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Life Time Group Holdings (LTH)
NYSE:LTH
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Life Time Group Holdings
(NYSE:LTH)
Rating:73Outperform
Price Target:
$32.00
▲(12.80%Upside)
Positive Factors
Profitability
The company's EBITDA margin is expected to exceed 26%, indicating strong profitability potential.
Revenue Growth
The company's digital app has more than 1.7 million subscribers and is growing rapidly, which could exceed 3 million by the end of the next fiscal year.
Negative Factors
Member Acquisition
April adds were softer than normal, which is a lower volume period prior to high volume pool season.
Membership Demand
There is a significant embedded pricing opportunity as membership demand exceeds desired capacity.
Life Time Group Holdings (LTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.22B
Dividend YieldN/A
Average Volume (3M)2.82M
Price to Earnings (P/E)29.6
Beta (1Y)1.22
Revenue Growth18.58%
EPS Growth169.49%
CountryUS
Employees43,000
SectorConsumer Cyclical
Sector Strength58
IndustryLeisure
Share Statistics
EPS (TTM)0.34
Shares Outstanding219,417,160
10 Day Avg. Volume4,261,125
30 Day Avg. Volume2,817,333
Financial Highlights & Ratios
PEG Ratio12.95
Price to Book (P/B)1.09
Price to Sales (P/S)0.00
P/FCF Ratio-5.93
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda2.55
Forecast
1Y Price Target
$39.57Price Target Upside39.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Life Time Group Holdings Business Overview & Revenue Model
Company DescriptionLife Time Group Holdings, Inc. (LTH) is a leading operator of fitness and wellness centers across the United States and Canada. The company focuses on providing luxury athletic resorts, offering a comprehensive range of services including fitness programs, personal training, health and wellness services, and a variety of membership options. Life Time's facilities often feature state-of-the-art equipment, pools, spa services, and spaces for social and community events, catering to individuals and families seeking a high-quality, holistic approach to health and fitness.
How the Company Makes MoneyLife Time Group Holdings generates revenue primarily through membership fees, which account for a significant portion of its income. Members pay monthly or annual fees for access to the company's comprehensive fitness and wellness facilities. Additionally, Life Time earns money from personal training services, spa services, and other in-center offerings such as cafes and retail stores. The company also hosts events and provides corporate wellness programs, contributing further to its revenue streams. Strategic partnerships and sponsorships with fitness and lifestyle brands enhance its service offerings and support its financial performance.
Life Time Group Holdings Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -13.95%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial performance with significant revenue and membership growth, increased net income and adjusted EBITDA, and positive cash flow. The company is well-positioned for future growth, but it remains cautious due to macroeconomic uncertainties and consumer behavior trends. Expansion plans are in place, but flexibility is required to adapt to changing economic conditions.Q1-2025 Updates
Positive Updates
Impressive Revenue Growth
Total revenue increased 18.3% to $706 million, driven by a 17.9% increase in membership dues and enrollment fees, and an 18.7% increase in incentive revenue.
Strong Membership and Revenue Metrics
Center memberships increased by 3%, reaching approximately 880,000. Average monthly dues grew 11.8% year over year to $208, and average revenue per center membership was $844, an increase of 13.3% from the prior year quarter.
Substantial Increase in Net Income and Adjusted EBITDA
Net income rose to $76.1 million, an increase of 206%. Adjusted net income increased by 189% to $88.1 million. Adjusted EBITDA was $191.6 million, an increase of 31.2%, with an adjusted EBITDA margin of 27.1%, up 260 basis points from the previous year.
Positive Free Cash Flow and Deleveraging
Net cash provided by operating activities rose 103% to $184 million. The company achieved positive free cash flow for the fourth consecutive quarter at approximately $41 million, and reduced its net debt leverage ratio to 2.0 times.
Expansion and Strategic Growth Initiatives
The company plans to deliver 10 to 12 new clubs per year and has a robust pipeline for growth. LT Digital boasts over 2 million subscribers, and Miura and LTH are progressing well.
Negative Updates
Potential Impact of Macroeconomic Uncertainty
The company remains cautious due to uncertainties in the macroeconomic environment, which could impact future growth and consumer behavior.
Guarded Guidance Due to Consumer Sensitivity
While retention is strong, there is some conservatism in new member sign-ups, potentially due to broader economic conditions and consumer confidence.
Limited Expansion Flexibility
Although the company is prepared for various economic conditions, expansion is dependent on the macroeconomic climate and may be adjusted based on market conditions.
