Life Time Group Holdings, Inc. (LTH) Stock Analysis and Metrics

Life Time Group Holdings

NYSE: LTH

$44.42 ▲ +0.60 (+1.36%)

At close: Aug 13, 2026 · 1:58 PM UTC

Financial Ratios

Market Cap9.88 Bn

P/E23.80

P/S3.10

Div. Yield0.00

ROIC (Qtr)0.04

Total Debt (Qtr)1.53 Bn

Revenue Growth (1y) (Qtr)13.73

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About

Life Time Group Holdings, Inc. is a holding company that operates as a premier lifestyle and leisure brand offering premium health, fitness, and wellness experiences through its network of athletic country clubs. The company provides a comprehensive suite of services and amenities designed to support members in achieving their health and wellness goals across all stages of life. Life Time Group Holdings, Inc. owns and manages over 185 centers across 31 U. S. states and one Canadian province, serving a membership base of nearly 1.6 million individuals as of December 31, 2025.

Life Time Group Holdings, Inc. generates revenue primarily through membership dues and enrollment fees, which constitute over 72% of its total Center revenue. Additional revenue streams include fees for specialized services such as personal training, group fitness classes, racquet sports court usage, spa treatments, nutrition coaching, and aquatic programs. The company also earns income from its LifeCafe food and beverage operations, LifeSpa services, and retail sales of branded apparel and nutritional supplements. Its omni-channel platform, including digital fitness content and remote training offerings, further contributes to revenue generation. The company serves individual members and families seeking premium, integrated health and wellness experiences in a resort-like environment.

The company operates through the following segments: Center Operations and Digital and Other Services.

• Center Operations encompasses the management and operation of Life Time’s athletic country club destinations, including fitness floors, pools, tennis and pickleball courts, group fitness studios, locker rooms, childcare facilities, and in-center amenities such as LifeCafe and LifeSpa. This segment delivers the core in-person health, fitness, and wellness experiences that define the brand’s value proposition to members.

• Digital and Other Services includes the company’s omni-channel digital platform, which provides live-streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, and curated wellness content. It also includes the LAIC artificial intelligence-driven companion, Life Time Work co-working spaces, and Life Time Living luxury wellness-oriented residences located near athletic country clubs.

Life Time Group Holdings, Inc. holds a leading position in the premium health, fitness, and wellness industry, distinguished by its integrated athletic country club model that combines extensive amenities with high-touch service offerings. The company competes with operators such as Equinox Holdings, Inc., Invited (formerly ClubCorp), LA Fitness International, LLC, and 24 Hour Fitness Worldwide, Inc., as well as boutique fitness studios like Orange Theory and Anytime Fitness. Its competitive advantages stem from its strong brand equity, vertically integrated service model, expansive amenity breadth, and focus on affluent suburban and urban markets where members exhibit high engagement and retention.

Life Time Group Holdings, Inc. serves a member base primarily composed of individuals and families in affluent suburban and urban communities across North America. As of December 31, 2025, members had a median household income of $160,000, with approximately 60% participating in couples or family memberships. The member demographic includes approximately 61% with at least a college education, 73% homeownership, and a balanced gender mix, with 44% under 35 years of age and 77% under 55 years of age. The company does not disclose specific individual customer names in its public filings.

