LTH

LIFE TIME GROUP HOLDINGS INC

Consumer Cyclical | Mid Cap

$0.35

EPS Forecast

$791.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-07-20

Life Time Q1 2026: Revenue Climbs, Outlook Raised as Clubs Multiply

Life Time Group Holdings, Inc., ticker LTH, reported its fiscal first quarter ending March 31, 2026 with a brisk rhythm: total revenue of $788.7 million, up 11.7% from the prior year quarter, and GAAP net income of $88.1 million, up 15.8%. On the earnings line, the company posted diluted EPS of $0.39, up about 4.7% year over year, while the adjusted playbook showed even stronger momentum: adjusted net income of $96.2 million (+27.4%), and adjusted EBITDA of $226.7 million (+18.3%). Adjusted diluted EPS came in around $0.42, up roughly 3.5% versus the prior year quarter. All told, this is a quarter that puts the “fitness” in fundamentals rather than in headlines.

Executive snapshot

  • Revenue: $788.7 million for the three months ended March 31, 2026 — up 11.7% YoY.
  • Net income: $88.1 million, up 15.8% YoY.
  • EPS (GAAP): $0.39, up roughly 4.7% YoY.
  • EPS (Adjusted): $0.42, up about 3.5% YoY.
  • Adjusted net income: $96.2 million, up 27.4% YoY.
  • Adjusted EBITDA: $226.7 million, up 18.3% YoY.
  • Outlook: 2026 guidance raised; the company signals higher expectations for the full year.
  • Strategic moves: plan to open 12–14 new clubs this year; ongoing focus on member engagement, center performance, and a solid balance sheet.

What the quarter looked like on the ground

The results reflect continued momentum in Life Time’s core model: a mix of membership growth, higher engagement, and a portfolio of large-format clubs aimed at driving both visits and spend per member. Management framed the quarter as evidence that the growth strategy remains on track — not just in terms of foot traffic, but in the quality of earnings. The reported figures emphasize volume (revenue growth) and discipline (margin and cash generation) rather than a one-off lift.

The press release emphasizes strong cash generation and a robust balance sheet, with “low leverage” noted as a strategic advantage as the company plans to fund expansion through a combination of operating cash flow and prudent financing. In other words: the gym is behaving like a real estate and services play—where the real workout is managing capex and maintaining a healthy debt posture as clubs come online.

Outlook and investment implications

Life Time raised its 2026 outlook, signaling confidence in ongoing revenue growth and profitability improvements. The company’s plan to open 12–14 new clubs this year underscores an aggressive expansion path that can lift revenue forecasts and EBITDA leverage, but also tests capital allocation and operating discipline. Investors will be watching for how this new club cadence translates into member penetration, per-member spend, and incremental margins as scale effects play out.

From an earnings perspective, the reported EPS and adjusted metrics suggest a profitability profile that can sustain higher growth investments without eroding returns. Whether the reported results represent a sustainable beat relative to EPS consensus remains a question analysts will reassess as more data points flow in; the release itself does not highlight a standalone earnings surprise versus consensus, but the upward revision to the outlook implies management is comfortable with the trajectory.

Implications for investors and sector peers

The Life Time narrative—steady revenue expansion, improving earnings quality, and a disciplined balance sheet—creates a template for peers in the fitness and lifestyle-hospitality space. If Life Time can consistently convert membership engagement into higher average center revenue and EBITDA without over-leveraging its club roll-out, the sector might see a shift toward more aggressive capex funded by cash flow rather than debt.

For investors, the key questions orbit around how flexible the 2026 revenue forecast is in the face of new club openings, labor costs, and potential competitive responses from other branded fitness operators. If the company maintains its cadence and delivers on the raised outlook, the stock could re-rate on a higher earnings base, with multiple drivers spanning same-club growth, new club rendement, and improved margins.

Risks and considerations

The expansion push is the obvious lever and its success hinges on rapid member acquisition and retention in newly opened clubs. While Life Time presents a solid cash-generating machine, the club-building program is capital-intensive, and any hiccup in opening timelines, occupancy, or mix could pressure near-term margins. Macro factors—labor costs, interest rates, and discretionary consumer spending—also loom as potential headwinds for a high-capex, growth-focused business.

Bottom line

Life Time’s Q1 2026 numbers paint a portrait of a company leaning into growth with a healthy tilt toward profitability. The EPS line holds steady while adjusted metrics accelerate, and the raised 2026 outlook signals management’s confidence in its plan to scale the club base. For investors, the question is less about whether Life Time can grow and more about whether the incremental growth from the new clubs will translate into material accretion to the bottom line and cash flow in a way that justifies higher multiples across the sector. If you’re tracking EPS, EPS consensus, and a developing revenue forecast for the year, Life Time’s latest print is a reminder that the cardio here goes beyond fitness—it's about steady, audited progress.