Life Time Group Holdings Inc【LTH】株式ニュース

Life Time Reports First Quarter 2026 Financial ResultsMay 5, 2026 6:45 AM
PR Newswire (US) Total revenue of $788.7 million increased 11.7% over the prior year quarterNet income of $88.1 million increased 15.8% over the prior year quarterDiluted EPS of $0.39 increased 14.7% over the prior year quarterAdjusted net income of $96.2 million increased 27.4% over the prior year quarterAdjusted EBITDA of $226.7 million increased 18.3% over the prior year quarterAdjusted diluted EPS of $0.42 increased 23.5% over the prior year quarterRaised 2026 outlookCHANHASSEN, Minn., May 5, 2026 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced its financial results for the fiscal first quarter ended March 31, 2026.Bahram Akradi, Founder, Chairman and CEO, stated: "Our first quarter results reflect strong execution and continued momentum across our business. Our growth strategy remains on track. We are on schedule to open this year's planned 12 to 14 new clubs, which are predominantly large-format, ground-up athletic country clubs. Membership engagement continues to rise, our membership mix is improving, and in-center performance remains robust. Supported by a solid balance sheet, low leverage, and strong cash generation, we are well positioned for continued growth."Financial Summary

Three Months Ended

($ in millions, except for Average center revenue per center membership data)March 31,

2026
2025
Percent
ChangeTotal revenue$788.7
$706.0
11.7 %Center operations expenses$406.7
$371.0
9.6 %Rent$89.9
$81.2
10.7 %General, administrative and marketing expenses (1)$59.6
$57.8
3.1 %Net income$88.1
$76.1
15.8 %Adjusted net income$96.2
$75.5
27.4 %Adjusted EBITDA$226.7
$191.6
18.3 %Comparable center revenue (2)8.6 %
12.9 %

Center memberships, end of period837,903
826,374
1.4 %Average center revenue per center membership$930
$844
10.2 %

(1)The three months ended March 31, 2026 and 2025 included non-cash share-based compensation expense of $9.1 million and $10.3 million, respectively.(2)The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.First Quarter 2026 InformationRevenue increased 11.7% to $788.7 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues including from improved membership mix, membership growth in our new and ramping centers and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training.Center memberships of 837,903 increased by 11,529, or 1.4%, when compared to March 31, 2025, and increased by 15,523, or 1.9%, from December 31, 2025, consistent with seasonality expectations and continued improvement in membership mix, including a significant reduction in qualified memberships administered through medical insurance providers, which have significantly lower average dues.Total subscriptions, which include center memberships and on-hold memberships, of 888,050 increased 0.9% compared to March 31, 2025.Center operations expenses increased 9.6% to $406.7 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth.General, administrative and marketing expenses increased 3.1% to $59.6 million primarily due to increases in center support overhead to enhance and broaden our member services and experiences.Net income increased 15.8% to $88.1 million primarily due to business performance, slightly offset by $12.6 million of income tax benefits in the prior period due to a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025.Adjusted net income increased 27.4% to $96.2 million and Adjusted EBITDA increased 18.3% to $226.7 million as we experienced greater flow through of our increased revenue.New Center OpeningsWe opened one new center during the first quarter of 2026.As of March 31, 2026, we operated a total of 190 centers.Cash Flow HighlightsNet cash provided by operating activities for the three months ended March 31, 2026 was $198.8 million, an increase of 8.1% compared to the prior year period.On April 29 and April 30, 2026, we completed two sale-leaseback transactions for five properties and net proceeds of approximately $200 million.Our capital expenditures by type of expenditure were as follows:
Three Months Ended

($ in millions)March 31,

2026
2025
Percent
ChangeGrowth capital expenditures (1)$205.2
$93.5
119.5 %Maintenance capital expenditures (2)$31.5
$29.4
7.1 %Modernization and technology capital expenditures (3)$23.3
$19.6
18.9 %Total capital expenditures$260.0
$142.5
82.5 %

(1)Consist of new center land and construction, initial major remodels of acquired centers, major remodels of existing centers that expand existing square footage, asset acquisitions including the purchase of previously leased centers and other growth initiatives.(2)Consist of capital expenditures required to maintain the operating condition of our existing centers.(3)Consist of capital expenditures related to updates and enhancements to our existing centers, technology investments, and corporate infrastructure.Liquidity and Capital ResourcesOur net debt leverage ratio improved to 1.6 times as of March 31, 2026, from 2.0 times as of March 31, 2025.As of March 31, 2026, our total available liquidity was $736.9 million, which included $616.9 million of availability on our $650.0 million revolving credit facility and $120.0 million of cash and cash equivalents. At March 31, 2026, there were no outstanding borrowings under our revolving credit facility and there were $33.1 million of outstanding letters of credit.2026 OutlookFull-Year 2026 Guidance

