Life Time (LTH) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 24, 2026

AI-Generated Deep Dive Summary

Life Time (LTH) reported robust financial performance in its Q4 2025 earnings call, driven by strong revenue growth and operational efficiency. The company achieved total revenue of $745 million, a 12.3% year-over-year increase, supported by higher average dues and increased in-center utilization. This growth was further reflected in net income, which surged to $123 million, marking a 231% rise compared to the previous quarter. Adjusted EBITDA also saw significant gains, reaching $203 million with a margin improvement of 50 basis points. Key highlights include a 9.9% comparable center revenue growth and an impressive 14.5% increase in adjusted EBITDA. Life Time’s membership count surpassed 822,000 at year-end, with average monthly visits per member rising to 12.5—a 4.8% increase. The company also demonstrated strong cash flow generation, with net cash from operating activities totaling $240 million for the quarter and $871 million for the full year, up 47% and 51%, respectively. Life Time’s expansion strategy remains aggressive, with $892 million in capital expenditures allocated to growth projects in 2026. The company plans to open up to 28 clubs across 2026-2027, nearly doubling its new club square footage compared to previous years. Additionally, the firm announced a $500 million share repurchase program and maintained a strong balance sheet with net leverage at 1.6 times, well below its target of 2.0 times. The company’s focus on enhancing member experience through initiatives like Dynamic Personal Training (DPT) sessions and Miura Concept expansion has contributed to its success. DPT sessions grew by 18% over the past two years, while the Miura concept clubs are performing better than expected. Life Time also emphasized its strategy of optimizing pricing and membership structure, with new clubs offering higher dues and fewer members per club, leading to improved per-member usage and revenue

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Originally published on The Motley Fool on 2/24/2026