Life Time Group Holdings Stock Earnings Reports

Lifetime Group reported a strong Q1 2026: total revenue rose 11.7% to $789M and comparable center revenue grew 8.6% driven by an improved membership mix, pricing and stronger in‑center businesses (notably dynamic personal training). Average monthly dues increased ~10.5% to $230 and average revenue per center membership rose ~10.2% to $930. Total center memberships ended near 838k (+1.4% YoY) while the company continues to reduce lower‑dues qualified medical memberships (down ~15k, to ~3.4% of dues revenue in Q1). Adjusted EBITDA was $227M (+18.3%) with margin expansion to 28.7%; the full‑year adjusted EBITDA margin midpoint was updated to ~28%, though second‑half openings will create preopening/early‑ramp impacts. Net income and adjusted net income improved materially, and operating cash flow was $199M. CapEx was elevated ($260M) reflecting club construction (5 of 14 planned 2026 openings complete; 9 remain under construction). Lifetime closed ~$200M of sale‑leaseback proceeds in April and raised its full‑year sale‑leaseback target to $400M to support the objective of delivering positive free cash flow in 2026 and growing free cash flow thereafter. The company emphasizes low leverage (well below 2x net debt/EBITDA target), strong liquidity (zero revolver balance, several hundred million cash), continued investment in new clubs and product innovation (e.g., DPT, CTR, hybrid XT, Lifetime Health & Wellness hub, Miora), and opportunistic share repurchases under its $500M authorization. Guidance: membership growth is expected to be modest in early quarters due to qualified medical reductions (total membership growth Q2: 0.5–1%; Q3: 1–1.5%; Q4: 2–3%), while membership growth excluding qualified medical memberships is higher (Q2: 3.5–3.8%; Q3/Q4: 4–5%). The company expects revenue growth of ~10–12% each quarter and for the full year, and to grow positive free cash flow annually going forward.