Percent
Year Ending
Year Ending
Year Ended
Change
December 31, 2026
December 31, 2026
December 31, 2025
(Using
(Guidance as of($ in millions)(Guidance)
(Actual)
Midpoints)
February 24, 2026)Total revenue$3,320 – $3,350
$2,995.3
11.3 %
$3,300 – $3,330Rent$378 – $386
$339.2
12.6 %
$378 – $388Net Income$340 – $345
$373.7
(8.3) %
$330 – $336Adjusted net income$378 – $386
$325.5
17.4 %
$369 – $378Adjusted EBITDA$925 – $940
$825.2
13.0 %
$910 – $925The Company is reiterating the following expectations for fiscal 2026 as outlined in its fourth quarter and full-year 2025 results announced on February 24, 2026:Open 12 to 14 new clubs, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.2 million square feet, nearly double the square footage of each of our 2024 class and 2025 class of clubs. We expect the majority of our 2026 class of clubs to open in the back half of the year, including six to seven in the fourth quarter of 2026.Maintenance capital expenditures of $140 to $150 million, modernization and technology capital expenditures of $130 to $140 million, and growth capital expenditures of $875 to $915 million.  Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times.Provision for income tax rate estimate of 28%.The Company is also updating the following operational and financial expectations for fiscal 2026:Complete approximately $400 million of sale-leaseback transactions, increased from $300 million.Comparable center revenue growth of 6.9% to 7.5%, which includes our ramping and mature centers, increased from 6.3% to 7.3%.  Rent to include non-cash rent expense of $31 million to $34 million, increased from $24 million to $27 million.Cash income tax expense of $80 million to $83 million, increased from $57 million to $59 million, reflecting the normalization of cash taxes following the utilization of net operating loss carryforwards in the prior year and lower tax depreciation.Interest expense, net of interest income, of approximately $59 million to $63 million, and net of $28 million to $30 million of capitalized interest expense related to construction in progress. This is an increase from $56 million to $60 million, net of $33 million to $35 million of capitalized interest expense related to construction in progress.Year-end weighted-average diluted common shares outstanding of approximately 228 million to 230 million, not including any incremental impact that may occur as a result of our $500 million share buyback program, decreased from 229 million to 231 million.Conference Call DetailsA conference call to discuss our first quarter financial results is scheduled for today:Date: Tuesday, May 5, 2026Time: 10:00 a.m. ET (9:00 a.m. CT)U.S. dial-in number: 1-877-451-6152International dial-in number: 1-201-389-0879Webcast: LTH 1Q 2026 Earnings CallA link to the live audio webcast of the conference call will be available at https://ir.lifetime.life.Replay InformationWebcast – A recorded replay of the webcast will be available within approximately three hours of the call's conclusion and may be accessed at: https://ir.lifetime.life.Conference Call – A replay of the conference call will be available after 1:00 p.m. ET the same day through May 22, 2026:U.S. replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 1375 6339Earnings Supplement PresentationThe Company has made available supplemental material regarding its revenue growth strategy, memberships, and cash flow on its investor relations website at https://ir.lifetime.life.About Life TimeLife Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complementary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 45,000 team members.Use of Non-GAAP Financial Measures and Key Performance IndicatorsThis press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted net income per common share, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net income per common share, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its financial outlook for fiscal year 2026, growth, strength of its balance sheet, net debt and leverage, capital expenditures, interest expense, consumer demand, industry and economic trends, member engagement and mix, tax rates and expense, rent expense, expected number of diluted common shares outstanding, expected number, size and timing of new center openings, successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof) and the timing, amount and price of any share repurchase. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and the growth of our business including the competitive and economic environment, risks relating to our brand, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2026 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)

Three Months EndedMarch 31,
2026
2025Revenue:

Center revenue$       767,566
$     685,654Other revenue21,134
20,387Total revenue788,700
706,041Operating expenses:

Center operations406,704
370,987Rent89,891
81,165General, administrative and marketing59,631
57,847Depreciation and amortization80,693
70,919Other operating expense16,943
17,453Total operating expenses653,862
598,371Income from operations134,838
107,670Other income (expense):

Interest expense, net of interest income(15,697)
(25,107)Equity in earnings (loss) of affiliates126
(16)Total other expense(15,571)
(25,123)Income before income taxes119,267
82,547Provision for income taxes31,169
6,405Net income$         88,098
$      76,142

Income per common share:

Basic$            0.40
$         0.36Diluted$            0.39
$         0.34Weighted-average common shares outstanding:

Basic221,853
211,958Diluted227,454
223,619 LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except per share data)(Unaudited)

March 31,
2026
December 31,
2025ASSETS

Current assets:

Cash and cash equivalents$       119,951
$       204,807Restricted cash and cash equivalents30,232
27,362Accounts receivable, net25,476
24,092Center operating supplies and inventories67,028
67,618Prepaid expenses and other current assets80,315
61,881Total current assets323,002
385,760Property and equipment, net3,799,840
3,633,229Goodwill1,235,359
1,235,359Operating lease right-of-use assets2,472,648
2,479,804Intangible assets, net180,532
180,810Other assets94,489
92,989Total assets$     8,105,870
$     8,007,951LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable$         92,193
$         90,249Construction accounts payable124,844
143,545Deferred revenue63,250
60,309Accrued expenses and other current liabilities226,100
214,351Current maturities of debt20,705
21,848Current maturities of operating lease liabilities81,585
79,208Total current liabilities608,677
609,510Long-term debt, net of current portion1,482,099
1,485,939Operating lease liabilities, net of current portion2,558,596
2,555,513Deferred income taxes, net182,122
172,217Other liabilities55,105
58,561Total liabilities4,886,599
4,881,740Stockholders' equity:

Common stock, $0.01 par value per share; 500,000 shares authorized; 222,447 and 221,077 shares issued and outstanding, respectively2,225
2,211Additional paid-in capital3,184,562
3,183,032Retained earnings (accumulated deficit)41,196
(46,902)Accumulated other comprehensive loss(8,712)
(12,130)Total stockholders' equity3,219,271
3,126,211Total liabilities and stockholders' equity$     8,105,870
$     8,007,951 LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)

Three Months EndedMarch 31,
2026
2025Cash flows from operating activities:

Net income$         88,098
$         76,142Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization80,693
70,919Deferred income taxes8,429
1,177Share-based compensation10,548
11,909Non-cash rent expense2,354
3,403Impairment charges associated with long-lived assets18
966Loss on disposal of property and equipment, net827
128Amortization of debt discounts and issuance costs930
906Changes in operating assets and liabilities5,526
17,926Other1,370
380Net cash provided by operating activities198,793
183,856Cash flows from investing activities:

Capital expenditures(260,016)
(142,482)Other(96)
839Net cash used in investing activities(260,112)
(141,643)Cash flows from financing activities:

