Core Insights - Life Time is expanding its presence in Atlanta with the opening of Life Time Perimeter, a 79,000-square-foot athletic country club designed for health-conscious professionals and families [1][2][3] - The facility combines wellness, fitness, recovery, work, and leisure, catering to the needs of the local community [2][3] - Life Time Perimeter is the ninth location in Atlanta, reflecting the company's growth since its entry into the Georgia market in 2006 [4] Company Overview - Life Time operates 185 athletic country clubs across the U.S. and Canada, focusing on promoting healthy lifestyles for individuals of all ages [8] - The company has been recognized as a Great Place to Work®, highlighting its commitment to a positive workplace culture for over 49,000 employees [8] Facility Features - Life Time Perimeter includes eight outdoor pickleball courts, five tennis courts, multiple pools, and a variety of fitness studios offering over 100 classes weekly [7] - The club features a dedicated recovery space, luxurious dressing rooms, and a Kids Academy, enhancing the overall wellness experience for members [7] Accessibility and Operations - The facility is conveniently located near major highways, providing easy access for members in the surrounding areas [3] - Life Time Perimeter operates extensive hours, open from 4:00 a.m. to midnight on weekdays and from 6:00 a.m. to 11:00 p.m. on weekends [5]

Core Insights - Life Time Group reported strong Q2 FY2025 results, with adjusted earnings per share of $0.37, a 48.0% increase year-over-year, surpassing consensus expectations of $0.32 [1][2] - Revenue reached $761.5 million, a 14.0% year-over-year increase, also exceeding analyst forecasts [1][2] - The company raised its full-year 2025 guidance for revenue and adjusted EBITDA, indicating continued operational progress [1][10] Financial Performance - Adjusted EPS (Non-GAAP) for Q2 2025 was $0.37, up from $0.25 in Q2 2024, reflecting a 48.0% increase [2] - GAAP revenue for Q2 2025 was $761.5 million, compared to $667.8 million in Q2 2024, marking a 14.0% increase [2] - Adjusted EBITDA reached $211.0 million, a 21.6% increase from $173.5 million in Q2 2024 [2] - Net income (GAAP) was $72.1 million, up 36.6% from $52.8 million in Q2 2024 [2] - Free cash flow (non-GAAP) was $112.5 million, influenced by $138.8 million from property sale-leaseback activity [5] Membership and Revenue Drivers - Membership dues and enrollment fees accounted for approximately 71.7% of total center revenue [6] - Average revenue per center membership increased by 11.8% to $888, driven by price increases and higher adoption of in-center services [6] - Comparable center revenue grew 11.2% year-over-year, supported by new club openings and increased in-center participation [6] Operational Strategy - Life Time focuses on boosting revenue per member and targeting higher-income demographics while expanding its center network [4] - The company employs an asset-light growth model, leasing most new centers to reduce risk and enable steady expansion [8] - Management emphasized the importance of maximizing member engagement and delivering a superior in-center experience [4] Future Outlook - Life Time raised its full-year 2025 revenue guidance to between $2.955 billion and $2.985 billion, with adjusted EBITDA targeted between $805 million and $815 million [10] - The company forecasts comparable center revenue growth of 9.5% to 10.0%, an increase from previous expectations [10] - Plans to open 10 new centers this year while maintaining net debt leverage below 2.0x [10]

Financial Data and Key Metrics Changes - Total revenue increased by 14% to $761 million, driven by a 14% increase in membership dues and enrollment fees, and a 14.4% increase in in-center revenue [5][6] - Net income for the quarter was $72.1 million, an increase of 36.5%, including approximately $9 million of tax-effective losses on sale leaseback [6][7] - Adjusted net income was $84.1 million, up 60.5% year over year, while adjusted EBITDA increased by 21.6% to $211 million [7][8] - Free cash flow was $112 million for the second quarter, marking the fifth consecutive quarter of positive free cash flow [8] Business Line Data and Key Metrics Changes - Memberships reached over 849,000, with total memberships, including on-hold memberships, at approximately 899,000 [6] - Average monthly dues grew by 10.6% year over year to $219, and average revenue per center membership was $888, an increase of 11.8% from the prior year quarter [6][7] - Comparable center revenue grew by 11.2%, prompting an increase in full-year comparable center revenue guidance to between 9.5% and 10% [5][6] Market Data and Key Metrics Changes - Lifetime Digital accounts increased by 216% year over year to 2.3 million [11] - The nutritional supplement line saw revenue growth of 31% compared to the prior year quarter [12] Company Strategy and Development Direction - The company is focusing on growth, with plans to accelerate the development of new club openings, targeting 12 to 14 openings in 2026 [11] - The company aims to maintain a strong balance sheet and has achieved a BB credit rating, which will help lower interest costs and increase earnings [10] - The company is committed to an asset-light, high-margin expansion strategy to drive sustained revenue and adjusted EBITDA growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth opportunities ahead, noting that visits per membership are up 5.7% year over year [10] - The management team emphasized that they are not seeing any signs of weakness in membership or revenue growth, despite typical seasonal fluctuations [20][30] - The company is focused on maintaining a strong customer experience and is cautious about overextending membership growth to ensure quality [43][52] Other Important Information - The company closed on the sale leaseback of three properties, generating net proceeds of approximately $149 million [9] - The company plans to close another $100 million in sale leaseback transactions in the second half of the year [10] Q&A Session Summary Question: How did new membership sign-ups track through the quarter? - Management noted that membership sign-ups were slightly slower in the first half of the quarter but picked up significantly in the latter half, resulting in a strong finish [16][18] Question: Any further commentary on monetizing membership? - Management indicated that revenue per membership increased nearly 12%, reflecting effective monetization strategies [22] Question: Clarification on unit guidance and timing shifts? - Management explained that the narrowing of unit guidance was due to a focus on existing spaces and ensuring financial stability, with a robust pipeline for future growth [26][27] Question: Expectations for membership in the back half of the year? - Management expects typical seasonality to affect membership numbers, but they are not seeing any signs of weakness [30][32] Question: How does the waitlist affect member growth? - Management clarified that waitlists are a tool for managing member experience and should not be viewed as a KPI [50][52] Question: Insights on average revenue per membership growth? - Management reported no signs of fatigue among demographics and emphasized strong performance across all business areas [60] Question: Trends in in-center revenue and initiatives? - Management highlighted growth in personal training and nutritional products, with plans for further expansion in these areas [66][70] Question: Pricing strategies for legacy members? - Management confirmed that pricing adjustments for legacy members were consistent with their strategy and that they remain optimistic about comp sales growth [78] Question: Pipeline for new clubs beyond 2026? - Management indicated a solid pipeline and expects to maintain growth of at least 10 to 12 clubs per year [81][82]

