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]
Life Time Reports Second Quarter 2025 Financial Results