Life Time Raises 2026 Outlook After Third-Quarter Revenue

The Tip Desk · October 31, 2026 · 4 min read

The athletic country club operator lifted full-year revenue guidance to $3,380 million–$3,390 million after third-quarter sales of $893.5 million.

Life Time Group Holdings (LTH) raised its full-year 2026 revenue outlook to $3,380 million–$3,390 million after third-quarter sales of $893.5 million, a 14.2% increase that accelerated from 13.7% growth in the second quarter and 11.7% in the first.

The athletic country club operator also lifted adjusted net income guidance to $408 million–$412 million from $394 million–$402 million and adjusted EBITDA guidance to $958 million–$962 million from $940 million–$955 million. Comparable center revenue growth for 2026 was raised to 8.5%–8.7% from 7.9%–8.3%.

Third-quarter comparable center revenue rose 8.7%, after 9.1% growth in the second quarter and 8.6% in the first. Average center revenue per center membership increased 12.0% to $1,016.

The company said revenue growth continued to come from membership dues and in-center revenue, driven by higher average dues including from improved membership mix, membership growth in new and ramping centers, and higher utilization of in-center offerings, particularly Dynamic Personal Training. Membership dues and enrollment fees were $622.1 million; in-center revenue was $249.0 million.

Center memberships ended September 30, 2026 at 858,747, up 2.2% from a year earlier. The company said the year-over-year increase reflected continued improvement in membership mix, including an approximately 21,500 reduction in qualified memberships administered through medical insurance providers, which have significantly lower average dues. Memberships declined 1,294, or 0.2%, from June 30, 2026, which the company said was consistent with seasonality. Total subscriptions, including on-hold memberships, were 908,454.

Adjusted net income rose 24.6% to $115.9 million, slower than the 30.6% increase in the second quarter. Adjusted EBITDA increased 16.5% to $256.3 million. Adjusted EBITDA margin expanded to 28.7% from 28.1% a year earlier.

Net income rose 4.0% to $106.5 million, well below the 40.6% increase in the second quarter, as the year-ago period included tax-effected CARES Act employee retention credits of $16.2 million and a larger sale-leaseback gain. Diluted earnings were $0.46 a share. Net income margin compressed to 11.9% from 13.1% a year earlier. The current quarter included a tax-effected net gain of $2.3 million on a sale-leaseback.

Center operations expenses rose 14.5% to $474.5 million, matching the revenue increase, after a 12.3% increase in the second quarter. The company said the rise reflected operating costs at new and ramping centers, higher utilization in mature clubs, and costs to support in-center revenue. Rent was $96.1 million. General, administrative and marketing expenses were $65.8 million.

Life Time opened one new center in the third quarter and operated 196 centers at period-end, after seven openings in the nine months ended September 30, 2026. Founder, Chairman and CEO Bahram Akradi said the company is on track to open all 14 new clubs planned for 2026, with seven opened as of September 30 and one more in October; the remaining six are expected in the fourth quarter. Nearly all clubs planned for 2027 are already under construction, the company said.

Growth capital expenditures increased 38.8% to $216.5 million in the third quarter. Total capital expenditures were $288.7 million. The company completed one sale-leaseback for net proceeds of $62.3 million in the quarter and expects about $135 million of additional sale-leasebacks in the fourth quarter, for a fiscal-year total of about $400 million.

Net debt leverage improved to 1.3 times as of September 30, 2026, from 1.6 times a year earlier. Total available liquidity was $919.1 million, including $632.9 million of availability on a $650.0 million revolving credit facility and $286.2 million of cash, with no outstanding revolver borrowings.

Cash income tax expense guidance for 2026 was lowered to $82 million–$83 million from $103 million–$105 million, which the company said reflected higher projected tax depreciation, a net operating loss carryforward from 2025, and a larger 2025 federal overpayment applied to 2026. Full-year net income guidance is expected to include net losses associated with sale-leaseback transactions. Year-end weighted-average diluted shares are expected at about 228 million–229 million, excluding any incremental buyback impact.