Financial Data and Key Metrics Changes - Total revenue increased by 14% to $761 million, driven by a 14% increase in membership dues and enrollment fees, and a 14.4% increase in in-center revenue [4] - Net income for the quarter was $72.1 million, an increase of 36.5%, including approximately $9 million of tax-effective losses on sale leaseback [5] - Adjusted net income, excluding gains and losses on sale leasebacks, was $84.1 million, up 60.5% year over year [6] - Adjusted EBITDA rose to $211 million, an increase of 21.6%, with an adjusted EBITDA margin improvement of 170 basis points to 27.7% [6] - Free cash flow was $112 million for the second quarter, marking the fifth consecutive quarter of positive free cash flow [6] Business Line Data and Key Metrics Changes - Memberships increased to over 849,000, with total memberships reaching approximately 899,000, including on-hold memberships [5] - Average monthly dues grew by 10.6% year over year to $219, while average revenue per center membership increased by 11.8% to $888 [5] Market Data and Key Metrics Changes - Lifetime Digital accounts reached 2.3 million, up 216% year over year [9] - The nutritional supplement line revenue grew by 31% compared to the prior year quarter [10] Company Strategy and Development Direction - The company is accelerating the development of new club openings, targeting 12 to 14 openings in 2026, with an average size of nearly 100,000 square feet [9] - The focus is on growth, with plans to capitalize on high-margin expansion opportunities and maintain positive free cash flow [10] - The company aims to strengthen its balance sheet and has achieved a BB credit rating, allowing for lower interest costs and increased earnings [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and record retention levels, with visits per membership up 5.7% year over year [7] - The company is cautious about macroeconomic conditions but believes it can thrive in both strong and challenging environments [20] - Management indicated that membership growth is expected to follow normal seasonality, with no signs of weakness observed [32] Other Important Information - The company closed on a sale leaseback of three properties, generating net proceeds of approximately $149 million [7] - The sale leaseback market remains open and attractive, with expectations to close another $100 million in transactions in the second half of the year [8] Q&A Session Summary Question: How did new membership sign-ups track through the quarter? - Management noted that membership sign-ups were slightly slower in the first half of the quarter but finished strong, making up for the initial slowdown [17] Question: Any further commentary on monetizing membership? - Management stated that revenue per membership increased nearly 12%, indicating effective monetization strategies [22] Question: Clarification on unit guidance and timing shifts? - Management explained that the unit guidance was narrowed due to construction timelines and a focus on financial stability, with a target of 12 to 14 openings in the next year [28] Question: Expectations for membership in the back half of the year? - Management expects typical seasonality in Q3, with no signs of weakness, and noted that the first part of the current quarter is following strong trends [32][33] Question: How does the waitlist affect member growth? - Management clarified that waitlists are a tool for managing member experience and should not be considered a KPI [50][51] Question: Insights on average revenue per membership growth? - Management indicated that there are no signs of fatigue among demographics, and they are not seeing weakness in any part of the business [58] Question: Trends in in-center revenue and initiatives? - Management highlighted growth in the nutritional supplement line and the success of new initiatives like Lacey, the AI-powered health companion [66][68]

Core Insights - Life Time Group Holdings, Inc. (LTH) reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and up from $0.25 per share a year ago, representing an earnings surprise of +12.12% [1] - The company achieved revenues of $761.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.27% and increasing from $667.76 million year-over-year [2] - Life Time Group Holdings shares have increased approximately 29.3% year-to-date, significantly outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $769.91 million, and for the current fiscal year, it is $1.32 on revenues of $2.97 billion [7] - The estimate revisions trend for Life Time Group Holdings was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which Life Time Group Holdings belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Life Time Group Holdings, Inc.'s unaudited condensed consolidated financial statements for the period ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, with detailed notes providing essential context for the financial figures [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific points in time, detailing assets, liabilities, and equity | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total assets | $7,600,207 | $7,152,537 | | Total liabilities | $4,730,964 | $4,542,187 | | Total stockholders' equity | $2,869,243 | $2,610,350 | - Total assets increased by **$447.67 million** from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and cash equivalents, property and equipment, and operating lease right-of-use assets[10](index=10&type=chunk) - Total stockholders' equity increased by **$258.89 million**, reflecting net income and additional paid-in capital[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific periods, illustrating operational profitability and overall financial performance | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $761,469 | $667,761 | $1,467,510 | $1,264,478 | | Income from operations| $108,449 | $104,756 | $216,119 | $176,813 | | Net income | $72,102 | $52,805 | $148,244 | $77,722 | | Basic EPS | $0.33 | $0.27 | $0.69 | $0.39 | | Diluted EPS | $0.32 | $0.26 | $0.66 | $0.38 | - Net income for the three months ended June 30, 2025, increased by **$19.30 million (36.5%)** compared to the same period in 2024, and for the six months, it increased by **$70.52 million (90.7%)**[12](index=12&type=chunk) - Total revenue grew by **$93.71 million (14.0%)** for the three months and **$203.03 million (16.1%)** for the six months ended June 30, 2025, year-over-year[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the total comprehensive income, which includes net income and other comprehensive income (loss) items not recognized in the income statement | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $72,102 | $52,805 | $148,244 | $77,722 | | Other comprehensive income (loss) | $3,393 | $(649) | $3,458 | $(2,316) | | Comprehensive income | $75,495 | $52,156 | $151,702 | $75,406 | - Other comprehensive income saw a positive shift, with a gain of **$3.39 million** for the three months and **$3.46 million** for the six months ended June 30, 2025, compared to losses in the prior year periods, primarily due to foreign currency translation adjustments and unrealized gains on derivative instruments[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit, reflecting transactions with owners and retained earnings | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Common Stock | $2,199 | $2,075 | | Additional Paid-In Capital | $3,148,712 | $3,041,645 | | Accumulated Deficit | $(272,329) | $(420,573) | | Total Equity | $2,869,243 | $2,610,350 | - Total stockholders' equity increased by **$258.89 million** from December 31, 2024, to June 30, 2025, driven by net income, share-based compensation, stock option exercises, and common stock issuances related to an asset acquisition[16](index=16&type=chunk)[18](index=18&type=chunk) - Accumulated deficit decreased significantly from **$(420.57) million** at December 31, 2024, to **$(272.33) million** at June 30, 2025, primarily due to net income[16](index=16&type=chunk)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities, providing insight into the company's liquidity and solvency | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $379,554 | $260,830 | | Net cash used in investing activities | $(230,651) | $(154,281) | | Net cash provided by (used in) financing activities | $19,291 | $(87,102) | | Increase in cash and cash equivalents and restricted cash and cash equivalents | $168,371 | $19,392 | - Net cash provided by operating activities increased by **$118.72 million (45.5%)** year-over-year, reflecting improved business performance[20](index=20&type=chunk) - Net cash used in investing activities increased by **$76.37 million (49.5%)** due to higher capital expenditures[20](index=20&type=chunk) - Financing activities shifted from a net cash outflow of **$87.10 million** in 2024 to a net cash inflow of **$19.29 million** in 2025, primarily due to lower debt repayments and higher proceeds from stock option exercises[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information about the figures presented in the financial statements, clarifying accounting policies, significant transactions, and other relevant disclosures [1. Nature of Business and Basis of Presentation](index=12&type=section&id=1.%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) This section describes the company's core operations and the accounting principles used in preparing the financial statements - Life Time Group Holdings, Inc. operates **184 athletic country clubs** across 31 states and one Canadian province as of June 30, 2025, providing premium health, fitness, and wellness experiences[21](index=21&type=chunk) - The financial statements are unaudited and prepared in accordance with GAAP for interim reporting, reflecting normal recurring adjustments[22](index=22&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting policies and methods applied in the preparation of the financial statements, ensuring consistency and comparability - The company operates as one reportable segment, focusing on premium health, fitness, and wellness experiences[24](index=24&type=chunk) - New FASB guidance on income tax disclosures (effective Dec 31, 2025) and expense caption disclosures (effective Dec 31, 2027) are being evaluated for impact[26](index=26&type=chunk)[27](index=27&type=chunk) Fair Value Measurements (June 30, 2025) | Category | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Assets | — | $21,551 | — | $21,551 | | Liabilities | $14,608 | $4,862 | — | $19,470 | - The company received **$12.9 million** in net cash proceeds from employee retention credits under the CARES Act during the three and six months ended June 30, 2025, recognized as Other Income[35](index=35&type=chunk) [3. Supplemental Balance Sheet and Cash Flow Information](index=14&type=section&id=3.