Investment Thesis

▲ Bull case

Life Time's strategic shift toward higher-value memberships and premium in-center businesses is creating a sustainable margin expansion engine that the market is underestimating. The company's focus on replacing lower-dues qualified medical memberships with higher-dues, higher-utilization memberships has driven a 10.5% year-over-year increase in average monthly dues to $230 and a 10.2% rise in average revenue per center membership to $930, directly contributing to an 18.3% increase in adjusted EBITDA and a 160 basis point margin expansion to 28.7%. This mix shift is not merely a temporary tactic but a structural evolution, as management emphasized that 2/3 of the membership base still pays below rack rate, indicating significant runway for further pricing power and revenue per member growth as legacy members naturally turnover. The market appears to be overlooking how this dynamic, combined with the company's disciplined approach to club openings targeting affluent markets, is building a higher-margin, more resilient revenue base less susceptible to economic downturns.
The company's integrated ecosystem of athletic country clubs, in-center Dynamic services (Personal Training, Stretch, Nutrition Coaching), and iconic endurance events is generating powerful cross-selling synergies that are not fully reflected in current financials. Recent launches like Dynamic Nutrition Coaching, supported by over 500 certified coaches nationwide, are designed to work in concert with Dynamic Personal Training and Dynamic Stretch, creating a data-informed, holistic wellness offering that increases member engagement, retention, and ancillary revenue per member. Management highlighted that members engaging in multiple Dynamic services exhibit significantly higher lifetime value and utilization, yet the current revenue contribution from these businesses remains underappreciated in valuation models. The Phoenix 10K acquisition exemplifies how Life Time leverages its event portfolio to drive club membership growth and brand affinity in key markets like Arizona, where new club openings (Paradise Valley and Ocotillo) are already showing exceptional performance, creating a virtuous cycle between event ownership and club penetration that competitors cannot replicate.
Life Time's real estate strategy is generating substantial hidden value through its fee-owned asset portfolio and sale-leaseback program, which the market is failing to adequately price into the stock. The company generated approximately $200 million in sale-leaseback proceeds in Q1 alone and raised its full-year target to $400 million, not merely as a financing tool but as a deliberate capital allocation strategy to recycle capital into high-return club developments while retaining ownership of appreciating real estate. Management emphasized that they are building more than $400-$600 million annually in fee-owned sellable assets, creating a growing liquidity reservoir that supports ongoing free cash flow generation without diluting shareholders or increasing leverage. With net debt leverage already at a conservative 1.6x and a strong balance sheet featuring hundreds of millions in cash, this approach positions Life Time to fund growth, return capital via buybacks (as evidenced by the recent $62.7 million private repurchase), and potentially pursue strategic acquisitions—all while maintaining a fortress-like financial profile that reduces risk and enhances long-term optionality.
The company's brand repositioning as an "acolyte country club" is capturing a growing segment of experience-driven, price-insensitive consumers, a trend that is underappreciated in the current market narrative focused solely on traditional fitness competition. Management repeatedly stressed that new members are joining not for price promotions but for the Lifetime brand and experience, with in-center spend growth remaining strong and waitlists substantial for new clubs, indicating pricing power and demand resilience even amid broader consumer fatigue. This shift is supported by the success of specialized programming like CTR, hybrid XT, and the emerging Lifetime Health and Wellness Hub, which are designed to deepen engagement and create switching costs. The market appears to be missing how this brand strength, combined with the company's scale in operating over 500 pools and 190+ clubs, creates a durable moat against both traditional gyms and newer digital fitness entrants, particularly as consumers prioritize trusted, comprehensive wellness destinations over fragmented alternatives.

Life Time's strategic shift toward higher-value memberships and premium in-center businesses is creating a sustainable margin expansion engine that the market is underestimating. The company's focus on replacing lower-dues qualified medical memberships with higher-dues, higher-utilization memberships has driven a 10.5% year-over-year increase in average monthly dues to $230 and a 10.2% rise in average revenue per center membership to $930, directly contributing to an 18.3% increase in adjusted EBITDA and a 160 basis point margin expansion to 28.7%. This mix shift is not merely a temporary tactic but a structural evolution, as management emphasized that 2/3 of the membership base still pays below rack rate, indicating significant runway for further pricing power and revenue per member growth as legacy members naturally turnover. The market appears to be overlooking how this dynamic, combined with the company's disciplined approach to club openings targeting affluent markets, is building a higher-margin, more resilient revenue base less susceptible to economic downturns.
The company's integrated ecosystem of athletic country clubs, in-center Dynamic services (Personal Training, Stretch, Nutrition Coaching), and iconic endurance events is generating powerful cross-selling synergies that are not fully reflected in current financials. Recent launches like Dynamic Nutrition Coaching, supported by over 500 certified coaches nationwide, are designed to work in concert with Dynamic Personal Training and Dynamic Stretch, creating a data-informed, holistic wellness offering that increases member engagement, retention, and ancillary revenue per member. Management highlighted that members engaging in multiple Dynamic services exhibit significantly higher lifetime value and utilization, yet the current revenue contribution from these businesses remains underappreciated in valuation models. The Phoenix 10K acquisition exemplifies how Life Time leverages its event portfolio to drive club membership growth and brand affinity in key markets like Arizona, where new club openings (Paradise Valley and Ocotillo) are already showing exceptional performance, creating a virtuous cycle between event ownership and club penetration that competitors cannot replicate.
Life Time's real estate strategy is generating substantial hidden value through its fee-owned asset portfolio and sale-leaseback program, which the market is failing to adequately price into the stock. The company generated approximately $200 million in sale-leaseback proceeds in Q1 alone and raised its full-year target to $400 million, not merely as a financing tool but as a deliberate capital allocation strategy to recycle capital into high-return club developments while retaining ownership of appreciating real estate. Management emphasized that they are building more than $400-$600 million annually in fee-owned sellable assets, creating a growing liquidity reservoir that supports ongoing free cash flow generation without diluting shareholders or increasing leverage. With net debt leverage already at a conservative 1.6x and a strong balance sheet featuring hundreds of millions in cash, this approach positions Life Time to fund growth, return capital via buybacks (as evidenced by the recent $62.7 million private repurchase), and potentially pursue strategic acquisitions—all while maintaining a fortress-like financial profile that reduces risk and enhances long-term optionality.
The company's brand repositioning as an "acolyte country club" is capturing a growing segment of experience-driven, price-insensitive consumers, a trend that is underappreciated in the current market narrative focused solely on traditional fitness competition. Management repeatedly stressed that new members are joining not for price promotions but for the Lifetime brand and experience, with in-center spend growth remaining strong and waitlists substantial for new clubs, indicating pricing power and demand resilience even amid broader consumer fatigue. This shift is supported by the success of specialized programming like CTR, hybrid XT, and the emerging Lifetime Health and Wellness Hub, which are designed to deepen engagement and create switching costs. The market appears to be missing how this brand strength, combined with the company's scale in operating over 500 pools and 190+ clubs, creates a durable moat against both traditional gyms and newer digital fitness entrants, particularly as consumers prioritize trusted, comprehensive wellness destinations over fragmented alternatives.

