Life Time Group Q1 Earnings Call Highlights

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Life Time Group (NYSE:LTH) reported double-digit gross and adjusted EBITDA maturation for the archetypal 4th of 2026, with absorption pointing to stronger dues revenue, higher in-center spending and continued request for caller clubs.

Executive Vice President and Chief Financial Officer Erik Weaver said full gross roseate 11.7% twelvemonth implicit twelvemonth to $789 million. Comparable halfway gross accrued 8.6%, somewhat supra the company’s expectations, arsenic Life Time benefited from a much favorable rank mix, pricing actions and higher utilization of in-center businesses.

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Weaver said comparable halfway gross maturation included a 3.5% publication from improved rank mix, a 3% publication from price, and a 2.3% publication from in-center businesses, “particularly Dynamic Personal Training.” Volume was a flimsy headwind, contributing antagonistic 0.2%, which Weaver attributed to a simplification successful qualified aesculapian memberships administered by third-party aesculapian security providers.

Membership Mix Remains a Focus

Life Time ended the 4th with astir 838,000 halfway memberships, up 1.4% from a twelvemonth earlier. Average monthly dues were $230, up astir 10.5%, portion mean gross per halfway rank roseate 10.2% to $930.

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Weaver said the institution has been deliberately reducing definite lower-dues qualified aesculapian memberships arsenic portion of its strategy to amended the prime of its rank base. In the archetypal quarter, qualified aesculapian memberships accounted for 3.44% of full dues revenue, and absorption expects that fig to diminution to astir 3% by year-end.

Qualified aesculapian memberships declined by astir 15,000, oregon 14.9% twelvemonth implicit year, portion each different memberships grew by astir 27,000, oregon 3.7%. Total dues gross roseate 11.9%.

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Weaver said Life Time expects full halfway rank maturation of 0.5% to 1% successful the 2nd quarter, 1% to 1.5% successful the 3rd 4th and 2% to 3% successful the 4th fourth owed to further reductions successful qualified aesculapian memberships. Excluding those memberships, the institution expects maturation of 3.5% to 3.8% successful the 2nd 4th and 4% to 5% successful some the 3rd and 4th quarters.

Founder, Chairman and Chief Executive Officer Bahram Akradi said the institution is prioritizing gross quality, retention, in-center concern engagement and the wide subordinate acquisition alternatively than pursuing rank measurement alone.