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Dec 31, 2025
Life Time Q4 2025 Earnings Report
Life Time Q4 2025 Earnings Report
Key Takeaways
Life Time delivered a record fourth quarter with revenue growing 12.3% and net income soaring 230.6% to $123 million. The company benefited from higher member engagement, increased dues, and significant one-time gains from legal settlements and sale-leaseback transactions. Management announced a new $500 million share repurchase program and a net debt leverage ratio of 1.6x, well below its target.
Total revenue for Q4 rose to $745.1 million, driven by a 10.8% increase in average center revenue per membership.
Net income saw a massive year-over-year increase due to improved operations and $54.3 million in tax-effected one-time gains and proceeds.
The company successfully reduced its net debt leverage ratio to 1.6x from 2.3x in the prior year.
A new $500 million share repurchase program was authorized, reflecting strong cash generation and balance sheet confidence.
Revenue by Segment
Forward Guidance
Life Time expects continued growth in 2026, targeting revenue between $3.3 billion and $3.33 billion and an expansion of its club footprint with 12 to 14 new openings.
Positive Outlook
- Projected total revenue growth of approximately 10.7% for FY 2026.
- Plan to open 12 to 14 new clubs, doubling the square footage added in previous years.
- Expected Adjusted EBITDA between $910 million and $925 million.
- Commitment to maintaining a net debt leverage ratio at or below 2.0x.
- Targeting at least $300 million in sale-leaseback transactions to fuel growth.
Challenges Ahead
- Net income is projected to decrease by approximately 10.9% due to the absence of 2025's one-time gains.
- Rent expense is expected to increase to between $378 million and $388 million.
- Cash income tax expense is expected to rise to between $57 million and $59 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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