Life Time Sees Strong Start to 2025 with Higher Revenue and Membership Growth
Krissy Vann | Host, All Things Fitness and Wellness
Life Time has released its first quarterly results for fiscal 2025, reporting $706.0 million in revenue, an 18.3% increase year-over-year. Net income rose to $76.1 million, up 205.6%. Adjusted net income reached $88.1 million, while adjusted EBITDA climbed 31.2% to $191.6 million.
The company ended the quarter with 826,374 center memberships, a 3.0% increase compared to the same period last year. Total subscriptions, including on-hold memberships, reached 879,751. Average revenue per membership rose 13.3% to $844. Comparable center revenue grew 12.9%.
Expenses also increased with operational growth. Center operations costs were $371.0 million, rent reached $81.2 million, and general, administrative, and marketing expenses totaled $57.8 million. Of that, $10.3 million was attributed to non-cash share-based compensation.
Net cash from operating activities was $183.9 million, a 103.4% increase. Free cash flow came in at $41.4 million. A sale-leaseback agreement signed on May 6 is expected to generate $150 million in gross proceeds in the second quarter.
Life Time opened one new center during the quarter, bringing its total to 180 as of March 31. In April, the company acquired health and racquet club properties for $100 million in a mix of cash and stock. Remodels are scheduled to begin within 90 days.
The company has updated its full-year 2025 outlook, projecting revenue between $2.94 and $2.98 billion and net income between $286 and $293 million. Adjusted EBITDA is forecast between $792 and $808 million. Comparable center revenue growth expectations have been raised to 8.5% to 9.5%. The estimated tax rate was revised down to 23%, and cash income tax expense was reduced to a range of $39 to $41 million. Interest expense is now expected to fall between $80 and $84 million, while depreciation and amortization is forecast between $286 and $294 million.
Life Time plans to open 10 to 12 new centers in 2025 and aims to maintain its net debt leverage ratio at or below 2.0 times.
Credit: Life Time