Life Time Group Holdings Reports 18.6% Revenue Growth to $706M in Latest Quarter

Life Time Group Holdings, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $706.0 million for the three months ended March 31, 2025, a 18.6% increase from $596.7 million in the same period last year. The company's center revenue, which constitutes the majority of its income, rose to $685.7 million, up from $580.5 million, driven by a surge in membership dues and increased utilization of in-center services. Net income also saw a substantial increase, climbing to $76.1 million, compared to $24.9 million in the prior year, resulting in a net income margin of 10.8%.

The company experienced notable operational improvements, with membership numbers growing to 879,751, an increase from 853,072 a year earlier. The average revenue per center membership also rose to $844, up from $745, reflecting higher pricing strategies and increased member engagement. Life Time's centers recorded over 30 million visits during the quarter, compared to 28 million in the same period last year, indicating a strong rebound in customer engagement post-pandemic.

Strategically, Life Time has continued to expand its footprint, operating 180 centers across 31 states and one Canadian province as of March 31, 2025. The company opened one new center during the quarter and has 13 additional centers under construction. Life Time's asset-light model, which includes leasing properties rather than owning them outright, has allowed for more flexible expansion into affluent markets. The company plans to target 10 to 12 new locations annually, which is expected to further enhance its revenue growth.

In terms of financial health, Life Time reported cash and cash equivalents of $59.0 million, a significant increase from $10.9 million at the end of the previous fiscal year. The company also reduced its interest expenses, which fell to $25.1 million from $37.4 million, due to lower average borrowings and interest rates. The total liabilities increased slightly to $4.58 billion, while stockholders' equity rose to $2.73 billion, reflecting a positive trend in the company's financial stability.

Looking ahead, Life Time remains optimistic about its growth trajectory, bolstered by ongoing strategic initiatives such as the expansion of its digital platform and enhanced member offerings. The company is focused on integrating health, fitness, and wellness into the daily lives of its members, which it believes will continue to drive membership growth and revenue. Despite potential macroeconomic challenges, including inflation and interest rate fluctuations, Life Time's management expresses confidence in the resilience of its business model and its ability to adapt to changing market conditions.