%20Supplemental%20Balance%20Sheet%20and%20Cash%20Flow%20Information) This section provides additional detail on specific balance sheet accounts and cash flow components, offering further insights into financial movements Prepaid Expenses and Other Current Assets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Property held for sale | $2,471 | $1,866 | | Construction contract receivables | $12,784 | $8,513 | | Interest rate swap assets | $4,771 | — | | Prepaid insurance | $6,465 | $2,351 | | Prepaid commissions | $7,030 | $6,476 | | Prepaid rent | $4,884 | $3,927 | | Prepaid software licenses and maintenance | $12,262 | $5,199 | | Prepaid payroll | — | $11,883 | | Other | $14,281 | $12,611 | | **Total** | **$64,948** | **$52,826** | Accrued Expenses and Other Current Liabilities (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Real estate taxes | $36,060 | $34,779 | | Accrued interest | $19,701 | $10,170 | | Payroll liabilities | $44,205 | $44,347 | | Self-insurance accruals | $31,914 | $29,437 | | Corporate accruals | $40,788 | $35,653 | | Other | $24,992 | $25,058 | | **Total** | **$197,660** | **$179,444** | - Net cash paid for interest (including cash settlements associated with interest rate swaps) decreased from **$69.98 million** in the six months ended June 30, 2024, to **$36.72 million** in the same period of 2025[38](index=38&type=chunk) [4. Property and Equipment](index=17&type=section&id=4.%20Property%20and%20Equipment) This section provides details on the company's tangible assets, including acquisitions and their impact on the balance sheet - In April 2025, the company acquired existing health club and racquet facilities for **$59.7 million**, paid with **$19.3 million** in cash and **$39.7 million** in common stock, allocating the entire purchase price to property and equipment[40](index=40&type=chunk) [5. Revenue](index=17&type=section&id=5.%20Revenue) This section breaks down the company's revenue streams, highlighting key drivers of sales and changes in contract liabilities Revenue by Major Stream (in thousands) | Revenue Stream | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Membership dues and enrollment fees | $527,309 | $462,696 | $1,028,962 | $888,107 | | In-center revenue| $208,556 | $182,311 | $392,557 | $337,385 | | Total center revenue | $735,865 | $645,007 | $1,421,519 | $1,225,492 | | Other revenue | $25,604 | $22,754 | $45,991 | $38,986 | | **Total revenue**| **$761,469** | **$667,761** | **$1,467,510** | **$1,264,478** | - Total revenue increased by **14.0%** for the three months and **16.1%** for the six months ended June 30, 2025, compared to the prior year, driven by growth in membership dues and in-center revenue[41](index=41&type=chunk) - Contract liabilities (deferred revenue) were **$61.0 million** at June 30, 2025, up from **$58.4 million** at December 31, 2024, representing payments received in advance for services not yet rendered[41](index=41&type=chunk)[43](index=43&type=chunk) [6. Derivative Instruments and Hedging Activities](index=19&type=section&id=6.%20Derivative%20Instruments%20and%20Hedging%20Activities) This section describes the company's use of financial instruments to manage risk, particularly interest rate swaps, and their accounting treatment - During Q2 2025, the company entered into interest rate swap agreements with an initial aggregate notional amount of **$997.5 million**, effectively converting variable interest payments on its Term Loan Facility to a fixed rate of **3.409%** plus an applicable margin[49](index=49&type=chunk)[55](index=55&type=chunk) - These interest rate swaps are designated as cash flow hedges, with unrealized gains or losses recognized in accumulated other comprehensive loss (AOCL) and realized gains or losses reclassified to interest expense[51](index=51&type=chunk) Impact of Interest Rate Swaps on AOCL (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :------------------------------------------------ | :----- | | AOCL balance at December 31, 2024 | $(12,797) | | Other comprehensive income before reclassifications | $4,974 | | Amounts reclassified from AOCL to earnings | $(1,516) | | AOCL balance at June 30, 2025 | $(9,339) | [7. Debt](index=21&type=section&id=7.%20Debt) This section provides a detailed breakdown of the company's debt obligations, including term loans, senior secured notes, and revolving credit facilities, along with associated interest rates Debt Composition (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Term Loan Facility | $995,000 | $1,000,000 | | Revolving Credit Facility | — | $10,000 | | 6.000% Senior Secured Notes | $500,000 | $500,000 | | Mortgage Notes | $35,713 | $41,865 | | Other debt | $3,436 | $3,448 | | Fair value adjustment | $207 | $284 | | **Total debt** | **$1,534,356**| **$1,555,597** | - The effective fixed interest rate on the Term Loan Facility was **5.659%** at June 30, 2025, following an issuer credit rating upgrade that reduced the applicable margin by **0.25%** to **2.25%**[55](index=55&type=chunk) - As of June 30, 2025, there were no outstanding borrowings under the **$650.0 million** Revolving Credit Facility, with **$618.5 million** available after accounting for **$31.5 million** in outstanding letters of credit[56](index=56&type=chunk) [8. Leases](index=22&type=section&id=8.%20Leases) This section details the company's leasing activities, including sale-leaseback transactions and their impact on assets and liabilities - During the six months ended June 30, 2025, the company completed a sale-leaseback transaction for three properties, generating **$149.1 million** in net cash proceeds but recognizing a **$12.5 million** loss due to the sales price exceeding the fair value[61](index=61&type=chunk) - This transaction resulted in the recognition of **$77.1 million** in right-of-use assets and **$76.1 million** in lease liabilities[62](index=62&type=chunk) [9. Stockholders' Equity](index=22&type=section&id=9.%20Stockholders'%20Equity) This section provides information on share-based compensation expenses, equity awards granted, and the accounting treatment of various equity-related transactions Share-Based Compensation Expense (in thousands) | Period | Equity-Classified Awards | Liability-Classified Awards | Total | | :------------------------------- | :----------------------- | :-------------------------- | :---- | | Three Months Ended June 30, 2025 | $11,900 | $4,500 | $16,400 | | Six Months Ended June 30, 2025 | $22,200 | $6,100 | $28,300 | | Three Months Ended June 30, 2024 | $10,100 | $1,000 | $11,100 | | Six Months Ended June 30, 2024 | $18,000 | $700 | $18,700 | - During the six months ended June 30, 2025, the company granted approximately **1.2 million** restricted stock units and **0.3 million** performance stock units under the 2021 Incentive Award Plan[65](index=65&type=chunk)[66](index=66&type=chunk) - The 2025 short-term incentive program awards, expected to be settled in fully-vested shares, are accounted for as liability-classified share-based payment awards[67](index=67&type=chunk) [10. Income Per Share](index=25&type=section&id=10.%20Income%20Per%20Share) This section presents the basic and diluted earnings per share, along with the weighted-average common shares outstanding, providing insight into profitability on a per-share basis Income Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.33 | $0.27 | $0.69 | $0.39 | | Diluted EPS | $0.32 | $0.26 | $0.66 | $0.38 | | Weighted-average common shares outstanding – basic | 219,286 | 198,903 | 215,642 | 198,200 | | Weighted-average common shares outstanding – diluted | 225,511 | 206,044 | 224,585 | 204,851 | - Diluted EPS increased by **$0.06 (23.1%)** for the three months and **$0.28 (73.7%)** for the six months ended June 30, 2025, compared to the prior year periods[71](index=71&type=chunk) [11. Commitments and Contingencies](index=25&type=section&id=11.%20Commitments%20and%20Contingencies) This section discloses potential future obligations and uncertain events, such as legal proceedings, that could impact the company's financial position - The company is appealing a July 2024 judgment dismissing its claims against Zurich American Insurance Company regarding COVID-19 related business interruption and Builders' Risk policies[72](index=72&type=chunk) - Management believes the outcome of current legal actions and claims will not have a material adverse impact on the company's consolidated financial position, results of operations, or cash flows[73](index=73&type=chunk)[75](index=75&type=chunk) [12. Subsequent Events](index=27&type=section&id=12.