LTH · Life Time Group Holdings, Inc.

Life Time’s Q1 2026 results reflect robust top-line execution and margin expansion, with revenue up 11.7% and Adjusted EBITDA up 18.3%—outpacing revenue growth and signaling strong operating leverage. The increase in average center revenue per membership ($930 vs. $844) and improved membership mix—including reduced reliance on low-dues medical insurance-administered memberships—were key drivers. Management attributed growth to higher member utilization, especially in Dynamic Personal Training, and continued strength in new and ramping centers. While net income growth (15.8%) was slightly muted by a $12.6 million prior-year tax benefit, Adjusted Net Income surged 27.4%, underscoring the impact of non-recurring items excluded from Non-GAAP measures. The company reaffirmed its 2026 club expansion plan (12–14 large-format ground-up clubs), now expecting nearly double the square footage versus prior years, with most openings concentrated in H2 2026. Notably, it raised its sale-leaseback target to $400 million and updated comparable center revenue guidance upward to 6.9–7.5%, reflecting confidence in sustained demand and operational execution. Liquidity remains exceptionally strong—$736.9 million total available, zero revolver drawdowns—and net debt leverage improved to 1.6x, well below the 2.0x covenant threshold. These results, combined with elevated growth capex ($205.2M in Q1 alone) and disciplined capital allocation, reinforce Life Time’s positioning for durable, asset-light-accelerated expansion while maintaining balance sheet flexibility.