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Sep 30
Life Time Q3 2025 Earnings Report
Life Time's third quarter 2025 earnings report showed significant growth in revenue and net income, driven by strong execution and continued momentum across the business.
Key Takeaways
Life Time Group Holdings, Inc. reported robust financial results for the third quarter of 2025, with total revenue increasing by 12.9% to $782.6 million and net income surging by 147.3% to $102.4 million. The company also saw strong growth in adjusted net income and adjusted EBITDA, alongside an improved net debt leverage ratio, and raised its full-year 2025 outlook.
Total revenue increased by 12.9% to $782.6 million, driven by strong growth in membership dues and in-center revenue.
Net income rose by 147.3% to $102.4 million, primarily due to improved business performance and one-time tax benefits.
Adjusted EBITDA increased by 22.0% to $220.0 million, reflecting greater flow-through from increased revenue.
The company opened one new center during the quarter, bringing the total to 185 centers, and improved its net debt leverage ratio to 1.6 times.
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 guidance, expecting revenue between $2,978 million and $2,988 million, net income between $304 million and $306 million, and Adjusted EBITDA between $820 million and $824 million. The company plans to open 10 new centers and maintain a net debt leverage ratio below 2.00 times.
Positive Outlook
- Raised full-year 2025 revenue guidance to $2,978 – $2,988 million.
- Raised full-year 2025 net income guidance to $304 – $306 million.
- Raised full-year 2025 Adjusted EBITDA guidance to $820 – $824 million.
- Increased comparable center revenue growth expectations to 10.8% to 11.0%.
- Expects to complete at least $55 million to $65 million in additional sale-leaseback transactions in Q4.
Challenges Ahead
- Cash income tax expense guidance increased to $27 million to $29 million.
- Depreciation and amortization expense guidance increased to $296 million to $298 million.
- Interest expense, net, guidance tightened to approximately $81 million to $83 million, which is still a significant expense.
- Only 7 out of 10 planned new centers are currently open as of November 4, indicating potential for delays.
- Rent expense guidance remains substantial at $337 million to $343 million.