%20Subsequent%20Events) This section reports significant events that occurred after the balance sheet date but before the financial statements were issued, which may require disclosure - No material subsequent events requiring recognition or disclosure were identified between June 30, 2025, and the financial statements' issuance date[76](index=76&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key business strategies, macroeconomic impacts, and a detailed comparison of financial performance for the three and six months ended June 30, 2025, versus 2024, also defining and reconciling non-GAAP financial measures and discussing liquidity and capital resources [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) This section cautions readers about statements that are not historical facts, indicating they involve risks and uncertainties that could cause actual results to differ materially - The discussion includes forward-looking statements regarding plans, strategies, financial outlook, growth opportunities, and economic trends, which are subject to risks and uncertainties[77](index=77&type=chunk)[78](index=78&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, as actual results may differ materially due to various factors, including those discussed in the company's Annual Report on Form 10-K[78](index=78&type=chunk) [Overview](index=28&type=section&id=Overview) This section provides a general summary of the company's business, its market position, strategic initiatives, and key operational highlights - Life Time, the 'Healthy Way of Life Company,' serves over **1.6 million** individual members across **184 athletic country clubs** in 31 states and one Canadian province as of June 30, 2025[80](index=80&type=chunk) - Average revenue per center membership increased to **$1,733** for the six months ended June 30, 2025, from **$1,541** in the prior year, with total club visits exceeding **62 million**[82](index=82&type=chunk) - The company is expanding its portfolio with an asset-light model, targeting **10-12 new locations per year**, and **12-14 new club openings in 2026**, focusing on affluent markets[84](index=84&type=chunk) - Strategic initiatives include pickleball, Dynamic Personal Training, ARORA community for older members, MIORA health offerings, and digital platform investments, including AI-driven personal companion L.AI.C[85](index=85&type=chunk) - The OBBB Act, enacted July 4, 2025, reinstates full expensing for qualified business property and modifies interest deduction limitations, with the company currently assessing its impact[89](index=89&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains non-GAAP financial measures used by management to assess performance, providing reconciliations to their most directly comparable GAAP measures - Adjusted net income is defined as net income excluding share-based compensation, (gain) loss on sale-leaseback, capital transaction costs, legal settlements, asset impairment, severance, and other non-indicative items, less tax effects[91](index=91&type=chunk) - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, excluding share-based compensation, (gain) loss on sale-leaseback, capital transaction costs, legal settlements, asset impairment, severance, and other non-indicative items[92](index=92&type=chunk) - Free cash flow is defined as net cash provided by operating activities less capital expenditures (net of reimbursements), plus net proceeds from sale-leaseback transactions and land sales[94](index=94&type=chunk) [Non-GAAP Measurements and Key Performance Indicators](index=31&type=section&id=Non-GAAP%20Measurements%20and%20Key%20Performance%20Indicators) This section presents key operational and financial metrics, including both GAAP and non-GAAP measures, to evaluate the company's performance and growth Key Performance Indicators | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total memberships | 898,850 | 878,767 | | Average Center revenue per center membership (6 months) | $1,733 | $1,541 | | Comparable center revenue (6 months) | 12.0% | 11.6% | | Net new center openings (6 months) | 5 | 4 | | Total centers (end of period) | 184 | 175 | | Total center square footage (end of period) | 18,000,000 | 17,200,000 | GAAP and Non-GAAP Financial Measures (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :------------ | :------------ | | Net income | $148,244 | $77,722 | | Net income margin | 10.1% | 6.1% | | Adjusted net income | $172,374 | $83,376 | | Adjusted net income margin | 11.7% | 6.6% | | Adjusted EBITDA | $402,565 | $319,523 | | Adjusted EBITDA margin | 27.4% | 25.3% | | Net cash provided by operating activities | $379,554 | $260,830 | | Free cash flow | $153,839 | $108,722 | - Adjusted EBITDA increased by **$83.04 million (26.0%)** for the six months ended June 30, 2025, compared to the prior year, with Adjusted EBITDA margin improving from **25.3% to 27.4%**[99](index=99&type=chunk) [Factors Affecting the Comparability of our Results of Operations](index=37&type=section&id=Factors%20Affecting%20the%20Comparability%20of%20our%20Results%20of%20Operations) This section discusses various internal and external factors, such as real estate strategy, macroeconomic conditions, and accounting policy changes, that influence the comparability of financial results across periods - The company's asset-light real estate strategy, with approximately **69%** of centers leased, leads to increased rent expense and impacts comparability of results[106](index=106&type=chunk) - Macroeconomic factors like tariffs, inflation, interest rates, taxes, and labor costs continue to be monitored for their potential impact on business operations[107](index=107&type=chunk) - No material changes to critical accounting policies were reported compared to the previous Annual Report on Form 10-K[110](index=110&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, comparing revenues and expenses for the current and prior periods, and explaining significant variances Revenue and Operating Expenses (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | % of Total Revenue 2025 | % of Total Revenue 2024 | | :-------------------------------- | :------------ | :------------ | :---------------------- | :---------------------- | | Total revenue | $761,469 | $667,761 | 100.0% | 100.0% | | Center operations | $403,925 | $355,510 | 53.0% | 53.2% | | Rent | $83,190 | $74,947 | 10.9% | 11.2% | | General, administrative and marketing | $61,674 | $53,246 | 8.1% | 8.0% | | Depreciation and amortization | $72,988 | $69,714 | 9.6% | 10.4% | | Other operating expense | $31,243 | $9,588 | 4.1% | 1.5% | | Income from operations | $108,449 | $104,756 | 14.3% | 15.7% | | Net income | $72,102 | $52,805 | 9.5% | 7.9% | - Total revenue increased by **$93.7 million (14.0%)** for the three months and **$203.0 million (16.1%)** for the six months ended June 30, 2025, driven by higher membership dues and in-center revenue, particularly Dynamic Personal Training[112](index=112&type=chunk)[114](index=114&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk) - Interest expense, net, decreased by **$15.9 million** for the three months and **$28.2 million** for the six months ended June 30, 2025, primarily due to lower outstanding borrowings and the impact of interest rate swaps[120](index=120&type=chunk)[133](index=133&type=chunk) - Other operating expense increased significantly due to a **$12.5 million** net loss on a sale-leaseback transaction in 2025, contrasting with gains in the prior year[119](index=119&type=chunk)[132](index=132&type=chunk) - Other income increased by **$12.9 million** for both periods due to employee retention credits under the CARES Act[121](index=121&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, detailing cash flows, available credit, and capital expenditure plans - Principal liquidity needs include new center acquisition/development, lease requirements, debt service, and investments in business/technology[137](index=137&type=chunk) - As of June 30, 2025, the company had **$175.5 million** in cash and cash equivalents and **$618.5 million** available under its Revolving Credit Facility, totaling **$794.0 million** in liquidity[140](index=140&type=chunk) - Net cash provided by operating activities increased by **$118.7 million** for the six months ended June 30, 2025, driven by improved business performance[142](index=142&type=chunk) Capital Expenditures by Type (Six Months Ended June 30, in thousands) | Type of Expenditure | 2025 | 2024 | | :-------------------------------- | :------------ | :------------ | | Growth capital expenditures | $260,460 | $213,469 | | Maintenance capital expenditures | $65,352 | $48,436 | | Modernization and technology capital expenditures | $38,674 | $39,202 | | **Total capital expenditures** | **$364,486** | **$301,107** | - Net cash provided by financing activities increased by **$106.4 million** for the six months ended June 30, 2025, primarily due to lower debt repayments and higher proceeds from stock option exercises[148](index=148&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, specifically interest rate risk and foreign currency exchange risk, detailing how the company manages its variable rate debt through interest