Life Time Group (LTH) Q1 2026 earnings summary

Executive summary

• Total revenue grew 11.7% year-over-year to $788.7 million, driven by higher dues, strong in-center business utilization, and improved membership engagement across 190 centers.

• Net income rose 15.8% to $88.1 million, with adjusted net income up 27.4% to $96.2 million and adjusted EBITDA increasing 18.3% to $226.7 million; margin expanded to 28.7%.

• Membership mix optimization and pricing strategy led to higher average dues and revenue per membership, with center memberships up 1.4% year-over-year to 837,903.

• One new center opened in Q1 2026, bringing the total to 190 centers.

• Revenue growth strategy focuses on new club openings, member engagement, and optimizing membership mix.

Financial highlights

• Comparable center revenue increased 8.6% year-over-year, exceeding expectations.

• Average monthly dues rose 10.5% to $230; average revenue per center membership up 10.2% to $930.

• Qualified medical memberships declined 14.9% year-over-year, now only 3.4% of dues revenue; all other center memberships grew 3.7% year-over-year.

• Net cash from operating activities was $199 million, up 8% year-over-year; free cash flow was negative at $(61.2) million due to higher capital expenditures.

• Capital expenditures reached $260 million, up 82.5%, reflecting new club construction and technology investments.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $3,320–$3,350 million, up 11.3% from 2025.

• Adjusted EBITDA guidance set at $925–$940 million, up 13.0% year-over-year; margin midpoint updated to 28%.

• Membership growth (excluding qualified medical) projected at 3.5%–5% for 2026; qualified medical memberships expected to decline 11–15%.

• Plan to open 12–14 new large-format clubs in 2026, with most openings in the second half.

• Positive free cash flow targeted for 2026 and growing annually, supported by $400 million in sale-leasebacks.