Life Time Group beats Q4 revenue estimates on higher member engagement, sets $500 mln buyback

Life Time group

24/02/2026 11:55

Overview

U.S. fitness club operator's Q4 revenue rose 12.3%, beating analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company announced $500 mln share repurchase program

Outlook

Life Time expects 2026 revenue between $3.3 bln and $3.33 bln

Company plans to open 12 to 14 new clubs in 2026

Life Time aims for 2026 adjusted EBITDA between $910 mln and $925 mln

Result Drivers

MEMBERSHIP ENGAGEMENT - Higher member engagement and increased dues per membership drove revenue growth, according to CEO Bahram Akradi

LEGAL AND TAX BENEFITS - Net income boosted by tax-effected net cash proceeds from legal claims and employee retention credits under the CARES Act

NEW CENTER OPENINGS - Revenue growth supported by new and ramping centers, despite increased operating costs

Company press release: ID:nPnbL8p8Ca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$745.10 mln
$732.96 mln (10 Analysts)
Q4 Adjusted EPS
Miss
$0.34
$0.35 (11 Analysts)
Q4 Net Income
$123 mln
Q4 Adjusted EBITDA
Beat
$202.60 mln
$192.29 mln (10 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the leisure & recreation peer group is "buy"

Wall Street's median 12-month price target for Life Time Group Holdings Inc is $41.00, about 44.3% above its February 23 closing price of $28.41

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)