LTH

Life Time has decisively turned the corner from its pandemic-era losses into a profitable, scaling premium lifestyle brand. FY2025 revenue grew 14.3% to $3.00B, net income jumped 139.2% to $374M, operating income rose 34.6% to $481M (16.1% operating margin), and diluted EPS more than doubled to $1.66 (+124.3%). This caps a remarkable multi-year recovery — from a $579M loss in FY2021 to $76.1M, then $156M, now $374M of net income. Operating cash flow surged 51.4% to $871M. The MD&A shows the engine: average revenue per center membership climbed to $3,531 (from $3,160 in 2024 and $2,810 in 2023), total visits topped 122 million, and the mix is shifting toward higher-dues, higher-retention couples and families.

The growth runway is concrete and management-quantified. Life Time operates more than 185 resort-like athletic country clubs across 31 US states and one Canadian province, serving nearly 1.6 million members. It had 29 centers open less than three years (still ramping over the typical three-to-four-year curve) and 17 new centers under construction, and is targeting 12-14 new locations per year from 2026 using a capital-efficient asset-light model focused on affluent markets with higher returns on invested capital. As these maturing clubs ramp and new affluent-market openings carry higher revenue per membership, both volume and pricing should keep compounding.