Life Time Group Holdings reported a strong Q2 2024, underscored by a 19% year-over-year revenue increase to $668 million, driven by a 20% rise in membership dues and enrollment fees and an 18% increase in incentive revenue. Active memberships rose 5% year over year to approximately 833k, with total memberships including digital on-hold at roughly 879k, and average monthly dues increasing to $198 (up ~13% YoY). EBITDA performance was robust, with reported EBITDA of $182.0 million and adjusted EBITDA of $173.5 million (margin 26.0%), reflecting disciplined cost management and higher revenue per active member ($784 vs. $701 YoY). Net income reached $52.8 million, translating to net income margin of about 7.9%, and diluted EPS of $0.26.
The quarter featured meaningful cash flow generation and balance sheet improvement: net cash provided by operating activities rose ~20% to $170 million, and free cash flow was $175 million (including $143 million of net sale-leaseback proceeds). Management highlighted that roughly $26 million of free cash flow was generated before sale-leaseback or land sale proceeds. Leverage declined to 3.0x vs 4.3x a year earlier. The company also raised full-year guidance for revenue to $2.56–$2.59 billion and adjusted EBITDA to $642–$652 million, signaling confidence in a back-half acceleration with a 14.6% revenue growth rate and 16.7% adjusted EBITDA growth in H2 2024.
Management stressed a strategic cadence focused on investment for growth (AI-enabled experiences, digital platforms, and new initiatives like LT Digital, Life Time Health, partnerships, and MIORA) while maintaining a balanced approach to margins. Notably, in-center performance was highlighted as a key growth driver, with new clubs ramping faster and contributing meaningfully to profitability. The company signaled continued deleveraging toward 2.5x or lower debt-to-adjusted-EBITDA and is pursuing a BB credit rating, which would lower future borrowing costs and support ongoing expansion. Overall, Life Time appears to be navigating a multi-year growth trajectory with a dual commitment to improving center-level productivity and reinvesting in scalable growth engines.