Life Time Group Holdings, Inc. (LTH)

Price$43.23Cached quoteAs of 2026-09-05 07:15 UTC

AI: Overvalued

Price checkThe shares look expensive unless rapid club growth keeps lifting earnings for several years.

At the observed quote, the price-to-earnings ratio—share price divided by annual profit per share—is about 24 times recent earnings. The equity is worth roughly $10.0 billion; adding about $1.27 billion of net debt gives an enterprise value, or market value plus net debt, near $11.3 billion. That is roughly 12 times the midpoint of management’s 2026 adjusted EBITDA guide of $940–$955 million, a profit measure before interest, taxes, depreciation and selected one-offs. These growth valuations leave little margin for slower club ramp-ups, supporting an Overvalued verdict.

Big pictureSales and profits are rising quickly, but expansion still consumes more cash than operations produce.

Revenue rose 14.3% in 2025 and second-quarter 2026 revenue rose 13.7%; operating cash flow reached $870.5 million in 2025 and $408.4 million in the first half of 2026. Yet capital spending was $891.5 million in 2025 and $523.3 million in the latest half, so operating cash alone did not cover investment. Life Time reports positive free cash flow—cash remaining after operations and investment under management’s definition—after adding property sale-leaseback proceeds. Those transactions raise cash now by selling buildings and renting them back, creating future rent obligations.

Business strengthHigher spending per member and lower leverage give Life Time real operating momentum.

Average revenue per center membership reached $1,923 in the first half of 2026, up 11.0% from $1,733, while visits exceeded 65 million versus 62 million. That pricing and usage strength helped center revenue rise about 12.9%. The balance sheet also improved: net debt fell to about $1.27 billion, debt after cash was 1.4 times adjusted EBITDA, and liquidity was $855.7 million. However, 72% of centers are leased and rent is rising as sale-leasebacks expand, so lower financial debt increasingly comes with fixed lease commitments.

What could change the storyBetter club returns could justify the price, while slower growth or dilution could expose it.

Shares outstanding increased from 196.7 million at the end of 2023 to 223.2 million by June 2026, about 13.5%. Life Time repurchased 2.6 million shares for $73.4 million in the first half, but option exercises and stock awards still pushed the share count higher. The bull case is 7.9%–8.3% sales growth at existing and ramping clubs as 31 young clubs mature. The bear case is growth slipping toward low single digits while seven large clubs open late in 2026 and rent stays high. At this valuation, sustained per-share cash growth must follow.

AI: News

Raised 2026 outlookSecond-quarter growth remained strong, and management raised full-year sales and profit targets.

On July 30, Life Time reported $866.0 million of quarterly revenue, up 13.7%, and $101.4 million of net income, up 40.6%. It lifted 2026 revenue guidance to $3.35–$3.375 billion and adjusted EBITDA guidance to $940–$955 million, while raising expected sales growth at existing and ramping clubs to 7.9%–8.3%. The shares touched a new 52-week intraday high that day but closed about 3% lower, showing a mixed immediate reaction rather than evidence that earnings alone drove the move.

Large sponsor share saleLeonard Green affiliates sold a large block, reducing a long-time sponsor stake and near-term ownership overhang.

On August 10, Leonard Green affiliates sold about 5.1 million existing shares for roughly $221 million, cutting their reported beneficial ownership to 2.6%. Because these were existing shares, the transaction did not dilute Life Time shareholders, but it reduced a long-time private-equity sponsor’s stake and increased near-term stock supply. The shares closed about 3% lower that day on roughly 6.9 million shares of volume. The timing is consistent with selling pressure, but it does not prove the block sale caused the decline.

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Revenue

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2020

2021

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2024

2025

Net income

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2025

Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$3.00B	$2.62B	$2.22B	$1.82B	$1.32B	$948.4M	$1.90B
Gross profit	$1.43B	$1.23B	$1.03B	$754.3M	—	—	—
Gross margin	47.63%	46.87%	46.57%	41.39%	—	—	—
Operating expenses	$2.51B	$2.26B	$1.99B	$1.71B	$1.81B	$1.31B	$1.73B
Operating income	$481.3M	$357.5M	$225.2M	$110.6M	−$495.2M	−$359.1M	$168.3M
Operating margin	16.07%	13.64%	10.16%	6.07%	−37.57%	−37.87%	8.86%
EBITDA	$777.6M	$632.2M	$469.6M	$339.5M	−$260.1M	−$111.5M	$388.7M
EBITDA margin	25.96%	24.12%	21.19%	18.63%	−19.73%	−11.75%	20.46%
Net income	$373.7M	$156.2M	$76.1M	−$1.8M	−$579.4M	−$360.2M	$30.0M
Net profit margin	12.48%	5.96%	3.43%	−0.10%	−43.96%	−37.98%	1.58%
Basic EPSper basic share	$1.71	$0.77	$0.39	-$0.01	-$3.73	-$2.48	$0.22
Diluted EPSper diluted share	$1.66	$0.74	$0.37	-$0.01	-$3.73	-$2.48	$0.22

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Owners

Reported shareholders

Reference date Jun 30, 2026

10.15%of listed shares

BlackRock, Inc.22.66M shares · Jun 30, 2026

View holders

Top 20 reported holders of LTH
Holder	% owned
BlackRock, Inc.	10.15%22.66M shares
Akradi Bahram	≈7.37%16.46M shares
DANHAKL JOHN G	≈4.94%11.03M shares
Leonard Green & Partners, L.P.	4.94%11.03M shares
Galashan John Kristofer	≈4.94%11.03M shares
DIMENSIONAL FUND ADVISORS LP	4.11%9.18M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.07%9.07M shares
Bevco Lux S.a.r.l. / LifeCo LLC / Aguila Ltd.	≈4.03%9M shares
Atairos Group, Inc.	3.93%8.77M shares
TPG GP A, LLC	3.54%7.89M shares
VANGUARD CAPITAL MANAGEMENT LLC	2.97%6.62M shares
WELLINGTON MANAGEMENT GROUP LLP	2.83%6.31M shares
WESTFIELD CAPITAL MANAGEMENT CO LP	2.69%6M shares
STATE STREET CORP	2.65%5.92M shares
AMERIPRISE FINANCIAL INC	2.46%5.49M shares
PRICE T ROWE ASSOCIATES INC /MD/	2.26%5.05M shares
T. Rowe Price Investment Management, Inc.	1.90%4.25M shares
Invesco Ltd.	1.75%3.9M shares
GEODE CAPITAL MANAGEMENT, LLC	1.72%3.84M shares
AMERICAN CENTURY COMPANIES INC	1.65%3.69M shares

Percentages use 223.22M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)85$4.94B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4 · 10b5-1	Singh Ritadhwaja JebensEVP & CHIEF DIGITAL OFFICER	SellCommon Stock	67.8K	$38.65	$2.62M	138.4K
Jun 10, 2026Form 4	Almendares JimenaDirector	SellCommon Stock	40.6K	$33.59	$1.36M	37.0K
Jun 4, 2026Form 4	DANHAKL JOHN GDirector	SellCommon Stock · indirect	2.21M	$28.60	$63.17M	11.03M
Jun 4, 2026Form 4	Galashan John KristoferDirector	SellCommon Stock · indirect	2.21M	$28.60	$63.17M	11.03M
Jun 4, 2026Form 4	Leonard Green & Partners, L.P. +9Director	SellCommon Stock	36.6K	$28.60	$1.05M	182.8K