Life Time Group Holdings delivered strong Q3 2024 results, underpinned by robust membership growth and ongoing price discipline. GAAP revenue rose 18% year over year to $693.2 million, driven by a 20% increase in membership dues and enrollment fees and a 16% uptick in incentive revenue. Center memberships rose 5% YoY to over 826,000, with total memberships including digital on-hold memberships at roughly 877,000. Average monthly dues climbed to $198, a 13% year-over-year lift, supporting an expansion in average revenue per center membership to $815 (vs. $722 prior year). GAAP EBITDA reached $163.0 million (margin ~23.5%), while adjusted EBITDA was $180.3 million (margin ~26.0%), up 26% YoY and marking the second consecutive quarter of positive free cash flow. Net debt to adjusted EBITDA improved to 2.4x from 3.7x a year earlier, reflecting deleveraging and favorable financing dynamics after asset-light monetization actions.
Management raised 2024 guidance to revenue of $2.595–$2.605 billion and adjusted EBITDA of $658–$662 million, signaling confidence in continued momentum into the fourth quarter. The company also outlined a powerful multi-year growth agenda, including 25–30 million net invested capital per large-format club, a 100-deep deal pipeline with a blended mix of ground-up openings and takeovers, and an expanded capital recycling program via sale-leasebacks targeting $250–$300 million annually starting in 2025. In their view, this combination supports higher long-run growth (4–5% per fully ramped center, about 4.5% in 2025) while preserving a strong BBB-like balance sheet and substantial free cash flow generation.
Overall, the quarter reinforces Life Time’s strategic pivot toward a high-quality, membership-centric model, supported by disciplined pricing, brand strength, and an asset-light growth engine. The key questions for investors are the sustainability of retention, the pace and mix of club openings, and the ability to translate brand equity into further upside in LTH-branded offerings and digital ecosystems.