Life Time Q1 2025 Earnings Summary: Record Growth in Revenue, Net Income, and Free Cash Flow

Life Time Group Holdings (NYSE: LTH) delivered strong financial results for Q1 2025, driven by higher member engagement, expanded center usage, and improved margins.

Key Financial Highlights:
• Revenue: $706.0 million, up 18.3% from $596.7 million in Q1 2024
• Net income: $76.1 million, up 205.6% from $24.9 million
• Adjusted net income: $88.1 million, up 188.9%
• Adjusted EBITDA: $191.6 million, up 31.2%
• Diluted EPS: $0.34 (vs. $0.12 last year); Adjusted Diluted EPS: $0.39
• Net cash from operating activities: $183.9 million, up 103.4%
• Free cash flow: $41.4 million (vs. -$66.4 million last year)
• Net debt leverage ratio: Reduced to 2.0x from 3.6x a year ago

Operational Metrics:
• Center memberships: 826,374, up 3.0%
• Average center revenue per membership: $844, up 13.3%
• Comparable center revenue growth: 12.9%
• Centers operated: 180, with one new opening in Q1
• Center square footage: 17.7 million

Capital and Investment Updates:
• Capital expenditures: $142.5 million, down 9.1% year-over-year
• Interest rate swap agreement: Locked in fixed rate of 3.409% + 2.50% margin
• Signed LOI for $150 million sale-leaseback on 3 properties (expected Q2 close)

Updated 2025 Guidance:
• Revenue: $2.94 – $2.98 billion (previously $2.925 – $2.975 billion)
• Net income: $286 – $293 million (up from $277 – $284 million)
• Adjusted EBITDA: $792 – $808 million (up from $780 – $800 million)
• Comparable center revenue growth: 8.5% – 9.5% (raised from 7% – 8%)
• Interest expense forecast lowered to $80 – $84 million due to interest rate swap
• Cash tax expense revised down to $39 – $41 million due to Q1 tax benefit

Founder and CEO Bahram Akradi emphasized strong brand desirability, increased member engagement, and strategic growth opportunities, including digital expansion and LTH nutritional products.