Repayments of debt(5,686)
(5,559)Proceeds from revolving credit facility—
125,000Repayments of revolving credit facility—
(135,000)Repayments of finance lease liabilities(417)
(842)Proceeds from stock option exercises7,328
27,880Common stock share repurchases(10,702)
—Employee tax withholding associated with net share-settled share-based awards(11,017)
(4,069)Other(4)
(30)Net cash (used in) provided by financing activities(20,498)
7,380Effect of exchange rates on cash and cash equivalents and restricted cash and cash equivalents(169)
—(Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents(81,986)
49,593Cash and cash equivalents and restricted cash and cash equivalents – beginning of period232,169
27,878Cash and cash equivalents and restricted cash and cash equivalents – end of period$        150,183
$         77,471Non-GAAP Measurements and Key Performance IndicatorsSee "Use of Non-GAAP Financial Measures and Key Performance Indicators" for a discussion of the Non-GAAP financial measures reconciled below.Key Performance Indicators($ in thousands, except for Average Center revenue per center membership data)(Unaudited)

Three Months Ended
March 31,
2026
2025Membership Data

Center memberships837,903
826,374On-hold memberships50,147
53,377Total memberships888,050
879,751

Revenue Data

Membership dues and enrollment fees73.1 %
73.2 %In-center revenue26.9 %
26.8 %Total Center revenue100.0 %
100.0 %

Membership dues and enrollment fees$       561,454
$       501,653In-center revenue206,112
184,001Total Center revenue$       767,566
$       685,654

Average Center revenue per center membership (1)$          930
$          844Comparable center revenue (2)8.6 %
12.9 %

Center Data

Net new center openings (3)1
1Total centers (end of period) (3)190
180Total center square footage (end of period) (4)18,400,000
17,700,000

GAAP and Non-GAAP Financial Measures

Net income$      88,098
$      76,142Net income margin (5)11.2 %
10.8 %Adjusted net income (6)$        96,222
$        75,537Adjusted net income margin (6)12.2 %
10.7 %Adjusted EBITDA (7)$     226,655
$     191,588Adjusted EBITDA margin (7)28.7 %
27.1 %Center operations expense$     406,704
$     370,987Pre-opening expenses (8)$        2,212
$        1,373Rent$      89,891
$      81,165Non-cash rent expense (open properties) (9)$          800
$        2,295Non-cash rent expense (properties under development) (9)$        1,554
$        1,108Net cash provided by operating activities$     198,793
$     183,856Free cash flow (10)$     (61,223)
$      41,374

(1)We define Average Center revenue per center membership as Center revenue less On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.

(2)We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

(3)Net new center openings is calculated as the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. During the three months ended March 31, 2026, we opened one center.

(4)Total center square footage (end of period) reflects the aggregate square footage, excluding the areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. We use this metric for evaluating the efficiencies of a center as of the end of the period. These figures are approximations.

(5)Net income margin is calculated as net income divided by total revenue.

(6)We present Adjusted net income as a supplemental measure of our performance. We define Adjusted net income as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments.

Adjusted net income margin is calculated as Adjusted net income divided by total revenue.

The following table provides a reconciliation of net income and income per common share, the most directly comparable GAAP measures, to Adjusted net income and Adjusted net income per common share:
Three Months Ended
March 31,($ in thousands, except per share data)2026
2025Net income$          88,098
$          76,142Share-based compensation expense (a)10,548
11,909Capital transaction costs (b)—
920Other (c)450
186Taxes (d)(2,874)
(13,620)Adjusted net income$          96,222
$          75,537

Income per common share:

Basic$            0.40
$            0.36Diluted$            0.39
$            0.34Adjusted income per common share:

Basic$            0.43
$            0.36Diluted$            0.42
$            0.34Weighted-average common shares outstanding:

Basic221,853
211,958Diluted227,454
223,619

(a)Share-based compensation expense recognized during the three months ended March 31, 2026 was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan ("ESPP"), and liability-classified awards related to our 2026 short-term incentive plan. Share-based compensation expense recognized during the three months ended March 31, 2025 was associated with stock options, restricted stock units, performance stock units, our ESPP and liability-classified awards related to our 2025 short-term incentive plan.

(b)Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature.

(c)Includes (i) legal-related expenses in pursuit of our claim against Zurich of $0.1 million for the three months ended March 31, 2025 and (ii) other immaterial transactions or items that are unusual or non-recurring in nature of $0.5 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

(d)Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. We updated the Taxes amount used to arrive at Adjusted net income for the three months ended March 31, 2025 to include $12.6 million in income tax benefits resulting from a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025. This change did not impact our condensed consolidated financial statements prepared in accordance with GAAP, but it did decrease our non-GAAP Adjusted net income and Adjusted income per common share for the three months ended March 31, 2025.

(7)We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations.

Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended
March 31,($ in thousands)2026
2025Net income$          88,098
$          76,142Interest expense, net of interest income15,697
25,107Provision for income taxes31,169
6,405Depreciation and amortization80,693
70,919Share-based compensation expense (a)10,548
11,909Capital transaction costs (b)—
920Other (c)450
186Adjusted EBITDA$        226,655
$        191,588

(a) – (c)See the corresponding footnotes to the table in footnote 6 immediately above.

(8)Represents non-capital expenditures associated with opening new centers that are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.

(9)Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.

(10)Free cash flow, a non-GAAP financial measure, is calculated as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales.

