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Life Time (NYSE: LTH) lifts 2026 outlook after strong Q2 profit jump

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Life Time Group Holdings reported strong second-quarter 2026 results, with total revenue of $866.0 million, up 13.7% from a year earlier, driven by higher membership dues, improved membership mix and increased in-center utilization, especially Dynamic Personal Training. Net income rose to $101.4 million, a 40.6% increase, and diluted EPS reached $0.45. Adjusted net income was $109.8 million and Adjusted EBITDA $246.5 million, up 30.6% and 16.8%, respectively. Comparable center revenue grew 9.1%, center memberships reached 860,041, and average center revenue per membership increased 11.8% to $993.

For the first six months of 2026, revenue was $1.65 billion and net income $189.5 million. Net cash from operating activities grew to $408.4 million, while capital expenditures rose to $523.2 million, reflecting aggressive club growth and modernization. Free cash flow was $85.3 million. As of June 30, total liquidity was $855.7 million, including $223.6 million of cash, and the net debt leverage ratio improved to 1.4x from 1.8x a year earlier. Fitch and S&P both upgraded the issuer rating to BB. The company repurchased about 2.2 million shares for $62.7 million and now guides 2026 revenue to $3.35–$3.38 billion and Adjusted EBITDA to $940–$955 million, with comparable center revenue growth of 7.9–8.3% and plans to open 14 new clubs.

Positive

  • Q2 2026 net income surged 40.6% to $101.4 million, with Adjusted EBITDA up 16.8% to $246.5 million and comparable center revenue up 9.1%, indicating both strong top-line growth and improved profitability.
  • 2026 outlook raised: revenue guidance increased to $3.35–$3.38 billion and Adjusted EBITDA to $940–$955 million, with comparable center revenue growth now expected at 7.9–8.3% and 14 planned new club openings.
  • Balance sheet strengthened: net debt leverage improved to 1.4x from 1.8x year over year, total liquidity reached $855.7 million, and both Fitch and S&P upgraded the issuer credit rating to BB.

Negative

  • Full-year 2026 GAAP net income is guided below 2025, at $358–$363 million versus $373.7 million in 2025 (a 3.5% decline at the midpoint), even as adjusted earnings and Adjusted EBITDA are projected to grow strongly.

Filing Explained

By June 30, $200,191 thousand of sale-leaseback proceeds was reported; another approximately $200 million is expected in second-half 2026.

This Form 8-K reports a specified material event: Life Time disclosed results for the quarter ended June 30, 2026 and furnished its earnings release as an exhibit. The release updates the company’s 2026 targets upward and describes additional sale-leaseback transactions as expected rather than completed.

The company explicitly says it raised its 2026 outlook across revenue, Adjusted EBITDA, Adjusted net income, and net income guidance.

For the six months ended June 30, 2026, the company reported $200,191 thousand of sale-leaseback proceeds and expects approximately $200 million more in the second half, for an expected $400 million total during 2026; the additional amount is a plan, not reported proceeds.

The 2026 capital-spending guidance calls for growth capital expenditures, modernization and technology spending, and maintenance spending; these are planned amounts rather than expenditures already incurred.

