | ||||||||||
Other income | 12,873 | 鈥� | 12,873 | 鈥� | ||||||||||
Total other expense | (8,874) | (38,133) | (33,997) | (75,359) | ||||||||||
Income before income taxes | 99,575 | 66,623 | 182,122 | 101,454 | ||||||||||
Provision for income taxes | 27,473 | 13,818 | 33,878 | 23,732 | ||||||||||
Net income | $听听听听听听听听听听听听 72,102 | $听听听听听听听听听听 52,805 | $听听听听听听听听 148,244 | $听听听听听听听听听听 77,722 | ||||||||||
Income per common share: | ||||||||||||||
Basic | $听听听听听听听听听听听听听听听听听 0.33 | $听听听听听听听听听听听听听听 0.27 | $听听听听听听听听听听听听听听 0.69 | $听听听听听听听听听听听听听听 0.39 | ||||||||||
Diluted | $听听听听听听听听听听听听听听听听听 0.32 | $听听听听听听听听听听听听听听 0.26 | $听听听听听听听听听听听听听听 0.66 | $听听听听听听听听听听听听听听 0.38 | ||||||||||
Weighted-average common shares outstanding: | ||||||||||||||
Basic | 219,286 | 198,903 | 215,642 | 198,200 | ||||||||||
Diluted | 225,511 | 206,044 | 224,585 | 204,851 | ||||||||||
听
LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands, except per share data) | ||||||
(Unaudited) | ||||||
June 30, | December 31, | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $听听听听听听听听听听 175,509 | $听听听听听听听听听听听听 10,879 | ||||
Restricted cash and cash equivalents | 20,740 | 16,999 | ||||
Accounts receivable, net | 25,933 | 25,087 | ||||
Center operating supplies and inventories | 66,164 | 60,266 | ||||
Prepaid expenses and other current assets | 64,948 | 52,826 | ||||
Income tax receivable | 14,729 | 4,918 | ||||
Total current assets | 368,023 | 170,975 | ||||
Property and equipment, net | 3,323,067 | 3,193,671 | ||||
Goodwill | 1,235,359 | 1,235,359 | ||||
Operating lease right-of-use assets | 2,416,320 | 2,313,311 | ||||
Intangible assets, net | 171,241 | 171,643 | ||||
Other assets | 86,197 | 67,578 | ||||
Total assets | $听听听听听听听 7,600,207 | $听听听听听听听 7,152,537 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $听听听听听听听听听听听听 90,380 | $听听听听听听听听听听听听 87,810 | ||||
Construction accounts payable | 121,509 | 101,551 | ||||
Deferred revenue | 60,861 | 58,252 | ||||
Accrued expenses and other current liabilities | 197,660 | 179,444 | ||||
Current maturities of debt | 22,873 | 22,584 | ||||
Current maturities of operating lease liabilities | 75,375 | 70,462 | ||||
Total current liabilities | 568,658 | 520,103 | ||||
Long-term debt, net of current portion | 1,493,038 | 1,513,157 | ||||
Operating lease liabilities, net of current portion | 2,494,655 | 2,381,094 | ||||
Deferred income taxes, net | 105,363 | 85,255 | ||||
Other liabilities | 69,250 | 42,578 | ||||
Total liabilities | 4,730,964 | 4,542,187 | ||||
Stockholders' equity: | ||||||
Common stock, | 2,199 | 2,075 | ||||
Additional paid-in capital | 3,148,712 | 3,041,645 | ||||
Accumulated deficit | (272,329) | (420,573) | ||||
Accumulated other comprehensive loss | (9,339) | (12,797) | ||||
Total stockholders' equity | 2,869,243 | 2,610,350 | ||||
Total liabilities and stockholders' equity | $听听听听听听听 7,600,207 | $听听听听听听听 7,152,537 | ||||
听
LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
Six Months Ended June 30, | ||||||
2025 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net income | $听听听听听听听听听听听 148,244 | $听听听听听听听听听听听听听 77,722 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 143,907 | 135,617 | ||||
Deferred income taxes | 19,493 | 12,505 | ||||
