#USA #Chanhassen #Financial Growth #Life Time #Athletic Clubs

Financial Success in Q1 2026 for Life Time Group Holdings

Life Time Group Holdings, Inc. (NYSE: LTH) has reported an impressive performance for the first quarter of 2026, showcasing significant growth metrics which highlight the company's continued expansion strategy and enhanced member engagement.

Key Financial Highlights

Life Time's total revenue for the first quarter reached $788.7 million, marking an 11.7% increase compared to the same period last year. This surge can be attributed to a substantial rise in membership dues and in-center revenue, fueled by an uptick in average membership dues and enhanced membership mix.

• - Net income stood at $88.1 million, reflecting a 15.8% increase year-over-year.
• - The diluted earnings per share (EPS) rose to $0.39, which is a 14.7% increase from the previous year's quarter.
• - Adjusted net income was reported at $96.2 million, representing a 27.4% growth, while adjusted EBITDA rose to $226.7 million, showing an increase of 18.3% compared to Q1 2025.

Operational Performance

The robust financials underscore a strong operational execution by Life Time. The company has successfully increased its center memberships to 837,903, which reflects a growth of 1.4% from a year ago. This growth was particularly driven by new and ramping centers, enhanced member utilization of in-center offerings, especially in Dynamic Personal Training.

Bahram Akradi, Life Time’s founder and CEO, expressed optimism about the results, emphasizing the company's strategic plans to open 12 to 14 new clubs this year, primarily focusing on large-format, ground-up constructions. The rise in membership engagement and the improvement of the membership mix highlight the company's commitment to fostering a healthier lifestyle among its members.

Growth Strategy and Outlook

Life Time is confident in its growth trajectory, supported by a solid cash flow and a strong balance sheet with low leverage. For 2026, the company anticipates total revenues in the range of $3.32 billion to $3.35 billion, reflecting an approximate 11.3% increase year-over-year. Furthermore, they expect new clubs to contribute significantly to revenue growth in the latter half of the year.

New Openings and Enhancements

As of the end of Q1 2026, Life Time operates a total of 190 centers, with plans for opening new centers designed to cater to a growing population focused on wellness and fitness. Life Time's commitment to innovation is evident in its capital expenditures for growth, which have increased substantially in the quarter.

• - The growth capital expenditures totaled $205.2 million, indicating a 119.5% increase from the previous year.
• - Investments in modernization and technology amounted to $23.3 million, demonstrating Life Time’s focus on enhancing customer experiences and facility improvements.

Investor Confidence

Life Time’s ability to generate positive cash flow continues to reassure investors, with net cash from operating activities increasing 8.1% to $198.8 million compared to Q1 2025. With available liquidity standing at $736.9 million, including cash reserves and credit facilities, the company is well-positioned to capitalize on new growth opportunities.

Conclusion

The results from the first quarter of 2026 illustrate Life Time Group Holdings Inc.'s adeptness in navigating the competitive fitness landscape while expanding its footprint and enhancing member experience. As they forge ahead with their growth agenda, the strong financial outlook signifies potential for continued success in the months to come. Investors and fitness enthusiasts alike will be keenly observing how Life Time strategically expands its offerings and membership base in this thriving market.