Life Time Group Holdings, Inc. (LTH) AI Stock Analysis

Life Time Group Holdings, Inc. conceptualizes, constructs, and manages expansive sports and athletic centers across the United States and Canada. Located in urban and suburban metropolitan areas, these resort-like clubs provide fitness floors with exercise equipment, group fitness studios, modern locker rooms, and indoor and outdoor pools. Additional amenities include indoor and outdoor tennis courts, basketball courts, gourmet LifeCafe bistros, childcare, and Kids Academy learning spaces. The company's LifeSpa division delivers spa treatments and wellness therapies. Life Time Digital complements physical locations with live streaming fitness classes, remote personal training, nutrition coaching, and Apple Fitness+ integration, alongside organized athletic events and media activities.

Revenue increased at a 5-year CAGR of 25.9% between FY2020 and FY2025. Annual revenue grew from $1.32B in FY2021 to $1.82B in FY2022, $2.22B in FY2023, $2.62B in FY2024, and $3.00B in FY2025. Over the same timeframe, net income shifted from -$579.4M in FY2021 to $373.7M in FY2025, while gross margin expanded from 36.0% to 47.6%. Operating margin reached 16.1% in FY2025. Across the trailing twelve months ended June 30, 2026, revenue totaled $3.18B with an operating margin of 17.1% and a profit margin of 13.0%. For the latest quarter ended June 30, 2026, quarterly revenue rose 13.7% year-over-year and quarterly earnings grew 40.6%.

As of June 30, 2026, Life Time held $223.6M in cash and short-term investments against total debt of $4.26B, resulting in net debt of $4.04B. Total assets were $8.36B and shareholders' equity stood at $3.30B, reflecting a debt-to-equity ratio of 1.29 and a current ratio of 0.66. Operating cash flow reached $870.5M in FY2025, while capital expenditures totaled $891.5M, leaving free cash flow of -$21.0M. Share issuance was $46.8M in FY2025, and share count grew 22.3% over five years.

At $40.52 on October 16, 2026, Life Time trades at a trailing P/E of 22.1x and a forward P/E of 20.2x, above the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x. Its enterprise value of $12.59B corresponds to an EV/EBITDA of 14.5x, compared to the peer group median of 11.1x, while its price-to-sales ratio is 2.8x versus the peer median of 0.7x. The stock has returned 62.6% over the past year, outperforming the S&P 500 ETF return of 16.8%.

Wall Street coverage consists of 12 Strong Buy ratings, 2 Buy ratings, and zero Hold, Sell, or Strong Sell ratings. The mean price target is $56.07, representing upside of 38.4% over the last close of $40.52. For the fiscal year ending December 31, 2026, consensus estimates forecast EPS of $1.75 on revenue of $3.37B. Life Time beat EPS estimates in each of the prior 4 quarters, with its next earnings announcement scheduled for October 29, 2026.

This page is an AI-written research summary of Life Time Group Holdings, Inc. (LTH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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