Athletic club operator Life Time tops Q2 estimates, lifts 2026 outlook

Overview

• U.S. athletic club operator's Q2 revenue rose 14% yr/yr, beating analyst expectations

• Adjusted EPS and adjusted EBITDA for Q2 both beat analyst expectations

• Company raised 2026 outlook, citing strong membership growth and in-center utilization

Outlook

• Life Time sees 2026 revenue of $3.35 bln to $3.375 bln, up from prior guidance

• Company expects 2026 adjusted net income of $394 mln to $402 mln, raised from prior forecast

• Life Time now expects to open 14 new clubs in 2026, up from 12 to 14 previously

Result Drivers

• MEMBERSHIP MIX DUES - Revenue growth driven by increased average dues from improved membership mix and higher member utilization, especially in Dynamic Personal Training

• NEW CENTER OPENINGS - Five new centers opened during the quarter contributed to revenue growth and higher operating costs

• MEMBERSHIP OPTIMIZATION - Reduction in lower-paying insurance-administered memberships led to higher average dues per member

Company press release: ID:nPn6yXhpGa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $45.00, about 1.5% below its July 29 closing price of $45.70

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 28 - Netherlands' Basic Fit H1 revenue rises on membership expansion

• July 29 - OneSpaWorld Q2 results beat estimates, lifts FY outlook

• July 30 - Adidas Q2 revenue rises 14% on DTC and e-commerce growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)