The following table provides a reconciliation from net cash provided by operating activities to free cash flow:
Three Months Ended
March 31,($ in thousands)2026
2025Net cash provided by operating activities$        198,793
$        183,856Capital expenditures, net of construction reimbursements(260,016)
(142,482)Free cash flow$         (61,223)
$          41,374 Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months($ in thousands)(Unaudited)

Twelve
Twelve
Months Ended
Months Ended
March 31, 2026
March 31, 2025Net income$             385,627
$             207,465Interest expense, net of interest income72,853
135,799Provision for income taxes144,596
49,019Depreciation and amortization306,119
279,697Share-based compensation expense50,389
55,317Gain on sale-leaseback transactions(12,785)
(2,618)Capital transaction costs611
920Legal settlements(38,629)
1,815Asset impairments5,791
—Employee retention credits(54,572)
—Other242
(5,023)Adjusted EBITDA$             860,242
$             722,391 Reconciliation of Net Debt and Leverage Calculation($ in thousands)(Unaudited)

Twelve
Twelve
Months Ended
Months Ended
March 31, 2026
March 31, 2025Current maturities of debt$              20,705
$              22,732Long-term debt, net of current portion1,482,099
1,498,106Total Debt$           1,502,804
$           1,520,838Less: Fair value adjustment91
246Less: Unamortized debt discounts and issuance costs(16,835)
(19,162)Less: Cash and cash equivalents119,951
59,001Net Debt$           1,399,597
$           1,480,753Trailing twelve-month Adjusted EBITDA860,242
722,391Net Debt Leverage Ratio1.6x
2.0x Reconciliation of Net Income to Adjusted Net Income Guidance for the Year Ending 2026($ in millions)(Unaudited)

Year Ending
December 31, 2026Net income$340 – $345Share-based compensation expense53 – 57Taxes(15) – (16)Adjusted net income$378 – $386 Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2026($ in millions)(Unaudited)

Year Ending
December 31, 2026Net income$340 – $345Interest expense, net of interest income63 – 59Provision for income taxes132 – 134Depreciation and amortization337 – 345Share-based compensation expense53 – 57Adjusted EBITDA$925 – $940 View original content to download multimedia:https://www.prnewswire.com/news-releases/life-time-reports-first-quarter-2026-financial-results-302762231.htmlSOURCE Life Time Group Holdings, Inc. Original: Life Time Reports First Quarter 2026 Financial Results

Life Time Reports Fourth Quarter and Full-Year 2025 Financial ResultsFebruary 24, 2026 6:45 AM
PR Newswire (US)

Total revenue increased 12.3% to $745.1 million for the fourth quarter and 14.3% to $2,995.3 million for the yearNet income increased 230.6% to $123.0 million for the fourth quarter and 139.2% to $373.7 million for the yearDiluted EPS increased 217.6% to $0.54 for the fourth quarter and 124.3% to $1.66 for the yearAdjusted net income increased 28.4% to $77.4 million for the fourth quarter and 62.3% to $325.5 million for the yearAdjusted EBITDA increased 14.5% to $202.6 million for the fourth quarter and 21.9% to $825.2 million for the yearAdjusted diluted EPS increased 25.9% to $0.34 for the fourth quarter and 51.6% to $1.44 for the yearAnnounced $500 million share repurchase programCHANHASSEN, Minn., Feb. 24, 2026 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced its financial results for the fiscal fourth quarter and full-year ended December 31, 2025.Bahram Akradi, Founder, Chairman and CEO, stated: "I am proud of how our team delivered throughout 2025. With higher member engagement, increased dues per membership, and robust in-center revenue growth, we delivered another year of record financial performance. We enter 2026 with strong fundamentals and a clear plan to expand the number of our large-format athletic country clubs. We expect to add nearly as much new square footage in 2026 as we opened in the past two years combined. We remain focused on growing revenue and adjusted EBITDA by further increasing member engagement, optimizing our membership mix, and growing revenue per center membership.I am also excited to announce a $500 million share repurchase program approved by our board of directors. Our strong cash generation and healthy balance sheet give us confidence in our ability to fund our accelerated club opening plan and implement our share repurchase program while remaining at or below our target 2.0x net leverage ratio. We believe we are now in a position to continue investing for long-term growth while further driving shareholder return."Financial Summary

Three Months Ended

Year Ended

($ in millions, except for Average center revenue per center membership data)December 31,

December 31,

2025
2024
Percent
Change
2025
2024
Percent
ChangeTotal revenue$745.1
$663.3
12.3 %
$2,995.3
$2,621.0
14.3 %Center operations expenses$379.4
$343.9
10.3 %
$1,568.6
$1,392.4
12.7 %Rent$87.3
$79.1
10.4 %
$339.2
$304.9
11.2 %General, administrative and marketing expenses (1)$65.3
$61.2
6.7 %
$244.6
$221.0
10.7 %Net income$123.0
$37.2
230.6 %
$373.7
$156.2
139.2 %Adjusted net income$77.4
$60.3
28.4 %
$325.5
$200.5
62.3 %Adjusted EBITDA$202.6
$177.0
14.5 %
$825.2
$676.8
21.9 %Comparable center revenue (2)9.9 %
13.5 %

11.1 %
12.2 %

Center memberships, end of period822,380
812,062
1.3 %
822,380
812,062
1.3 %Average center revenue per center membership$882
$796
10.8 %
$3,531
$3,160
11.7 %

