Life Time reports record 2025 profit as buyback plan signals shift to value

Life Time Group Holdings (NYSE:LTH) reported record financial results for fiscal 2025, buoyed by a surge in high-margin membership dues and increased in-center spending.

The company capped the year by authorizing a $500 million share repurchase program, reflecting a fortified balance sheet and a move to enhance shareholder value.

Total revenue for the fourth quarter rose 12.3% to $745.1 million, while full-year sales reached $2.99 billion—a 14.3% increase over 2024.

Net income for the year more than doubled to $373.7 million, driven by a 10.8% increase in average revenue per membership.

Life Time’s net debt leverage ratio improved significantly to 1.6x, well below its stated 2.0x target, as the company generated $206.5 million in positive free cash flow for the year.

Life Time is leveraging its strong liquidity to accelerate its physical footprint.

After opening 10 new centers in 2025, the company plans to debut 12 to 14 large-format athletic country clubs in 2026.

These new facilities are expected to total approximately 1.2 million square feet—nearly double the square footage added in each of the past two years.

The company is also leaning into technology to drive member engagement, recently rolling out "L·AI·C," an AI-driven coaching tool developed in partnership with Microsoft.

This digital initiative aims to personalize wellness journeys and increase the utilization of high-margin services like personal training and nutritional coaching.

For the 2026 fiscal year, Life Time expects revenue between $3.30 billion to $3.33 billion.