Share-based compensation | 28,288 | 18,698 | ||||
Non-cash rent expense | 13,063 | 13,650 | ||||
Impairment charges associated with long-lived assets | 1,177 | 1,420 | ||||
Loss (gain) on disposal of property and equipment, net | 12,623 | (11,067) | ||||
Amortization of debt discounts and issuance costs | 1,812 | 4,006 | ||||
Changes in operating assets and liabilities | 12,100 | 5,642 | ||||
Other | (1,153) | 2,637 | ||||
Net cash provided by operating activities | 379,554 | 260,830 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (364,486) | (301,107) | ||||
Proceeds from sale-leaseback transactions | 138,771 | 142,671 | ||||
Proceeds from the sale of land | 鈥� | 6,328 | ||||
Other | (4,936) | (2,173) | ||||
Net cash used in investing activities | (230,651) | (154,281) | ||||
Cash flows from financing activities: | ||||||
Repayments of debt | (11,164) | (67,647) | ||||
Proceeds from revolving credit facility | 220,000 | 670,000 | ||||
Repayments of revolving credit facility | (230,000) | (695,000) | ||||
Repayments of finance lease liabilities | (1,221) | (403) | ||||
Proceeds from financing obligations | 10,300 | 4,300 | ||||
Proceeds from stock option exercises | 33,866 | 1,490 | ||||
Proceeds from issuances of common stock in connection with the employee stock purchase plan | 1,874 | 1,462 | ||||
Other | (4,364) | (1,304) | ||||
Net cash provided by (used in) financing activities | 19,291 | (87,102) | ||||
Effect of exchange rates on cash and cash equivalents and restricted cash and cash equivalents | 177 | (55) | ||||
Increase in cash and cash equivalents and restricted cash and cash equivalents | 168,371 | 19,392 | ||||
Cash and cash equivalents and restricted cash and cash equivalents鈥攂eginning of period | 27,878 | 29,966 | ||||
Cash and cash equivalents and restricted cash and cash equivalents鈥攅nd of period | $听听听听听听听听听听听 196,249 | $听听听听听听听听听听听听听 49,358 | ||||
Non-GAAP Measurements and Key Performance Indicators
See "Use of Non-GAAP Financial Measures and Key Performance Indicators" for a discussion of the Non-GAAP financial measures reconciled below.
Key Performance Indicators | ||||||||||||||
($ in thousands, except for Average Center revenue per center membership data) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Membership Data | ||||||||||||||
Center memberships | 849,643 | 832,636 | 849,643 | 832,636 | ||||||||||
On-hold memberships | 49,207 | 46,131 | 49,207 | 46,131 | ||||||||||
Total memberships | 898,850 | 878,767 | 898,850 | 878,767 | ||||||||||
Revenue Data | ||||||||||||||
Membership dues and enrollment fees | 71.7听% | 71.7听% | 72.4听% | 72.5听% | ||||||||||
In-center revenue | 28.3听% | 28.3听% | 27.6听% | 27.5听% | ||||||||||
Total Center revenue | 100.0听% | 100.0听% | 100.0听% | 100.0听% | ||||||||||
Membership dues and enrollment fees | $听听听听听听听听听 527,309 | $听听听听听听听听听 462,696 | $听听听听听听 1,028,962 | $听听听听听听听听听 888,107 | ||||||||||
In-center revenue | 208,556 | 182,311 | 392,557 | 337,385 | ||||||||||
Total Center revenue | $听听听听听听听听听 735,865 | $听听听听听听听听听 645,007 | $听听听听听听 1,421,519 | $听听听听听听 1,225,492 | ||||||||||
Average Center revenue per center membership (1) | $听听听听听听听听听听听听听听 888 | $听听听听听听听听听听听听听听 794 | $听听听听听听听听听听听 1,733 | $听听听听听听听听听听听 1,541 | ||||||||||