(1)The three months ended December 31, 2025 and 2024 included non-cash share-based compensation expense of $5.1 million and $18.3 million, respectively. The years ended December 31, 2025 and 2024 included non-cash share-based compensation expense of $44.5 million and $45.4 million, respectively.(2)The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.Fourth Quarter 2025 InformationRevenue increased 12.3% to $745.1 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues, membership growth in our new and ramping centers, and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training.Center memberships of 822,380 increased by 10,318, or 1.3%, when compared to December 31, 2024, and decreased by 18,242 from the third quarter 2025, consistent with seasonality expectations and continued shifts in membership mix.Total subscriptions, which include center memberships and our on-hold memberships, increased 0.8% to 872,936 as compared to December 31, 2024.Center operations expenses increased 10.3% to $379.4 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth.General, administrative and marketing expenses increased 6.7% to $65.3 million primarily due to increased center support overhead to enhance and broaden our member services and experiences and for marketing.Net income increased 230.6% to $123.0 million due to improved business performance, tax-effected net cash proceeds of $27.7 million received in partial satisfaction of legal claims, tax-effected net cash proceeds of $14.1 million received from employee retention credits under the CARES Act, and tax-effected one-time gains of $12.5 million on sale-leaseback transactions. Net income in the prior year period included a tax-effected write-off of $7.7 million of unamortized debt discounts and issuance costs associated with the extinguishment of our former term loan facility and construction loan and the loss on the satisfaction and discharge of our 5.750% Senior Secured Notes and 8.000% Senior Unsecured Notes.Adjusted net income increased 28.4% to $77.4 million and Adjusted EBITDA increased 14.5% to $202.6 million as we experienced greater flow through of our increased revenue.Full-Year 2025 InformationRevenue increased 14.3% to $2,995.3 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues, membership growth in our new and ramping centers, and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training.Center operations expenses increased 12.7% to $1,568.6 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth.General, administrative and marketing expenses increased 10.7% to $244.6 million primarily due to increased incentive and benefit-related expenses, center support overhead to enhance and broaden our member services and experiences, marketing, general corporate overhead, information technology costs and costs attributable to the secondary offering of our common stock completed in February and June 2025.Net income increased 139.2% to $373.7 million due to improved business performance, tax-effected net cash proceeds of $41.3 million received from employee retention credits under the CARES Act, tax-effected net cash proceeds of $29.2 million received in partial satisfaction of legal claims, $12.6 million of income tax benefits due to a significant exercise by our Chief Executive Officer of stock options that were set to expire in 2025, and tax-effected one-time gains of $9.7 million on sale-leaseback transactions. Net income in the prior year included tax-effected one-time net gains of $3.7 million on sales of land and $2.0 million on sale-leaseback transactions, partially offset by a tax-effected write-off of $10.4 million of unamortized debt discounts and issuance costs associated with the extinguishment of our former term loan facility and construction loan and the loss on the satisfaction and discharge of our 5.750% Senior Secured Notes and 8.000% Senior Unsecured Notes.Adjusted net income increased 62.3% to $325.5 million and Adjusted EBITDA increased 21.9% to $825.2 million as we experienced greater flow through of our increased revenue.New Center OpeningsWe opened four new centers during the fourth quarter and a total of 10 centers for the year.As of December 31, 2025, we operated a total of 189 centers.Cash Flow HighlightsNet cash provided by operating activities increased 47.0% to $239.9 million for the fourth quarter and 51.4% to $870.5 million for the year.We achieved positive free cash flow of $206.5 million for the year, including $227.4 million of net proceeds from sale-leaseback transactions. During the fourth quarter, we completed one sale-leaseback transaction for net proceeds of $54.7 million.Our capital expenditures by type of expenditure were as follows:
Three Months Ended

Year Ended

($ in millions)December 31,

December 31,

2025
2024
Percent
Change
2025
2024
Percent
ChangeGrowth capital expenditures (1)$240.1
$74.6
221.8 %
$656.5
$334.5
96.3 %Maintenance capital expenditures (2)32.6
38.6
(15.5) %
125.8
108.6
15.8 %Modernization and technology capital expenditures (3)31.8
23.1
37.7 %
109.2
81.4
34.2 %Total capital expenditures$304.5
$136.3
123.4 %
$891.5
$524.5
70.0 %

(1)Consist of new center land and construction, initial major remodels of acquired centers, major remodels of existing centers that expand existing square footage, asset acquisitions including the purchase of previously leased centers and other growth initiatives.(2)Consist of capital expenditures required to maintain the operating condition of our existing centers.(3)Consist of capital expenditures related to updates and enhancements to our existing centers, technology investments, and corporate infrastructure.Liquidity and Capital ResourcesOur net debt leverage ratio declined to 1.6x as of December 31, 2025, from 2.3x as of December 31, 2024.As of December 31, 2025, our total available liquidity was $823.0 million, which included $204.8 million of cash and cash equivalents and $618.2 million of availability under our revolving credit facility. As of December 31, 2025, there were no outstanding borrowings under our revolving credit facility and there was $31.8 million of outstanding letters of credit.We consummated several transactions in 2025 that strengthened our financial position, including:Effective April 8, 2025, we entered into interest rate swap agreements for our entire term loan facility, which converted the variable interest rate of our term loan facility to a fixed interest rate of 3.409%, plus the applicable interest rate margin.On June 18, 2025, S&P Global Ratings upgraded our issuer credit rating to 'BB-' from 'B+', reducing the applicable interest rate margin of our term loan facility by 0.25% to 2.25% effective June 19, 2025.Effective August 18, 2025, we completed a repricing of our term loan facility, reducing the applicable interest rate margin by another 0.25% to 2.00%.Share Repurchase ProgramOur board of directors has authorized a share repurchase program of up to $500 million of the Company's common stock, subject to market conditions, contractual restrictions and other factors. Repurchases may be made from time to time through open market purchases, block trades, accelerated or other structured share repurchase programs, privately negotiated transactions, Rule 10b5-1 plans or other means, and may include purchases from affiliates. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The manner, timing, pricing and amount of any transactions will be subject to the discretion of management and may depend on a variety of factors, including business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. The repurchase program does not obligate the Company to acquire any particular amount of its common stock and may be suspended, modified or terminated at any time at the Company's discretion.2026 OutlookThe Company's 2026 guidance and expectations do not include any impact that may occur as a result of our $500 million share buyback program announced today, including our outstanding share count.Full-Year 2026 Guidance

