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Jun 30, 2024

Life Time Q2 2024 Earnings Report

Life Time's financial performance for Q2 2024 demonstrated strong revenue and adjusted EBITDA growth, achieving positive free cash flow and reduced net debt leverage.

Key Takeaways

Life Time reported a strong second quarter in 2024, with revenue increasing by 18.9% to $667.8 million and net income rising to $52.8 million. The company achieved positive free cash flow and reduced its net debt leverage ratio to 3.0 times. As a result, Life Time is raising its full-year revenue and adjusted EBITDA guidance.

Total revenue increased by 18.9% year-over-year to $667.8 million.

Net income increased by $35.8 million over the prior year quarter to $52.8 million.

Adjusted EBITDA increased by 27.6% year-over-year to $173.5 million.

The Company achieved positive free cash flow and reduced net debt leverage ratio to 3.0 times.

Total Revenue
$668M
Previous year: $562M
+18.9%
EPS
$0.25
Previous year: $0.08
+212.5%
Comparable Center Sales
12%
Previous year: 15.5%
-22.6%
Net New Center Openings
3
Previous year: 1
+200.0%
Total Centers (end of period)
175
Previous year: 164
+6.7%
Gross Profit
$233M
Previous year: $259M
-10.1%
Cash and Equivalents
$49.4M
Previous year: $30.9M
+60.0%
Free Cash Flow
$26.1M
Previous year: -$24.3M
-207.4%
Total Assets
$7.12B
Previous year: $6.83B
+4.3%

Life Time

Life Time

Life Time Revenue by Segment

Forward Guidance

Life Time has raised its full-year 2024 guidance for revenue and adjusted EBITDA.

Positive Outlook

  • Revenue is expected to be between $2.56 billion and $2.59 billion.
  • Net income is projected to be between $142 million and $148 million.
  • Adjusted EBITDA is anticipated to be between $642 million and $652 million.
  • Rent expenses are expected to be between $300 million and $312 million.
  • The midpoint revenue growth is projected at 16.2% compared to the previous year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income