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]