Percent
Year Ending
Year Ending
Year Ended
Change
December 31, 2026
December 31, 2026
December 31, 2025
(Using
(Guidance as of($ in millions)(Guidance)
(Actual)
Midpoints)
January 22, 2026)Total revenue$3,300 – $3,330
$2,995.3
10.7 %
$3,300 – $3,330Rent$378 – $388
$339.2
12.9 %
$378 – $388Net Income$330 – $336
$373.7
(10.9) %
$330 – $336Adjusted net income$369 – $378
$325.5
14.7 %
$369 – $378Adjusted EBITDA$910 – $925
$825.2
11.2 %
$910 – $925The Company is reiterating the following expectations for fiscal 2026 as outlined in its preliminary estimated results announced on January 22, 2026:Open 12 to 14 new clubs, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.2 million square feet, nearly double the square footage of each of our 2024 class and 2025 class of clubs. We expect the majority of our 2026 class of clubs to open in the back half of the year, including six to seven in the fourth quarter of 2026.Comparable center revenue growth of 6.3% to 7.3%, which includes our ramping and mature centers.Rent to include non-cash rent expense of $24 million to $27 million.Cash income tax expense of $57 million to $59 million.Interest expense, net of interest income, of approximately $56 million to $60 million, reflecting full year benefits of reduced interest expense on our term loan facility as a result of our execution of the interest rate swap and repricing during 2025 and greater capitalized interest expense due to increased construction activity related to clubs expected to open in 2026 and 2027.Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times.The Company is also introducing the following additional operational and financial expectations for fiscal 2026:Complete at least $300 million of sale-leaseback transactions.Year-end weighted-average diluted common shares outstanding of approximately 229 million to 231 million.Provision for income tax rate estimate of 28%.Conference Call DetailsA conference call to discuss our fourth quarter and full-year financial results is scheduled for today:Date: Tuesday, February 24, 2026Time: 10:00 a.m. ET (9:00 a.m. CT)U.S. dial-in number: 1-877-451-6152International dial-in number: 1-201-389-0879Webcast: Webcast | Life Time Group Holdings 4Q25 and FY 2025 EarningsA link to the live audio webcast of the conference call will be available at https://ir.lifetime.life.Replay InformationWebcast – A recorded replay of the webcast will be available within approximately three hours of the call's conclusion and may be accessed at: https://ir.lifetime.life.Conference Call – A replay of the conference call will be available after 1:00 p.m. ET the same day through March 13, 2026:U.S. replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 1375 1286About Life TimeLife Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 185 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 44,000 team members.Use of Non-GAAP Financial Measures and Key Performance IndicatorsThis press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted net income per common share, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net income per common share, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its financial outlook for fiscal year 2026, growth, strength of its balance sheet, net debt and leverage, interest expense, consumer demand, industry and economic trends, member engagement and mix, tax rates and expense, rent expense, expected number of diluted common shares outstanding, expected number, size and timing of new center openings, successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof) and the timing, amount and price of any share repurchase. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and the growth of our business including the competitive and economic environment, risks relating to our brand, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC") on February 27, 2025 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)

Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024Revenue:

Center revenue$           726,291
$         646,384
$     2,908,707
$     2,546,651Other revenue18,805
16,899
86,548
74,344Total revenue745,096
663,283
2,995,255
2,620,995Operating expenses:

Center operations379,371
343,877
1,568,611
1,392,421Rent87,304
79,141
339,170
304,945General, administrative and marketing65,250
61,211
244,611
221,047Depreciation and amortization77,344
69,613
296,345
274,681Other operating expense6,298
22,466
65,225
70,418Total operating expenses615,567
576,308
2,513,962
2,263,512Income from operations129,529
86,975
481,293
357,483Other income (expense):

Interest expense, net of interest income(16,932)
(37,012)
(82,263)
(148,095)Equity in earnings (loss) of affiliates62
(217)
232
(620)Other income59,374
—
94,241
—Total other income (expense)42,504
(37,229)
12,210
(148,715)Income before income taxes172,033
49,746
493,503
208,768Provision for income taxes49,033
12,583
119,832
52,528Net income$           123,000
$           37,163
$         373,671
$         156,240

Income per common share:

Basic$                  0.56
$               0.18
$               1.71
$               0.77Diluted$                  0.54
$               0.17
$               1.66
$               0.74Weighted-average common shares outstanding:

Basic220,698
207,142
218,031
201,640Diluted226,720
220,267
225,495
211,164 LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)

December 31,
2025
December 31,
2024ASSETS

Current assets:

Cash and cash equivalents$           204,807
$             10,879Restricted cash and cash equivalents27,362
16,999Accounts receivable, net24,092
25,087Center operating supplies and inventories67,618
60,266Prepaid expenses and other current assets61,881
52,826Income tax receivable—
4,918Total current assets385,760
170,975Property and equipment, net3,633,229
3,193,671Goodwill1,235,359
1,235,359Operating lease right-of-use assets2,479,804
2,313,311Intangible assets, net180,810
171,643Other assets92,989
67,578Total assets$        8,007,951
$        7,152,537LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable$             90,249
$             87,810Construction accounts payable143,545
101,551Deferred revenue60,309
58,252Accrued expenses and other current liabilities214,351
179,444Current maturities of debt21,848
22,584Current maturities of operating lease liabilities79,208
70,462Total current liabilities609,510
520,103Long-term debt, net of current portion1,485,939
1,513,157Operating lease liabilities, net of current portion2,555,513
2,381,094Deferred income taxes, net172,217
85,255Other liabilities58,561
42,578Total liabilities4,881,740
4,542,187Stockholders' equity:

Common stock, $0.01 par value per share; 500,000 shares authorized; 221,077 and 207,495 shares issued and outstanding, respectively2,211
2,075Additional paid-in capital3,183,032
3,041,645Accumulated deficit(46,902)
(420,573)Accumulated other comprehensive loss(12,130)
(12,797)Total stockholders' equity3,126,211
2,610,350Total liabilities and stockholders' equity$        8,007,951
$        7,152,537 LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)

Year EndedDecember 31,
2025
2024Cash flows from operating activities:

