Thu, May 8, 11:05 AM (15 days ago)
**Life Time Group Holdings, Inc. (LTH) Q1 2025 Financial Summary** Life Time Group Holdings, Inc. (LTH) reported strong financial performance for the first quarter ended March 31, 2025. The company's total revenue increased by $109.3 million, or 18.3%, to $706.0 million, driven by growth in membership dues and in-center revenue. Center revenue, which accounts for 97.1% of total revenue, rose by $105.2 million, or 18.1%, to $685.7 million. This growth was fueled by higher average dues, membership growth, and increased utilization of in-center offerings. **Key Financial Metrics:** - **Revenue:** $706.0 million (up 18.3% YoY) - **Net Income:** $76.1 million (up 205.5% YoY) - **Earnings per Share (EPS):** $0.34 (up 169.2% YoY) - **Operating Income:** $107.7 million (up 49.6% YoY) - **Operating Margin:** 15.3% (up 3.1 percentage points YoY) - **Cash Flow from Operations:** $183.9 million (up 103.4% YoY) **Profit Margins and Cash Flow:** LTH's net income margin improved to 10.8% from 4.2% in the prior year, reflecting better cost management and revenue growth. The company generated $183.9 million in cash from operations, a significant increase from $90.4 million in the previous year. This improvement was driven by increased business performance, profitability, and timing of cash interest payments. **Earnings Changes and Trends:** The company's earnings per share (EPS) increased by 169.2% year-over-year, driven by higher net income and a slight increase in the weighted-average number of shares outstanding. LTH's operating income grew by 49.6%, reflecting improved operational efficiency and revenue growth. **Future Operations and Uncertainties:** LTH continues to expand its portfolio of premium centers using an asset-light model, targeting affluent markets with higher income members and higher returns on invested capital. The company plans to open 10 to 12 new locations annually. However, LTH faces uncertainties related to macroeconomic trends, including tariffs, inflation, interest rates, and labor costs. The company is monitoring these factors and believes its business is resilient, having performed well historically during different economic cycles. **Impact on Future Operations:** LTH's strong financial performance and strategic initiatives position the company for continued growth. However, the company may face challenges related to increased rent expenses due to its asset-light strategy and potential economic headwinds. LTH will need to manage these factors carefully to maintain its growth trajectory. **Conclusion:** Life Time Group Holdings, Inc. delivered a strong first quarter, with significant revenue and earnings growth. The company's strategic initiatives and focus on affluent markets position it for continued success. However, LTH must navigate macroeconomic uncertainties and manage increased rent expenses to sustain its growth momentum.