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Life Time Group Holdings
(NYSE:LTH)
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Rating:72Outperform
Price Target:
$45.00
▲(1.47% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improved profitability and margins, tempered by negative recent free cash flow and still-elevated leverage. Technicals are supportive with a clear uptrend, while valuation looks somewhat demanding at ~24x earnings. Raised full-year guidance and a recent refinancing that lowers interest costs provide additional support.
Positive Factors
Profitability and Margin Expansion
The sharp recovery in operating and net margins shows that Life Time is converting its growing scale into stronger earnings. Sustained profitability improves internal funding capacity, supports debt service, and provides a more durable foundation for continued club investment.
Negative Factors
Elevated Leverage
Although leverage has improved, substantial debt still reduces financial flexibility if demand softens or refinancing costs rise. Debt obligations can compete with club expansion and other investments, making earnings and cash-flow execution more important over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Margin Expansion
The sharp recovery in operating and net margins shows that Life Time is converting its growing scale into stronger earnings. Sustained profitability improves internal funding capacity, supports debt service, and provides a more durable foundation for continued club investment.
Read all positive factors
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.08B
Dividend YieldN/A
Average Volume (3M)3.06M
Price to Earnings (P/E)21.6
Beta (1Y)1.08
Revenue Growth12.69%
EPS Growth75.05%
CountryUS
Employees52,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.88
Shares Outstanding223,461,940
10 Day Avg. Volume2,562,928
30 Day Avg. Volume3,061,394
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.85
Price to Sales (P/S)1.93
P/FCF Ratio-276.52
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue4.18
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda14.25
Forecast
1Y Price Target
$55.69Price Target Upside25.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1.6
Revenue Forecast (FY)$3.37B
Life Time Group Holdings Business Overview & Revenue Model
Company Description
Life Time Group Holdings, Inc. (LTH) delivers extensive health, fitness, and well-being experiences to its individual clientele throughout the United States and Canada. The company's primary business involves the design, construction, and operatio...
How the Company Makes Money
Life Time primarily makes money through recurring membership revenue paid by individuals and households for ongoing access to its clubs and amenities. In addition to standard membership dues, the company generates revenue from in-center services a...
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and margin performance with raised guidance, successful pricing and in-center revenue acceleration, plus healthy operating cash flow and disciplined capital allocation including sale-leasebacks. Execution risks and near-term headwinds include intentional trimming of lower-paying qualified medical memberships (which dampens membership growth), elevated capex for club openings, preopening margin impact from Q4 openings, and a measured rollout for MIORA and certain adjunct services due to tech/process and regulatory caution. Overall, the positive financial results and upgraded guidance substantially outweigh the manageable operational and rollout challenges.Positive Updates
Revenue Growth
Total revenue increased 13.7% year-over-year to $866.0 million in Q2 2026, driven by strong club performance.
Negative Updates
Qualified Medical Membership Decline
Qualified medical memberships intentionally declined by ~20,600 units (-18.9% YoY) as part of mix management. This reduced total membership growth but is planned to improve average dues; company expects qualified medical to represent ~3% of dues by year-end and decline further thereafter.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 13.7% year-over-year to $866.0 million in Q2 2026, driven by strong club performance.