▼ Bear case

Life Time's reliance on continued membership mix improvement and pricing power faces growing headwinds as the pool of lower-dues qualified medical memberships to replace diminishes, potentially slowing future revenue growth. While the company successfully reduced qualified medical memberships from a higher base to just 3.4% of dues revenue in Q1 2026, management acknowledged that this segment will continue to shrink, expecting it to represent only 3% by year-end and an even smaller proportion over time. As this legacy drag on revenue per member growth fades, the company will need to rely increasingly on organic membership growth and price increases to sustain its 10-12% revenue growth target, yet comparable center revenue growth already slowed to 8.6% in Q1 (down from 12.9% in the prior year), suggesting the tailwind from mix shift is weakening. The market may be overestimating the durability of this dynamic, especially as the company laps the easy comparisons from removing low-yielding members, making future comparable center revenue growth more dependent on challenging volume growth in a potentially saturated premium fitness market.
The company's aggressive capital expenditure plan, driven by new club openings and real estate development, is consuming cash at an accelerating rate that could strain free cash flow generation despite optimistic management commentary. Total capital expenditures surged 82.5% year-over-year to $260 million in Q1, reflecting construction for 2026 club openings and early work on 2027-2028 projects, yet free cash flow turned negative to -$61.2 million in the quarter from a positive $41.4 million year-ago, primarily due to this CapEx spike. While management highlighted the benefit of sale-leaseback transactions generating liquidity, the reliance on asset sales to fund growth introduces execution risk—if the pace of club openings slows or real estate market conditions deteriorate, the company may be forced to choose between growth investment and maintaining its positive free cash flow narrative, potentially undermining investor confidence in its financial discipline.
Life Time's expansion into adjacent wellness services like Dynamic Nutrition Coaching and the Lifetime Health and Wellness Hub, while strategically sound, carries significant execution and margin dilution risks that are not being adequately scrutinized. The rollout of these services requires substantial investment in trainer certification, technology integration (such as the L•AI•C™ app), and ongoing operational support, yet management provided little detail on the incremental contribution margin or payback period for these initiatives. Dynamic Nutrition Coaching, for instance, is being positioned as a core pillar alongside fitness offerings, but in-center businesses like personal training already carry lower margins than dues revenue, and adding more complex, labor-intensive services could compress overall center-level profitability if uptake is slow or if the services require heavy discounting to drive adoption. The market may be assuming seamless integration and high-margin contribution from these new offerings, but the historical challenge of monetizing wellness services at scale in a fitness-centric model suggests these initiatives could become drags on margin rather than immediate accretive growth engines.
The company's growth strategy is increasingly dependent on capturing market share in urban and semi-urban markets, where real estate costs, competition, and operational complexity pose elevated risks that could undermine the historically strong returns seen in suburban locations. While management expressed confidence in urban club performance citing "incredible return on invested capital," they also acknowledged that these projects take 5-7 years to negotiate and develop, implying significant upfront time and capital investment with delayed payoff. Urban markets typically feature higher construction costs, stricter zoning, and greater competition from both traditional fitness operators and experiential wellness concepts, which could pressure margins and slow ramp-up periods. Furthermore, the company's success in markets like Gilbert, Arizona—cited as a once-barren area now "one of the hottest"—may not be easily replicable nationwide, and the market may be overestimating the scalability of its prototype model in densely populated, high-cost urban environments where land acquisition and community approval present substantial barriers to the planned 14+ clubs per year growth trajectory.

