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Jun 30
Life Time Q2 2025 Earnings Report
Life Time reported strong second quarter 2025 financial results, with significant increases in revenue, net income, and adjusted EBITDA, driven by membership growth and increased utilization of in-center offerings.
Key Takeaways
Life Time Group Holdings, Inc. delivered robust financial performance in the second quarter of 2025, with total revenue increasing by 14.0% to $761.5 million and net income surging by 36.6% to $72.1 million. The company also achieved positive free cash flow for the fifth consecutive quarter and significantly reduced its net debt leverage ratio, demonstrating strong operational momentum and financial health.
Total revenue increased by 14.0% year-over-year to $761.5 million, driven by strong growth in membership dues and in-center revenue.
Net income rose by 36.6% to $72.1 million, and adjusted net income increased by 60.5% to $84.1 million, reflecting improved business performance and margin expansion.
Adjusted EBITDA grew by 21.6% to $211.0 million, with the adjusted EBITDA margin improving to 27.7%.
The company achieved positive free cash flow of $112.5 million and reduced its net debt leverage ratio to 1.8 times, indicating strong liquidity and balance sheet management.
Life Time
Life Time
Life Time Revenue by Segment
Revenue by Segment
Membership Dues & Enrollment Fees Revenue
CapyFin.comIn-Center Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Life Time raised its full-year 2025 outlook, expecting revenue between $2,955 million and $2,985 million, net income between $290 million and $293 million, and Adjusted EBITDA between $805 million and $815 million. The company plans to open 10 new centers and maintain its net debt leverage ratio at or below 2.00 times.
Positive Outlook
- Raised full-year 2025 revenue guidance to $2,955 - $2,985 million.
- Raised full-year 2025 net income guidance to $290 - $293 million.
- Raised full-year 2025 Adjusted EBITDA guidance to $805 - $815 million.
- Increased comparable center revenue growth expectation to 9.5% to 10.0%.
- Expects to complete $100 million in additional sale-leaseback transactions in the second half of the year.
Challenges Ahead
- Provision for income tax rate estimate increased to 24% from previous expectations of 23%.
- Interest expense, net of interest income and capitalized interest, is estimated at approximately $80 million to $84 million.
- Cash income tax expense is projected to be $25 million to $27 million, lower than previous expectations due to tax benefits.
- Depreciation and amortization expense is tightened to $288 million to $294 million.
- No other explicit negative forward guidance points were provided beyond increased tax rate.