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]