Key Highlights

  • Diluted EPS of USD 0.46 beat the consensus estimate of USD 0.41 and rose from USD 0.45 a year earlier.
  • Total Revenue of USD 893.5 million grew 14% year over year, above the consensus estimate of USD 874.98 million.
  • Comparable center revenue rose 8.7%, while average revenue per center membership climbed to USD 1,016 from USD 907.
  • Adjusted EBITDA increased to USD 256.3 million, and the Margin widened to 28.7% from 28.1%.

Life Time Group Holdings, Inc. (NYSE:LTH) reported third quarter 2026 Diluted Earnings per Share of USD 0.46, ahead of a consensus estimate of USD 0.41 and up from USD 0.45 a year earlier. Total revenue of USD 893.5 million exceeded the consensus estimate of USD 874.98 million and grew from USD 782.6 million, an increase of USD 110.9 million. Net Income was USD 106.5 million versus USD 102.4 million, even though the prior year quarter included USD 22.0 million of other income that did not recur.

Income from operations rose 16% to USD 158.0 million, lifting Operating Margin to 17.6% from 17.4%. Adjusted net income reached USD 115.9 million compared with USD 93.0 million a year earlier.

Dues and In-Center Spending Drive the Top Line

Center revenue grew USD 110.2 million to USD 871.1 million. Membership dues and enrollment fees contributed 67.9% of that gain, rising USD 74.8 million to USD 622.1 million on higher average dues, better membership mix and growth at new and ramping centers. In-center revenue added USD 35.4 million to reach USD 249.0 million, led by Dynamic Personal Training and higher member utilization.

Center memberships numbered 858,747, up from 840,622, and on-hold memberships were 49,707. The company operated 196 centers at quarter end versus 185 a year earlier. Center operations expense grew USD 60.2 million to USD 474.5 million, or 53.1% of revenue, and rent increased USD 8.6 million to USD 96.1 million on sale-leaseback activity and higher contingent rent. Interest expense net of interest income fell to USD 14.7 million from USD 18.4 million after term Loan repricings in August 2025 and August 2026.

Expansion Plans and Liquidity Position

The company has opened eight new centers in 2026 so far and plans to open 14 for the full year, against a target of 12 to 14 per year on average. At September 30, 2026, it had 26 centers open for less than three years and 21 under construction. Growth capital expenditures totaled USD 216.5 million in the quarter and USD 611.8 million over nine months, and total capital expenditures were USD 812.0 million for nine months versus USD 587.0 million.

Net cash from Operating Activities was USD 670.5 million for nine months, up from USD 630.7 million. Cash and cash equivalents were USD 286.2 million, and no borrowings were outstanding on the USD 650.0 million Revolving Credit Facility, leaving availability of USD 632.9 million after USD 17.1 million of letters of credit. Together they total USD 919.1 million of cash and availability.

Measures Worth Following Into Year End

Four items give the next report a clear frame. Comparable center revenue stands at 8.7% for the quarter and 8.8% for nine months, against 10.6% and 11.5% a year earlier. Average revenue per center membership is the second gauge at USD 1,016, up from USD 907, since the company links it to openings in more affluent markets.

The third is the opening schedule, with eight openings done and a plan for 14 in 2026. The fourth is spending: growth capital expenditures of USD 611.8 million for nine months, set against nine month Operating Cash Flow of USD 670.5 million.