Life Time Group Holdings Inc. said it expects sales and earnings for the fourth quarter and year to exceed analyst targets. The high-end fitness center operator also forecast sales to climb 10.7 percent in the current year, supported by the opening of 10 to 12 clubs and approximately 7 percent same-club growth.

Adjusted earnings are expected to expand 15.5 percent in 2026.

In the fourth quarter ended December 31, total revenue is estimated to increase 12.2 percent to a range of $743 and $745 million, surpassing analysts’ consensus estimate of $736.68 million. Comparable-club revenue is expected to expand in the range of 9.7 percent and 9.9 percent.

Net income is projected to grow 226.6 percent to a range of $120 and $123 million, or between 52 cents and 54 cents a share. Adjusted net income is expected to increase 25.2 percent to between $74 and $77 million, or 32 cents to 34 cents, compared with analysts’ consensus target of 32 cents.

Adjustments in the quarter is estimated to include approximately $46 million and $49 million of tax-effected income for the three months and year ended December 31, 2025, respectively, related to payroll tax credits for employee retention under the CARES Act, payment to Life Time in partial satisfaction of legal claims, net of fees, and income tax benefits due to a significant exercise of stock options by its chief executive officer that were set to expire in 2025.

Adjusted EBITDA in the quarter is estimated to increase 13.6 percent to a range of $200 million to $202 million.

For the full year of 2025, sales are expected to expand 14.2 percent to a range of $2,993 million to $2,995 million. Company guidance had called for sales to climb 13.8 percent to a range of $2,978 million and $2,988 million.

Comparable-club revenue is expected to expand in the range of 11.0 percent to 11.1 percent.

Net income is estimated to climb 138.5 percent to a range of $371 million to $374 million, or $1.63 to $1.66 a share, for the year. Adjusted net income is estimated to advance 61.3 percent to a range of $322 to $325 million, or $1.41 to $1.44, for the year. Guidance had called for earnings between $304 million and $306 million, up 95.3 percent.

Adjusted EBITDA is estimated to increase 21.7 percent to between $823 million to $825 million for the year. Guidance had called for adjusted EBITDA to climb 21.5 percent to a range of $820 million and $824 million.

 

Select Fiscal 2026 Annual Guidance
The company introduced the following select financial guidance for full-year fiscal 2026

 

The company expects the following operational and financial results for full-year fiscal 2026:

  • Open 12 to 14 new clubs, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.2 million square feet, nearly double the square footage of each of our 2024 and 2025 class of clubs. We expect the majority of our 2026 class of clubs to open in the back half of the year, including six to seven in the fourth quarter of 2026.
  • Comparable center revenue growth of 6.3 percent to 7.3 percent, which includes our ramping and mature clubs.
  • Rent to include non-cash rent expense of $24 million to $27 million.
  • Cash income tax expense of $57 million to $59 million.
  • Interest expense, net of interest income, of approximately $56 million to $60 million, reflecting full year benefits of reduced interest expense on our term loan facility as a result of our execution of an interest rate swap and repricing during 2025 and greater capitalized interest expense due to increased construction activity related to clubs expected to open in 2026 and 2027.
  • Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times.

Life Time has more than 185 athletic country clubs across the U.S. and Canada.