As a milestone to monitor, the company said six new clubs had opened by June 30, 2026, one more opened in July, and the remaining seven of its 14-club 2026 plan were expected in the fourth quarter.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Total Revenue $866.0 million Three months ended June 30, 2026; up 13.7% year over year
Q2 2026 Net Income $101.4 million Three months ended June 30, 2026; up 40.6% year over year
Q2 2026 Adjusted EBITDA $246.5 million Three months ended June 30, 2026; up 16.8% year over year
Center Memberships 860,041 End of period June 30, 2026; 1.2% higher than June 30, 2025
Net Cash from Operating Activities $408.4 million Six months ended June 30, 2026; 7.6% increase over prior-year period
Total Capital Expenditures $523.2 million Six months ended June 30, 2026; 43.5% higher than prior-year period
Total Liquidity $855.7 million As of June 30, 2026, including $223.6 million cash and $632.1 million revolver availability
Net Debt Leverage Ratio 1.4x As of June 30, 2026; improved from 1.8x as of June 30, 2025
Adjusted EBITDA financial
"Adjusted EBITDA of $246.5 million increased 16.8% over the prior year quarter"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
comparable center revenue financial
"Comparable center revenue (2) | 9.1% | | 11.2%"
sale-leaseback transactions financial
"Complete approximately $200 million in additional sale-leaseback transactions"
A sale-leaseback transaction is when an owner sells a property or asset and immediately rents it back from the buyer, like selling your house and signing a lease to keep living in it. For investors, it matters because the seller converts a fixed asset into cash while taking on a new rent expense, which can boost short-term liquidity but change long-term earnings, debt levels and risk profiles that affect valuation and creditworthiness.
free cash flow financial
"Free cash flow is defined as net cash provided by operating activities less capital expenditures"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt leverage ratio financial
"Our net debt leverage ratio improved to 1.4 times as of June 30, 2026"
Net debt leverage ratio measures how many years of a company’s core earnings would be needed to pay off its debt after accounting for cash on hand, calculated by dividing net debt (total debt minus cash) by annual operating earnings. Investors use it like a household debt-to-income check: a lower number means the company is in a stronger position to handle obligations and take risks, while a higher number signals greater financial strain and vulnerability to shocks.
employee retention credits financial
"Net income in the prior year period included tax-effected net cash proceeds of $9.3 million received from employee retention credits"
Employee retention credits are government tax breaks that give employers a partial refund or reduction of payroll taxes when they keep workers on the payroll during downturns or disruptions. Think of it like a rebate on a company’s wage bill for maintaining staff; it improves short-term cash flow and can lower reported labor costs, so investors watch these credits because they can boost earnings, preserve liquidity, and affect tax expense and balance-sheet items.
Q2 2026 Total Revenue $866.0 million 13.7% increase over the prior year quarter
Q2 2026 Net Income $101.4 million 40.6% increase over the prior year quarter
Q2 2026 Diluted EPS $0.45 40.6% increase over the prior year quarter
Q2 2026 Adjusted EBITDA $246.5 million 16.8% increase over the prior year quarter
Comparable Center Revenue Growth 9.1% Comparable center revenue growth for Q2 2026
Guidance

For full-year 2026, the company guides total revenue to $3,350–$3,375 million, net income to $358–$363 million, Adjusted net income to $394–$402 million and Adjusted EBITDA to $940–$955 million. Comparable center revenue growth is expected at 7.9–8.3%, with 14 new club openings planned.

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FAQ

How did Life Time (LTH) perform financially in Q2 2026?
Life Time delivered Q2 2026 revenue of $866.0 million, up 13.7% year over year, with net income of $101.4 million, up 40.6%. Adjusted EBITDA reached $246.5 million, a 16.8% increase, reflecting strong membership dues growth and higher in-center utilization.

What 2026 guidance did Life Time (LTH) provide for revenue and profit?
For 2026, Life Time guides total revenue of $3.35–$3.38 billion and Adjusted EBITDA of $940–$955 million. Adjusted net income is forecast at $394–$402 million, while GAAP net income is expected at $358–$363 million, modestly below 2025’s $373.7 million.

How strong is Life Time’s (LTH) liquidity and leverage position?
As of June 30, 2026, Life Time reported total liquidity of $855.7 million, including $223.6 million of cash and $632.1 million of revolver availability. Net debt was $1.29 billion and the net debt leverage ratio improved to 1.4x from 1.8x a year earlier.

What capital investments and sale-leasebacks is Life Time (LTH) planning for 2026?
For 2026, Life Time expects growth capex of $885–$910 million, maintenance capex of $140–$150 million, and modernization/technology capex of $140–$150 million. It plans to complete about $400 million in sale-leaseback transactions in total, including $200 million in the second half.

How much stock did Life Time (LTH) repurchase in Q2 2026?
During Q2 2026, Life Time repurchased approximately 2.2 million shares of its common stock under its board-approved program, spending about $62.7 million at an average price of $28.59 per share, excluding additional potential repurchases under the $500 million authorization.
0001869198FALSE00018691982026-07-302026-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 30, 2026

Life Time Group Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-4088747-3481985
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
2902 Corporate Place
Chanhassen, Minnesota 55317
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (952) 947-0000
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common stock, par value $0.01 per shareLTHThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
On July 30, 2026, Life Time Group Holdings, Inc., a Delaware corporation (the “Company”), issued a press release announcing its financial results for the second quarter ended June 30, 2026. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number
Description
99.1
Earnings Release of Life Time Group Holdings, Inc., dated July 30, 2026.
104Cover page Interactive Data File (embedded within the Inline XBRL document).
2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Life Time Group Holdings, Inc.
Date: July 30, 2026
By:/s/ Erik Weaver
Erik Weaver
Executive Vice President & Chief Financial Officer
3


