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

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Life Time Group Holdings, Inc. (LTH) Consumer Business Overview

Life Time Group Holdings, Inc. delivers health, fitness, and wellness experiences through its network of centers in the U.S. and Canada. Known for its resort-like facilities and comprehensive service offerings, Life Time caters to individual members seeking premium fitness and lifestyle amenities, differentiating itself through integrated digital and physical platforms.

What Is the Investment Thesis for LTH?

With a market capitalization of $9.35B and a P/E ratio of 22.06, Life Time demonstrates profitability with a 12.5% profit margin and a 58.2% gross margin. Key value drivers include continued expansion of its center network, growth in digital subscriptions, and increasing member engagement. The company's focus on premium facilities and comprehensive services supports higher membership fees and customer loyalty. Growth catalysts include leveraging data analytics to personalize member experiences and expanding corporate wellness programs. Potential risks include economic downturns affecting consumer spending on discretionary services and increased competition from boutique fitness studios and digital fitness platforms.

Based on FMP financials and quantitative analysis

LTH Key Highlights

Market Cap of $9.35B reflects investor confidence in Life Time's growth potential and market leadership.

• P/E ratio of 22.06 indicates a reasonable valuation relative to earnings, suggesting potential for future appreciation.
• Profit Margin of 12.5% demonstrates the company's ability to generate profits from its operations.
• Gross Margin of 58.2% highlights the premium pricing and efficient cost management of Life Time's services.
• Operation of 151 centers across 29 states and one Canadian province, showcasing its extensive geographic footprint and market reach.

Who Are LTH's Competitors?

LTH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are LTH's Key Strengths?

Premium brand and reputation.

• Comprehensive service offerings.
• Extensive network of centers.
• Integrated digital platform.

What Are LTH's Weaknesses?

High operating costs associated with maintaining premium facilities.

• Dependence on membership fees for revenue.
• Potential vulnerability to economic downturns.
• High Beta of 1.65 indicates higher volatility than the market.

What Could Drive LTH Stock Higher?

LTH catalyst: Continued expansion of Life Time's digital platform to enhance member engagement and drive subscription revenue.

• Strategic partnerships with healthcare providers and wellness brands to expand service offerings.
• Potential for new center openings in underserved markets to drive membership growth.
• Focus on corporate wellness programs to secure long-term contracts and recurring revenue.

What Are the Key Risks for LTH?

Financial-distress signal — its Altman Z-Score of 1.72 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $2.4B recently.
• Economic downturns affecting consumer spending on discretionary services.
• Increased competition from boutique fitness studios and digital fitness platforms.
• Changing consumer preferences and fitness trends.
• Regulatory changes impacting the health and wellness industry.

What Are the Growth Opportunities for LTH?

• Expansion of Digital Platform: Life Time has the opportunity to further expand its digital platform, Life Time Digital, by offering more personalized fitness plans and integrating advanced data analytics. The global digital fitness market is projected to reach $79.3 billion by 2026, offering a significant growth avenue. By enhancing its digital offerings, Life Time can attract a broader customer base and increase member engagement, driving subscription revenue and overall profitability. Timeline: Ongoing.
• Corporate Wellness Programs: Life Time can capitalize on the growing demand for corporate wellness programs by partnering with businesses to offer fitness and wellness solutions to their employees. The corporate wellness market is expected to reach $84.6 billion by 2027. By offering customized programs and leveraging its existing infrastructure, Life Time can secure long-term contracts and generate recurring revenue. Timeline: Ongoing.
• Geographic Expansion: Life Time has the potential to expand its physical footprint by opening new centers in underserved markets and strategic locations. The company can focus on high-growth metropolitan areas and leverage demographic trends to identify optimal locations. By carefully selecting new sites and tailoring its offerings to local preferences, Life Time can drive membership growth and increase market share. Timeline: Ongoing.
• Partnerships and Collaborations: Life Time can explore partnerships and collaborations with complementary businesses, such as healthcare providers and wellness brands, to expand its service offerings and reach new customers. By integrating medical services, nutrition counseling, and other wellness solutions, Life Time can enhance its value proposition and attract a broader range of members. Timeline: Ongoing.
• Premiumization of Services: Life Time can focus on premiumizing its services by offering exclusive amenities, personalized training programs, and high-end spa treatments. By catering to affluent customers and providing a luxury experience, Life Time can increase its average revenue per member and drive overall profitability. This strategy aligns with the growing trend of consumers seeking premium and personalized experiences in the health and wellness sector. Timeline: Ongoing.

What Are LTH's Competitive Advantages?