rate swaps and assesses the potential impact of interest rate changes on its financial performance - The company is exposed to interest rate risk on its variable rate debt, primarily the Revolving Credit Facility and Term Loan Facility[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - Interest rate swaps effectively convert the Term Loan Facility's variable rate to a fixed rate of **3.409%** plus an applicable margin, which was **2.25%** at June 30, 2025[153](index=153&type=chunk) - A one percentage point change in interest rates would result in an approximately **$6.5 million** change in annual interest expense if the Revolving Credit Facility were fully drawn[154](index=154&type=chunk) - Foreign currency exchange risk is not considered material due to limited operations outside the United States (three centers in Canada)[155](index=155&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, with no material changes in internal control over financial reporting identified during the quarter - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of June 30, 2025[156](index=156&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=Part%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing litigation, including an appeal against Zurich American Insurance Company regarding business interruption and Builders' Risk policies, though management believes the outcome will not materially impact the company's financial position - The company is appealing a judgment dismissing its claims against Zurich American Insurance Company related to COVID-19 business interruption and Builders' Risk policies[72](index=72&type=chunk)[158](index=158&type=chunk) - Management assesses that the outcome of current legal actions and claims will not have a material adverse impact on the consolidated financial position, results of operations, or cash flows[73](index=73&type=chunk)[75](index=75&type=chunk) [ITEM 1A. RISK FACTORS](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to previously disclosed risk factors were identified in this quarterly report[159](index=159&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In April 2025, the company issued 1,355,516 shares of common stock as part of the acquisition of existing health club and racquet facilities, relying on a Section 4(2) exemption from registration - The company issued **1,355,516 shares** of common stock in April 2025 for an asset acquisition, utilizing a Section 4(2) exemption from registration[160](index=160&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities reported during the period - No defaults upon senior securities were reported[161](index=161&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were applicable or reported - No mine safety disclosures were applicable[162](index=162&type=chunk) [ITEM 5. OTHER INFORMATION](index=35&type=section&id=Item%205.%20Other%20Information) Executive Vice President and Chief Administrative Officer, Eric Buss, and Executive Vice President and Chief Digital Officer, Ritadhwaja Jebens (RJ) Singh, adopted Rule 10b5-1 trading plans in June 2025 for exercising stock options and selling shares - Eric Buss adopted a Rule 10b5-1 trading plan on June 13, 2025, for exercising vested stock options and selling up to **1,170,345 shares**, terminating by December 1, 2025[163](index=163&type=chunk) - RJ Singh adopted a Rule 10b5-1 trading plan on June 13, 2025, for exercising vested stock options (up to **67,751 shares**) and selling net shares from vesting restricted and performance stock units, terminating by September 11, 2026[164](index=164&type=chunk) [ITEM 6. EXHIBITS](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and Inline XBRL documents - The exhibits include certifications from the CEO and CFO (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act) and various Inline XBRL documents[167](index=167&type=chunk) [SIGNATURES](index=37&type=section&id=Signatures) - The report was signed on August 5, 2025, by Erik Weaver, Executive Vice President & Chief Financial Officer, on behalf of Life Time Group Holdings, Inc[171](index=171&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) The company reported strong revenue and profitability growth in the first half of 2025, achieving positive free cash flow and raising its full-year outlook [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Life Time reported strong Q2 2025 results with significant revenue and profitability growth, achieving positive free cash flow for the fifth consecutive quarter and reducing net debt leverage - Total revenue of **$761.5 million** increased **14.0%** over the prior year quarter[7](index=7&type=chunk) - Net income of **$72.1 million** increased **36.6%** over the prior year quarter[7](index=7&type=chunk) - Adjusted EBITDA of **$211.0 million** increased **21.6%** over the prior year quarter[7](index=7&type=chunk) - Achieved **positive free cash flow** for the fifth consecutive quarter[7](index=7&type=chunk) - Reduced net debt leverage ratio to **1.8 times**[7](index=7&type=chunk) - Raised 2025 outlook[7](index=7&type=chunk) [Six-Month 2025 Highlights](index=3&type=section&id=Six-Month%202025%20Highlights) For the first six months of 2025, Life Time demonstrated robust financial growth, with substantial increases in total revenue, net income, and adjusted profitability metrics, alongside strong cash flow generation - Total revenue increased **16.1%** to **$1,467.5 million**[4](index=4&type=chunk) - Net income increased **90.7%** to **$148.2 million**[4](index=4&type=chunk) - Adjusted net income increased **106.7%** to **$172.4 million**[4](index=4&type=chunk) - Adjusted EBITDA increased **26.0%** to **$402.6 million**[4](index=4&type=chunk) - Net cash provided by operating activities for the six months ended June 30, 2025, was **$379.6 million**, an increase of **45.5%** compared to the prior year period[11](index=11&type=chunk) - Achieved positive free cash flow of **$153.8 million** for the six months ended June 30, 2025[11](index=11&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO expressed satisfaction with Q2 results, highlighting record-high total visits, visits per membership, and retention, positioning the company for accelerated new club growth in 2026 - Life Time is pleased with its second quarter results and the momentum in the business[4](index=4&type=chunk) - Total visits, visits per membership, and retention reached **all-time highs**[4](index=4&type=chunk) - Strong business performance, balance sheet, and cash flow position the company for modestly accelerated new club growth in 2026[4](index=4&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company's financial performance shows robust growth in revenue and profitability, driven by increased membership dues and in-center spending [Consolidated Financial Summary](index=1&type=section&id=Consolidated%20Financial%20Summary) This table provides a high-level overview of Life Time's key financial metrics for the three and six months ended June 30, 2025, compared to the prior year, showing significant growth across revenue and profitability Consolidated Financial Summary | Metric ($ in millions) | Q2 2025 | Q2 2024 | % Change | 6M 2025 | 6M 2024 | % Change | | :--------------------- | :------ | :------ | :------- | :------ | :------ | :------- | | Total revenue | $761.5 | $667.8 | 14.0% | $1,467.5 | $1,264.5 | 16.1% | | Center operations expenses | $403.9 | $355.5 | 13.6% | $774.9 | $677.4 | 14.4% | | Rent | $83.2 | $74.9 | 11.1% | $164.4 | $147.2 | 11.7% | | General, administrative and marketing expenses | $61.7 | $53.2 | 16.0% | $119.5 | $102.1 | 17.0% | | Net income | $72.1 | $52.8 | 36.6% | $148.2 | $77.7 | 90.7% | | Adjusted net income | $84.1 | $52.4 | 60.5% | $172.4 | $83.4 | 106.7% | | Adjusted EBITDA | $211.0 | $173.5 | 21.6% | $402.6 | $319.5 | 26.0% | | Comparable center revenue | 11.2% | 12.0% | | 12.0% | 11.6% | | | Center memberships, end of period | 849,643 | 832,636 | 2.0% | 849,643 | 832,636 | 2.0% | | Average center revenue per center membership | $888 | $794 | 11.8% | $1,733 | $1,541 | 12.5% | [Second Quarter 2025 Detailed Results](index=1&type=section&id=Second%20Quarter%202025%20Detailed%20Results) Life Time's Q2 2025 performance was marked by strong revenue growth driven by membership and in-center offerings, alongside increased operating expenses due to expansion and utilization, culminating in significant improvements in net income and adjusted profitability [Revenue and Membership Growth](index=1&type=section&id=Revenue%20and%20Membership%20Growth_Q2) Revenue growth was driven by higher membership dues and increased utilization of in-center offerings - Total revenue increased **14.0%** to **$761.5 million**, driven by strong growth in membership dues and in-center revenue[8](index=8&type=chunk) - Revenue growth was fueled by increased average dues, membership growth in new and ramping centers, and higher member utilization of in-center offerings, particularly Dynamic Personal Training[8](index=8&type=chunk) - Center memberships reached **849,643**, a **2.0%** increase YoY and **2.8%** QoQ, with sequential growth partly due to