Exhibit 99.1
image_0a.jpg
FOR IMMEDIATE RELEASE
Life Time Reports Second Quarter 2026 Financial Results
•Total revenue of $866.0 million increased 13.7% over the prior year quarter
•Net income of $101.4 million increased 40.6% over the prior year quarter
•Diluted EPS of $0.45 increased 40.6% over the prior year quarter
•Adjusted net income of $109.8 million increased 30.6% over the prior year quarter
•Adjusted EBITDA of $246.5 million increased 16.8% over the prior year quarter
•Adjusted diluted EPS of $0.48 increased 29.7% over the prior year quarter
•Raised 2026 outlook

CHANHASSEN, Minn. (July 30, 2026) – Life Time Group Holdings, Inc. (“Life Time,” “we,” “our,” “us,” or the “Company”) (NYSE: LTH) today announced its financial results for the fiscal second quarter ended June 30, 2026.
Bahram Akradi, Founder, Chairman and CEO, stated: “We delivered strong second quarter results, driven by our continued focus on delivering exceptional member experiences across our clubs. That focus is translating into higher engagement, increased utilization of our in-center offerings and continued optimization of our membership mix. As a result, we are seeing strong comparable center revenue performance and growth in revenue per membership. We are on track to open 14 new clubs in 2026 and continue to see significant demand for our premium athletic country club model.”
Financial Summary
Three Months EndedSix Months Ended
($ in millions, except for Average center revenue per center membership data)June 30,June 30,
20262025Percent Change20262025Percent Change
Total revenue$866.0$761.513.7%$1,654.7$1,467.512.8%
Center operations expenses$453.7$403.912.3%$860.4$774.911.0%
Rent$94.3$83.213.3%$184.2$164.412.0%
General, administrative and marketing expenses (1)
$66.0$61.77.0%$125.7$119.55.2%
Net income$101.4$72.140.6%$189.5$148.227.9%
Adjusted net income$109.8$84.130.6%$206.1$159.829.0%
Adjusted EBITDA$246.5$211.016.8%$473.2$402.617.5%
Comparable center revenue (2)
9.1%11.2%8.9%12.0%
Center memberships, end of period860,041849,6431.2%860,041849,6431.2%
Average center revenue per center membership$993$88811.8%$1,923$1,73311.0%
(1)    The three months ended June 30, 2026 and 2025 included non-cash share-based compensation expense of $13.9 million and $14.2 million, respectively. The six months ended June 30, 2026 and 2025 included non-cash share-based compensation expense of $23.0 million and $24.5 million, respectively.
(2)    The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center’s operation, in order to assess the center’s growth rate after one year of operation.
Second Quarter 2026 Information
•Revenue increased 13.7% to $866.0 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues including from improved membership mix, membership growth in our new and ramping centers and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training.
•Center memberships of 860,041 increased by 10,398, or 1.2%, when compared to June 30, 2025, and increased by 22,138, or 2.6%, from March 31, 2026, consistent with seasonality expectations and continued improvement in



