Life Time Group Holdings, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, achieving total revenue of $2.62 billion, a 18.2% increase from $2.22 billion in 2023. The company's net income also rose to $156.2 million, compared to $76.1 million in the previous year, reflecting a net income margin of 6.0%. This growth was primarily driven by a surge in membership dues and in-center revenue, which accounted for 72.8% of total revenue, amounting to $1.85 billion, up from $1.56 billion in 2023. The increase in membership was notable, with total memberships reaching 866,085, a rise from 814,936 in the prior year.
Operationally, Life Time expanded its footprint, opening eight new centers in 2024, bringing the total to 179 centers across 31 states and one Canadian province. The company has adopted an asset-light growth strategy, with approximately 68% of its centers leased, allowing for more flexible expansion into affluent markets. The average revenue per center membership increased to $3,160, up from $2,810 in 2023, indicating enhanced member engagement and pricing strategies. Total visits to Life Time clubs exceeded 114 million in 2024, compared to 103 million in 2023, demonstrating strong utilization of its facilities.
Strategically, Life Time has focused on enhancing its service offerings, particularly in areas such as Dynamic Personal Training and the growing popularity of pickleball, which saw 5.2 million participations in 2024. The company also launched its MIORA health optimization services and expanded its digital platform, which now includes a free app offering live streaming fitness classes and nutrition support. These initiatives are part of Life Time's broader strategy to integrate health and wellness into the daily lives of its members, thereby increasing engagement and revenue.
The company’s financial outlook remains positive, with expectations for continued revenue growth as new centers ramp up to full performance over the next three to four years. Life Time plans to open an average of 10 to 12 new locations annually, targeting affluent markets that promise higher average revenue per membership. Additionally, the company has made significant strides in improving its balance sheet, achieving free cash flow positivity in the second quarter of 2024, and reducing its leverage ratio, which is expected to support its growth initiatives moving forward.
In summary, Life Time Group Holdings, Inc. has demonstrated strong financial performance and strategic growth in 2024, positioning itself well for future expansion and continued member engagement in the health and wellness sector.
About Life Time Group Holdings, Inc.
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