LIFE TIME INCREASES 2025 GUIDANCE AFTER STRONG Q2 PERFORMANCE
Krissy Vann | Host, All Things Fitness and Wellness
Life Time Group Holdings reported second quarter 2025 revenue of $761.5 million, a 14% increase from the same period last year, driven by higher membership dues, growth in new and ramping centers, and increased in-center spending, particularly in Dynamic Personal Training.
Net income rose 36.6% to $72.1 million, while adjusted net income grew 60.5% to $84.1 million. Adjusted EBITDA reached $211 million, up 21.6% from Q2 2024. Diluted earnings per share were $0.32, a 23.1% increase, and adjusted diluted EPS was $0.37, up 48%.
The company ended the quarter with 849,643 center memberships, up 2% year-over-year and 2.8% from the prior quarter. Average center revenue per membership rose 11.8% to $888. Total subscriptions, including on-hold memberships, reached 898,850, an increase of 2.3% year-over-year.
Center operations expenses increased 13.6% to $403.9 million, reflecting higher operating costs in new locations and greater utilization in existing clubs. General, administrative, and marketing expenses rose 16% to $61.7 million, due in part to increased member services support, technology investment, and share-based compensation.
Free cash flow was $112.5 million in Q2, marking the fifth consecutive quarter of positive free cash flow. The company also reduced its net debt leverage ratio to 1.8 times, down from 3.0 times a year earlier, aided by proceeds from a $138.8 million sale-leaseback transaction of three properties.
“We are pleased with our second quarter results and the momentum we are seeing in our business,” said Bahram Akradi, Founder, Chairman and CEO. “Total visits, visits per membership, and retention continued to achieve all-time highs. Our performance, combined with the strength of our balance sheet and cash flow, positions us well to continue to grow, including modestly accelerated new club growth in 2026 from our robust club development pipeline.”
Life Time opened four new centers in Q2, bringing its total to 184. The company expects to open 10 new centers in 2025.
Life Time raised its 2025 revenue guidance to a range of $2.955 billion to $2.985 billion, up from $2.940 billion to $2.980 billion. Net income is now expected to be $290 million to $293 million, and adjusted EBITDA is projected between $805 million and $815 million. Comparable center revenue growth expectations were increased to 9.5% to 10%, up from 8.5% to 9.5%.
The company plans to maintain its net debt leverage ratio at or below 2.0 times and complete $100 million in additional sale-leaseback transactions in the second half of 2025, bringing total gross proceeds for the year to approximately $250 million.
