0001869198-26-000030
SEC filingLife Time Group delivered strong revenue and profit growth in Q1 FY2026, with revenue up 11.7% and operating income up 25.2%, reflecting improved membership mix and new center ramp-up; however, elevated capital expenditures resulted in negative free cash flow of -$61.2M, consistent with ongoing strategic expansion.
Net cash provided by operating activities was $198.8M, up from $183.9M in Q1 FY2025. Capital expenditures totaled $260.0M, a significant increase from $142.5M in the prior-year quarter. The resulting free cash flow was -$61.2M. While negative, management explicitly identifies free cash flow as a key liquidity indicator and reports it to the board of directors. Funding for property, centers, and equipment continues to be sourced from operating cash flows, sale-leaseback proceeds, construction reimbursements, and draws on the Revolving Credit Facility — a diversified approach that supports continued investment without overreliance on any single source.
As of March 31, 2026, Life Time operated 15 Life Time Work and four Life Time Living locations. These formats represent deliberate extensions of the core health and fitness ecosystem, designed to deepen member engagement and unlock cross-selling opportunities. Their contribution to Other revenue growth underscores early traction, though management cautions that macroeconomic, geopolitical, and policy environments remain subject to uncertainty — a context in which forward-looking statements about future performance must be interpreted.