Life Time Group (NYSE:LTH) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Life Time Group exceeded third-quarter expectations: EPS came in at $0.51 versus the $0.41 consensus, while revenue rose about 14% year over year to $893.5 million, above estimates.
• Profitability and outlook improved: Adjusted EBITDA increased 16.5% to $256.3 million, and management raised full-year comparable-center revenue, revenue, and adjusted EBITDA guidance.
• Growth remains supported by club expansion and ancillary services, though membership growth was modest and insiders—including the CEO and CFO—sold shares, with much of the activity conducted under planned or tax-related transactions.

Life Time Group (NYSE:LTH - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.41 by $0.10, FiscalAI reports. The firm had revenue of $893.52 million during the quarter, compared to the consensus estimate of $874.98 million. Life Time Group had a return on equity of 10.56% and a net margin of 13.07%. The firm's revenue was up 14.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.41 EPS.

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

• Strong third-quarter performance saw revenue rise 14.2% to $893.5 million, comparable-center revenue increase 8.7%, and adjusted EBITDA grow 16.5% to $256.3 million, with margin expanding 60 basis points to 28.7%.
• Management raised full-year comparable-center revenue guidance to 8.5%-8.7% from 7.9%-8.3% and increased full-year revenue and adjusted EBITDA guidance, citing strength in dues, membership acquisition, and in-center businesses.
• Membership optimization is improving economics: non-Qualified Medical memberships grew 5.4% year over year while Qualified Medical memberships declined 19.6%, helping drive 13.7% dues-revenue growth and higher average monthly dues.
• Life Time remains on track to open 14 clubs in 2026 and expects 12-14 openings annually, supported by a strong development pipeline; management also highlighted continued growth in Dynamic Personal Training, LifeSpa, pickleball, and other in-center offerings.
• Capital expenditures rose 29.8% to $288.7 million as the company builds clubs for 2026 and beyond, while it expects roughly $135 million of additional fourth-quarter sale-leaseback proceeds; management reiterated its $400 million annual sale-leaseback target and 2030 free-cash-flow outlook.

Life Time Group Trading Up 4.9%

NYSE LTH traded up $2.11 on Thursday, reaching $45.25. 4,262,533 shares of the company were exchanged, compared to its average volume of 3,038,319. The business's fifty day moving average price is $41.68 and its 200 day moving average price is $35.15. The stock has a market capitalization of $10.11 billion, a P/E ratio of 29.55, a price-to-earnings-growth ratio of 1.56 and a beta of 1.49. The company has a current ratio of 0.66, a quick ratio of 0.56 and a debt-to-equity ratio of 0.44. Life Time Group has a fifty-two week low of $24.14 and a fifty-two week high of $47.32.

Key Headlines Impacting Life Time Group

Here are the key news stories impacting Life Time Group this week:

• Positive Sentiment: Quarterly results exceeded expectations. Life Time reported $893.5 million in third-quarter revenue, up 14.2% year over year and above the $875.0 million consensus estimate. Adjusted diluted earnings per share were $0.51, compared with analyst expectations ranging from $0.41 to $0.45 and $0.41 a year earlier. Life Time Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Profitability improved significantly on an adjusted basis. Adjusted net income rose 24.6% to $115.9 million, while adjusted EBITDA increased 16.5% to $256.3 million. Adjusted EPS grew 24.4%, suggesting operating leverage despite slower growth in reported net income. Life Time Group Reports Third-Quarter Results
• Positive Sentiment: Management raised its 2026 earnings guidance. The upward revision provides a favorable forward-looking signal and indicates that management expects the business to sustain its momentum through the remainder of the year. Life Time Raises 2026 Earnings Guidance
• Neutral Sentiment: Membership growth remained in the low single digits. Revenue growth was strong, but the membership trend suggests that pricing, club additions and ancillary offerings may be contributing meaningfully to results rather than rapid member-count expansion. Life Time Group Posts Third-Quarter Revenue Increase
• Positive Sentiment: Analyst attention remains supportive. Morgan Stanley projected substantial potential appreciation, while Barclays initiated research coverage, potentially broadening institutional visibility for LTH. Morgan Stanley Forecasts Strong Price Appreciation

Insiders Place Their Bets

In related news, CFO Erik Weaver sold 5,787 shares of the firm's stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $39.77, for a total transaction of $230,148.99. Following the completion of the sale, the chief financial officer directly owned 83,131 shares in the company, valued at approximately $3,306,119.87. This trade represents a 6.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Bahram Akradi sold 438,257 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $45.03, for a total transaction of $19,734,712.71. Following the sale, the chief executive officer owned 3,615,086 shares of the company's stock, valued at approximately $162,787,322.58. The trade was a 10.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 6,971,850 shares of company stock worth $306,262,084. 13.30% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

LTH has been the subject of a number of research reports. Northland Securities set a $57.00 target price on shares of Life Time Group in a report on Friday, July 31st. Royal Bank Of Canada raised their price target on shares of Life Time Group from $50.00 to $60.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Barclays initiated coverage on shares of Life Time Group in a research note on Monday. They issued an "overweight" rating and a $51.00 price target on the stock. Jefferies Financial Group restated a "buy" rating on shares of Life Time Group in a research report on Wednesday, September 23rd. Finally, Deutsche Bank Aktiengesellschaft set a $54.00 price objective on shares of Life Time Group in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Life Time Group currently has a consensus rating of "Buy" and a consensus target price of $55.36.

Life Time Group Company Profile

Life Time Group Holdings, Inc NYSE: LTH operates a network of luxury athletic country clubs in the United States and Canada. The company's facilities combine fitness, sports, health, and wellness services in an integrated club environment designed for individuals and families.

Life Time clubs typically offer cardiovascular and strength-training equipment, group fitness classes, personal training, indoor and outdoor pools, tennis, pickleball, basketball, and other athletic programs. Many locations also provide childcare, spas, cafés, workspaces, recovery services, and specialized programs for children, older adults, and other member groups.

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