Reported Q: Q1 2024 Rev YoY: +16.8% EPS YoY: -7.1% Move: +0.53%
Life Time Group Holdings
LTH
$26.56 0.53%
Exchange NYSE Sector Consumer Cyclical Industry Leisure
Q1 2024
Published: May 7, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for LTH

Reported

Report Date

May 7, 2024

Quarter Q1 2024

Revenue

596.72M

YoY: +16.8%

EPS

0.12

YoY: -7.1%

Market Move

+0.53%

Previous quarter: N/A

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Earnings Highlights

  • Revenue of $596.72M up 16.8% year-over-year
  • EPS of $0.12 decreased by 7.1% from previous year
  • Gross margin of 32.4%
  • Net income of 24.92M
  • "The most important factor, the most important KPI is retention. And we are seeing the best retention we've ever seen." - Bahram Akradi
LTH
Company LTH

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Executive Summary

Life Time Group Holdings, Inc. reported a compelling QQ1 2024 with a revenue of $596.7 million, up 16.8% year over year, driven by a 19% increase in membership dues and enrollment fees and a 10.5% rise in incentive revenue. Access memberships reached approximately 802k with total memberships around 853k, underscoring a high-engagement, subscription-based model. Adjusted EBITDA expanded 21.6% to $146 million, delivering a margin of 24.5%, and management reiterated its margin target of 23.5%–24.5% for the year. Net income was $24.9 million (GAAP), reflecting one-time benefits recognized in 2023 that did not recur in 2024, while adjusted net income rose to $30.5 million. The company highlighted a material improvement in retention—“the most important KPI is retention,” with retention running about 10% higher than historical highs—and signaled a robust path to free cash flow positive status in 2H 2024 and beyond. Net debt leverage improved meaningfully to 3.6x on an adjusted basis versus 5.2x in the prior-year period, signaling stronger balance-sheet resilience even as capex remains elevated to fund growth. Management raised full-year guidance: revenue to $2.50–$2.53 billion and Adjusted EBITDA to $603–$618 million, while maintaining a disciplined view on investment returns through LFEs (large-format equivalents) and other expansion formats. Looking ahead, Life Time’s strategic bets (ARORA, MIORA, pickleball, enhanced child-care, and targeted center formats) aim to sustain high member engagement, broaden total addressable market, and generate durable cash flows, albeit with near-term leverage that remains elevated amid growth investments. Investors should monitor retention, membership mix (seasonal pull-forward dynamics), center OpEx trajectory, capacity constraints (waitlists and pricing power), and the pace of LFEs versus same-store growth as key drivers of profitability and cash generation.

Key Performance Indicators

Revenue
Increasing
596.72M
QoQ: 6.78% | YoY: 16.81%
Gross Profit
Decreasing
193.19M
32.38% margin
QoQ: 12.21% | YoY: -18.40%
Operating Income
Increasing
72.06M
QoQ: 55.82% | YoY: 6.93%
Net Income
Decreasing
24.92M
QoQ: 5.21% | YoY: -9.26%
EPS
Decreasing
0.13
QoQ: 8.33% | YoY: -7.14%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 706.04 0.34 +18.3% View
Q4 2024 663.28 0.17 +18.7% View
Q3 2024 693.23 0.19 +18.5% View
Q2 2024 667.76 0.26 +18.9% View
Q1 2024 596.72 0.12 +16.8% View