Financial Data and Key Metrics Changes - Total revenue for Q4 2025 increased by 12.3% to $745 million, driven by higher average dues and utilization of in-center businesses [5] - Net income for Q4 2025 was $123 million, a 231% increase, while adjusted net income rose by 28.4% to $77 million [6][7] - Adjusted EBITDA for Q4 2025 was $203 million, up 14.5%, with an adjusted EBITDA margin of 27.2% [8] - For the full year 2025, total revenue increased by 14.3% to $2.995 billion, with adjusted net income rising by 62.3% to $326 million [10] Business Line Data and Key Metrics Changes - Average monthly dues increased by 10.8% to $223, and average revenue per center membership rose by 10.8% to $882 [5] - Comparable center revenue grew by 9.9% in Q4 2025, reflecting strong membership dues and in-center business performance [5] - For the full year, comparable center revenue grew by 11.1% [8] Market Data and Key Metrics Changes - The company ended 2025 with over 822,000 center memberships, and total memberships, including on-hold memberships, reached approximately 873,000 [5] - The company expects to open up to 28 clubs across 2026 and 2027, funded primarily through operating cash flow and a robust sale-leaseback market [15] Company Strategy and Development Direction - The company plans to invest between $875 million and $915 million in growth capital for 2026, with over half allocated for clubs opening in 2027 and beyond [11] - A $500 million share repurchase program has been approved, reflecting confidence in the business model and ability to generate cash [16] - The company is focused on optimizing member experience and revenue on a club-by-club basis, with a commitment to modernizing facilities and services [17] Management's Comments on Operating Environment and Future Outlook - Management noted that mature clubs are operating at optimal levels, with a strong balance sheet and financial flexibility entering 2026 [15] - The company anticipates full-year comparable center revenue growth of approximately 6.3%-7.3% for 2026, with a gradual decline in growth rate throughout the year [9] - Management emphasized the importance of maintaining a balance between member experience and shareholder value [75] Other Important Information - The company achieved a 27.5% adjusted EBITDA margin in 2025, exceeding initial guidance [14] - The company plans to capitalize between $33 million and $35 million of interest expense in 2026 due to increased growth capital spending [13] Q&A Session Summary Question: What are the biggest opportunities for 2026? - Management highlighted the need to modernize and evolve facilities to meet the demands of affluent customers seeking health and wellness services [24] Question: How are new clubs performing? - New clubs are opening stronger and ramping faster than ever, with some reaching contribution margin positive in the first month [28] Question: What are the unit economics of new clubs? - New clubs have higher membership prices and lower member counts, leading to a more efficient model [33] Question: How is the company managing inflation and healthcare costs? - The company is aware of headwinds from payroll and supply increases and has planned accordingly [62] Question: What is the strategy for digital members and retail opportunities? - The company is focusing on enhancing the member experience through digital platforms and improving conversion rates for digital members [83] Question: How is the company planning to optimize membership mix? - Management is focused on reducing discounted memberships and optimizing member experience to improve revenue and EBITDA [72]

Life Time Group (NYSE:LTH) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsArpine Kocharian - Managing DirectorBahram Akradi - Founder, Chairman, and CEOConor Weinberg - SVP of Treasury and IRErik Weaver - EVP and CFOJohn Baumgartner - Managing Director of Equity ResearchJohn Heinbockel - Managing DirectorKate McShane - Managing DirectorMolly Baum - VP of Equity ResearchConference Call ParticipantsBrian Nagel - Managing Director and Senior AnalystChris Woronka - Senior AnalystEric De ...