Life Time (US:LTH)2025-11-04 11:52Financial Performance - Total revenue for Q3 2025 was $782.6 million, an increase of 12.9% compared to Q3 2024[8] - Net income for Q3 2025 reached $102.4 million, reflecting a 147.3% increase year-over-year[8] - Adjusted EBITDA for Q3 2025 was $220.0 million, up 22.0% from the previous year[8] - Center revenue reached $760.897 million, up 12.8% from $674.775 million year-over-year[30] - Net income for Q3 2025 was $102.427 million, compared to $41.355 million in Q3 2024, representing a 147.5% increase[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was $351.764 million, up from $270.508 million in the same period of 2024[30] - Net income for the nine months ended September 30, 2025, was $250,671,000, a significant increase from $119,077,000 in the same period of 2024, representing a growth of 110.8%[34] - Total center revenue for the nine months ended September 30, 2025, reached $2,182,416,000, compared to $1,900,267,000 in 2024, reflecting a year-over-year increase of 14.9%[36] - Adjusted EBITDA for the nine months ended September 30, 2025, was $622,611,000, compared to $499,816,000 in 2024, representing a growth of 24.6%[36] Membership and Center Operations - Center memberships at the end of Q3 2025 totaled 840,622, a 1.7% increase from September 30, 2024[9] - The company opened 6 new centers during the nine months ended September 30, 2025, maintaining a total of 185 centers at the end of the period, up from 177 centers in 2024[36] - Average center revenue per center membership increased to $2,638 in the nine months ended September 30, 2025, compared to $2,361 in 2024, marking an increase of 11.7%[36] Cash Flow and Capital Expenditures - Cash flow from operating activities for the nine months ended September 30, 2025 was $630.7 million, a 53.1% increase compared to the prior year[13] - Free cash flow for the nine months ended September 30, 2025, was significantly improved, contributing to liquidity and capital expenditure funding[23] - Total capital expenditures for Q3 2025 were $222.5 million, a 155.5% increase compared to Q3 2024[11] - Capital expenditures for the nine months ended September 30, 2025, totaled $586,980,000, up from $388,213,000 in 2024, reflecting an increase of 51.1%[34] Debt and Financial Ratios - The net debt leverage ratio improved to 1.6 times as of September 30, 2025, down from 2.4 times a year earlier[17] - Total debt as of September 30, 2025, was $1,512,873 thousand, down from $1,652,191 thousand in 2024, showing a reduction of approximately 8.4%[49] - The net debt leverage ratio improved to 1.6x for the trailing twelve months ended September 30, 2025, compared to 2.4x for the same period in 2024[49] Guidance and Future Plans - Full-year 2025 revenue guidance is set between $2,978 million and $2,988 million, representing a 13.8% increase from 2024[15] - The company plans to open 10 new centers in 2025, with seven already open as of November 4, 2025[18] - The company plans to open new centers and engage in sale-leaseback transactions to enhance operational efficiency and financial flexibility[26] - The company projects adjusted EBITDA for the year ending December 31, 2025, to be between $820 million and $824 million[50] Operating Expenses and Profitability - Operating expenses for Q3 2025 totaled $647.004 million, an increase from $599.539 million in Q3 2024[30] - The company reported a diluted income per share of $0.45 for Q3 2025, compared to $0.19 in Q3 2024, indicating strong earnings growth[30] - The company reported a net income margin of 11.1% for the nine months ended September 30, 2025, compared to 6.1% in 2024, indicating improved profitability[36] Other Financial Metrics - Share-based compensation expense for the nine months ended September 30, 2025, was $45,179 thousand, an increase from $30,450 thousand in 2024, marking a rise of 48%[42] - Interest expense for the nine months ended September 30, 2025, was $65,331 thousand, down from $111,083 thousand in 2024, indicating a decrease of 41%[42] - The provision for income taxes for the nine months ended September 30, 2025, was $70,799 thousand, compared to $39,945 thousand in 2024, reflecting an increase of 77%[42] - Free cash flow for the three months ended September 30, 2025, was $62,530 thousand, compared to $138,332 thousand in the same period of 2024, indicating a decrease of 55%[45]