Read all positive updates
Company Guidance
Life Time raised its full‑year comparable center revenue guidance to 7.9%–8.3% (from 6.9%–7.5%), implying a midpoint near 8.1%, and said it has increased full‑year revenue, net income and adjusted EBITDA guidance while raising the midpoint of adjusted EBITDA margin guidance to 28.2%; the update incorporates the impact of seven clubs opening in Q4 (with associated pre‑opening costs and early ramp), and the company remains on track to open 14 clubs in 2026 (seven already opened, seven expected in Q4) and still expects 12–14 new clubs in 2027 (10 under construction). Quarterly operating guidance includes total center membership growth of 1.0%–1.5% in Q3 and 2.0%–3.0% in Q4 (4%–5% growth in both quarters excluding qualified medical memberships), a completed ~$200M of sale‑leaseback proceeds in April with ~ $400M expected for the full year, and an explicit goal to deliver positive free cash flow while achieving the upgraded revenue and adjusted EBITDA targets.Life Time Group Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.18B | 3.00B | 2.62B | 2.22B | 1.82B | 1.32B |
| Gross Profit | 2.20B | 1.43B | 1.23B | 1.03B | 754.35M | 473.95M |
| EBITDA | 933.21M | 789.85M | 631.54M | 469.98M | 339.80M | -260.07M |
| Net Income | 414.88M | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M |
Balance Sheet | ||||||
| Total Assets | 8.36B | 8.79B | 7.15B | 7.03B | 6.63B | 6.26B |
| Cash, Cash Equivalents and Short-Term Investments | 223.65M | 232.17M | 10.88M | 29.97M | 25.51M | 31.64M |
| Total Debt | 4.26B | 6.75B | 3.99B | 4.26B | 4.04B | 3.76B |
| Total Liabilities | 5.06B | 5.66B | 4.54B | 4.78B | 4.50B | 4.17B |
| Stockholders Equity | 3.30B | 3.13B | 2.61B | 2.25B | 2.12B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | -150.95M | -20.96M | 50.58M | -230.90M | -390.21M | -348.94M |
| Operating Cash Flow | 899.32M | 870.52M | 575.12M | 463.00M | 200.97M | -20.03M |
| Investing Cash Flow | -776.23M | -685.74M | -292.74M | -574.16M | -243.54M | -269.92M |
| Financing Cash Flow | -60.70M | 19.39M | -284.38M | 115.55M | 36.80M | 288.40M |
Life Time Group Holdings Technical Analysis
Positive
44.35
Price Trends
42.42
Negative
40.20
Positive
34.13
Positive
Market Momentum
-0.48
Negative
47.74
Neutral
51.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTH, the sentiment is Positive. The current price of 44.35 is above the 20-day moving average (MA) of 40.28, above the 50-day MA of 42.42, and above the 200-day MA of 34.13, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 51.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTH.
Life Time Group Holdings Risk Analysis
Life Time Group Holdings disclosed 30 risk factors in its most recent earnings report. Life Time Group Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Life Time Group Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.41B | 29.68 | 14.46% | 0.84% | 9.82% | 15.96% | |
72 Outperform | $9.08B | 21.61 | 13.14% | ― | 12.69% | 75.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $2.25B | 35.78 | -20.60% | ― | -1.80% | ― | |
57 Neutral | $34.31M | 2.68 | 39.07% | ― | -32.49% | ― | |
56 Neutral | $3.62B | 16.26 | -53.58% | 13.89% | 12.70% | 31.61% | |
43 Neutral | $243.78M | -3.37 | 15.21% | ― | -8.94% | 16.41% |
* Consumer Cyclical Sector Average
LTH
Life Time Group Holdings
40.62
15.24
60.05%
PLNT
Planet Fitness
47.98
-44.69
-48.22%
OSW
OneSpaWorld Holdings
23.74
3.45
17.01%
PTON
Peloton Interactive
5.12
-2.25
-30.53%
BODI
Beachbody Company
4.71
-0.69
-12.78%
XPOF
Xponential Fitness
4.95
-2.45
-33.11%
Life Time Group Holdings Corporate Events
Executive/Board Changes
Life Time Group Holdings Announces Board Member Resignations
Neutral
Aug 27, 2026
On August 26, 2026, Life Time Group Holdings, Inc. announced that two members of its board of directors, J. Kristofer Galashan, a Class II director, and Paul Hackwell, a Class III director, resigned from the board effective the same day. The simul...
Business Operations and StrategyPrivate Placements and Financing
Life Time Group Refinances Term Loan, Lowers Interest Costs
Positive
Aug 13, 2026
On August 12, 2026, Life Time, Inc. and certain wholly owned subsidiaries of Life Time Group Holdings, Inc. executed a Sixteenth Amendment to their existing credit agreement to refinance a $985 million term loan facility. The amendment reduces the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.