Life Time Group Holdings Announces Strong Q2 Financial Gains

Life Time Group Holdings Reports Robust Financial Performance for Q2 2025
Life Time Group Holdings, Inc. (NYSE: LTH) has reported noteworthy financial results for the second quarter, highlighting its continued growth and operational success. The company demonstrated impressive revenue growth, achieving a total revenue of $761.5 million, which reflects a 14.0% increase as compared to the same quarter from the previous year.
Key Financial Highlights
- Net income reached $72.1 million, marking a 36.6% increase year-over-year.
- Diluted Earnings Per Share (EPS) increased to $0.32, representing a rise of 23.1% from the prior year.
- Adjusted net income amounted to $84.1 million, reflecting an impressive 60.5% increase over the previous year's quarter.
- Adjusted EBITDA for the company was reported at $211.0 million, which represents a 21.6% increase compared to Q2 2024.
Operational Performance and Business Development
In this quarter, Life Time achieved positive free cash flow for the fifth consecutive term, further solidifying its financial health and operational efficiency. The company's net debt leverage ratio improved to 1.8 times, illustrating a strong balance sheet and effective debt management strategy. Furthermore, the company has raised its outlook for 2025, signaling confidence in ongoing business improvements and growth opportunities.
Membership Growth
Life Time’s center membership base has shown resilience, with memberships increasing to 849,643, up by 2.0% from the same time last year. This growth is attributed to the company’s effective membership retention strategies and seasonal growth trends in the first half of the year.
Revenue Sources and Increased Utilization
The revenue increase is supported by strong growth in membership dues and in-center services. Average dues have risen, along with higher member utilization of offerings such as Dynamic Personal Training. This has led to an expansion in total subscriptions, which include center memberships and those on hold.
2025 Financial Outlook
Looking ahead, Life Time is focused on several strategic goals: opening 10 new centers throughout the year, managing net debt leverage to remain below 2.0 times, and achieving a comparable center revenue growth of 9.5% to 10%. The company plans to maintain adjusted EBITDA growth as it continues expanding its operations and enhancing member experiences.
Cash Flow and Capital Expenditures
Life Time has reported net cash provided by operating activities of $379.6 million for the first half of 2025, indicating a 45.5% increase compared to the previous year. The company achieved positive free cash flow of $112.5 million in Q2 2025, which includes proceeds from sale-leaseback transactions, contributing to its substantial liquidity and funding of growth initiatives.
Conference Call and Future Updates
A conference call to discuss the financial results in greater detail is planned. Investors and analysts can join the call to gain insights into the company’s current performance and strategic developments.
Frequently Asked Questions
What were Life Time’s Q2 2025 earnings?
Life Time reported a net income of $72.1 million for the second quarter of 2025, reflecting a significant increase from the previous year.
How much did Life Time earn in revenue?
The company achieved total revenue of $761.5 million, which is a 14.0% increase over the same quarter last year.
What is the outlook for Life Time in 2025?
Life Time is optimistic about achieving continued growth, with plans to open 10 new centers and an expected revenue growth of 9.5% to 10%.
How did membership numbers change in Q2 2025?
Life Time's center memberships increased to 849,643, a rise of 2.0% compared to the same period last year.
What is the adjusted EBITDA for Q2 2025?
Life Time reported an adjusted EBITDA of $211.0 million, a notable increase of 21.6% from the prior year’s quarter.
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