Life Time Group (LTH) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with revenue up 18.7% in Q4 and 18.2% for the year, and net income up 57% in Q4 and 105.3% for the year, exceeding expectations across key metrics.

• Membership engagement and retention reached all-time highs, driving record revenue per membership and strong dues and in-center revenue growth.

• Opened 8 new centers in 2024, ending the year with 179 centers and 866,085 total subscriptions.

• Robust pipeline for new club openings, with 10-12 planned for 2025 and further expansion possible in 2026-2027.

• Digital initiatives, including LT Digital and LTH Nutritional Supplements, are experiencing rapid subscriber and sales growth.

Financial highlights

• Q4 2024 revenue rose 18.7% year-over-year to $663.3 million; full-year revenue up 18.2% to $2.621 billion.

• Q4 net income increased 57% to $37.2 million; full-year net income up 105.3% to $156.2 million.

• Adjusted EBITDA for Q4 was $177 million (up 28.5%); full-year Adjusted EBITDA was $676.8 million (up 26.1%).

• Adjusted EBITDA margin improved to 26.7% in Q4 and 25.8% for the year.

• Free cash flow was $26.5 million in Q4; net cash from operations up 24% year-over-year.

Outlook and guidance

• 2025 revenue guidance raised to $2.925-$2.975 billion; Adjusted EBITDA guidance increased to $780-$800 million.

• 2025 net income guidance: $262-$269 million, up ~80% year-over-year at midpoint.

• Expect to maintain debt at ~$1.5 billion, targeting net debt leverage below 2.25x, potentially under 2x by year-end.

• Plan to open 10-12 new clubs in 2025, with further expansion possible in subsequent years.

• Same-store sales growth guided to 7%-8% for 2025, with potential upside.