Life Time Group Q3 revenue beats expectations; raises outlook
Overview
U.S. fitness club operator's fiscal Q3 revenue rose 14%, beating analyst expectations
Adjusted EBITDA for fiscal Q3 beat analyst expectations
Company raised 2026 outlook, citing membership and in-center revenue growth
Outlook
Life Time raises 2026 revenue outlook to $3.38 bln–$3.39 bln from $3.35 bln–$3.375 bln
Company now expects 2026 comparable center revenue growth of 8.5%–8.7%, up from 7.9%–8.3%
Company lowers 2026 cash income tax expense forecast to $82 mln–$83 mln from $103 mln–$105 mln
Result Drivers
MEMBERSHIP MIX - Co said revenue growth was driven by improved membership mix, including reduction in lower-dues insurance-administered memberships
IN-CENTER REVENUE - Co attributed higher revenue to increased member utilization of in-center offerings, especially Dynamic Personal Training
NEW CENTER OPENINGS - Co said revenue growth was supported by membership growth in new and ramping centers
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $893.50 mln | $874.67 mln (13 Analysts) |
Q3 Net Income | $106.50 mln | ||
Q3 Adjusted EBITDA | Beat | $256.30 mln | $244.72 mln (13 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy"
Wall Street's median 12-month price target for Life Time Group Holdings, Inc. is $55.50, about 28.7% above its October 28 closing price of $43.14
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)