Life Time Flexes Financial Muscle with Record Profits, $500M Buyback

CHANHASSEN, Minn. – February 24, 2026 – Life Time Group Holdings, Inc. (NYSE: LTH) delivered a powerful message to Wall Street today, reporting record-shattering financial results for 2025 and unveiling an ambitious strategy that pairs aggressive expansion with significant shareholder returns. The company posted a stunning 139.2% surge in full-year net income and announced a new $500 million share repurchase program, signaling profound confidence in its high-end 'athletic country club' model. The news, which surpassed analyst expectations, sent shares climbing 3.2% in pre-market trading as investors reacted positively to the robust performance and forward-looking strategy.

A Record-Breaking Year by the Numbers

Life Time's financial performance in 2025 painted a picture of a company hitting its stride. Full-year revenue climbed 14.3% to nearly $3 billion, while the fourth quarter saw a 12.3% increase to $745.1 million. The bottom-line growth was even more dramatic. Full-year net income soared to $373.7 million, a 139.2% increase from 2024. The fourth quarter was particularly strong, with net income exploding by 230.6% year-over-year to $123.0 million, or $0.54 per diluted share, handily beating consensus analyst forecasts that hovered around $0.27 to $0.33 per share.

Adjusted EBITDA, a key metric of profitability watched by analysts, also showed impressive growth, rising 21.9% to $825.2 million for the full year. The company's ability to convert revenue into profit improved significantly, with its adjusted EBITDA margin expanding by 170 basis points to 27.5% for the year.

In a statement accompanying the results, Founder, Chairman, and CEO Bahram Akradi celebrated the performance. "I am proud of how our team delivered throughout 2025," he said. "With higher member engagement, increased dues per membership, and robust in-center revenue growth, we delivered another year of record financial performance."

The company's financial health was further underscored by a significant improvement in its balance sheet. Life Time's net debt leverage ratio fell to 1.6x as of year-end, well below its target of 2.0x and a marked improvement from the 2.3x ratio reported at the end of 2024.

The $500 Million Power Play

Perhaps the biggest headline from the announcement was the board's authorization of a $500 million share repurchase program. This move allows the company to buy back its own stock on the open market, an action that typically signals management's belief that the shares are undervalued and serves to increase earnings per share for remaining stockholders. For Life Time, it's a declaration of financial strength and a commitment to delivering shareholder value alongside operational growth.

Akradi directly linked the buyback to the company's robust financial position. "Our strong cash generation and healthy balance sheet give us confidence in our ability to fund our accelerated club opening plan and implement our share repurchase program," he stated. "We believe we are now in a position to continue investing for long-term growth while further driving shareholder return."

The move is a significant step for a company focused on heavy capital investment in new facilities. It demonstrates a strategic pivot to a more mature phase where it can simultaneously fund aggressive expansion and reward its investors, a balance that is often difficult to strike.

Building the Future: An Aggressive Expansion

Life Time is not resting on its financial laurels. The company detailed an aggressive expansion plan for 2026 that will see it open 12 to 14 new large-format clubs. This represents a significant acceleration of its growth, with the company expecting to add approximately 1.2 million square feet of new club space in 2026—nearly as much as it opened in 2024 and 2025 combined.

This expansion solidifies Life Time's unique position in the market, moving it further away from the traditional gym model and deeper into the 'athletic country club' space. These large-format destinations offer a comprehensive ecosystem of services, including state-of-the-art fitness equipment, pools, spas, cafes, and specialized programs like Dynamic Personal Training, all under one roof.

To fuel this growth, the company projects growth capital expenditures for 2026 to be between $875 million and $915 million. A portion of this capital is already being deployed for clubs scheduled to open in 2027 and beyond, indicating a well-developed and accelerating pipeline. This expansion will be funded largely through operating cash flow and at least $300 million in planned sale-leaseback transactions, a strategy the company has used effectively to manage its asset base and unlock capital.

Inside the Clubs: Driving Member Spending

The company's revenue growth isn't just coming from adding new members; it's coming from getting more revenue from each one. A key driver of the 2025 success was a substantial increase in member engagement and in-center spending. The average revenue per center membership for the full year jumped 11.7% to $3,531.

This increase is the result of a multi-pronged strategy. First, average monthly dues rose by 10.8% in the fourth quarter, reflecting both pricing power and a shift toward a more premium membership mix. Second, members are visiting more often and spending more when they do. In-center revenue, which includes everything from personal training and spa services to food and apparel, grew by over 15% for the year.

The press release specifically highlighted the success of its Dynamic Personal Training, one of many offerings that encourage members to integrate the club more deeply into their lifestyle and budget. This trend aligns with the broader consumer shift toward holistic wellness, where customers are willing to pay a premium for comprehensive, high-quality health experiences rather than just access to gym equipment.

A Confident Outlook for 2026

Looking ahead, Life Time reiterated a confident outlook for 2026. The company projects total revenue to reach between $3.30 billion and $3.33 billion, representing an increase of approximately 10.7% at the midpoint. Adjusted EBITDA is forecast to be between $910 million and $925 million, an 11.2% increase over the record set in 2025.

This guidance, combined with the aggressive club opening schedule and the new share buyback, paints a clear picture of the company's strategy. Life Time is leveraging its strong financial performance and unique market position to simultaneously accelerate its physical footprint, enhance its premium brand, and deliver immediate value back to its shareholders, setting a dynamic pace for the year ahead.