Life Time Q2 revenue up 14%, beats expectations

Life Time group

05/08/2025 11:58

Overview

Life Time Q2 revenue rises 14%, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats estimates, rising 48% to $0.37

Co achieved positive free cash flow for the fifth consecutive quarter

Outlook

Life Time expects 2025 revenue between $2.955 bln and $2.985 bln

Company anticipates net income of $290 mln to $293 mln for 2025

Life Time plans to open 10 new centers in 2025

Company aims for net debt leverage ratio at or below 2.00 times

Result Drivers

MEMBERSHIP GROWTH - Revenue growth driven by increased membership dues and higher member utilization, particularly in Dynamic Personal Training

CENTER EXPENSES - Rise in center operations expenses due to costs related to new and ramping centers and increased club utilization

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

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$761.50 mln
$752.20 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$0.37
$0.33 (9 Analysts)
Q2 Net Income
$72.10 mln
Q2 Adjusted EBITDA
Beat
$211 mln
$204.90 mln (8 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "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 $38.15, about 25% above its August 4 closing price of $28.59

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nPn1sC5lpa

(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.)