seasonality[8](index=8&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses_Q2) Operating expenses rose due to new center costs and higher club utilization - Center operations expenses increased **13.6%** to **$403.9 million**, primarily due to operating costs for new/ramping centers and increased club utilization[11](index=11&type=chunk) - General, administrative and marketing expenses rose **16.0%** to **$61.7 million**, mainly due to share-based compensation, center support overhead, IT costs, and secondary offering expenses[11](index=11&type=chunk) [Profitability (Net Income, Adjusted Net Income, Adjusted EBITDA)](index=1&type=section&id=Profitability_Q2) Profitability metrics improved significantly, reflecting strong business performance and structural enhancements - Net income increased **36.6%** to **$72.1 million**, driven by improved business performance and **$9.3 million** from employee retention credits, partially offset by a **$9.0 million** loss on a sale-leaseback transaction[11](index=11&type=chunk) - Adjusted net income increased **60.5%** to **$84.1 million** and Adjusted EBITDA increased **21.6%** to **$211.0 million**[11](index=11&type=chunk) - Profitability improvements reflect greater revenue flow-through and structural business enhancements that improved margins[11](index=11&type=chunk) [Six-Month 2025 Detailed Results](index=3&type=section&id=Six-Month%202025%20Detailed%20Results) For the first half of 2025, Life Time achieved significant revenue growth, driven by membership and in-center offerings, but overall profitability saw substantial improvements, supported by tax benefits and structural enhancements [Revenue and Membership Growth](index=3&type=section&id=Revenue%20and%20Membership%20Growth_6M) Revenue growth was driven by higher membership dues and increased utilization of in-center offerings - Revenue increased **16.1%** to **$1,467.5 million**, due to strong growth in membership dues and in-center revenue[11](index=11&type=chunk) - Growth was driven by an increase in average dues, membership growth in new and ramping centers, and higher member utilization of in-center offerings, particularly Dynamic Personal Training[11](index=11&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses_6M) Operating expenses rose due to new center costs and higher club utilization - Center operations expenses increased **14.4%** to **$774.9 million**, primarily due to operating costs for new/ramping centers and increased club utilization[11](index=11&type=chunk) - General, administrative and marketing expenses increased **17.0%** to **$119.5 million**, mainly due to share-based compensation, center support overhead, IT costs, and secondary offerings in February and June 2025[11](index=11&type=chunk) [Profitability (Net Income, Adjusted Net Income, Adjusted EBITDA)](index=3&type=section&id=Profitability_6M) Profitability metrics improved significantly, reflecting strong business performance and structural enhancements - Net income increased **90.7%** to **$148.2 million**, primarily due to improved business performance, a **$15.0 million** tax benefit from stock option exercises, and **$10.5 million** from employee retention credits, partially offset by a **$10.2 million** loss on a sale-leaseback transaction[11](index=11&type=chunk) - Adjusted net income increased **106.7%** to **$172.4 million** and Adjusted EBITDA increased **26.0%** to **$402.6 million**[11](index=11&type=chunk) - Both Adjusted net income and Adjusted EBITDA benefited from greater revenue flow-through and structural business improvements[11](index=11&type=chunk) [Operational Highlights](index=3&type=section&id=Operational%20Highlights) The company's operational performance shows growth in memberships and an expanding physical footprint through new center openings [Membership and Center Data](index=10&type=section&id=Membership%20and%20Center%20Data) Life Time reported an increase in center memberships and total subscriptions, alongside an expansion in its physical footprint with new center openings and increased total center square footage Membership and Center Data (as of June 30, 2025) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Center memberships | 849,643 | 832,636 | 2.0% | | On-hold memberships | 49,207 | 46,131 | 6.7% | | Total memberships | 898,850 | 878,767 | 2.3% | | Total centers (end of period) | 184 | 175 | 5.1% | | Total center square footage (end of period) | 18,000,000 | 17,200,000 | 4.7% | [New Center Openings](index=3&type=section&id=New%20Center%20Openings) Life Time opened four new centers during Q2 2025, contributing to a total of 184 centers operated as of June 30, 2025, and five net new center openings for the six months ended June 30, 2025 - **Four new centers** were opened during the second quarter of 2025[11](index=11&type=chunk) - As of June 30, 2025, the company operated a total of **184 centers**[11](index=11&type=chunk) - Net new center openings for the six months ended June 30, 2025, were **five**[33](index=33&type=chunk) [Cash Flow and Capital Structure](index=3&type=section&id=Cash%20Flow%20and%20Capital%20Structure) The company strengthened its financial position through positive free cash flow, increased liquidity, and a reduction in its net debt leverage ratio [Cash Flow Highlights](index=3&type=section&id=Cash%20Flow%20Highlights) Life Time achieved positive free cash flow for both Q2 and the first six months of 2025, significantly increasing net cash provided by operating activities, partly aided by proceeds from a sale-leaseback transaction - Net cash provided by operating activities for the six months ended June 30, 2025, was **$379.6 million**, an increase of **45.5%** YoY[11](index=11&type=chunk) - Achieved positive free cash flow of **$112.5 million** for Q2 2025, including **$138.8 million** net proceeds from a sale-leaseback transaction[11](index=11&type=chunk) - Achieved positive free cash flow of **$153.8 million** for the six months ended June 30, 2025[11](index=11&type=chunk) [Capital Expenditures](index=3&type=section&id=Capital%20Expenditures) Capital expenditures increased significantly in Q2 and the first six months of 2025, driven by growth capital for new centers and major remodels, as well as increased maintenance and modernization/technology investments Capital Expenditures ($ in millions) | Type | Q2 2025 | Q2 2024 | % Change | 6M 2025 | 6M 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | :------ | :------ | :------- | | Growth capital expenditures | $167.0 | $108.6 | 53.8% | $260.5 | $213.5 | 22.0% | | Maintenance capital expenditures | $35.9 | $27.3 | 31.5% | $65.4 | $48.4 | 35.1% | | Modernization and technology capital expenditures | $19.1 | $8.4 | 127.4% | $38.7 | $39.2 | (1.3)% | | Total capital expenditures | $222.0 | $144.3 | 53.8% | $364.6 | $301.1 | 21.1% | [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) Life Time significantly improved its liquidity position, with total available liquidity reaching $794.0 million, including substantial revolving credit facility availability and increased cash and cash equivalents - Total available liquidity was **$794.0 million** as of June 30, 2025[14](index=14&type=chunk) - This included **$618.5 million** of availability on the **$650.0 million** revolving credit facility and **$175.5 million** of cash and cash equivalents[14](index=14&type=chunk) - Cash and cash equivalents are higher than historical levels due to a sale-leaseback transaction, with plans to fund growth initiatives[14](index=14&type=chunk) [Debt and Leverage](index=4&type=section&id=Debt%20and%20Leverage) Life Time successfully reduced its net debt leverage ratio to 1.8 times, improved its credit rating, and converted its variable interest rate term loan to a fixed rate, enhancing financial stability - Net debt leverage ratio improved to **1.8 times** as of June 30, 2025, from 3.0 times as of June 30, 2024[14](index=14&type=chunk) - Entered into interest rate swap agreements for the entire **$997.5 million** term loan facility, converting the variable rate to a fixed rate of **3.409%** plus applicable margin[14](index=14&type=chunk) - S&P Global Ratings upgraded the Company's issuer credit rating to **'BB-'** from 'B+' on June 18, 2025, improving term loan and revolving credit facility margins by 25 basis points[14](index=14&type=chunk) [2025 Financial Outlook](index=4&type=section&id=2025%20Financial%20Outlook) The company raised its full-year 2025 guidance, reflecting increased confidence in its business performance and growth trajectory [Full-Year 2025 Guidance Update](index=4&type=section&id=Full-Year%202025%20Guidance%20Update) Life Time raised its full-year 2025 guidance for revenue, net income, and Adjusted EBITDA, reflecting increased confidence in its business performance and growth trajectory Full-Year 2025 Guidance Update ($ in millions) | Metric | New Guidance (Dec 31, 2025) | Previous Guidance (May 8, 2025) | Year Ended Dec 31, 2024 (Actual) | % Change (Midpoints vs 2024) | | :---------------- | :-------------------------- | :-------------------------- | :----------------------------- | :--------------------------- | | Revenue | $2,955 – $2,985 | $2,940 – $2,980 | $2,621.0 | 13.3% | | Net Income | $290 – $293 | $286 – $293 | $156.2 | 86.6% | | Adjusted EBITDA | $805 – $815 | $792 – $808 | $676.8 | 19.7% | | Rent | $337 – $343 | $337 – $347 | $304.9 | 11.5% | [Key Operational and Financial Guidance](index=4&type=section&id=Key%20Operational%20and%20Financial%20Guidance) Life Time provided updated operational and financial guidance for 2025, including plans for new center openings, comparable center revenue growth, debt management, and revised estimates for key expenses - Plan to open **10 new centers**[15](index=15&type=chunk) - Manage net debt leverage ratio to remain at or below **2.00 times**[15](index=15&type=chunk) - Comparable center revenue growth of **9.5% to 10.0%**, increased from previous expectations of 8.5% to 9.5%[15](index=15&type=chunk) - Rent to include non-cash rent expense of **$34 million to $37 million**, decreased from previous expectations of $35 million to $38 million[15](index=15&type=chunk) - Cash income tax expense of **$25 million to $27 million**, decreased from previous $39 million to $41 million, reflecting tax benefits of the One Big Beautiful Bill Act[15](index=15&type=chunk) - Complete **$100 million** in additional sale-leaseback transactions in the second half of the year, resulting in total gross proceeds of approximately **$250 million** for the year[15](index=15&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) This section provides corporate information, investor relations details, and required legal disclosures [About Life Time](index=5&type=section&id=About%20Life%20Time) Life Time operates over 180 athletic country clubs across the US and Canada, offering a comprehensive healthy living ecosystem and recognized as a Great Place to Work - Life Time operates over **180 athletic country clubs** across the United States and Canada[17](index=17&type=chunk) - Empowers people to live healthy, happy lives through its clubs, complimentary app, and nearly 30 iconic athletic events[17](index=17&type=chunk) - Serves people **90 days to 90+ years old** through healthy living, aging, and entertainment communities and ecosystem, along with programs and nutritional products[17](index=17&type=chunk) - Recently certified as a **Great Place to Work**, reinforcing its commitment to fostering an exceptional workplace culture[17](index=17&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Life Time scheduled a conference call for August 5, 2025, at 10:00 a.m. ET to discuss its second quarter financial results, with dial-in and webcast options available - A conference call to discuss Q2 financial results was scheduled for Tuesday, August 5, 2025, at 10:00 a.m. ET[15](index=15&type=chunk) - Dial-in numbers provided for U.S. (1-877-451-6152) and International (1-201-389-0879) participants[15](index=15&type=chunk) - A live audio webcast was available at https://ir.lifetime.life, with a recorded replay accessible within approximately three hours of the call's conclusion[15](index=15&type=chunk)[16](index=16&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding the company's future plans and financial outlook, which are subject to inherent risks and uncertainties detailed in SEC filings - The press release includes forward-looking statements concerning the Company's plans, strategies, financial outlook for fiscal year 2025, growth, business initiatives, and capital structure[23](index=23&type=chunk) - These statements are based on management's beliefs and assumptions and are inherently subject to risks, uncertainties, and assumptions[23](index=23&type=chunk) - Factors that could cause actual results to differ materially are discussed under 'Risk Factors' in the Company's Annual Report on Form 10-K and other SEC filings[24](index=24&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for investor relations and corporate communications is provided for inquiries - Investor Relations contacts: Ken Cooper and Connor Wienberg[25](index=25&type=chunk) - Media contact: Jason Thunstrom[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited statements of operations, balance sheets, and cash flows for the reported periods [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) The condensed consolidated statements of operations show Life Time's revenue, operating expenses, and net income for the three and six months ended June 30, 2025, compared to the prior year, indicating strong growth in profitability Condensed Consolidated Statements of Operations (In thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :-------- | :-------- | | Total revenue | $761,469 | $667,761 | $1,467,510 | $1,264,478 | | Total operating expenses | $653,020 | $563,005 | $1,251,391 | $1,087,665 | | Income from operations | $108,449 | $104,756 | $216,119 | $176,813 | | Net income | $72,102 | $52,805 | $148,244 | $77,722 | | Basic EPS | $0.33 | $0.27 | $0.69 | $0.39 | | Diluted EPS | $0.32 | $0.26 | $0.66 | $0.38 | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets present Life Time's financial position as of June 30, 2025, compared to December 31, 2024, showing an increase in total assets and stockholders' equity Condensed Consolidated Balance Sheets (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total current assets | $368,023 | $170,975 | | Cash and cash equivalents | $175,509 | $10,879 | | Total assets | $7,600,207 | $7,152,537 | | Total current liabilities | $568,658 | $520,103 | | Long-term debt, net of current portion | $1,493,038 | $1,513,157 | | Total liabilities | $4,730,964 | $4,542,187 | | Total stockholders' equity | $2,869,243 | $2,610,350 | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows for the six months ended June 30, 2025, show a significant increase in net cash provided by operating activities Condensed Consolidated Statements of Cash Flows (In thousands) | Metric | 6M 2025 | 6M 2024 | | :-------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $379,554 | $260,830 | | Net cash used in investing activities | $(230,651) | $(154,281) | | Net cash provided by (used in) financing activities | $19,291 | $(87,102) | | Increase in cash and cash equivalents and restricted cash | $168,371 | $19,392 | | Cash and cash equivalents and restricted cash—end of period | $196,249 | $49,358 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines the non-GAAP measures used by the company and provides detailed reconciliations of these measures to their most directly comparable GAAP counterparts [Use and Definitions of Non-GAAP Measures](index=5&type=section&id=Use%20and%20Definitions%20of%20Non-GAAP%20Measures) Life Time uses non-GAAP financial measures like Adjusted net income, Adjusted EBITDA, free cash flow, and net debt to provide investors with supplemental information for comparing operating performance and evaluating liquidity - Non-GAAP financial measures include Adjusted net income, Adjusted EBITDA, free cash flow, and net debt[18](index=18&type=chunk) - **Adjusted net income** is defined as net income excluding specific non-recurring items and their tax effects[19](index=19&type=chunk) - **Adjusted EBITDA** is defined as net income before interest, taxes, depreciation, and amortization, excluding specific non-recurring items[19](index=19&type=chunk) - **Free cash flow** is defined as net cash provided by operating activities less capital expenditures, plus net proceeds from sale-leaseback and land sales[19](index=19&type=chunk) - These measures are presented to assist investors in comparing operating performance and evaluating liquidity, but are not substitutes for GAAP measures[20](index=20&type=chunk) [Key Performance Indicators](index=10&type=section&id=Key%20Performance%20Indicators) This section presents key operational and financial performance indicators, including membership data, revenue breakdown, center statistics, and GAAP/Non-GAAP financial measures Key Performance Indicators (Unaudited, $ in thousands, except for Average Center revenue per center membership data) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :-------- | :-------- | | Center memberships | 849,643 | 832,636 | 849,643 | 832,636 | | Total memberships | 898,850 | 878,767 | 898,850 | 878,767 | | Membership dues & enrollment fees (% of total center revenue) | 71.7% | 71.7% | 72.4% | 72.5% | | In-center revenue (% of total center revenue) | 28.3% | 28.3% | 27.6% | 27.5% | | Average Center revenue per center membership | $888 | $794 | $1,733 | $1,541 | | Comparable center revenue | 11.2% | 12.0% | 12.0% | 11.6% | | Net new center openings | 4 | 3 | 5 | 4 | | Total centers (end of period) | 184 | 175 | 184 | 175 | | Net income margin | 9.5% | 7.9% | 10.1% | 6.1% | | Adjusted net income margin | 11.1% | 7.9% | 11.7% | 6.6% | | Adjusted EBITDA margin | 27.7% | 26.0% | 27.4% | 25.3% | [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) This reconciliation details the adjustments made to GAAP net income to arrive at Adjusted net income, primarily accounting for share-based compensation, sale-leaseback impacts, and employee retention credits Reconciliation of Net Income to Adjusted Net Income (Unaudited, $ in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :-------- | :-------- | | Net income | $72,102 | $52,805 | $148,244 | $77,722 | | Share-based compensation expense | 16,380 | 11,071 | 28,288 | 18,698 | | Loss (gain) on sale-leaseback transactions | 12,496 | (7,558) | 12,496 | (7,522) | | Capital transaction costs | 611 | — | 1,531 | — | | Employee retention credits | (12,873) | — | (12,873) | — | | Other | 17 | (3,974) | 203 | (3,796) | | Taxes | (4,589) | 96 | (5,515) | (1,726) | | Adjusted net income | $84,144 | $52,440 | $172,374 | $83,376 | | Diluted EPS | $0.32 | $0.26 | $0.66 | $0.38 | | Adjusted diluted EPS | $0.37 | $0.25 | $0.77 | $0.41 | [Reconciliation of Net Income to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This reconciliation shows the adjustments from GAAP net income to Adjusted EBITDA, primarily adding back interest, taxes, depreciation, amortization, and non-recurring items Reconciliation of Net Income to Adjusted EBITDA (Unaudited, $ in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :-------- | :-------- | | Net income | $72,102 | $52,805 | $148,244 | $77,722 | | Interest expense, net | 21,784 | 37,669 | 46,891 | 75,072 | | Provision for income taxes | 27,473 | 13,818 | 33,878 | 23,732 | | Depreciation and amortization | 72,988 | 69,714 | 143,907 | 135,617 | | Share-based compensation expense | 16,380 | 11,071 | 28,288 | 18,698 | | Loss (gain) on sale-leaseback transactions | 12,496 | (7,558) | 12,496 | (7,522) | | Capital transaction costs | 611 | — | 1,531 | — | | Employee retention credits | (12,873) | — | (12,873) | — | | Other | 17 | (3,974) | 203 | (3,796) | | Adjusted EBITDA | $210,978 | $173,545 | $402,565 | $319,523 | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) This reconciliation outlines the calculation of free cash flow from net cash provided by operating activities by adjusting for capital expenditures and proceeds from asset sales Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited, $ in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :-------- | :-------- | | Net cash provided by operating activities | $195,698 | $170,423 | $379,554 | $260,830 | | Capital expenditures, net of construction reimbursements | (222,004) | (144,306) | (364,486) | (301,107) | | Proceeds from sale-leaseback transactions | 138,771 | 142,671 | 138,771 | 142,671 | | Proceeds from land sales | — | 6,328 | — | 6,328 | | Free cash flow | $112,465 | $175,116 | $153,839 | $108,722 | [Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20Trailing%20Twelve%20Months) This reconciliation provides the calculation of Adjusted EBITDA for the trailing twelve months ended June 30, 2025 and 2024, starting from net income Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months (Unaudited, $ in thousands) | Metric | TTM June 30, 2025 | TTM June 30, 2024 | | :-------------------------------- | :---------------- | :---------------- | | Net income | $226,762 | $109,321 | | Interest expense, net | 119,914 | 142,695 | | Provision for income taxes | 62,674 | 30,074 | | Depreciation and amortization | 282,971 | 263,565 | | Share-based compensation expense | 60,625 | 46,670 | | Loss on sale-leaseback transactions | 17,400 | 5,307 | | Capital transaction costs | 1,531 | — | | Asset impairments | — | 5,340 | | Employee retention credits | (12,873) | — | | Other | 819 | (2,761) | | Adjusted EBITDA | $759,823 | $600,211 | [Reconciliation of Net Debt and Leverage Calculation](index=14&type=section&id=Reconciliation%20of%20Net%20Debt%20and%20Leverage%20Calculation) This reconciliation details the calculation of net debt and the net debt leverage ratio as of June 30, 2025 and 2024, showing a significant improvement in the leverage ratio Reconciliation of Net Debt and Leverage Calculation (Unaudited, $ in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Current maturities of debt | $22,873 | $12,755 | | Long-term debt, net of current portion | $1,493,038 | $1,830,241 | | Total Debt | $1,515,911 | $1,842,996 | | Less: Fair value adjustment | 207 | 362 | | Less: Unamortized debt discounts and issuance costs | (18,445) | (11,661) | | Less: Cash and cash equivalents | 175,509 | 34,527 | | Net Debt | $1,358,640 | $1,819,768 | | Trailing twelve-month Adjusted EBITDA | 759,823 | 600,211 | | Net Debt Leverage Ratio | 1.8x | 3.0x | [Reconciliation of Net Income to Adjusted EBITDA Guidance](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20Guidance) This table provides a reconciliation of the full-year 2025 guidance for net income to Adjusted EBITDA, outlining the expected adjustments Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2025 (Unaudited, $ in millions) | Metric | Year Ending December 31, 2025 | | :-------------------------------- | :---------------------------- | | Net income | $290 – $293 | | Interest expense, net of interest income | 84 – 80 | | Provision for income taxes | 92 – 93 | | Depreciation and amortization | 288 – 294 | | Share-based compensation expense | 51 – 55 | | Loss on sale-leaseback transactions | 13 – 13 | | Other | (13) – (13) | | Adjusted EBITDA | $805 – $815 |

Core Insights - Life Time Group Holdings, Inc. reported strong financial results for the second quarter of fiscal 2025, with total revenue reaching $761.5 million, a 14.0% increase year-over-year, driven by growth in membership dues and in-center revenue [6][7][12] - The company achieved a net income of $72.1 million, reflecting a 36.6% increase compared to the same quarter last year, and an adjusted net income of $84.1 million, up 60.5% [6][12][13] - Life Time's balance sheet remains strong, with a net debt leverage ratio reduced to 1.8 times and total available liquidity of $794.0 million as of June 30, 2025 [14][12] Financial Performance - Total revenue for the six months ended June 30, 2025, was $1,467.5 million, a 16.1% increase from the prior year [6][12] - Adjusted EBITDA for the second quarter was $211.0 million, a 21.6% increase year-over-year, indicating improved operational efficiency [6][12][13] - The company achieved positive free cash flow of $112.5 million for the second quarter and $153.8 million for the six months ended June 30, 2025 [13][14] Membership and Operations - Center memberships increased by 2.0% year-over-year to 849,643, with total memberships, including on-hold memberships, reaching 898,850 [7][29] - The average center revenue per center membership rose to $888, an 11.8% increase compared to the previous year [6][29] - Life Time opened four new centers during the second quarter, bringing the total to 184 centers [12][29] Capital Expenditures and Growth Outlook - Growth capital expenditures for the second quarter were $167.0 million, a 53.8% increase from the prior year, reflecting ongoing expansion efforts [9][12] - The company raised its full-year 2025 guidance, projecting revenue between $2,955 million and $2,985 million, representing a 13.3% increase from the previous year [12][19] - Life Time plans to manage its net debt leverage ratio to remain at or below 2.00 times and anticipates comparable center revenue growth of 9.5% to 10.0% [19][12]

The LT Pro 48 Pickleball addresses common frustrations with existing pickleballs with the goals of consistent bounce and durability by featuring holes that are symmetrically spaced, along with chamfered edges to reduce cracking and improve flight. "Pickleball is more than a sport – it's a global movement that has brought together people of all abilities, ages and backgrounds," said Akradi. "Since 2021, we've committed to elevating and growing this sport and, with the LT Pro 48, we identified a problem and a ...

Core Insights - Life Time has launched L•AI•C, an AI-powered wellness companion that provides personalized workouts, nutrition, and recovery tips, leveraging over 30 years of health and wellness expertise [1][2][4] - The AI wellness market is projected to exceed $30 billion by 2030, indicating significant growth potential for Life Time's innovative offerings [1] - L•AI•C is designed to integrate with users' wearable device data over time, enhancing personalization and differentiating it from other AI tools [4][5] Company Overview - Life Time operates more than 180 athletic country clubs across the U.S. and Canada, focusing on promoting healthy living and aging [10] - The company has a comprehensive app that offers a variety of health and wellness resources, including on-demand classes, meditation sessions, and custom health programs [8][10] - Life Time has been recognized as a Great Place to Work®, highlighting its commitment to a positive workplace culture for its over 49,000 employees [10] Product Features - L•AI•C offers personalized support for workouts, nutrition, and recovery, with features such as guided exercise videos and supplement recommendations from registered dietitians [7][8] - The Life Time app includes access to hundreds of on-demand and livestream classes, meditation sessions, and a wealth of editorial content from Experience Life magazine [8][9] - The app is designed to enhance individual health journeys, providing trusted support and resources tailored to user needs [6][7]