Life Time Group Holdings (LTH) Earnings Date & Reports
Life Time Group Holdings Inc is a lifestyle and leisure brand offering health, fitness, and wellness experiences to a community... Show more
LTH is expected to report earnings to fall 10.31% to 37 cents per share on August 12
Life Time Group Holdings (LTH) Q1 2026 Earnings Recap: Beats Estimates with Strong Revenue Growth
Key Takeaways
- Total revenue reached $788.7 million, up 11.7% year-over-year and slightly above consensus estimates of $787.65 million.
- Adjusted diluted EPS of $0.42 beat expectations of $0.39, reflecting improved profitability.
- Adjusted EBITDA rose 18.3% to $226.7 million, with margins expanding 160 basis points to 28.7%.
- Net income increased 15.8% to $88.1 million; company announced a $500 million share repurchase program.
- Raised full-year 2026 guidance, including revenue to $3.32-$3.35 billion and Adjusted EBITDA to $925-$940 million.
- Stock surged over 14% post-earnings, reflecting positive investor sentiment.
Earnings Context and Why It Matters
Life Time Group Holdings (LTH), operator of premium athletic country clubs, released Q1 2026 results on May 5, 2026, for the quarter ended March 31, 2026. This report underscores the company's recovery and growth in the health and fitness sector amid rising demand for wellness experiences. With over 190 centers, LTH benefits from higher membership dues, in-center spending, and a favorable shift in membership mix toward higher-priced plans. Investors watch these earnings closely as they signal sustained profitability post-pandemic, expansion plans, and leverage reduction to 1.6x net debt to Adjusted EBITDA. Strong results validate LTH's asset-light growth model and pricing power in affluent markets.
Life Time Group Holdings reported total revenue of $788.7 million for Q1 2026, a 11.7% increase from $706.0 million in the prior-year quarter, edging out consensus expectations of $787.65 million. Center revenue, the core driver, climbed to $767.6 million, fueled by 11.9% growth in dues revenue from better membership mix and pricing, plus higher in-center utilization like Dynamic Personal Training (DPT).
Net income rose 15.8% to $88.1 million, with diluted EPS at $0.39. Adjusted figures were stronger: adjusted net income of $96.2 million and adjusted diluted EPS of $0.42, surpassing analyst estimates of $0.39. Adjusted EBITDA hit $226.7 million, up 18.3%, with margins at 28.7%—driven by operating leverage and cost discipline.
Key metrics included 837,903 center memberships (up 1.4% YoY), average revenue per center membership of $930 (up 10.2%), and comparable center revenue growth of 8.6%. Qualified medical memberships (lower-dues plans via insurers) fell to 3.4% of dues revenue, boosting averages. The company opened one new center and has 17 under construction.
Guidance was raised: full-year revenue $3,320-$3,350 million (vs. prior $3,300-$3,330 million), Adjusted EBITDA $925-$940 million, with plans for 12-14 new centers and net debt leverage ≤2.0x.
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Market Reaction and Investor Sentiment
Shares of LTH jumped approximately 14% on May 6, 2026, closing around $33.73 after the earnings release, reflecting enthusiasm for the beat, margin expansion, raised guidance, and $500 million buyback authorization. Pre-market gains exceeded 7%, with further upside amid strong volume. Sentiment turned bullish as investors interpreted results as evidence of pricing power, membership quality improvements, and disciplined expansion, despite softer net membership adds from culling low-margin plans.
Forward Outlook and Key Factors to Monitor
Life Time's raised FY 2026 guidance points to robust growth, with revenue projected at $3.32-$3.35 billion (11%+ increase) and Adjusted EBITDA at $925-$940 million. This assumes 6.9%-7.5% comparable center revenue growth, driven by membership mix shifts, pricing, and in-center revenue like DPT.
New center openings remain central: 12-14 planned this year using an asset-light model (sale-leasebacks), targeting affluent areas for higher returns. Recent $200 million sale-leaseback closed post-quarter, with more expected (~$400 million total), supporting capex of $1.88-$2.00 billion. Watch ramp-up times for newer centers, now faster than historical 3-4 years.
Membership trends warrant attention: total growth of 0.5%-1% in Q2 accelerating to 2%-3% in Q4, but excluding qualified medical memberships, expect 3.5%-5%. Average monthly dues at $230 (up 10.5% YoY) signal pricing discipline.
Balance sheet strength improved, with net debt leverage at 1.6x and $500 million buyback underway. Key risks include labor costs, construction delays, and economic sensitivity in discretionary spending. Investors should track Q2 membership adds, in-center sales, and sale-leaseback execution for sustained momentum.
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Industry RecreationalProducts