Life Time Lifts Outlook as Revenue Growth Accelerates
Second-quarter revenue reached $866.0 million as member spending and in-center services increased.
Life Time Group Holdings (LTH), the athletic country club operator, posted 13.7% second-quarter revenue growth, accelerating from 11.7% in the first quarter and 12.3% in the final quarter of 2024.
The gains remained concentrated in monetization. Average center revenue per membership rose 11.8% from a year earlier to $993, while memberships increased 1.2%. The difference is due to higher average dues, an improved membership mix and greater use of in-center offerings, particularly Dynamic Personal Training.
Revenue increased to $866.0 million from a year earlier and rose 9.8% from the first quarter. Comparable-center revenue growth improved to 9.1% from 8.6% in the preceding quarter, though it remained below the 9.9% recorded in the fourth quarter.
In-center revenue grew 15.2% to $240.2 million, outpacing the 13.3% increase in membership dues and enrollment fees. Net income climbed 40.6% to $101.4 million, and adjusted EBITDA rose 16.8% to $246.5 million. The adjusted EBITDA margin widened to 28.5% from 27.7% as revenue grew faster than center-operations and overhead costs.
Life Time opened five centers during the quarter, bringing its total to 195. The company now expects to open exactly 14 centers in 2025, with seven of the remaining locations scheduled for the fourth quarter. Center-operations expenses rose 12.3% as the company absorbed new and ramping-center costs and supported greater utilization at mature clubs.
The company raised its full-year revenue forecast to $3.350 billion to $3.375 billion from $3.320 billion to $3.350 billion. It increased adjusted EBITDA guidance to $940 million to $955 million and adjusted-net-income guidance to $394 million to $402 million. Comparable-center revenue is now expected to grow 7.9% to 8.3%, up from the previous 6.9% to 7.5% range.
Investment in expansion and club upgrades continued to consume cash. Six-month capital expenditures increased 43.5% to $523.2 million, contributing to a 44.6% decline in first-half free cash flow to $85.3 million. Life Time nevertheless reduced net-debt leverage to 1.4 times and repurchased about 2.2 million shares for $62.7 million during the quarter under its $500 million authorization.