membership mix, including a significant reduction in qualified memberships administered through medical insurance providers, which have significantly lower average dues.
•Total subscriptions, which include center memberships and on-hold memberships, of 910,520 increased 1.3% compared to June 30, 2025.
•Center operations expenses increased 12.3% to $453.7 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth.
•General, administrative and marketing expenses increased 7.0% to $66.0 million primarily due to increases in incentive and benefit-related expenses.
•Net income increased 40.6% to $101.4 million primarily due to business performance, as well as tax-effected net cash proceeds of $3.7 million received in partial satisfaction of legal claims and tax-effected net gains of $1.5 million on sale-leaseback transactions. Net income in the prior year period included tax-effected net cash proceeds of $9.3 million received from employee retention credits under the CARES Act, partially offset by a tax-effected net loss of $9.0 million on a sale-leaseback transaction.
•Adjusted net income increased 30.6% to $109.8 million and Adjusted EBITDA increased 16.8% to $246.5 million as we experienced greater flow through of our increased revenue.
Six-Month 2026 Information
•Revenue increased 12.8% to $1,654.7 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues including from improved membership mix, membership growth in our new and ramping centers and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training.
•Center operations expenses increased 11.0% to $860.4 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth.
•General, administrative and marketing expenses increased 5.2% to $125.7 million primarily due to increases in incentive and benefit-related expenses and increases in center support overhead to enhance and broaden our member services and experiences.
•Net income increased 27.9% to $189.5 million primarily due to business performance, as well as tax-effected net cash proceeds of $3.7 million received in partial satisfaction of legal claims and tax-effected net gains of $1.5 million on sale-leaseback transactions. Net income in the prior year period included $12.6 million of income tax benefits due to a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025, and tax-effected net cash proceeds of $10.5 million received from employee retention credits under the CARES Act, partially offset by a tax-effected net loss of $10.2 million on a sale-leaseback transaction.
•Adjusted net income increased 29.0% to $206.1 million and Adjusted EBITDA increased 17.5% to $473.2 million as we experienced greater flow through of our increased revenue.
New Center Openings
•We opened five new centers during the second quarter of 2026.
•As of June 30, 2026, we operated a total of 195 centers.
Cash Flow Highlights
•Net cash provided by operating activities for the six months ended June 30, 2026 was $408.4 million, an increase of 7.6% compared to the prior year period.
•Our capital expenditures by type of expenditure were as follows:
Three Months EndedSix Months Ended
($ in millions)June 30,June 30,
20262025Percent Change20262025Percent Change
Growth capital expenditures (1)
$190.1$167.013.8%$395.3$260.551.7%
Maintenance capital expenditures (2)
$40.7$35.913.4%$72.1$65.410.2%
Modernization and technology capital expenditures (3)
$32.5$19.170.2%$55.8$38.744.2%
Total capital expenditures$263.3$222.018.6%$523.2$364.643.5%
(1)    Consist of new center land and construction, initial major remodels of acquired centers, major remodels of existing centers that expand existing square footage, asset acquisitions including the purchase of previously leased centers and other growth initiatives.
(2)    Consist of capital expenditures required to maintain the operating condition of our existing centers.



(3)    Consist of capital expenditures related to updates and enhancements to our existing centers, technology investments, and corporate infrastructure.
Liquidity and Capital Resources
•Our net debt leverage ratio improved to 1.4 times as of June 30, 2026, from 1.8 times as of June 30, 2025.
•As of June 30, 2026, our total available liquidity was $855.7 million, which included $632.1 million of availability on our $650.0 million revolving credit facility and $223.6 million of cash and cash equivalents. At June 30, 2026, there were no outstanding borrowings under our revolving credit facility and there were $17.9 million of outstanding letters of credit.
•On April 21, 2026, Fitch Ratings upgraded our issuer credit rating to 'BB' from 'BB-' and on June 25, 2026, S&P Global Ratings upgraded our issuer credit rating to 'BB' from 'BB-'.
•During the three months ended June 30, 2026, we repurchased approximately 2.2 million shares of our common stock under our share repurchase program approved by our board of directors on February 24, 2026, for total consideration of approximately $62.7 million at an average price per share of $28.59.
2026 Outlook
Full-Year 2026 Guidance
PercentYear Ending
Year EndingYear EndedChangeDecember 31, 2026
December 31, 2026December 31, 2025(Using(Guidance as of
($ in millions)(Guidance)(Actual)Midpoints)May 5, 2026)
Total revenue$3,350 – $3,375$2,995.312.3%$3,320 – $3,350
Rent$378 – $384$339.212.3%$378 – $386
Net Income$358 – $363$373.7(3.5)%$340 – $345
Adjusted net income$394 – $402$325.522.3%$378 – $386
Adjusted EBITDA$940 – $955$825.214.8%$925 – $940
The Company is reiterating the following expectations for fiscal 2026 as outlined in its first quarter 2026 results announced on May 5, 2026:
•Complete approximately $200 million in additional sale-leaseback transactions during the second half of fiscal year 2026 for a total of $400 million during the fiscal year.
•Interest expense, net of interest income, of approximately $59 million to $63 million, and net of $28 million to $30 million of capitalized interest expense related to construction in progress.
•Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times.
The Company is also updating the following operational and financial expectations for fiscal 2026:
•Comparable center revenue growth of 7.9% to 8.3%, which includes our ramping and mature centers, increased from 6.9% to 7.5%.
•Open 14 new clubs, tightened from 12 to 14, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.3 million square feet, nearly double the square footage of each of our 2024 class and 2025 class of clubs. We have opened six new clubs as of June 30, 2026, and we opened one additional new club in July 2026. We expect to open the remaining seven in the fourth quarter of 2026.
•Maintenance capital expenditures of $140 million to $150 million, modernization and technology capital expenditures of $140 million to $150 million, increased from $130 million to $140 million as we accelerate the deployment of our CTR and Hybrid XT group training classes, and growth capital expenditures of $885 million to $910 million, tightened from $875 million to $915 million.
•Rent to include non-cash rent expense of $32 million to $35 million, increased from $31 million to $34 million.
•Cash income tax expense of $103 million to $105 million, increased from $80 million to $83 million due to taxable gains on sale-leaseback transactions closed in the second quarter and higher estimated earnings before tax for the full year.
•Provision for income tax rate estimate of 27%, decreased from 28%.
•Year-end weighted-average diluted common shares outstanding of approximately 227 million to 229 million, not including any incremental impact that may occur as a result of our $500 million share buyback program, decreased from 228 million to 230 million.






