Life Time Group (LTH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose to $866 million, up 13.8% year-over-year, driven by higher membership dues, improved membership mix, and increased in-center utilization, especially in Dynamic Personal Training and LifeSpa.

• Net income increased 40.6% year-over-year to $101.4 million, with adjusted net income at $109.8 million, up 30.6%; adjusted EBITDA reached $246.5 million, up 16.8%, with margin improving to 28.5%.

• Comparable center revenue grew 9.1%, exceeding expectations due to improved membership mix, pricing, and in-center business growth.

• Center memberships reached 860,041, up 1.2% year-over-year, with five new centers opened in Q2, bringing the total to 195.

• Revenue growth strategy focuses on new club openings, member engagement, and optimizing membership mix, with reduced emphasis on lower-dues Qualified Medical memberships.

Financial highlights

• Average monthly dues rose 12.3% year-over-year to $245; average revenue per center membership up 11.8% to $993 in Q2.

• Six-month revenue reached $1.65 billion, up $187.2 million year-over-year, with net income of $189.5 million and adjusted EBITDA of $473.2 million.

• Qualified Medical memberships declined 18.9% year-over-year, now representing less than 3.3% of dues revenue; all other center memberships grew 4.2%.

• Net cash from operating activities for the first half was $408.4 million, up 7.6%; free cash flow was $85.3 million.

• Capital expenditures for the first half totaled $523.3 million, supporting new club construction, modernization, and technology.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $3,350–$3,375 million, with comparable center revenue growth outlook at 7.9–8.3%.

• Adjusted EBITDA guidance increased to $940–$955 million; adjusted net income expected at $394–$402 million.

• Center membership count projected at 838,000–860,000 for 2026, with 2–3% year-over-year growth; excluding medical memberships, 4–5% growth expected in Q3 and Q4.

• 14 new club openings planned for 2026, with 12–14 new clubs planned for 2027.

• Maintenance and modernization/technology capex guidance increased, with growth capex tightened to $885–$910 million.