Life Time Revenue Rises 14.2% to $893.5 Million in Third Quarter
Key Facts
Life Time Group Holdings reported revenue of $893.5 million in the third quarter of 2026, up 14.2% from $782.6 million in the same period a year earlier, according to results announced by the company. The company held its earnings call on October 29 at 10:00 a.m. Eastern Time. Net income was $106.5 million, up 4.0% year over year. Adjusted net income rose 24.6% to $115.9 million, while adjusted EBITDA increased 16.5% to $256.3 million. The company's LTH shares closed at $43.14 on October 28, according to EL7 data.
The company said revenue growth came from higher membership dues and revenue generated by activities at its clubs. Drivers included higher average fees and an improved membership mix, along with membership growth at new centers and those still ramping up. It added that increased member use of services supported revenue, highlighting dynamic personal training. Average center revenue per membership rose to $1,016 in the quarter from $907 a year earlier, a 12.0% increase. The comparison shows revenue per membership outpaced growth in center memberships, which was 2.2%.
Center memberships totaled 858,747 at the end of September, compared with 840,622 a year earlier, while total subscriptions, including center memberships and frozen memberships, reached 908,454, up 1.9% year over year. Comparable-center revenue rose 8.7% in the third quarter, following growth of 10.6% in the same period of 2025. For the first nine months, revenue increased 13.2% to $2.5482 billion from $2.2502 billion. Net income for the same period rose 18.0% to $295.9 million, compared with $250.7 million a year earlier. The company had 196 centers on September 30, versus 185 on the same date in 2025.
Management raised its comparable-center revenue growth range for fiscal 2026 to 8.5%-8.7%, from a previous estimate of 7.9%-8.3%, according to the call transcript cited by Benzinga. The company also raised its full-year revenue forecast to a range of $3.380–3.390 billion, compared with its previous forecast of $3.350–3.375 billion. The forecast revision follows comparable-center revenue growth of 8.7% in the quarter, with the company linking higher revenue to fees, membership mix and member usage. Center operating expenses were $474.5 million, up 14.5% year over year. The company attributed the increase mainly to operating costs at new centers and centers still ramping up.
Founder and Chief Executive Officer Bahram Akradi said the company was on track to open the 14 clubs planned for 2026 and expected to open 14 clubs in 2027 as well. He added that most of the 2027 clubs were already under construction. The company had 196 centers at the end of September, up from 185 a year earlier, making expansion one of the operational changes recorded during the period. In the first nine months of 2026, cash generated from operating activities rose 6.3% to $670.5 million. The company also announced a $500 million share repurchase program.
Available liquidity was $919.1 million on September 30, 2026, and the net debt-to-adjusted EBITDA ratio improved to 1.3 times from 1.6 times a year earlier. The ratio was recorded as the company continued investing in new centers and centers expanding their operations, a category the company also said contributed to higher operating expenses. The increased forecast ranges for comparable-center and total revenue for the year reflect management's expectation that activity will continue to grow in 2026. The company had reported year-over-year revenue growth of 13.2% in the first nine months. Management plans to complete the opening of 14 clubs during 2026, while the company said most of its 2027 clubs were under construction.