Conference Call Details
A conference call to discuss our second quarter financial results is scheduled for today:
•Date: Thursday, July 30, 2026
•Time: 10:00 a.m. ET (9:00 a.m. CT)
•U.S. dial-in number: 1-877-451-6152
•International dial-in number: 1-201-389-0879
•Webcast: LTH 2Q 2026 Earnings Call
•A link to the live audio webcast of the conference call will be available at https://ir.lifetime.life.
Replay Information
Webcast – A recorded replay of the webcast will be available within approximately three hours of the call’s conclusion and may be accessed at: https://ir.lifetime.life.
Conference Call – A replay of the conference call will be available after 1:00 p.m. ET the same day through August 13, 2026:
•U.S. replay number: 1-844-512-2921
•International replay number: 1-412-317-6671
•Replay ID: 1375 6339
Earnings Supplement Presentation
The Company has made available supplemental material regarding its revenue growth strategy and memberships on its investor relations website at https://ir.lifetime.life.
# # #
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its 195 athletic country clubs across the U.S. and Canada, the complementary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 52,000 team members.
Use of Non-GAAP Financial Measures and Key Performance Indicators
This press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted net income per common share, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net income per common share, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. The reconciliations of the Company’s non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company’s ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.



The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company’s operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company’s ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company’s presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company’s industry or across different industries.
The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company’s results as reported under GAAP.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company’s plans, strategies and prospects, both business and financial, including its financial outlook for fiscal year 2026, growth, strength of its balance sheet, net debt and leverage, capital expenditures, interest expense, consumer demand, industry and economic trends, member engagement and mix, tax rates and expense, rent expense, expected number of diluted common shares outstanding, expected number, size and timing of new center openings, successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof) and the timing, amount and price of any share repurchase. These statements are based on the beliefs and assumptions of the Company’s management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company’s possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and the growth of our business including the competitive and economic environment, risks relating to our brand, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2026 (File No. 001-40887), as such factors may be updated from time to time in the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Investors
Connor Wienberg, Investor Relations // cwienberg@lt.life or 952-229-7401
Ken Cooper, Investor Relations // kcooper2@lt.life or 952-406-2322
Media
Jason Thunstrom, Corporate Communications // jthunstrom@lt.life or 952-229-7435



LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenue:
Center revenue$837,402 $735,865 $1,604,968 $1,421,519 
Other revenue28,594 25,604 49,728 45,991 
Total revenue865,996 761,469 1,654,696 1,467,510 
Operating expenses:
Center operations453,732 403,925 860,436 774,912 
Rent94,339 83,190 184,230 164,355 
General, administrative and marketing66,028 61,674 125,659 119,521 
Depreciation and amortization83,352 72,988 164,045 143,907 
Other operating expense18,840 31,243 35,783 48,696 
Total operating expenses716,291 653,020 1,370,153 1,251,391 
Income from operations149,705 108,449 284,543 216,119 
Other income (expense):
Interest expense, net of interest income(17,406)(21,784)(33,103)(46,891)
Equity in (loss) earnings of affiliates(2,703)37 (2,577)21 
Other income4,937 12,873 4,937 12,873 
Total other expense(15,172)(8,874)(30,743)(33,997)
Income before income taxes134,533 99,575 253,800 182,122 
Provision for income taxes33,175 27,473 64,344 33,878 
Net income$101,358 $72,102 $189,456 $148,244 
Income per common share:
Basic$0.46 $0.33 $0.85 $0.69 
Diluted$0.45 $0.32 $0.83 $0.66 
Weighted-average common shares outstanding:
Basic222,626 219,286 222,242 215,642 
Diluted227,337 225,511 227,397 224,585 





LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
June 30,
2026		December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents$223,647 $204,807 
Restricted cash and cash equivalents34,601 27,362 
Accounts receivable, net26,308 24,092 
Center operating supplies and inventories66,718 67,618 
Prepaid expenses and other current assets84,815 61,881 
Total current assets436,089 385,760 
Property and equipment, net3,811,994 3,633,229 
Goodwill1,235,359 1,235,359 
Operating lease right-of-use assets2,596,350 2,479,804 
Intangible assets, net180,726 180,810 
Other assets97,639 92,989 
Total assets$8,358,157 $8,007,951 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$97,113 $90,249 
Construction accounts payable170,536 143,545 
Deferred revenue57,994 60,309 
Accrued expenses and other current liabilities222,896 214,351 
Current maturities of debt31,774 21,848 
Current maturities of operating lease liabilities83,247 79,208 
Total current liabilities663,560 609,510 
Long-term debt, net of current portion1,465,999 1,485,939 
Operating lease liabilities, net of current portion2,682,256 2,555,513 
Deferred income taxes, net186,671 172,217 
Other liabilities57,503 58,561 
Total liabilities5,055,989 4,881,740 
Stockholders’ equity:
Common stock, $0.01 par value per share; 500,000 shares authorized; 223,217 and 221,077 shares issued and outstanding, respectively
2,232 2,211 
Additional paid-in capital3,163,624 3,183,032 
Retained earnings (accumulated deficit)142,554 (46,902)
Accumulated other comprehensive loss(6,242)(12,130)
Total stockholders’ equity3,302,168 3,126,211 
Total liabilities and stockholders’ equity$8,358,157 $8,007,951 




LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
20262025
Cash flows from operating activities:
Net income$189,456 $148,244 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization164,045 143,907 
Deferred income taxes11,536 19,493 
Share-based compensation25,959 28,288 
Non-cash rent expense10,629 13,063 
Impairment charges associated with long-lived assets282 1,177 
(Gain) loss on disposal of property and equipment, net(1,185)12,623 
Amortization of debt discounts and issuance costs1,860 1,812 
Changes in operating assets and liabilities18,007 12,100 
Other(12,238)(1,153)
Net cash provided by operating activities408,351 379,554 
Cash flows from investing activities:
Capital expenditures(523,276)(364,486)
Proceeds from sale-leaseback transactions200,191 138,771 
Other1,944 (4,936)
Net cash used in investing activities(321,141)(230,651)
Cash flows from financing activities:
Repayments of debt(11,419)(11,164)
Proceeds from revolving credit facility— 220,000 
Repayments of revolving credit facility— (230,000)
Repayments of finance lease liabilities(848)(1,221)
Proceeds from financing obligations— 10,300 
Proceeds from stock option exercises42,131 33,866 
Common stock share repurchases(73,392)— 
Proceeds from issuances of common stock in connection with the employee stock purchase plan— 1,875 
Employee tax withholding associated with net share-settled share-based awards(17,268)(4,334)
Other(6)(31)
Net cash (used in) provided by financing activities
(60,802)19,291 
Effect of exchange rates on cash and cash equivalents and restricted cash and cash equivalents(329)177 
Increase in cash and cash equivalents and restricted cash and cash equivalents26,079 168,371 
Cash and cash equivalents and restricted cash and cash equivalents – beginning of period232,169 27,878 
Cash and cash equivalents and restricted cash and cash equivalents – end of period$258,248 $196,249 



