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]