Comparable center revenue (2) | 11.2听% | 12.0听% | 12.0听% | 11.6听% | ||||||||||
Center Data | ||||||||||||||
Net new center openings (3) | 4 | 3 | 5 | 4 | ||||||||||
Total centers (end of period) (3) | 184 | 175 | 184 | 175 | ||||||||||
Total center square footage (end of period) (4) | 18,000,000 | 17,200,000 | 18,000,000 | 17,200,000 | ||||||||||
GAAP and Non-GAAP Financial Measures | ||||||||||||||
Net income | $听听听听听听听听听 72,102 | $听听听听听听听听听 52,805 | $听听听听听听听 148,244 | $听听听听听听听听听 77,722 | ||||||||||
Net income margin (5) | 9.5听% | 7.9听% | 10.1听% | 6.1听% | ||||||||||
Adjusted net income (6) | $听听听听听听听听听听听 84,144 | $听听听听听听听听听听听 52,440 | $听听听听听听听听听 172,374 | $听听听听听听听听听听听 83,376 | ||||||||||
Adjusted net income margin (6) | 11.1听% | 7.9听% | 11.7听% | 6.6听% | ||||||||||
Adjusted EBITDA (7) | $听听听听听听听 210,978 | $听听听听听听听 173,545 | $听听听听听听听 402,565 | $听听听听听听听 319,523 | ||||||||||
Adjusted EBITDA margin (7) | 27.7听% | 26.0听% | 27.4听% | 25.3听% | ||||||||||
Center operations expense | $听听听听听听听 403,925 | $听听听听听听听 355,510 | $听听听听听听听 774,912 | $听听听听听听听 677,410 | ||||||||||
Pre-opening expenses (8) | $听听听听听听听听听听听 1,066 | $听听听听听听听听听听听 1,202 | $听听听听听听听听听听听 2,439 | $听听听听听听听听听听听 3,654 | ||||||||||
Rent | $听听听听听听听听听 83,190 | $听听听听听听听听听 74,947 | $听听听听听听听 164,355 | $听听听听听听听 147,229 | ||||||||||
Non-cash rent expense (open properties) (9) | $听听听听听听听听听听听 5,739 | $听听听听听听听听听听听 5,965 | $听听听听听听听听听听听 8,059 | $听听听听听听听听听 10,645 | ||||||||||
Non-cash rent expense (properties under development) (9) | $听听听听听听听听听听听 3,921 | $听听听听听听听听听听听 1,727 | $听听听听听听听听听听听 5,004 | $听听听听听听听听听听听 3,005 | ||||||||||
Net cash provided by operating activities | $听听听听听听听 195,698 | $听听听听听听听 170,423 | $听听听听听听听 379,554 | $听听听听听听听 260,830 | ||||||||||
Free cash flow (10) | $听听听听听听听 112,465 | $听听听听听听听 175,116 | $听听听听听听听 153,839 | $听听听听听听听 108,722 | ||||||||||
(1) | We define Average Center revenue per center membership as Center revenue less On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period. |
(2) | We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation. |
(3) | Net new center openings is calculated as the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. During the three months ended June 30, 2025, we opened four centers. |
(4) | Total center square footage (end of period) reflects the aggregate square footage, excluding the areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. We use this metric for evaluating the efficiencies of a center as of the end of the period. These figures are approximations. |
(5) | Net income margin is calculated as net income divided by total revenue. |
(6) | We present Adjusted net income as a supplemental measure of our performance. We define Adjusted net income as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. |
Adjusted net income margin is calculated as Adjusted net income divided by total revenue. | |
The following table provides a reconciliation of net income and income per common share, the most directly comparable GAAP measures, to Adjusted net income and Adjusted net income per common share: |
听
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net income | $听听听听听听听听听听听听听听 72,102 | $听听听听听听听听听听听听听听 52,805 | $听听听听听听听听 148,244 | $听听听听听听听听听 77,722 | |||
