Life Time Group (NYSE:LTH) Announces Earnings Results

Life Time Group (NYSE:LTH) announced its earnings results on Thursday. The company reported $0.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.11, FiscalAI reports. Life Time Group had a net margin of 12.56% and a return on equity of 10.10%. The business had revenue of $866.00 million during the quarter, compared to the consensus estimate of $845.75 million. During the same quarter last year, the firm earned $0.37 earnings per share. The business’s revenue for the quarter was up 13.7% on a year-over-year basis.

Here are the key takeaways from Life Time Group’s conference call:

• Q2 results exceeded expectations, with revenue up 13.7% to $866 million, comparable-center revenue up 9.1%, adjusted EBITDA up 16.8% to $246.5 million, and margin expanding 80 basis points to 28.5%.
• Life Time raised its full-year comparable-center revenue guidance to 7.9%–8.3% from 6.9%–7.5%, increased its revenue, net income, and adjusted EBITDA outlooks, and lifted the midpoint of its adjusted EBITDA margin guidance to 28.2%.
• The company is deliberately shifting its membership base away from lower-value qualified medical memberships, which declined 18.9% year over year, while other memberships grew 4.2%; management expects this mix to support continued dues growth and says medical memberships will become less than 3% of dues revenue.
• Life Time remains on track to open 14 clubs in 2026 and expects 12–14 openings in 2027, supported by a strong real-estate pipeline; management said new clubs are opening with strong demand and targeted returns above 30% IRR.
• MIORA remains in an incubation phase across six or seven locations, with technology and customer-journey issues still being refined before a broader rollout. Management views peptides and MIORA as potentially significant growth opportunities but emphasized the need for caution and operational perfection.

Life Time Group Stock Down 2.7%

Shares of NYSE:LTH traded down $1.25 during trading on Thursday, reaching $44.45. 4,634,753 shares of the stock traded hands, compared to its average volume of 2,288,248. The stock has a 50-day moving average of $38.20 and a two-hundred day moving average of $31.81. Life Time Group has a 52-week low of $24.14 and a 52-week high of $47.24. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.42 and a current ratio of 0.53. The stock has a market cap of $9.89 billion, a P/E ratio of 25.99, a price-to-earnings-growth ratio of 1.83 and a beta of 1.51.

Wall Street Analyst Weigh In

LTH has been the topic of a number of analyst reports. Wells Fargo & Company boosted their price target on Life Time Group from $38.00 to $46.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Zacks Research raised Life Time Group from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 23rd. Weiss Ratings upgraded Life Time Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, July 21st. Guggenheim boosted their target price on Life Time Group from $36.00 to $41.00 and gave the stock a “buy” rating in a report on Monday, June 15th. Finally, The Goldman Sachs Group reissued a “neutral” rating and issued a $37.00 target price on shares of Life Time Group in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $47.25.

Insider Buying and Selling

In related news, Director John G. Danhakl sold 4,991,749 shares of the company’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $31.46, for a total value of $157,040,423.54. Following the transaction, the director directly owned 16,242,383 shares of the company’s stock, valued at approximately $510,985,369.18. This represents a 23.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Partners Group Private Equity sold 747,178 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $31.46, for a total value of $23,506,219.88. Following the sale, the insider owned 2,431,203 shares in the company, valued at approximately $76,485,646.38. This represents a 23.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,943,861 shares of company stock worth $857,228,555 in the last three months. Insiders own 13.30% of the company’s stock.

Institutional Investors Weigh In On Life Time Group

Several institutional investors have recently modified their holdings of LTH. T. Rowe Price Investment Management Inc. raised its position in Life Time Group by 5.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,176,506 shares of the company’s stock worth $84,432,000 after buying an additional 151,510 shares during the last quarter. Invesco Ltd. lifted its stake in Life Time Group by 138.1% during the 4th quarter. Invesco Ltd. now owns 2,333,283 shares of the company’s stock valued at $62,019,000 after acquiring an additional 1,353,304 shares during the period. Fuller & Thaler Asset Management Inc. lifted its stake in Life Time Group by 9.8% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,894,241 shares of the company’s stock valued at $76,929,000 after acquiring an additional 257,454 shares during the period. VR Advisory Services Ltd purchased a new stake in shares of Life Time Group during the 4th quarter valued at about $19,024,000. Finally, Wellington Management Group LLP boosted its holdings in shares of Life Time Group by 0.6% during the 4th quarter. Wellington Management Group LLP now owns 5,863,510 shares of the company’s stock valued at $155,852,000 after acquiring an additional 34,964 shares during the last quarter. 79.40% of the stock is owned by hedge funds and other institutional investors.

Life Time Group Company Profile

Life Time Group (NYSE: LTH) is a premier operator of health, fitness and lifestyle centers across North America. The company’s core business encompasses the development, ownership and management of premium athletic resorts that integrate state-of-the-art fitness facilities, group exercise studios, indoor and outdoor pools, running tracks, and spa and salon services. In addition to its brick-and-mortar clubs, Life Time offers a digital platform featuring on-demand and live-streamed workouts, personalized training programs and nutrition guidance, enabling members to pursue their wellness goals both at home and on the go.

Founded in 1992 and headquartered in Chanhassen, Minnesota, Life Time has grown from a single Minnesota health club into a network of more than 160 locations across the United States and Canada.