Financial Data and Key Metrics Changes - Total revenue increased by 12.9% to $783 million [5] - Average monthly dues grew by 10.0% year-over-year to $218 [5] - Net income for the quarter was $102 million, an increase of 147% [5] - Adjusted net income was $93 million, up 65.2% year-over-year [6] - Adjusted EBITDA increased by 22% to $220 million, with a margin improvement of 210 basis points to 28.1% [6][7] - Net cash provided by operating activities rose approximately 66% to $251 million [7] - Free cash flow was $63 million for the third quarter [7] Business Line Data and Key Metrics Changes - Comparable center revenue grew by 10.6%, driven by strong performance in dues and in-center businesses, particularly Dynamic Personal Training [5][10] - Revenue per center membership increased by 11.3% year-over-year [10] - In-center business revenue rose by 14.4% year-over-year, with significant growth in dynamic personal training [10] Market Data and Key Metrics Changes - The company ended the quarter with nearly 841,000 center memberships, with total memberships reaching approximately 891,000 [5] - Average monthly visits per membership reached 12.5, up 5.9% year-over-year [9] Company Strategy and Development Direction - The company aims to accelerate new club growth, with plans to deliver 12-14 new clubs in 2026 and beyond [8][9] - Focus on enhancing member experiences and increasing revenue per center membership through membership optimization [9][10] - The company is expanding its digital offerings and nutritional brand, with plans to release new features for its AI health companion by the end of the year [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and growth strategy, highlighting strong cash flow as a key driver for long-term growth [7][8] - There are no current signs of weakness in consumer demand, with all mature clubs making more money than in the past [41] - The company is prepared for various market conditions and is focused on maintaining a strong balance sheet [43][46] Other Important Information - The company expects to complete between $55 million-$65 million of additional sale-leaseback transactions before the end of the year [7] - Management is considering stock buybacks as a potential capital allocation strategy, but no decision has been made yet [43][46] Q&A Session Summary Question: In-center revenue opportunity and DPT penetration - Management highlighted strong execution in personal training and the potential for further growth in cafes and spas [15][16] Question: Prioritizing club openings beyond 2026 - The company plans to maintain a baseline of 12-14 new clubs annually, with a strong pipeline and successful urban and suburban club performance [18][19] Question: Comparable center revenue guidance and revenue maximization - Management emphasized membership optimization and delivering unmatched brand experiences to maximize revenue without overly relying on membership growth [22][24] Question: Geographic and income cohort weaknesses - Management reported no signs of weakness in consumer demand, with all clubs performing well across various markets [39][41] Question: Capital allocation and stock buybacks - The company is focused on maintaining a strong balance sheet while considering stock buybacks as a future option [43][46] Question: Relative value in the fitness industry - Management noted that Life Time is capturing market share from boutique studios due to its differentiated offerings and high utilization rates [51][52] Question: Life Time Living and Life Time Work contributions - Both initiatives are performing well, with Life Time Living showing superior performance and retention compared to traditional apartment businesses [84][86] Question: New club openings and margin considerations - New larger clubs are expected to have higher average revenue but may initially have negative margins [91][92] Question: Design considerations for new clubs - Management is focused on adapting club designs to meet customer preferences and enhance overall member experience [100]

Financial Data and Key Metrics Changes - Total revenue increased by 12.9% to $783 million [5] - Average monthly dues grew by 10.0% year-over-year to $218 [5] - Net income for the quarter was $102 million, an increase of 147% [5] - Adjusted net income was $93 million, up 65.2% year-over-year [6] - Adjusted EBITDA increased by 22% to $220 million, with a margin improvement of 210 basis points to 28.1% [6][7] - Net cash provided by operating activities rose approximately 66% to $251 million [7] - Free cash flow was $63 million for the third quarter [7] Business Line Data and Key Metrics Changes - Comparable center revenue grew by 10.6%, with guidance raised to between 10.8% and 11.0% for the full year [5] - Revenue per center membership increased by 11.3% year-over-year [10] - In-center business revenue rose by 14.4% year-over-year, particularly in dynamic personal training [10] Market Data and Key Metrics Changes - The company ended the quarter with nearly 841,000 center memberships, reaching approximately 891,000 including on-hold memberships [5] - Average monthly visits per membership reached 12.5, up 5.9% year-over-year [9] Company Strategy and Development Direction - The growth strategy focuses on accelerating new club growth and enhancing member experiences [8] - The company plans to deliver 12-14 new clubs in 2026 and beyond, with 13 clubs currently under construction [9] - Membership optimization is emphasized, aiming to improve the mix with more couples and families while managing qualified memberships [9][10] - The company is excited about the upcoming features of its AI health companion, L•AI•C, and plans to expand its nutritional brand, LTH [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and growth, noting strong execution and member engagement [8][10] - There are no current signs of weakness in consumer demand, with all mature clubs making more money than in the past [41] - The company is prepared for various market conditions, maintaining a strong balance sheet to support growth [43][46] Other Important Information - The company expects to complete between $55 million and $65 million of additional sale-leaseback transactions before the end of the year [7] - The management team is focused on maintaining a strong balance sheet while exploring stock buyback options [43][46] Q&A Session Summary Question: In-center revenue opportunity and DPT penetration - Management highlighted the success of the personal training program and the potential for further growth in cafes and spas [15][16] Question: Prioritizing club openings beyond 2026 - The company plans to maintain a baseline of 12-14 new clubs annually, with a strong pipeline and successful urban and suburban club performance [18][19] Question: Maximizing revenue without increasing membership count - The focus is on brand and member experience, optimizing membership types to increase revenue per membership [24][25] Question: Geographic or income cohort weaknesses - Management reported no signs of weakness, with all clubs performing well across various markets [39][41] Question: Capital allocation and stock buyback considerations - The board is discussing stock buyback options, but the primary focus remains on growth and club development [43][46] Question: Relative value in the fitness industry - The company is seeing increased interest from consumers trading up to Life Time due to its differentiated offerings [51][54] Question: Nutritional brand strategy post-consumer reports investigation - The strategy includes ensuring product quality and safety, with plans for a more aggressive marketing approach in 2026 [56][59] Question: New club openings and market considerations - New clubs are expected to perform similarly in both new and existing markets, with careful planning for wage growth and inflation [63][64] Question: Dynamic Personal Training growth and capacity - Some trainers are fully booked, while others have room for growth, indicating a mixed capacity situation across clubs [71][72] Question: Design considerations for new clubs - The company is adapting designs based on customer preferences and operational efficiency [100]

