Life Time Financial Surge
Life Time Group Reports Strong Q2 2026 Earnings, Raises Full-Year Revenue Guidance
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Key Points
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Q2 2026 adjusted EBITDA margin expanded by 80 basis points to 28.5%, with the company also raising the midpoint of its adjusted EBITDA margin guidance to 28.2%.
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Comparable-center revenue rose 9.1% year over year in Q2 2026, underscoring strength beyond membership growth.
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Medical memberships declined 18.9% year over year, while other memberships grew 4.2%, with management noting medical memberships will become less than 3% of total dues revenue.
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Adjusted net income increased 30.6% to $109.8 million in the quarter, reflecting stronger operating performance alongside the top line.
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Leverage improved to 1.4x net debt, with Fitch and S&P upgrading Life Time’s issuer ratings to BB during the quarter, signaling improved credit quality.
Life Time Group Holdings posted strong second-quarter 2026 results, with revenue of $866.0 million — up 13.7% year over year — and net income of $101.4 million, a 40.6% surge from the same period last year, according to TradingView. The fitness club operator beat Wall Street estimates, with adjusted earnings per share of $0.48 topping the Zacks consensus of $0.45, a 6.67% upside surprise, Yahoo Finance reported.
Adjusted EBITDA — a measure of operating profit before interest, taxes, and other costs — climbed 16.8% to $246.5 million. The company also raised its full-year guidance and reaffirmed plans to open 14 new clubs in 2026.
Revenue and Profit Growth Beat Expectations
Life Time's total revenue rose from $761.5 million in Q2 2025 to $866.0 million this quarter, per Quiver Quant. Net income jumped from $72.1 million to $101.4 million. GAAP earnings per share came in at $0.45, compared to a loss of $0.32 per share a year ago, according to Nasdaq.
Comparable-center revenue — sales from clubs open at least a year — rose 9.1% year over year. Adjusted net income grew 30.6% to $109.8 million. Adjusted EBITDA margin expanded 80 basis points to 28.5%, TradingView reported.
Life Time Shifts Away from Low-Value Medical Memberships
The company is deliberately cutting lower-value memberships. Medical memberships fell 18.9% year over year. Meanwhile, other memberships grew 4.2%. Management said medical memberships will soon make up less than 3% of total dues revenue.
Total memberships stood at 860,041, with total subscriptions at 910,520. The strategy aims to push average dues higher and improve overall efficiency. Life Time is trading volume for higher-spending members who use more of its premium services, per ScanX Trade.
Credit Upgrades and Debt Reduction Signal Financial Strength
Life Time's balance sheet improved sharply. Net debt leverage fell to just 1.4x — meaning the company owes about 1.4 times its annual operating profit. Both Fitch and S&P upgraded Life Time's issuer credit ratings to BB during the quarter. The company held $855.7 million in liquidity.
Those upgrades matter because they lower borrowing costs and signal confidence in the company's finances. Life Time ended Q2 with 195 total centers after opening five new clubs during the quarter, Quiver Quant noted.
Full-Year Guidance Raised as Club Expansion Continues
Life Time raised its full-year comparable-center revenue growth guidance to roughly 7.9%–8.3%. The company also lifted the midpoint of its adjusted EBITDA margin guidance to 28.2%. It reaffirmed plans to open 14 new clubs in 2026 and 12–14 more in 2027, sticking to its large-format premium club model.
The company is also incubating MIORA, a new health and longevity concept it sees as a future growth opportunity. With strong cash flow, upgraded credit, and rising membership quality, Life Time is betting that bigger, premium clubs will keep driving results, per ScanX Trade.
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