Life Time Group Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $893.5 million, an increase of 14.2% year-over-year compared to $782.6 million in the prior year period.
• Net income for the quarter was $106.5 million, up 4.0% from $102.4 million in the prior year period.
• Diluted EPS was $0.46, an increase of 2.2% over the prior year quarter.
• Adjusted net income for the quarter was $115.9 million, a 24.6% increase from $93.0 million in the prior year period.
• Adjusted EBITDA for the quarter was $256.3 million, up 16.5% from $220.0 million in the prior year period.
• Adjusted diluted EPS was $0.51, an increase of 24.4% over the prior year quarter.
• For the nine months ended September 30, 2026, total revenue was $2,548.2 million, up 13.2% from $2,250.2 million in the prior year period.
• Net income for the nine-month period was $295.9 million, up 18.0% from $250.7 million in the prior year period.
• Adjusted net income for the nine-month period was $321.9 million, up 28.1% from $251.2 million in the prior year period.
• Adjusted EBITDA for the nine-month period was $729.4 million, up 17.2% from $622.6 million in the prior year period.
• Center operations expenses for the quarter were $474.5 million, up 14.5% from $414.3 million in the prior year period.
• General, administrative, and marketing expenses for the quarter were $65.8 million, up 10.0% from $59.8 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $670.5 million, an increase of 6.3% compared to the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $120.9 million, down from $216.4 million in the prior year period.

Guidance and Future Outlook:

• The Company raised its full-year 2026 total revenue guidance to a range of $3,380 million to $3,390 million, up from the previous range of $3,350 million to $3,375 million.
• Full-year 2026 adjusted net income guidance is raised to $408 million to $412 million, up from the previous range of $394 million to $402 million.
• Full-year 2026 adjusted EBITDA guidance is raised to $958 million to $962 million, up from the previous range of $940 million to $955 million.
• Comparable center revenue growth for 2026 is updated to 8.5% to 8.7%, up from the previous range of 7.9% to 8.3%.
• Interest expense, net of interest income, is guided to $59 million to $62 million, tightened from $59 million to $63 million.
• Capital expenditures for 2026 are guided as follows: maintenance ($140 million to $150 million), modernization and technology ($140 million to $150 million), and growth ($885 million to $910 million).
• The Company expects to open 14 new clubs in 2026, with seven opened as of September 30, 2026, one opened in October 2026, and the remaining six expected in the fourth quarter.
• The Company expects to complete approximately $135 million in additional sale-leaseback transactions in the fourth quarter, bringing the total for the fiscal year to approximately $400 million.
• The net debt to Adjusted EBITDA leverage ratio is expected to be maintained at or below 2.00 times.
• The provision for income tax rate estimate is 27%.
• Year-end weighted-average diluted common shares outstanding are expected to be approximately 228 million to 229 million.

Business Segments and Product Lines:

• Revenue growth was driven by increased membership dues, improved membership mix, growth in new and ramping centers, and higher member utilization of in-center offerings, particularly Dynamic Personal Training.
• Center memberships ended the quarter at 858,747, an increase of 2.2% year-over-year, driven by an improved membership mix including a reduction of approximately 21,500 qualified memberships administered through medical insurance providers.
• Total subscriptions (center memberships and on-hold memberships) were 908,454, an increase of 1.9% year-over-year.
• Average center revenue per center membership was $1,016 for the quarter, up 12.0% from $907 in the prior year period.
• The Company operated a total of 196 centers as of September 30, 2026.
• One new center was opened during the third quarter of 2026.

Market and Competitive Landscape:

• The Company reported continued strong growth in membership dues and in-center revenue, indicating robust member engagement.
• The Company noted that nearly all clubs planned for 2027 are already under construction.
• The Company operates more than 195 athletic country clubs across the U.S. and Canada.

Risks and Challenges:

• The press release includes standard forward-looking statement risk factors regarding competitive and economic environments, brand risks, technological operations, capital structure, lease obligations, human capital, legal compliance, and stock ownership, referencing the Company's Form 10-K for the year ended December 31, 2025.
• Net income includes impacts from sale-leaseback transactions, which may result in net losses in future periods.
• Capital expenditures are significant, with growth capital expenditures totaling $611.8 million for the nine months ended September 30, 2026.

Management Commentary and Tone:

• Bahram Akradi, Founder, Chairman, and CEO, stated that third-quarter results reflect continued delivery of exceptional member experiences and the strength of the brand.
• Management noted that member engagement continues to rise and in-center businesses are performing very well, resulting in higher revenue per membership.
• Management expressed confidence in the Company's position for long-term growth due to low leverage, strong cash flow, and a robust real estate pipeline.

Other Key Points:

• The Company completed one sale-leaseback transaction for one property in the third quarter, generating net proceeds of $62.3 million.
• For the nine months ended September 30, 2026, the Company completed three sale-leaseback transactions for six properties with total net proceeds of $262.5 million.
• Net debt leverage ratio improved to 1.3 times as of September 30, 2026, from 1.6 times as of September 30, 2025.
• Total available liquidity as of September 30, 2026, was $919.1 million, including $632.9 million of availability on a $650.0 million revolving credit facility and $286.2 million in cash and cash equivalents.
• There were no outstanding borrowings under the revolving credit facility as of September 30, 2026, with $17.1 million of outstanding letters of credit.
• Capital expenditures for the nine months ended September 30, 2026, totaled $812.0 million, broken down into growth ($611.8 million), maintenance ($107.6 million), and modernization/technology ($92.6 million).
• Net income for the nine months included tax-effected net gains of $3.8 million on sale-leaseback transactions and $3.7 million from partial satisfaction of legal claims.
• The Company has a $500 million share buyback program, though no specific repurchases were detailed for the quarter in the summary text (though the cash flow statement shows $73.4 million in common stock share repurchases for the nine months).