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Life Time Q1 2025 Earnings Report
Life Time Group Holdings, Inc. announced its financial results for the fiscal first quarter ended March 31, 2025, reporting significant increases in total revenue, net income, and adjusted EBITDA.
Key Takeaways
Life Time Group Holdings, Inc. reported a strong first quarter for 2025, with total revenue reaching $706.0 million, an 18.3% increase year-over-year. Net income surged by 205.6% to $76.1 million, and adjusted EBITDA increased by 31.2% to $191.6 million, driven by increased member engagement and effective cost management.
Total revenue increased 18.3% to $706.0 million, driven by strong growth in membership dues and in-center revenue.
Net income increased 205.6% to $76.1 million, primarily due to improved business performance and a tax benefit from stock option exercises.
Adjusted EBITDA increased 31.2% to $191.6 million, reflecting greater flow-through from increased revenue and structural business improvements.
The company achieved positive free cash flow of $41.4 million for the first quarter of 2025 and improved its net debt leverage ratio to 2.0x.
Life Time
Life Time
Life Time Revenue by Segment
Revenue by Segment
Membership Dues & Enrollment Fees Revenue
CapyFin.comIn-Center Revenue
CapyFin.com Forward Guidance
Life Time Group Holdings, Inc. reiterated or updated its full-year fiscal 2025 guidance, anticipating continued growth in revenue and profitability, driven by new center openings, increased comparable center revenue, and improved operating leverage.
Positive Outlook
- Open 10 to 12 new centers.
- Manage net debt leverage ratio to remain at or below 2.00 times.
- Comparable center revenue growth of 8.5% to 9.5%, an increase from previous expectations of 7% to 8%.
- Adjusted EBITDA growth driven primarily by dues revenue growth and expanded operating leverage.
- Interest expense, net of interest income and capitalized interest, of approximately $80 million to $84 million, reflecting the positive impact of the interest rate swap agreement, a reduction from previous expectations of $90 million to $94 million.
Challenges Ahead
- Rent to include non-cash rent expense of $35 million to $38 million.
- Provision for income tax rate estimate of 23%, revised down from the previous estimate of 27% to reflect the tax benefit realized on stock option exercises in the first quarter.
- Cash income tax expense of $39 million to $41 million, which compares to previous expectation of $58 million to $62 million and reflects the tax benefit discussed above.
- Depreciation and amortization expense of $286 million to $294 million, reflecting the impact of asset acquisitions and the timing of certain capital expenditure initiatives, an increase from previous expectations of $265 million to $273 million.
- No specific negative operational or financial guidance points were highlighted beyond increased expenses related to growth and tax adjustments.