Core Insights - The 2026 Life Time Miami Marathon & Half has sold out 18,500 spots two weeks earlier than the previous record, indicating strong demand for the event [1][3] - Registration for the Life Time Tropical 5K is now open, providing a warm-up opportunity for marathon participants [2][5] - The event showcases a USTAF-certified, Boston-qualifying course, attracting participants from 50 states and over 70 countries [3][5] Company Overview - Life Time (NYSE: LTH) operates 185 athletic country clubs across the U.S. and Canada, focusing on promoting healthy lifestyles [7] - The company has a comprehensive Life Time app and organizes nearly 30 iconic athletic events, reinforcing its position in the health and wellness industry [7] - Life Time has been recognized as a Great Place to Work®, highlighting its commitment to workplace culture for over 49,000 employees [7] Economic Impact and Community Involvement - The 2025 event generated a local economic impact of $16.1 million, demonstrating the financial benefits of the marathon to the Miami area [5] - Over 100 charities partner with the Life Time Miami Marathon, contributing to significant fundraising efforts each year [5] - The Kids Run Miami program engages over 1,000 students, promoting youth participation in fitness activities leading up to the marathon [5]

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. reported strong financial results for the fiscal first quarter ended March 31, 2025, with total revenue reaching $706.0 million, an increase of 18.3% compared to the prior year quarter [3][6][7] - The company experienced significant growth in net income, which increased by 205.6% to $76.1 million, and adjusted net income rose by 188.9% to $88.1 million [3][6][13] - Life Time's balance sheet remains robust, with a net debt leverage ratio improved to 2.0 times, down from 3.6 times a year earlier, and total available liquidity of $678.2 million [14][6] Financial Performance - Total revenue for the first quarter of 2025 was $706.0 million, up from $596.7 million in the same quarter of 2024, driven by increased membership dues and in-center revenue [3][6][7] - Net income surged to $76.1 million from $24.9 million year-over-year, while adjusted EBITDA increased by 31.2% to $191.6 million [3][6][13] - Average center revenue per center membership rose by 13.3% to $844, reflecting higher member engagement and utilization [3][7] Membership and Engagement - Center memberships increased by 3.0% year-over-year, totaling 826,374 as of March 31, 2025, with total subscriptions, including on-hold memberships, rising by 3.1% to 879,751 [3][7][32] - The company reported higher visits per membership, indicating strong member engagement and satisfaction [7][2] Capital Expenditures and Growth Initiatives - Capital expenditures for the first quarter totaled $142.5 million, a decrease of 9.1% from the previous year, with growth capital expenditures at $93.5 million [10][13] - Life Time opened one new center during the quarter, bringing the total to 180 centers, and plans to remodel three recently acquired properties [13][6] 2025 Outlook - The company raised its full-year 2025 guidance, projecting revenue between $2,940 million and $2,980 million, representing a 12.9% increase from the previous year [15][17] - Adjusted EBITDA is expected to grow significantly, driven primarily by dues revenue growth and expanded operating leverage [17][15]