Life Time Group Reports Strong Q1 Results and Raises Full-Year 2026 Financial Guidance
Summary
Life Time Group Holdings reported strong first-quarter 2026 financial results and raised its full-year 2026 guidance across key metrics, indicating continued business momentum and improved financial health.
Key Events
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Strong Q1 2026 Financial Performance
Total revenue increased 11.7% to $788.7 million, net income rose 15.8% to $88.1 million, and Adjusted EBITDA grew 18.3% to $226.7 million compared to the prior year quarter.
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Raised Full-Year 2026 Guidance
The company increased its full-year 2026 guidance for total revenue to $3.32 billion - $3.35 billion, net income to $340 million - $345 million, and Adjusted EBITDA to $925 million - $940 million, reflecting improved outlook.
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Improved Liquidity and Leverage
Net debt leverage ratio improved to 1.6 times as of March 31, 2026, from 2.0 times a year prior. The target for sale-leaseback transactions for 2026 was increased to approximately $400 million from $300 million, with $200 million already completed in April 2026.
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Continued Club Expansion and Membership Growth
Life Time opened one new center in Q1 2026, bringing the total to 190 centers. Center memberships increased 1.4% year-over-year to 837,903, with comparable center revenue growing 8.6%.
Analysis
Life Time Group Holdings, Inc. delivered robust first-quarter results, exceeding prior-year performance across key financial metrics including revenue, net income, and Adjusted EBITDA. The company also raised its full-year 2026 guidance for revenue, net income, Adjusted net income, and Adjusted EBITDA, signaling strong operational momentum and confidence in future growth. This positive update, coupled with an improved net debt leverage ratio and increased sale-leaseback transaction targets, enhances the company's financial flexibility and comes as the stock is trading near its 52-week low, potentially offering a catalyst for investor sentiment.
At the time of this filing, LTH was trading at $23.69 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5.8B. The 52-week trading range was $24.14 to $34.99. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.