Financial Data and Key Metrics Changes - Total revenue increased by 12.9% to $783 million, with average monthly dues growing by 10.0% year-over-year to $218 [4] - Net income for the quarter was $102 million, an increase of 147%, benefiting from a $5.7 million tax-affected gain on sale-leasebacks [4] - Adjusted net income rose by 65.2% year-over-year to $93 million, while adjusted EBITDA increased by 22% to $220 million, with an adjusted EBITDA margin improvement of 210 basis points to 28.1% [5] - Net cash provided by operating activities rose approximately 66% to $251 million compared to the prior year quarter [5] Business Line Data and Key Metrics Changes - Comparable center revenue grew by 10.6%, driven by strong performance in dues and in-center businesses, particularly in Dynamic Personal Training [4] - Revenue per center membership increased by 11.3% year-over-year, and in-center business revenue rose by 14.4% year-over-year [9] Market Data and Key Metrics Changes - The company ended the quarter with nearly 841,000 center memberships, with total memberships reaching approximately 891,000, in line with expectations [4] - Average monthly visits per membership reached 12.5, up 5.9% year-over-year, with total visits increasing by 7% year-over-year for the quarter [9] Company Strategy and Development Direction - The growth strategy focuses on accelerating new club growth and enhancing member experiences, aiming to deliver 12-14 new clubs in 2026 and beyond [7] - Membership optimization is emphasized, with strategies to improve the mix of couples and families while limiting qualified memberships in certain clubs [9] - The company is excited about the upcoming release of new features for Lacy, the AI health companion, and plans to expand its nutritional brand, LTH [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and growth, noting that all mature clubs are making more money than in the past [39] - There are no current signs of weakness in the consumer base, with strong performance across various markets [40] - The company is prepared for potential economic challenges, with strategies in place to adapt as necessary [71] Other Important Information - The company expects to complete between $55 million-$65 million of additional sale-leaseback transactions before the end of the year [5] - The average size of new clubs planned for 2026 is approximately 95,000 square feet, compared to 66,000 square feet in 2025 [96] Q&A Session Summary Question: In-center revenue opportunity and DPT penetration - Management highlighted the success of the personal training program and the potential for further growth in in-center revenue, particularly in cafes and spas [12][15] Question: Prioritizing club openings beyond 2026 - The company confirmed a strong pipeline for new clubs, with a focus on urban and suburban locations, and emphasized the importance of maintaining a healthy execution level [17][18] Question: Average member per center growth and revenue optimization - Management discussed the focus on brand and member experience, emphasizing membership optimization to increase revenue per membership without relying heavily on membership unit growth [21][25] Question: Consumer dislocations and geographic performance - Management reported no signs of weakness in consumer behavior, with all clubs performing well across various markets [38][40] Question: Capital allocation and stock buyback considerations - The company is focused on maintaining a strong balance sheet while considering stock buybacks as a potential option, depending on market conditions [41][43] Question: Dynamic Personal Training growth and capacity - Management noted that while some trainers are fully booked, there is still room for growth in Dynamic Personal Training, with ongoing recruitment of new trainers [74][76] Question: Design considerations for new clubs - The company emphasized the importance of flexibility in club design to adapt to changing consumer needs over time [104][105]

Core Insights - Life Time has opened phase one of the Life Time Eagle athletic country club, featuring nine indoor pickleball courts and six indoor tennis courts, with a full opening scheduled for summer 2026 [1][2] - The Boise area is experiencing rapid growth, providing significant opportunities for Life Time's health and wellness programs [3] - The complete facility will include a Beach Club, outdoor pools, a lap pool, a leisure pool, and a bistro, along with advanced fitness equipment and recovery spaces [3][4] Company Offerings - Life Time Eagle will offer signature group training programs, including GTX, Alpha, Ultra Fit, and MB360 classes, along with five studios for various fitness formats [4] - Personalized coaching and recovery sessions will be available, alongside a Kids Academy for children to engage in various activities [5] - The LifeCafe will provide a health-focused menu with nutritious meals and shakes [5] Company Background - Life Time operates over 180 athletic country clubs across the U.S. and Canada, serving a wide demographic from ages 90 days to over 90 years [7] - The company emphasizes a commitment to workplace culture, recently being certified as a Great Place to Work® [7] - With the opening of Life Time Eagle, the company now has a presence in 32 states and Canada [6]