Life Time Group Holdings, operator of premium athletic resorts, continues to demonstrate robust growth amid rising demand for health and wellness experiences. With trailing twelve-month revenue approaching $2.91 billion, strong membership increases, and analyst consensus pointing to significant upside potential, the stock offers compelling attributes for growth-oriented investors in the consumer discretionary space. (58 words)
Company Overview and Growth Drivers
Life Time Group Holdings operates over 185 upscale athletic country clubs across the United States and Canada, providing comprehensive fitness, wellness, and lifestyle services. The company’s premium positioning caters to affluent consumers seeking resort-like environments with amenities including pools, spas, pickleball courts, and digital programming.
Recent performance highlights sustained momentum. In the third quarter of 2025, revenue reached $782.6 million, reflecting a 12.9% year-over-year increase. Memberships grew modestly, while average dues per member rose substantially, driving comparable center revenue growth. The company has consistently expanded its footprint, with multiple new club openings in high-growth markets like Austin, Boca Raton, and Chula Vista.
Financial Performance Snapshot
Trailing twelve-month figures show revenue of approximately $2.91 billion and net income around $288 million. Full-year 2024 revenue stood at $2.62 billion, up 18.2% from the prior year, with net income more than doubling to $156 million.
| Key Metric (TTM as of latest data) | Value | Year-over-Year Change |
|---|---|---|
| Revenue | $2.91 billion | Strong growth |
| Net Income | $288 million | Significant increase |
| Adjusted EBITDA | ~$699 million | Improved margins |
| Market Capitalization | ~$5.88 billion | – |
| Shares Outstanding | ~220.5 million | – |
The company maintains a solid balance sheet with improving leverage and positive free cash flow generation supporting ongoing expansions.
Stock Performance and Valuation
As of early January 2026, shares trade around $26.70, down from a 2025 high near $35 but above the 52-week low of approximately $22. The forward P/E ratio sits near 18, considered reasonable given projected earnings growth.
Analysts maintain a largely positive outlook, with consensus ratings leaning toward Strong Buy and average price targets in the high $30s to low $40s, implying substantial upside from current levels.
Expansion and Strategic Initiatives
Life Time continues aggressive yet disciplined growth, targeting 10-14 new clubs annually. Recent additions emphasize premium locations and innovative offerings like reformer Pilates classes and weighted training programs. Digital subscriptions and ancillary services, including nutrition and athletic events, contribute to diversified revenue streams and higher member retention.
Risks to Consider
While consumer spending on wellness remains resilient, economic slowdowns could pressure discretionary expenditures. High capital intensity for new builds and competition in the fitness sector warrant monitoring. Debt levels, though manageable, add leverage in a rising interest rate environment.
Overall, Life Time’s combination of revenue momentum, premium branding, and expansion pipeline positions it favorably within the health and fitness industry.
Key Investment Highlights
Consistent double-digit revenue growth driven by dues and in-center spending.
Expanding club network in affluent, high-demand areas.
Positive analyst sentiment with meaningful upside targets.
Improving profitability and cash flow supporting reinvestment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or an offer of financial products. All investments carry risk, including potential loss of principal.