Life Time Group Holdings Reports 14% Revenue Growth to $761.5 Million in Q2 2025

Life Time Group Holdings, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $761.5 million for the three months ended June 30, 2025, a 14.0% increase from $667.8 million in the same period last year. The company's center revenue, which constitutes the majority of its income, rose to $735.9 million, up from $645.0 million, driven by an increase in membership dues and higher utilization of in-center services. For the first half of 2025, total revenue was $1.47 billion, compared to $1.26 billion in the prior year, reflecting a 16.1% year-over-year growth.

The company also reported a net income of $72.1 million for the second quarter, a 36.7% increase from $52.8 million in the same quarter of 2024. For the six-month period, net income was $148.2 million, up from $77.7 million in the previous year. This growth in profitability was attributed to increased membership and in-center revenue, as well as a reduction in interest expenses due to lower average borrowings and favorable interest rate swaps. The effective tax rate for the quarter was 27.6%, up from 20.7% a year earlier, primarily due to changes in the valuation allowance associated with deferred tax assets.

Life Time's operational metrics showed positive trends, with total memberships reaching 898,850 as of June 30, 2025, an increase from 878,767 a year prior. The average revenue per center membership also rose to $1,733, compared to $1,541 in the previous year. The company operated 184 centers across 31 states and one Canadian province, with plans to open 12 to 14 new locations in 2026, focusing on affluent markets. The company’s strategic initiatives, including the expansion of its digital platform and new health offerings, are expected to further enhance member engagement and revenue growth.

In terms of cash flow, Life Time generated $379.6 million from operating activities in the first half of 2025, a substantial increase from $260.8 million in the same period last year. However, cash used in investing activities rose to $230.7 million, primarily due to increased capital expenditures related to new center construction and acquisitions. The company reported a free cash flow of $153.8 million for the first half of 2025, compared to $108.7 million in the prior year.

Looking ahead, Life Time remains optimistic about its growth trajectory, driven by its asset-light expansion strategy and continued investment in member experiences. The company is focused on leveraging its digital capabilities and enhancing its service offerings to meet the evolving needs of its members. Despite macroeconomic uncertainties, Life Time believes its business model is resilient and well-positioned for future growth.