Life Time's reliance on continued membership mix improvement and pricing power faces growing headwinds as the pool of lower-dues qualified medical memberships to replace diminishes, potentially slowing future revenue growth. While the company successfully reduced qualified medical memberships from a higher base to just 3.4% of dues revenue in Q1 2026, management acknowledged that this segment will continue to shrink, expecting it to represent only 3% by year-end and an even smaller proportion over time. As this legacy drag on revenue per member growth fades, the company will need to rely increasingly on organic membership growth and price increases to sustain its 10-12% revenue growth target, yet comparable center revenue growth already slowed to 8.6% in Q1 (down from 12.9% in the prior year), suggesting the tailwind from mix shift is weakening. The market may be overestimating the durability of this dynamic, especially as the company laps the easy comparisons from removing low-yielding members, making future comparable center revenue growth more dependent on challenging volume growth in a potentially saturated premium fitness market.
The company's aggressive capital expenditure plan, driven by new club openings and real estate development, is consuming cash at an accelerating rate that could strain free cash flow generation despite optimistic management commentary. Total capital expenditures surged 82.5% year-over-year to $260 million in Q1, reflecting construction for 2026 club openings and early work on 2027-2028 projects, yet free cash flow turned negative to -$61.2 million in the quarter from a positive $41.4 million year-ago, primarily due to this CapEx spike. While management highlighted the benefit of sale-leaseback transactions generating liquidity, the reliance on asset sales to fund growth introduces execution risk—if the pace of club openings slows or real estate market conditions deteriorate, the company may be forced to choose between growth investment and maintaining its positive free cash flow narrative, potentially undermining investor confidence in its financial discipline.
Life Time's expansion into adjacent wellness services like Dynamic Nutrition Coaching and the Lifetime Health and Wellness Hub, while strategically sound, carries significant execution and margin dilution risks that are not being adequately scrutinized. The rollout of these services requires substantial investment in trainer certification, technology integration (such as the L•AI•C™ app), and ongoing operational support, yet management provided little detail on the incremental contribution margin or payback period for these initiatives. Dynamic Nutrition Coaching, for instance, is being positioned as a core pillar alongside fitness offerings, but in-center businesses like personal training already carry lower margins than dues revenue, and adding more complex, labor-intensive services could compress overall center-level profitability if uptake is slow or if the services require heavy discounting to drive adoption. The market may be assuming seamless integration and high-margin contribution from these new offerings, but the historical challenge of monetizing wellness services at scale in a fitness-centric model suggests these initiatives could become drags on margin rather than immediate accretive growth engines.
The company's growth strategy is increasingly dependent on capturing market share in urban and semi-urban markets, where real estate costs, competition, and operational complexity pose elevated risks that could undermine the historically strong returns seen in suburban locations. While management expressed confidence in urban club performance citing "incredible return on invested capital," they also acknowledged that these projects take 5-7 years to negotiate and develop, implying significant upfront time and capital investment with delayed payoff. Urban markets typically feature higher construction costs, stricter zoning, and greater competition from both traditional fitness operators and experiential wellness concepts, which could pressure margins and slow ramp-up periods. Furthermore, the company's success in markets like Gilbert, Arizona—cited as a once-barren area now "one of the hottest"—may not be easily replicable nationwide, and the market may be overestimating the scalability of its prototype model in densely populated, high-cost urban environments where land acquisition and community approval present substantial barriers to the planned 14+ clubs per year growth trajectory.

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	AS	Amer Sports, Inc.	18.61 Bn	1.03	2.56	-
2	HAS	Hasbro, Inc.	13.64 Bn	17.09	2.74	3.54 Bn
3	LTH	Life Time Group Holdings, Inc.	9.88 Bn	23.80	3.10	1.53 Bn
4	GOLF	Acushnet Holdings Corp.	5.40 Bn	24.60	1.99	0.96 Bn
5	MAT	Mattel Inc /De/	4.25 Bn	10.35	0.77	2.33 Bn
6	PLNT	Planet Fitness, Inc.	3.74 Bn	15.47	2.65	2.55 Bn
7	YETI	YETI Holdings, Inc.	3.58 Bn	16.28	1.79	0.10 Bn
8	CALY	Callaway Golf Co	3.01 Bn	-8.74	1.41	0.05 Bn

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About

Investment Thesis

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Datasets

Plans

Developers

About

Investment Thesis

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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