Net income$             373,671
$             156,240Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization296,345
274,681Deferred income taxes87,492
29,457Share-based compensation51,750
51,034Non-cash rent expense32,497
33,739Impairment charges associated with long-lived assets9,352
11,018Gain on disposal of property and equipment, net(12,165)
(6,794)Loss on debt extinguishment—
13,839Amortization of debt discounts and issuance costs3,659
7,002Changes in operating assets and liabilities29,487
2,387Other(1,563)
2,514Net cash provided by operating activities870,525
575,117Cash flows from investing activities:

Capital expenditures(891,483)
(524,535)Proceeds from sale-leaseback transactions227,424
207,421Proceeds from the sale of land—
15,577Other(21,676)
8,793Net cash used in investing activities(685,735)
(292,744)Cash flows from financing activities:

Proceeds from borrowings—
1,500,000Repayments of debt(20,080)
(411,766)Proceeds from revolving credit facility220,000
1,225,000Repayments of revolving credit facility(230,000)
(1,305,000)Purchase of U.S. government obligations for the satisfaction and discharge of debt—
(1,424,467)Repayments of finance lease liabilities(2,006)
(926)Proceeds from financing obligations10,300
4,300Payments of debt discounts and issuance costs(628)
(22,325)Proceeds from the issuance of common stock, net of issuance costs—
123,964Proceeds from stock option exercises42,487
25,933Proceeds from issuances of common stock in connection with the employee stock purchase plan4,290
2,818Other(4,975)
(1,916)Net cash provided by (used in) financing activities19,388
(284,385)Effect of exchange rates on cash and cash equivalents and restricted cash and cash equivalents113
(76)Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents204,291
(2,088)Cash and cash equivalents and restricted cash and cash equivalents—beginning of period27,878
29,966Cash and cash equivalents and restricted cash and cash equivalents—end of period$             232,169
$               27,878Non-GAAP Measurements and Key Performance IndicatorsSee "Use of Non-GAAP Financial Measures and Key Performance Indicators" for a discussion of the Non-GAAP financial measures reconciled below.Key Performance Indicators($ in thousands, except for Average Center revenue per center membership)(Unaudited)

Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024Membership Data

Center memberships822,380
812,062
822,380
812,062Digital on-hold memberships50,556
54,023
50,556
54,023Total memberships872,936
866,085
872,936
866,085

Revenue Data

Membership dues and enrollment fees73.7 %
73.9 %
72.6 %
72.8 %In-center revenue26.3 %
26.1 %
27.4 %
27.2 %Total Center revenue100.0 %
100.0 %
100.0 %
100.0 %

Membership dues and enrollment fees$          535,102
$          477,751
$       2,111,370
$       1,853,963In-center revenue191,189
168,633
797,337
692,688Total Center revenue$          726,291
$          646,384
$       2,908,707
$       2,546,651

Average Center revenue per center membership (1)$               882
$               796
$            3,531
$            3,160Comparable center revenue (2)9.9 %
13.5 %
11.1 %
12.2 %

Center Data

Net new center openings (3)4
2
10
8Total centers (end of period) (3)189
179
189
179Total center square footage (end of period) (4)18,300,000
17,600,000
18,300,000
17,600,000

GAAP and Non-GAAP Financial Measures

Net income$        123,000
$          37,163
$        373,671
$        156,240Net income margin (5)16.5 %
5.6 %
12.5 %
6.0 %Adjusted net income (6)$            77,424
$            60,263
$          325,522
$          200,451Adjusted net income margin (6)10.4 %
9.1 %
10.9 %
7.6 %Adjusted EBITDA (7)$        202,564
$        176,964
$        825,175
$        676,780Adjusted EBITDA margin (7)27.2 %
26.7 %
27.5 %
25.8 %Center operations expense$        379,371
$        343,877
$    1,568,611
$    1,392,421Pre-opening expenses (8)$            1,541
$            1,185
$            5,030
$            6,003Rent$          87,304
$          79,141
$        339,170
$        304,945Non-cash rent expense (open properties) (9)$            2,066
$            7,630
$          26,525
$          31,034Non-cash rent expense (properties under development) (9)$            1,556
$               929
$            5,972
$            2,705Net cash provided by operating activities$        239,859
$        163,141
$        870,525
$        575,117Free cash flow (10)$          (9,903)
$          26,526
$        206,466
$        273,580

(1)We define Average Center revenue per center membership as Center revenue less Digital on-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.

(2)We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

(3)Net new center openings is calculated as the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. During 2025, we opened 10 centers.

(4)Total center square footage (end of period) reflects the aggregate square footage, excluding the areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. We use this metric for evaluating the efficiencies of a center as of the end of the period. These figures are approximations.

(5)Net income margin is calculated as net income divided by total revenue.

(6)We present Adjusted net income as a supplemental measure of our performance. We define Adjusted net income as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments.

Adjusted net income margin is calculated as Adjusted net income divided by total revenue.

The following table provides a reconciliation of net income and income per common share, the most directly comparable GAAP measures, to Adjusted net income and Adjusted net income per common share:
Three Months Ended
Year Ended
December 31,
December 31,($ in thousands, except per share data)2025
2024
2025
2024Net income$           123,000
$           37,163
$         373,671
$        156,240Share-based compensation expense (a)6,571
20,584
51,750
51,034(Gain) loss on sale-leaseback transactions (b)(17,549)
2
(12,785)
(2,618)Capital transaction costs (c)—
—
1,531
—Legal settlements (d)(38,723)
7
(38,629)
1,815Asset impairments (e)5,791
—
5,791
—Employee retention credits (f)(19,705)
—
(54,572)
—Other (g)(130)
10,329
(22)
8,844Taxes (h)18,169
(7,822)
(1,213)
(14,864)Adjusted net income$             77,424
$           60,263
$         325,522
$        200,451

Income per common share:

Basic$                 0.56
$               0.18
$               1.71
$              0.77Diluted$                 0.54
$               0.17
$               1.66
$              0.74Adjusted income per common share:

Basic$                 0.35
$               0.29
$               1.49
$              0.99Diluted$                 0.34
$               0.27
$               1.44
$              0.95Weighted-average common shares outstanding:

Basic220,698
207,142
218,031
201,640Diluted226,720
220,267
225,495
211,164

(a)Share-based compensation expense recognized during the three months and year ended December 31, 2025 was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan ("ESPP") and liability-classified awards related to our 2025 short-term incentive plan. Share-based compensation expense recognized during the three months and year ended December 31, 2024 was associated with stock options, restricted stock units, performance stock units, our ESPP and liability-classified awards related to our 2024 short-term incentive plan.