Non-GAAP Measurements and Key Performance Indicators
See “Use of Non-GAAP Financial Measures and Key Performance Indicators” for a discussion of the Non-GAAP financial measures reconciled below.
Key Performance Indicators
($ in thousands, except for Average Center revenue per center membership data)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Membership Data
Center memberships860,041849,643860,041849,643
On-hold memberships50,47949,20750,47949,207
Total memberships910,520898,850910,520898,850
Revenue Data
Membership dues and enrollment fees71.3 %71.7 %72.2 %72.4 %
In-center revenue28.7 %28.3 %27.8 %27.6 %
Total Center revenue100.0 %100.0 %100.0 %100.0 %
Membership dues and enrollment fees$597,244$527,309$1,158,698$1,028,962
In-center revenue240,158208,556446,270392,557
Total Center revenue$837,402$735,865$1,604,968$1,421,519
Average Center revenue per center membership (1)
$993 $888 $1,923 $1,733 
Comparable center revenue (2)
9.1 %11.2 %8.9 %12.0 %
Center Data
Net new center openings (3)
5465
Total centers (end of period) (3)
195184195184
Total center square footage (end of period) (4)
18,800,00018,000,00018,800,00018,000,000
GAAP and Non-GAAP Financial Measures
Net income$101,358 $72,102 $189,456 $148,244 
Net income margin (5)
11.7 %9.5 %11.4 %10.1 %
Adjusted net income (6)
$109,827$84,144$206,057$159,764
Adjusted net income margin (6)
12.7 %11.1 %12.5 %10.9 %
Adjusted EBITDA (7)
$246,532 $210,978 $473,187 $402,565 
Adjusted EBITDA margin (7)
28.5 %27.7 %28.6 %27.4 %
Center operations expense$453,732 $403,925 $860,436 $774,912 
Pre-opening expenses (8)
$1,911 $1,066 $4,123 $2,439 
Rent$94,339 $83,190 $184,230 $164,355 
Non-cash rent expense (open properties) (9)
$7,672 $5,739 $9,423 $8,059 
Non-cash rent expense (properties under development) (9)
$603 $3,921 $1,206 $5,004 
Net cash provided by operating activities$209,558 $195,698 $408,351 $379,554 
Free cash flow (10)
$146,489 $112,465 $85,266 $153,839 
(1)    We define Average Center revenue per center membership as Center revenue less On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from



dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.
(2)    We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center’s operation, in order to assess the center’s growth rate after one year of operation.
(3)    Net new center openings is calculated as the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. During the three months ended June 30, 2026, we opened five centers.
(4)    Total center square footage (end of period) reflects the aggregate square footage, excluding the areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. We use this metric for evaluating the efficiencies of a center as of the end of the period. These figures are approximations.
(5)    Net income margin is calculated as net income divided by total revenue.
(6)    We present Adjusted net income as a supplemental measure of our performance. We define Adjusted net income as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments.
Adjusted net income margin is calculated as Adjusted net income divided by total revenue.
The following table provides a reconciliation of net income and income per common share, the most directly comparable GAAP measures, to Adjusted net income and Adjusted net income per common share:
Three Months EndedSix Months Ended
June 30,June 30,
($ in thousands, except per share data)2026202520262025
Net income$101,358 $72,102 $189,456 $148,244 
Share-based compensation expense (a)
15,411 16,380 25,959 28,288 
(Gain) loss on sale-leaseback transactions (b)
(2,035)12,496 (2,035)12,496 
Capital transaction costs (c)
— 611 — 1,531 
Legal settlements (d)
(4,882)28 (4,867)94 
Employee retention credits (e)
— (12,873)— (12,873)
Other (f)
2,747 (11)3,182 109 
Taxes (g)
(2,772)(4,589)(5,638)(18,125)
Adjusted net income$109,827 $84,144 $206,057 $159,764 
Income per common share:
Basic$0.46 $0.33 $0.85 $0.69 
Diluted$0.45 $0.32 $0.83 $0.66 
Adjusted income per common share:
Basic$0.49 $0.38 $0.93 $0.74 
Diluted$0.48 $0.37 $0.91 $0.71 
Weighted-average common shares outstanding:
Basic222,626 219,286 222,242 215,642 
Diluted227,337 225,511 227,397 224,585 
(a)    Share-based compensation expense recognized during the three and six months ended June 30, 2026 was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan (“ESPP”), and liability-classified awards related to our 2026 short-term incentive plan. Share-based compensation expense recognized during the three and six months ended June 30, 2025 was associated with stock options, restricted stock units, performance stock units, our ESPP and liability-classified awards related to our 2025 short-term incentive plan.
(b)    We adjust for the impact of gains and losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations.
(c)    Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature.
(d)    We adjust for the impact of unusual legal settlements or judgments as these costs and proceeds are non-recurring in nature and do not reflect costs or proceeds associated with our normal ongoing operations. Nearly all of the adjustment for the three and six months ended June 30, 2026 is the recognition of settlement proceeds from Zurich for the remaining occurrences of jurisdictions that issued closure orders affecting our club operations in 2020 during the COVID-19 pandemic. These proceeds are offset by



