Life Time Group NYSE: LTH reported second-quarter 2026 revenue growth of 13.7% to $866 million, supported by higher membership dues and increased spending on in-center services. Comparable center revenue rose 9.1%, exceeding the company’s expectations and prompting management to raise full-year comparable center revenue guidance.
Chief Financial Officer Erik Weaver said comparable center revenue growth reflected four components: improved membership mix contributed 3.1 percentage points, pricing added 2.9 points, in-center businesses added 2.9 points and membership volume added 0.2 points. The in-center contribution was driven largely by double-digit year-over-year growth in Dynamic Personal Training and LifeSpa.
The company raised its full-year comparable center revenue growth outlook to 7.9% to 8.3%, from a prior range of 6.9% to 7.5%. Weaver said the midpoint of the updated guidance remains above Life Time’s previously communicated long-term growth framework, though the company expects some seasonal moderation in the second half of the year.
Membership Mix and Dues Growth
Average monthly dues reached $245 during the quarter, up about 12.3% from a year earlier, while average revenue per center membership increased 11.8% to $993. Management attributed the increases primarily to favorable membership mix trends and its pricing strategy.
Life Time ended the quarter with approximately 860,000 center memberships, representing 1.2% year-over-year growth. The company has been reducing qualified medical memberships administered through third-party medical insurance providers. Those memberships declined by about 20,600, or 18.9%, from the prior-year period, while all other memberships increased by approximately 30,900, or 4.2%.
Weaver said the membership-mix strategy helped drive a 13.3% increase in total dues revenue. The company expects total center membership growth of 1% to 1.5% in the third quarter and 2% to 3% in the fourth quarter. Excluding qualified medical memberships, Life Time expects membership growth of 4% to 5% in each of those quarters.
Founder, Chairman and Chief Executive Officer Bahram Akradi said qualified medical memberships should become a progressively smaller part of the business. He said the company is discussing renewals with partners while seeking flexibility to manage club capacity and member experiences. Qualified medical memberships accounted for about 3% of total dues revenue at the end of the year, according to management, and are expected to fall below that level over time.
Profitability, Cash Flow and Club Openings
Second-quarter net income was $101.4 million, up 40.6% year over year. Adjusted net income increased 30.6% to $109.8 million. Adjusted EBITDA rose 16.8% to $246.5 million, and adjusted EBITDA margin improved 80 basis points to 28.5%.
The company also increased its full-year 2026 revenue, net income and adjusted EBITDA guidance. It raised the midpoint of its adjusted EBITDA margin outlook to 28.2%. Management said the outlook includes pre-opening costs and early operating-ramp effects from seven clubs expected to open during the fourth quarter.
Net cash provided by operating activities increased 7.1% from the prior-year quarter to $209.6 million. Capital expenditures rose 18.6% to $263.3 million, reflecting construction activity for 2026 openings and clubs planned for 2027.
Life Time has opened seven of the 14 clubs planned for 2026, with the remaining seven expected to open in the fourth quarter. The company continues to expect 12 to 14 new clubs in 2027, with 10 already under construction. Akradi said the late-2026 openings are expected to have a more meaningful contribution in 2027 than in the current year.
In April, Life Time completed sale-leaseback transactions that generated about $200 million in proceeds. The company expects to complete roughly $400 million in sale-leaseback transactions for the full year, supporting its objective of generating positive annual free cash flow. Akradi said management is evaluating future capital-allocation options with attention to weighted average cost of capital and return on invested capital, but intends to remain disciplined on its current plan.
Programs and In-Center Opportunities
Akradi highlighted demand for CTR, Life Time’s large-group Pilates reformer class, and HYBRID XT, a conditioning and strength-training format paired with the company’s LT Games Hybrid Athlete Competition. CTR is expected to reach about 60 locations by year-end, and Akradi said the company ultimately expects the format to be available in most clubs with suitable space. Weaver said CTR has the highest bill rate among the company’s programming and has developed wait lists.
Management said the programs are intended to support membership acquisition, engagement and dues growth rather than function as separate in-center revenue offerings. Akradi said newer clubs are opening with higher initial dues, fewer targeted memberships and more comprehensive programming included in the offering.
Life Time also said it is working to improve food-and-beverage processes and margins before pursuing revenue-growth strategies in that business during 2027. Management sees additional revenue and margin opportunities in LifeSpa and cafes, though Akradi said the company’s primary focus remains on overall club revenue and contribution margins rather than isolated business-line profitability.
MIORA and Digital Strategy
The company is operating six or seven MIORA locations, its health and wellness concept, but Akradi said the business remains in an incubation phase and is not yet material to financial results. Life Time is working through technology and customer-journey processes before expanding the concept more aggressively.
Akradi said Life Time is studying peptides and related wellness applications for MIORA, while emphasizing caution around the evolving market and compounded products. He said the company is using its current MIORA locations to assess potential offerings under the oversight of Chief Science Officer James LaValle.
Meanwhile, Life Time has shifted its technology focus away from building a paid digital-subscription business. Akradi said the company found that digital subscriptions had high attrition rates and decided to prioritize technology that improves the member experience at its clubs. The Life Time app remains available without charge, and management said user growth has continued organically.
About Life Time Group (NYSE:LTH)
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.
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