Life Time Group (NYSE:LTH) Announces Earnings Results, Beats Estimates By $0.10 EPS

Life Time Group (NYSE:LTH) posted its quarterly earnings data on Thursday. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.10, FiscalAI reports. The business had revenue of $893.52 million during the quarter, compared to analysts’ expectations of $874.98 million. Life Time Group had a net margin of 12.72% and a return on equity of 11.01%. Life Time Group’s revenue was up 14.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.41 earnings per share.

Here are the key takeaways from Life Time Group’s conference call:

• Strong third-quarter performance saw revenue rise 14.2% to $893.5 million, comparable-center revenue increase 8.7%, and adjusted EBITDA grow 16.5% to $256.3 million, with margin expanding 60 basis points to 28.7%.
• Management raised full-year comparable-center revenue guidance to 8.5%-8.7% from 7.9%-8.3% and increased full-year revenue and adjusted EBITDA guidance, citing strength in dues, membership acquisition, and in-center businesses.
• Membership optimization is improving economics: non-Qualified Medical memberships grew 5.4% year over year while Qualified Medical memberships declined 19.6%, helping drive 13.7% dues-revenue growth and higher average monthly dues.
• Life Time remains on track to open 14 clubs in 2026 and expects 12-14 openings annually, supported by a strong development pipeline; management also highlighted continued growth in Dynamic Personal Training, LifeSpa, pickleball, and other in-center offerings.
• Capital expenditures rose 29.8% to $288.7 million as the company builds clubs for 2026 and beyond, while it expects roughly $135 million of additional fourth-quarter sale-leaseback proceeds; management reiterated its $400 million annual sale-leaseback target and 2030 free-cash-flow outlook.

Life Time Group Trading Down 0.7%

NYSE LTH traded down $0.30 during mid-day trading on Friday, reaching $45.05. 5,266,958 shares of the stock were exchanged, compared to its average volume of 3,084,613. The stock has a market cap of $10.07 billion, a P/E ratio of 24.48, a P/E/G ratio of 1.64 and a beta of 1.49. The stock has a 50 day simple moving average of $41.69 and a 200-day simple moving average of $35.24. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.73 and a quick ratio of 0.56. Life Time Group has a one year low of $24.14 and a one year high of $47.32.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. UBS Group set a $63.00 price target on shares of Life Time Group in a report on Wednesday, September 23rd. Jefferies Financial Group reissued a “buy” rating on shares of Life Time Group in a research note on Wednesday, September 23rd. Royal Bank Of Canada upped their target price on Life Time Group from $50.00 to $60.00 and gave the stock an “outperform” rating in a research note on Friday, July 31st. Bank of America reaffirmed a “buy” rating and set a $51.00 target price on shares of Life Time Group in a research note on Friday, July 31st. Finally, Barclays began coverage on Life Time Group in a report on Monday, October 26th. They set an “overweight” rating and a $51.00 price objective on the stock. Fifteen equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Life Time Group has a consensus rating of “Moderate Buy” and a consensus target price of $56.14.

Key Life Time Group News

Here are the key news stories impacting Life Time Group this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Revenue rose 14.2% year over year to $893.5 million, while adjusted EPS of $0.51 topped the roughly $0.41-$0.45 analyst estimates. Adjusted EBITDA increased 16.5% to $256.3 million, and adjusted net income climbed 24.6% to $115.9 million. Life Time Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management raised its 2026 earnings outlook. The guidance increase reinforces expectations that Life Time’s revenue growth, operating leverage and higher adjusted profitability can continue through the rest of the year. Life Time Raises 2026 Earnings Guidance
• Positive Sentiment: Wells Fargo raised its price target from $51 to $53 and maintained an “overweight” rating. The new target implies approximately 17.6% potential upside from the referenced $45.05 price, signaling continued analyst confidence in LTH’s earnings trajectory. Wells Fargo Stock Recommendations
• Positive Sentiment: Analyst coverage remains constructive. Barclays initiated research coverage, while Morgan Stanley projected strong appreciation, potentially broadening institutional interest in the shares. Barclays Initiates Life Time Coverage
• Neutral Sentiment: Membership growth was described as low single digit. Although revenue growth was strong, investors may monitor whether membership expansion accelerates enough to support the company’s premium valuation. Life Time Group Q3 Membership Growth

Insiders Place Their Bets

In related news, Director John G. Danhakl sold 2,879,154 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $43.80, for a total transaction of $126,106,945.20. Following the transaction, the director directly owned 3,029,450 shares of the company’s stock, valued at $132,689,910. This represents a 48.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Galashan sold 2,879,154 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $43.80, for a total transaction of $126,106,945.20. Following the completion of the sale, the director owned 3,029,450 shares of the company’s stock, valued at $132,689,910. The trade was a 48.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 5,943,402 shares of company stock valued at $259,987,015 in the last ninety days. 13.30% of the stock is owned by corporate insiders.

Life Time Group Company Profile

Life Time Group Holdings, Inc (NYSE: LTH) operates a network of luxury athletic country clubs in the United States and Canada. The company’s facilities combine fitness, sports, health, and wellness services in an integrated club environment designed for individuals and families.

Life Time clubs typically offer cardiovascular and strength-training equipment, group fitness classes, personal training, indoor and outdoor pools, tennis, pickleball, basketball, and other athletic programs. Many locations also provide childcare, spas, cafés, workspaces, recovery services, and specialized programs for children, older adults, and other member groups.