legal-related expenses in pursuit of our claim against Zurich of $0.1 million for the three months ended June 30, 2026, and $0.1 million and $0.1 million for the six months ended June 30, 2026 and 2025, respectively.
(e)    Represents refundable payroll tax credits for employee retention under the CARES Act.
(f)    Includes (i) a $2.9 million write-down of certain assets within a non-club joint venture resulting from its held-for-sale classification for the three and six months ended June 30, 2026, and (ii) other immaterial transactions or items that are unusual or non-recurring in nature of $(0.1) million for the three months ended June 30, 2026, and $0.3 million and $0.1 million for the six months ended June 30, 2026 and 2025, respectively.
(g)    Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. We updated the Taxes amount used to arrive at Adjusted net income for the six months ended June 30, 2025 to include $12.6 million in income tax benefits resulting from a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025. This change did not impact our condensed consolidated financial statements prepared in accordance with GAAP, but it did decrease our non-GAAP Adjusted net income and Adjusted income per common share for the six months ended June 30, 2025.
(7)    We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations.
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.
The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months EndedSix Months Ended
June 30,June 30,
($ in thousands)2026202520262025
Net income$101,358 $72,102 $189,456 $148,244 
Interest expense, net of interest income17,406 21,784 33,103 46,891 
Provision for income taxes33,175 27,473 64,344 33,878 
Depreciation and amortization83,352 72,988 164,045 143,907 
Share-based compensation expense (a)
15,411 16,380 25,959 28,288 
(Gain) loss on sale-leaseback transactions (b)
(2,035)12,496 (2,035)12,496 
Capital transaction costs (c)
— 611 — 1,531 
Legal settlements (d)
(4,882)28 (4,867)94 
Employee retention credits (e)
— (12,873)— (12,873)
Other (f)
2,747 (11)3,182 109 
Adjusted EBITDA$246,532 $210,978 $473,187 $402,565 
(a) – (f)    See the corresponding footnotes to the table in footnote 6 immediately above.    
(8)    Represents non-capital expenditures associated with opening new centers that are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.
(9)     Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.
(10)    Free cash flow, a non-GAAP financial measure, is calculated as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales.



The following table provides a reconciliation from net cash provided by operating activities to free cash flow:
Three Months EndedSix Months Ended
June 30,June 30,
($ in thousands)2026202520262025
Net cash provided by operating activities$209,558 $195,698 $408,351 $379,554 
Capital expenditures, net of construction reimbursements(263,260)(222,004)(523,276)(364,486)
Proceeds from sale-leaseback transactions200,191 138,771 200,191 138,771 
Free cash flow$146,489 $112,465 $85,266 $153,839 

Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months
($ in thousands)
(Unaudited)
TwelveTwelve
Months EndedMonths Ended
June 30, 2026June 30, 2025
Net income$414,883 $226,762 
Interest expense, net of interest income68,475 119,914 
Provision for income taxes150,298 62,674 
Depreciation and amortization316,483 282,971 
Share-based compensation expense49,421 60,625 
(Gain) loss on sale-leaseback transactions(27,316)17,400 
Capital transaction costs— 1,531 
Legal settlements(43,590)1,359 
Asset impairments5,791 — 
Employee retention credits(41,699)(12,873)
Other3,051 (540)
Adjusted EBITDA$895,797 $759,823 
Reconciliation of Net Debt and Leverage Calculation
($ in thousands)
(Unaudited)
TwelveTwelve
Months EndedMonths Ended
June 30, 2026June 30, 2025
Current maturities of debt$31,774 $22,873 
Long-term debt, net of current portion1,465,999 1,493,038 
Total Debt$1,497,773 $1,515,911 
Less: Fair value adjustment53 207 
Less: Unamortized debt discounts and issuance costs(16,094)(18,445)
Less: Cash and cash equivalents223,647 175,509 
Net Debt$1,290,167 $1,358,640 
Trailing twelve-month Adjusted EBITDA895,797 759,823 
Net Debt Leverage Ratio1.4x1.8x



Reconciliation of Net Income to Adjusted Net Income Guidance for the Year Ending 2026
($ in millions)
(Unaudited)
Year Ending
December 31, 2026
Net income$358 – $363
Share-based compensation expense54 – 58
(Gain) loss on sale-leaseback transactions(2) – (2)
Other(2) – (2)
Taxes(14) – (15)
Adjusted net income$394 – $402
Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2026
($ in millions)
(Unaudited)
Year Ending
December 31, 2026
Net income$358 – $363
Interest expense, net of interest income63 – 59
Provision for income taxes132 – 134
Depreciation and amortization337 – 345
Share-based compensation expense54 – 58
(Gain) loss on sale-leaseback transactions(2) – (2)
Other(2) – (2)
Adjusted EBITDA$940 – $955

Source: View Original Filing on SEC EDGAR

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