Life Time Group Holdings reported third‑quarter 2025 results with revenue of $782.6 million, up 12.9% from $693.2 million in Q3 2024, and net income of $102.4 million, a 147.3% increase over the prior year’s $41.4 million. Adjusted EBITDA rose to $220.0 million, up 22.0% YoY, while comparable center revenue grew 10.6% to $760.9 million. Memberships at the end of the quarter totaled 840,622, a 1.7% increase from the prior year. The company’s earnings per share of $0.45 beat the consensus estimate of $0.34, and revenue surpassed the $770.29 million estimate.
In Q2 2025, Life Time posted revenue of $761.5 million and EPS of $0.37, also exceeding expectations. The jump in Q3 net income is largely attributable to the impact of employee‑retention credits and sale‑leaseback transactions that reduced tax expense and increased cash flow, while membership dues and in‑center revenue continued to grow.
Management highlighted that the company’s strong performance is driven by robust demand for its premium club experience, cost‑control initiatives, and the successful execution of sale‑leaseback deals that have bolstered liquidity. The company also noted that 12 to 14 new clubs are under construction, reinforcing its expansion strategy.
The updated full‑year 2025 outlook projects revenue of $2,978–$2,988 million, net income of $304–$306 million, and adjusted EBITDA of $820–$824 million. Capital expenditures for the quarter were $222.5 million, driven by new center construction and technology upgrades.
Life Time’s balance sheet remains strong, with a net debt leverage ratio of 2.0x and cash and cash equivalents of $218.9 million. The sale‑leaseback transactions have provided additional liquidity, supporting ongoing capital investment.
CEO John Smith emphasized that while the company is experiencing rapid growth, it remains vigilant about potential headwinds such as competitive pressures and rising operating costs, and it is positioning itself to capitalize on emerging opportunities in the fitness and wellness market.
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