Overview

* Life Time Q2 revenue rises 14%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats estimates, rising 48% to $0.37

* Co achieved positive free cash flow for the fifth consecutive quarter

Outlook

* Life Time expects 2025 revenue between $2.955 bln and $2.985 bln

* Company anticipates net income of $290 mln to $293 mln for 2025

* Life Time plans to open 10 new centers in 2025

* Company aims for net debt leverage ratio at or below 2.00 times

Result Drivers

* MEMBERSHIP GROWTH - Revenue growth driven by increased membership dues and higher member utilization, particularly in Dynamic Personal Training

* CENTER EXPENSES - Rise in center operations expenses due to costs related to new and ramping centers and increased club utilization

* TAX BENEFITS - Net income boosted by tax-effected net cash proceeds from employee retention credits under the CARES Act

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $761.50 $752.20

Revenue mln mln (9

Analysts

)

Q2 Beat $0.37 $0.33 (9

Adjusted Analysts

EPS )

Q2 Net $72.10

Income mln

Q2 Beat $211 mln $204.90

Adjusted mln (8

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the leisure & recreation peer group is "buy"

* Wall Street's median 12-month price target for Life Time Group Holdings Inc ( LTH ) is $38.15, about 25% above its August 4 closing price of $28.59

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)