Share-based compensation expense (a) | 16,380 | 11,071 | 28,288 | 18,698 | |||
Loss (gain) on sale-leaseback transactions (b) | 12,496 | (7,558) | 12,496 | (7,522) | |||
Capital transaction costs (c) | 611 | 鈥� | 1,531 | 鈥� | |||
Employee retention credits (d) | (12,873) | 鈥� | (12,873) | 鈥� | |||
Other (e) | 17 | (3,974) | 203 | (3,796) | |||
Taxes (f) | (4,589) | 96 | (5,515) | (1,726) | |||
Adjusted net income | $听听听听听听听听听听听听听听 84,144 | $听听听听听听听听听听听听听听 52,440 | $听听听听听听听听 172,374 | $听听听听听听听听听 83,376 | |||
Income per common share: | |||||||
Basic | $听听听听听听听听听听听听听听听听听听 0.33 | $听听听听听听听听听听听听听听听听听听 0.27 | $听听听听听听听听听听听听听听 0.69 | $听听听听听听听听听听听听听 0.39 | |||
Diluted | $听听听听听听听听听听听听听听听听听听 0.32 | $听听听听听听听听听听听听听听听听听听 0.26 | $听听听听听听听听听听听听听听 0.66 | $听听听听听听听听听听听听听 0.38 | |||
Adjusted income per common share: | |||||||
Basic | $听听听听听听听听听听听听听听听听听听 0.38 | $听听听听听听听听听听听听听听听听听听 0.26 | $听听听听听听听听听听听听听听 0.80 | $听听听听听听听听听听听听听 0.42 | |||
Diluted | $听听听听听听听听听听听听听听听听听听 0.37 | $听听听听听听听听听听听听听听听听听听 0.25 | $听听听听听听听听听听听听听听 0.77 | $听听听听听听听听听听听听听 0.41 | |||
Weighted-average common shares outstanding: | |||||||
Basic | 219,286 | 198,903 | 215,642 | 198,200 | |||
Diluted | 225,511 | 206,044 | 224,585 | 204,851 | |||
(a) | Share-based compensation expense recognized during the three and six months ended June 30, 2025, was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan ("ESPP"), and liability-classified awards related to our 2025 short-term incentive plan. Share-based compensation expense recognized during the three and six ended June听30, 2024, was associated with stock options, restricted stock units, performance stock units, our ESPP and liability-classified awards related to our 2024 short-term incentive plan. | |
(b) | We adjust for the impact of gains and losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations. | |
(c) | Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature. | |
(d) | Represents refundable payroll tax credits for employee retention under the CARES Act. | |
(e) | Includes (i) legal-related expenses in pursuit of our claim against | |
(f) | Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. | |
(7) | We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations. | |
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue. | ||
The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA: | ||
听
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net income | $听听听听听听听听听听听听听听 72,102 | $听听听听听听听听听听听听听听 52,805 | $听听听听听听听听听听听听 148,244 | $听听听听听听听听听听听听听听 77,722 | |||
Interest expense, net of interest income | 21,784 | 37,669 | 46,891 | 75,072 | |||
Provision for income taxes | 27,473 | 13,818 | 33,878 | 23,732 | |||
Depreciation and amortization | 72,988 | 69,714 | 143,907 | 135,617 | |||
Share-based compensation expense (a) | 16,380 | 11,071 | 28,288 | 18,698 | |||
Loss (gain) on sale-leaseback transactions (b) | 12,496 | (7,558) | 12,496 | (7,522) | |||
Capital transaction costs (c) | 611 | 鈥� | 1,531 | 鈥� | |||
Employee retention credits (d) | (12,873) | 鈥� | (12,873) | 鈥� | |||
Other (e) | 17 | (3,974) | 203 | (3,796) | |||
Adjusted EBITDA | $听听听听听听听听听听听听 210,978 | $听听听听听听听听听听听听 173,545 | $听听听听听听听听听听听听 402,565 | $听听听听听听听听听听听听 319,523 | |||
