Life Time Q2 revenue up 14%, beats expectations
Overview
Life Time Q2 revenue rises 14%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats estimates, rising 48% to $0.37
Co achieved positive free cash flow for the fifth consecutive quarter
Outlook
Life Time expects 2025 revenue between $2.955 bln and $2.985 bln
Company anticipates net income of $290 mln to $293 mln for 2025
Life Time plans to open 10 new centers in 2025
Company aims for net debt leverage ratio at or below 2.00 times
Result Drivers
MEMBERSHIP GROWTH - Revenue growth driven by increased membership dues and higher member utilization, particularly in Dynamic Personal Training
CENTER EXPENSES - Rise in center operations expenses due to costs related to new and ramping centers and increased club utilization
TAX BENEFITS - Net income boosted by tax-effected net cash proceeds from employee retention credits under the CARES Act
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $761.50 mln | $752.20 mln (9 Analysts) |
Q2 Adjusted EPS | Beat | $0.37 | $0.33 (9 Analysts) |
Q2 Net Income | $72.10 mln | ||
Q2 Adjusted EBITDA | Beat | $211 mln | $204.90 mln (8 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "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 $38.15, about 25% above its August 4 closing price of $28.59
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago
Press Release:
