Overview

• U.S. fitness club operator's Q4 revenue rose 12.3%, beating analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company announced $500 mln share repurchase program

Outlook

• Life Time expects 2026 revenue between $3.3 bln and $3.33 bln

• Company plans to open 12 to 14 new clubs in 2026

• Life Time aims for 2026 adjusted EBITDA between $910 mln and $925 mln

Result Drivers

• MEMBERSHIP ENGAGEMENT - Higher member engagement and increased dues per membership drove revenue growth, according to CEO Bahram Akradi

• LEGAL AND TAX BENEFITS - Net income boosted by tax-effected net cash proceeds from legal claims and employee retention credits under the CARES Act

• NEW CENTER OPENINGS - Revenue growth supported by new and ramping centers, despite increased operating costs

Company press release: ID:nPnbL8p8Ca

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Life Time Group Holdings Inc is $41.00, about 44.3% above its February 23 closing price of $28.41

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

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