(a) 鈥� (e) | See the corresponding footnotes to the table in footnote 6 immediately above.听听听听听听 | |
(8) | Represents non-capital expenditures associated with opening new centers that are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period. | |
(9) | Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented. | |
(10) | Free cash flow, a non-GAAP financial measure, is calculated as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. | |
The following table provides a reconciliation from net cash provided by operating activities to free cash flow: | ||
听
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net cash provided by operating activities | $听听听听听听听听听听听听 195,698 | $听听听听听听听听听听听听 170,423 | $听听听听听听听 379,554 | $听听听听听听听听听听 260,830 | |||
Capital expenditures, net of construction reimbursements | (222,004) | (144,306) | (364,486) | (301,107) | |||
Proceeds from sale-leaseback transactions | 138,771 | 142,671 | 138,771 | 142,671 | |||
Proceeds from land sales | 鈥� | 6,328 | 鈥� | 6,328 | |||
Free cash flow | $听听听听听听听听听听听听 112,465 | $听听听听听听听听听听听听 175,116 | $听听听听听听听 153,839 | $听听听听听听听听听听 108,722 | |||
听
Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months | ||||||
($ in thousands) | ||||||
(Unaudited) | ||||||
Twelve | Twelve | |||||
Months Ended | Months Ended | |||||
June 30, 2025 | June 30, 2024 | |||||
Net income | $听听听听听听听听听听听听听听听听听听听听听听 226,762 | $听听听听听听听听听听听听听听听听听听听 109,321 | ||||
Interest expense, net of interest income | 119,914 | 142,695 | ||||
Provision for income taxes | 62,674 | 30,074 | ||||
Depreciation and amortization | 282,971 | 263,565 | ||||
Share-based compensation expense | 60,625 | 46,670 | ||||
Loss on sale-leaseback transactions | 17,388 | 5,307 | ||||
Capital transaction costs | 1,531 | 鈥� | ||||
Asset impairments | 鈥� | 5,340 | ||||
Employee retention credits | (12,873) | 鈥� | ||||
Other | 831 | (2,761) | ||||
Adjusted EBITDA | $听听听听听听听听听听听听听听听听听听听听听听 759,823 | $听听听听听听听听听听听听听听听听听听听 600,211 | ||||
听
Reconciliation of Net Debt and Leverage Calculation | ||||||
($ in thousands) | ||||||
(Unaudited) | ||||||
Twelve | Twelve | |||||
Months Ended | Months Ended | |||||
June 30, 2025 | June 30, 2024 | |||||
Current maturities of debt | $听听听听听听听听听听听听听听听听听听听 22,873 | $听听听听听听听听听听听听听听听听听听听 12,755 | ||||
Long-term debt, net of current portion | 1,493,038 | 1,830,241 | ||||
Total Debt | $听听听听听听听听听听听听听 1,515,911 | $听听听听听听听听听听听听听 1,842,996 | ||||
Less: Fair value adjustment | 207 | 362 | ||||
Less: Unamortized debt discounts and issuance costs | (18,445) | (11,661) | ||||
Less: Cash and cash equivalents | 175,509 | 34,527 | ||||
Net Debt | $听听听听听听听听听听听听听 1,358,640 | $听听听听听听听听听听听听听 1,819,768 | ||||
Trailing twelve-month Adjusted EBITDA | 759,823 | 600,211 | ||||
Net Debt Leverage Ratio | 1.8x | 3.0x | ||||
听
Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2025 | ||
($ in millions) | ||
(Unaudited) | ||
Year Ending | ||
December 31, 2025 | ||
Net income | ||
Interest expense, net of interest income | 84 鈥� 80 | |
Provision for income taxes | 92 鈥� 93 | |
Depreciation and amortization | 288 鈥� 294 | |
Share-based compensation expense | 51 鈥� 55 | |
Loss on sale-leaseback transactions | 13 鈥� 13 | |
Other | (13) 鈥� (13) | |
Adjusted EBITDA | ||
听
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