Life Time Group Holdings, Inc. Q2 FY2025 earnings call

• Strong second quarter with revenue growth from membership and in-center. Raised full-year comparable center revenue guidance to 9.5%-10%.
• Closed sale leaseback of 3 properties, net proceeds ~$149M. Visits at all-time high, retention at record levels.
• Achieved BB credit rating, strengthening balance sheet. Targeting 12-14 club openings in 2026, new clubs avg ~100k sq ft.
• Life Time Digital has 2.3M accounts (up 216% y-o-y). L.AI.C launched, LTH nutritional line up 31%, MIORA locations performing well.

Total revenue increased 14% to $761 million. Membership dues and enrollment fees grew 14%, in-center revenue 14.4%. Comparable center revenue grew 11.2%. Center memberships ended over 849,000, total memberships including on-hold ~899,000. Average monthly dues $219 (up 10.6% y-o-y), average revenue per center membership $888 (up 11.8% y-o-y). Net income $72.1 million (up 36.5%), adjusted net income $84.1 million (up 60.5% y-o-y). Adjusted EBITDA $211 million (up 21.6%), margin 27.7%. Net cash from operating activities ~$196 million (up 15%), free cash flow $112 million (fifth consecutive positive).

• Raised full-year comparable center revenue guidance to 9.5%-10%.
• Targeting 12-14 club openings in 2026.
• Expect to close another $100M in sale leaseback transactions in H2 2025.

• Risks discussed in SEC filings, including factors that may cause actual results to differ from forward-looking statements.

Q: How did new membership sign-ups track?

A: Bahram Akradi said the back half of the quarter made up for a slow start in membership sign-ups early in the quarter, with members naturally returning to make the quarter strong.

Q: Unit guide commentary?

A: Bahram Akradi explained that 2024-2025 clubs were in existing spaces, smaller in some markets, and construction timelines caused a shift, but aiming for 12-14 club openings in 2026.

Q: Average revenue per membership growth?

A: Bahram Akradi stated no signs of fatigue in the business across demographics, with strong results in swipes, dues, and in-center execution.

Q: In-center revenue trends?

A: Bahram Akradi mentioned LTH nutritional line growth, MIORA locations performing well, spa and F&B initiatives, and L.AI.C as driving in-center revenue growth.

Q: Pricing outlook?

A: Erik Weaver said legacy pricing was done in Q2 consistent with strategy, and guidance is conservative but confident in hitting comp sales targets.