Life Time Group Holdings, Inc. Q4 FY2025 earnings call

• 2025 was a great year achieving objectives and exceeding financial goals. Centers operated at or near optimal levels with average 12.5 monthly visits per membership for the year, 4.8% higher than 2024, and ~122 million visits in aggregate, 7% higher than 2024. • Mature clubs outperformed initial expectations in 2025, and their outperformance is largely complete coming into 2026. • Announced a $500 million share repurchase program approved by Board of Directors, to be utilized opportunistically while managing leverage ratio. • Focus remains on member point of view, optimizing member experience, revenue, and EBITDA on a club-by-club basis. • Clubs opening stronger and ramping faster than ever, some clubs reaching contribution margin positive in first full month of operation. • New clubs have higher membership prices, fewer members but higher rack rate, more efficient model. • Working on modernizing facilities, developing new formats, improving cafes, personal training, small group training, MIORA locations. • DPT sessions have grown 18% over last 2 years, with potential for further growth.

Total revenue in Q4 2025 was $745 million, up 12.3% from prior year. Total revenue for full year 2025 was $2.995 billion, up 14.3%. Q4 net income was $123 million, up 231%. Full year net income was $374 million, up 139%. Adjusted net income for Q4 was $77 million, up 28.4% year-over-year. Adjusted net income for full year 2025 was $326 million, up 62.3%. Adjusted EBITDA in Q4 was $203 million, up 14.5%. Adjusted EBITDA for full year 2025 was $825 million, up 21.9%. Comparable center revenue in Q4 grew 9.9%, and for full year 2025 grew 11.1%. In 2026, expected full year comparable center revenue growth of approximately 6.3% to 7.3%. Average monthly dues in Q4 2025 were $223, up ~10.8% from prior year. Average revenue per center membership in Q4 2025 was $882, up 10.8% from prior year. Average revenue per center membership for full year 2025 was $3,531, up 11.7% from prior year. Ended 2025 with over 822,000 center memberships, including on-hold memberships total memberships reached ~873,000

• For 2026, expect full year comparable center revenue growth of approximately 6.3% to 7.3%, starting the year at a higher comparable center growth rate and gliding downward as the year progresses. • Expect to invest between $875 million to $915 million of growth capital in 2026, with over half of growth CapEx for clubs opening in 2027 and beyond. • Anticipate $140 million to $150 million of maintenance capital expenditures and $130 million to $140 million for modernization of existing clubs, technology and corporate investments in 2026. • Expect to do a minimum of $300 million of sale-leasebacks in 2026. • Expect to capitalize between $33 million and $35 million of interest expense in 2026. • Currently expect to open up to 28 clubs across 2026 and 2027, funded primarily through operating cash flow and robust sale leaseback market.

Q: Congratulations on another nice quarter, nice year.

A: Thank you so much.

Q: What do you see the biggest opportunities as we go in '26?

A: Our business is always evolving. We are focused on modernizing, updating, evolving facilities, developing new formats, changing floors, working on cafes, spa, personal training, small group training, MIORA locations. Many things are working exceptionally well with members using clubs at high levels.

Q: Comment upon the initial performance of new centers opened later in '25 and presale activity for '26 openings?

A: Our clubs are opening stronger and ramping faster than ever. Some clubs reach contribution margin positive in first full month of operation. We are opening as many clubs as we can with an amazing pipeline of future locations.

Q: Give a little bit more detail on the unit economics of the new clubs you're opening this year. As we think about revenue per member trends as well as kind of member mix as we go into the back half of the year, do you expect any changes to the typical seasonality of the business in terms of quarter-to-quarter member growth?

A: New clubs don't have discounted programs, higher membership prices, fewer members but higher rack rate, more efficient model. Membership is expected to grow. No changes in expectations around seasonality other than more members using clubs more often.

Q: Remind us the rack rates you currently have and what's running through the system?

A: Our clubs are operating at optimal levels. We are raising membership prices club-by-club, market-by-market to protect customer experience. The delta between rack rate and what's running through the system is between 17 million to 20 million per month, currently 19.5 million.

Q: Thoughts on onetime initiatives in a handful of clubs and sustainability of DPT growth?

A: We have a robust plan for DPT this year. DPT is growing with some clubs having very high revenues and margins. There's opportunity to add team members and leaders in some markets.

Q: Expand on your comments around optimizing membership mix. What levers you have to pull? How should we think about the potential impact in '26 versus some of the out years here?

A: Opportunities include managing member experience, optimizing in clubs with high traffic, reducing discounted third-party pay memberships for a better member experience, improving revenue and EBITDA. The number of discounted third-party pay members will decrease with more direct membership activity.

Q: Trends you saw in January and year-to-date from new member churn and member engagement perspective? Did you see any impact from weather or any nuances that you'd call out from member behavior so far this year?

A: Inappropriate to answer mid-quarter questions.

Q: Are you seeing opportunities to increase conversion of digital members into full paying members or any other monetization opportunities from retail, Life Time Nutrition?

A: Digital subscriber number is ~3.3 million and growing. Focus is on using LAIC to enhance dues-paying member experience. Subscribers get access to similar app experiences but can't get into clubs. There are improvements in the strategy.

Q: Programming opportunities and in-center revenue, especially for kids' programs.

A: There's opportunity to engage parents and kids into more programs. We are fine-tuning to maximize space usage for various programs to grow in-center revenue.

Q: On the EBITDA margin. Approach is under promise, over deliver. What's broken positively for you? Confidence in margin floor and sustainability?

A: Clubs matured faster than expected. Majority of clubs are fully re-ramped. New clubs are ramping nicely. We have no desire to disappoint and are balancing member experience and shareholder interests. Margin is currently at 27.5% and we guide conservatively.

Q: Update on MIORA performance. How many clubs are operating, member adoption, visits, ramp throughout '26 and '27?

A: MIORA has 7 or 8 locations open. Opened in great markets and are ramping at expectations. Some had construction or permit issues but others are ramping faster than original models.

Q: How is LT Health performing, supplement business across both in club and digital channels? What to monitor for 2026?

A: Growth strategy for 2026 is mostly in clubs to improve club members' visibility to LTH. Digital space is mediocre and requires more education. Success is coming through professionals in clubs.

Q: Rack rate versus the average member dues. Strategically in longer term, is there a level for that delta you have in mind that the business should run at? Or should that delta converge over time? And on the '26 guidance on the same-store sales. How the composition of member growth versus pricing versus in-center growth contemplates into the guidance?

A: Analyzing club-by-club to set prices to maximize experience. Delta may shrink in future but not immediately. Membership growth will increase from 2025, revenue per membership will increase, with growth coming from membership count increase and in-center growth.