(b)We adjust for the impact of gains and losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations.

(c)Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature.

(d)We adjust for the impact of unusual legal settlements or judgments as these costs and proceeds are non-recurring in nature and do not reflect costs or proceeds associated with our normal ongoing operations. The vast majority of the adjustment for the three months and year ended December 31, 2025 is payment of nearly $40 million by Zurich American Insurance Company ("Zurich") in partial satisfaction of legal claims against Zurich for its failure to provide certain business interruption insurance coverage related to the government-ordered suspensions of our club operations in 2020 during the COVID-19 pandemic, representing payment of up to $1.0 million plus interest for 26 occurrences of 29 total occurrences found by the Minnesota Court of Appeals in an order dated August 11, 2025. This payment is offset by legal-related expenses in pursuit of our claim against Zurich of $0.9 million for the three months ended December 31, 2025, and $1.0 million and $0.6 million for the years ended December 31, 2025 and 2024, respectively. This adjustment also includes $1.3 million of other costs related to unusual legal settlements or judgments for the year ended December 31, 2024.

(e)Represents non-cash asset impairments of our long-lived assets related to non-club businesses, excluding impairments on development costs that are part of our normal course of business.

(f)Represents refundable payroll tax credits for employee retention under the CARES Act.

(g)Includes (i) a $10.3 million and $13.8 million write-off of the unamortized debt discounts and issuance costs associated with the extinguishment of our former term loan facility and construction loan and the loss on the satisfaction and discharge of our 5.750% Senior Secured Notes and 8.000% Senior Unsecured Notes for the three months and year ended December 31, 2024, respectively, (ii) gain on sales of land of $(5.0) million for the year ended December 31, 2024, and (iii) other immaterial transactions that are unusual or non-recurring in nature of $(0.1) million for the three months ended December 31, 2025.

(h)Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. Taxes for the year ended December 31, 2025 include $12.6 million in income tax benefits due to a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025.

(7)We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations.

Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended
Year Ended
December 31,
December 31,($ in thousands)2025
2024
2025
2024Net income$             123,000
$               37,163
$             373,671
$             156,240Interest expense, net of interest income (g)16,932
37,012
82,263
148,095Provision for income taxes49,033
12,583
119,832
52,528Depreciation and amortization77,344
69,613
296,345
274,681Share-based compensation expense (a)6,571
20,584
51,750
51,034(Gain) loss on sale-leaseback transactions (b)(17,549)
2
(12,785)
(2,618)Capital transaction costs (c)—
—
1,531
—Legal settlements (d)(38,723)
7
(38,629)
1,815Asset impairments (e)5,791
—
5,791
—Employee retention credits (f)(19,705)
—
(54,572)
—Other (h)(130)
—
(22)
(4,995)Adjusted EBITDA$             202,564
$             176,964
$             825,175
$             676,780

(a) – (f)See the corresponding footnotes to the table in footnote 6 immediately above.

(g)Includes (i) a $10.3 million and $13.8 million write-off of the unamortized debt discounts and issuance costs associated with the extinguishment of our former term loan facility and construction loan and the loss on the satisfaction and discharge of our 5.750% Senior Secured Notes and 8.000% Senior Unsecured Notes for the three months and year ended December 31, 2024.

(h)Includes gain on sales of land of $(5.0) million for the year ended December 31, 2024.

(8)Represents non-capital expenditures associated with opening new centers that are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.

(9)Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.

(10)Free cash flow, a non-GAAP financial measure, is calculated as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales.

The following table provides a reconciliation from net cash provided by operating activities to free cash flow:
Three Months Ended
Year Ended
December 31,
December 31,($ in thousands)2025
2024
2025
2024Net cash provided by operating activities$        239,859
$        163,141
$        870,525
$           575,117Capital expenditures, net of construction reimbursements(304,503)
(136,322)
(891,483)
(524,535)Proceeds from sale-leaseback transactions54,741
(293)
227,424
207,421Proceeds from land sales—
—
—
15,577Free cash flow$          (9,903)
$          26,526
$        206,466
$           273,580 Reconciliation of Net Debt and Leverage Calculation($ in thousands)(Unaudited)

Twelve
Twelve
Months Ended
Months Ended
December 31, 2025
December 31, 2024Current maturities of debt$                         21,848
$                      22,584Long-term debt, net of current portion1,485,939
1,513,157Total Debt$                    1,507,787
$                 1,535,741Less: Fair value adjustment130
284Less: Unamortized debt discounts and issuance costs(17,576)
(19,856)Less: Cash and cash equivalents204,807
10,879Net Debt$                    1,320,426
$                 1,544,434Trailing twelve-month Adjusted EBITDA825,175
676,780Net Debt Leverage Ratio1.60x
2.28x Reconciliation of Net Income to Adjusted Net Income Guidance for the Year Ending 2026($ in millions)(Unaudited)

Year Ending($ in millions, except per share data)December 31, 2026Net income$330 – $336Share-based compensation expense54 – 58Taxes(15) – (16)Adjusted net income$369 – $378 Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2026($ in millions)(Unaudited)

Year Ending
December 31, 2026Net income$330 – $336Interest expense, net of interest income60 – 56Provision for income taxes129 – 130Depreciation and amortization337 – 345Share-based compensation expense54 – 58Adjusted EBITDA$910 – $925

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Original: Life Time Reports Fourth Quarter and Full-Year 2025 Financial Results