Company Guidance
During the Life Time Group Holdings First Quarter 2025 Earnings Conference Call, the company provided updated guidance reflecting their strong performance and strategic adjustments. Total revenue for the first quarter increased by 18.3% to $706 million, with significant contributions from a 17.9% rise in membership dues and enrollment fees, as well as an 18.7% increase in incentive revenue. The company raised its full-year guidance for comparable center revenue to 8.5-9.5%, citing increased membership dues and strong performance in in-center businesses like personal training. Memberships rose by 3%, reaching approximately 880,000, while average monthly dues grew by 11.8% to $208. The company reported a 206% increase in net income to $76.1 million and a 31.2% rise in adjusted EBITDA to $191.6 million, with an adjusted EBITDA margin of 27.1%. Free cash flow was approximately $41 million, and the net debt leverage ratio improved to 2.0 times. Additionally, the company plans to complete a $150 million sale leaseback transaction in the second quarter. Despite the favorable results, the guidance was modestly adjusted to account for ongoing macroeconomic uncertainties.Life Time Group Holdings Financial Statement Overview
Summary
Life Time Group Holdings demonstrates strong financial performance with impressive revenue and profit growth, efficient operational management, and robust cash flow generation. Moderate leverage is present but offset by improving profitability and cash flow metrics.Income Statement
Life Time Group Holdings has shown impressive revenue growth, with a significant increase from $948 million in 2020 to $2.73 billion in TTM 2025. The gross profit margin improved to 54.3% in TTM 2025, indicating efficient management of production costs. The net profit margin also improved to 7.6%, highlighting positive profitability trends. Additionally, the EBIT and EBITDA margins reached 14.7% and 24.9%, respectively, reflecting strong operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet is relatively stable, with a debt-to-equity ratio of 1.47 in TTM 2025, showcasing manageable leverage. The return on equity improved significantly to 7.6%, indicating effective use of shareholders' capital. However, the equity ratio of 37.4% suggests a moderate reliance on debt financing.78
Positive
Cash Flow
Strong cash flow management is evident, with free cash flow growing from negative in previous years to $158 million in TTM 2025. The operating cash flow to net income ratio is 3.2, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 0.76 further underscores solid cash flow performance.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.73B | 2.62B | 2.22B | 1.82B | 1.32B | 948.38M | Gross Profit |
| 1.48B | 2.32B | 708.96M | 754.35M | 473.95M | 288.33M | EBIT |
| 400.65M | 357.48M | 233.18M | 110.62M | -495.19M | -359.15M | EBITDA |
| 680.02M | 632.16M | 469.98M | 339.50M | -260.07M | -111.64M | Net Income Common Stockholders |
| 207.47M | 156.24M | 76.06M | -1.79M | -579.37M | -360.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.00M | 27.88M | 29.97M | 25.51M | 31.64M | 33.20M | Total Assets |
| 7.31B | 7.15B | 7.03B | 6.63B | 6.26B | 6.02B | Total Debt |
| 4.01B | 3.99B | 4.26B | 4.04B | 3.76B | 4.06B | Net Debt |
| 3.95B | 3.98B | 4.23B | 4.01B | 3.72B | 4.03B | Total Liabilities |
| 4.58B | 4.54B | 4.78B | 4.50B | 4.17B | 4.54B | Stockholders Equity |
| 2.73B | 2.61B | 2.25B | 2.12B | 2.09B | 1.48B |
| Cash Flow | Free Cash Flow | ||||
| 158.35M | 50.58M | -230.90M | -390.21M | -348.94M | -361.60M | Operating Cash Flow |
| 668.57M | 575.12M | 463.00M | 200.97M | -20.03M | -95.98M | Investing Cash Flow |
| -275.80M | -292.74M | -574.16M | -243.54M | -269.92M | -6.12M | Financing Cash Flow |
| -351.98M | -284.38M | 115.55M | 36.80M | 288.40M | 87.39M |
Life Time Group Holdings Technical Analysis
Positive
28.37
Price Trends
29.72
Negative
30.13
Negative
27.20
Positive
Market Momentum
-0.61
Positive
48.63
Neutral
54.77
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 28.37 is above the 20-day moving average (MA) of 28.36, below the 50-day MA of 29.72, and above the 200-day MA of 27.20, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 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 32 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.07B | 17.43 | 44.13% | 0.42% | 11.75% | 24.31% | |
73 Outperform | $6.22B | 29.61 | 8.24% | ― | 18.58% | 169.49% | |
73 Outperform | $3.64B | 121.32 | 1.90% | ― | 18.40% | -84.43% | |
72 Outperform | $5.82B | 20.04 | 30.55% | 5.67% | 2.38% | 6.01% | |
64 Neutral | $9.03B | 50.85 | -79.88% | ― | 10.32% | 20.44% | |
62 Neutral | $16.17B | 10.72 | -5.56% | 3.15% | 1.66% | -23.91% | |
60 Neutral | $5.85B | ― | -5.56% | ― | -1.25% | -130.83% |
* Consumer Cyclical Sector Average
Performance Comparison
LTH
Life Time Group Holdings
28.37
10.15
55.71%
CHDN
Churchill Downs
97.90
-41.43
-29.74%
MTN
Vail Resorts
156.61
-16.05
-9.30%
CZR
Caesars Entertainment
28.15
-10.84
-27.80%
PLNT
Planet Fitness
107.24
34.22
46.86%
HGV
Hilton Grand Vacations
39.66
-0.78
-1.93%
Life Time Group Holdings Corporate Events
Private Placements and Financing
Life Time Group Holdings Completes Stock Offering
Neutral
Jun 6, 2025
On June 5, 2025, Life Time Group Holdings, Inc. entered into an underwriting agreement with J.P. Morgan Securities LLC and BofA Securities, Inc. for the sale of 20,000,000 shares of its common stock by selling stockholders at $29.50 per share. The offering closed on June 6, 2025, with the company not receiving any proceeds from the sale, and the agreement included customary legal obligations and protections for the involved parties.
The most recent analyst rating on (LTH) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Life Time Group Holdings stock, see the LTH Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Life Time Group Holdings Appoints New Board Director
Neutral
Apr 29, 2025
On April 25, 2025, Life Time Group Holdings, Inc. appointed Jennifer Pomerantz to its Board of Directors following the annual meeting of stockholders. Ms. Pomerantz will serve as a Class II director until 2026 and will be part of the Nominating and Corporate Governance Committee and the Capital Allocation Committee. Her appointment increases the number of independent directors on the board to ten out of thirteen members. During the same meeting, stockholders elected four Class I directors to serve until 2028, approved the executive officer compensation, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025.
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.