• Strong brand recognition and reputation for premium fitness experiences.
• Extensive network of centers in strategic locations.
• Integrated digital platform enhancing member engagement and retention.
• Comprehensive range of services and amenities creating a unique value proposition.

What Does LTH Do?

Life Time Group Holdings, Inc., founded in 1992 and headquartered in Chanhassen, Minnesota, operates as a provider of health, fitness, and wellness experiences. The company designs, builds, and operates sports and athletic, professional fitness, family recreation, and spa centers in the United States and Canada. These centers are typically located in suburban and urban areas within metropolitan regions, offering a resort-like environment for its members. Life Time's facilities include fitness floors equipped with a variety of exercise machines, group fitness studios, indoor and outdoor pools, bistros, tennis and basketball courts, spa services (LifeSpa), cafes (LifeCafe), and dedicated spaces for childcare and kids' activities (Kids Academy). In addition to its physical locations, Life Time offers a digital platform called Life Time Digital, which provides live streaming fitness classes, remote personal training, nutrition and weight loss support, and curated health and wellness content. This platform also integrates with Apple Fitness+, allowing members to monitor their wellness data. As of December 31, 2021, Life Time operated 151 centers across 29 states and one Canadian province, with 63 centers owned (including ground leases) and 88 centers leased. The company was initially known as LTF Holdings, Inc., before rebranding to Life Time Group Holdings, Inc. in June 2021. Life Time also engages in media activities, including conducting athletic events and providing related services, enhancing its brand and community engagement.

What Products and Services Does LTH Offer?

• Operates sports, athletic, fitness, recreation, and spa centers.
• Designs and builds fitness facilities in resort-like environments.
• Provides fitness floors with equipment and group fitness studios.
• Offers indoor and outdoor pools, tennis courts, and basketball courts.
• Manages LifeSpa and LifeCafe within its centers.
• Provides childcare and Kids Academy learning spaces.
• Offers Life Time Digital, a platform for live streaming fitness classes and remote personal training.
• Conducts athletic events and provides related services.

How Does LTH Make Money?

• Generates revenue primarily through membership fees.
• Offers additional revenue streams through personal training, spa services, and cafe sales.
• Leverages its physical centers and digital platform to provide comprehensive fitness and wellness solutions.
• Focuses on creating a premium experience to attract and retain members.

What Industry Does LTH Operate In?

Life Time Group Holdings, Inc. operates in the competitive leisure industry, which is experiencing growth driven by increased health awareness and a focus on wellness. The market includes traditional gyms, boutique fitness studios, and digital fitness platforms. Life Time differentiates itself by offering a comprehensive, resort-like experience with a wide range of amenities and services. The company competes with other fitness chains, such as Wyndham Hotels & Resorts, as well as specialized fitness providers. The trend towards personalized fitness experiences and the integration of digital solutions are key factors shaping the industry landscape.

Who Are LTH's Key Customers?

• Individual members seeking health, fitness, and wellness experiences.
• Families looking for recreational activities and childcare services.
• Corporate clients interested in wellness programs for their employees.

Over the past six months, Life Time Group Holdings, Inc. insiders filed 89 SEC Form 4 transactions — 70 sales and 19 purchases. On net that is roughly 71.1M shares disposed (about $2.4B), a signal worth weighing alongside the fundamentals.

Life Time Group Holdings, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 22.5% above estimates on average.

Life Time Group Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.72 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Life Time Group Holdings, Inc. stands at 12.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.8%, showing how much profit it generates from its asset base. LTH trades at a trailing price-to-earnings ratio of 22.06, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is -1.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.53 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.4%, the inverse of the P/E and a quick read on earnings relative to price.

Life Time Group Holdings, Inc. (LTH) Valuation Context

Valued at $9.35B, LTH is classified as a mid-cap stock. Analyst price targets span from $46.00 to $64.00, with a consensus of $54.67. At the current price of $41.84, that implies approximately 31% upside potential. Relative to its peer group, LTH's quantitative score of 69/100 is roughly in line with the peer average of 70/100.

LTH Revenue & Earnings Trend

In Q2 FY2026, LTH generated $866.0M in top-line revenue, marking a sequential increase of 9.8%. The company recorded net income of $101.4M, with diluted EPS of $0.45. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Cyclical company. Across the four most recent quarters, LTH averaged $0.46 in diluted EPS.

Company Profile

Life Time Group Holdings, Inc. operates in the Leisure industry within the Consumer Cyclical sector. It is headquartered in Chanhassen, US. The company is led by CEO Bahram Akradi. LTH has traded publicly since 2021.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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