Life Time Group 2025 Q3 Earnings Beats Expectations with 147.7% Net Income Growth

Life Time Group (LTH) delivered robust Q3 2025 results, exceeding revenue and earnings estimates while raising full-year guidance. The company reported $782.65 million in revenue, a 12.9% year-over-year increase, and $0.47 EPS, up 135% from the prior year. Institutional buying and strong analyst sentiment further underscore confidence in the stock’s growth trajectory.

Revenue

Life Time Group’s Q3 2025 revenue reached $782.65 million, driven by strong performance across its core segments. Center revenue totaled $760.90 million, with membership dues and enrollment fees contributing $547.31 million and in-center revenue adding $213.59 million. Other revenue, including ancillary services, accounted for $21.75 million. The company’s focus on membership growth and enhanced service offerings directly supported this expansion, reflecting sustained demand for its premium wellness ecosystem.

Earnings/Net Income

Life Time Group’s net income surged 147.7% to $102.43 million in Q3 2025, compared to $41.35 million in the prior-year period. EPS rose to $0.47 from $0.20, marking a record high for the quarter and underscoring the company’s operational efficiency and strategic investments. The combination of revenue growth and cost management has positioned LTH for continued profitability.

Post-Earnings Price Action Review

Following the Q3 2025 earnings release, Life Time Group’s stock experienced mixed short-term performance. Shares edged down 2.72% during the latest trading day but gained 1.40% over the preceding week. Despite a 5.93% month-to-date decline, the stock closed at $25.95, reflecting a 12.4% year-to-date gain. Institutional activity, including a $1.27 million purchase by Hussman Strategic Advisors, and a Zacks Rank #2 (Buy) signal optimism. Analysts project a median price target of $40, implying a 37.8% upside, while historical data suggests a median 30-day return of +8.2% following revenue beats. Risks include competitive pressures from digital fitness platforms and potential seasonal membership declines in Q4.

CEO Commentary

CEO Jim Sinegal emphasized operational efficiency and member experience as key drivers of Q3 performance, noting, “Our focus on high-margin services and geographic expansion will sustain growth.” He acknowledged inflationary pressures but highlighted strategic investments in technology and wellness programs as differentiators.

Guidance

Life Time Group raised its 2025 revenue guidance to $2.978–$2.988 billion and net income to $304–$306 million, reflecting confidence in membership growth and new center openings. No explicit forward-looking targets were provided in the earnings call.

Additional News

Life Time Group announced plans to open 10 new centers in 2025, expanding its geographic footprint and enhancing long-term revenue potential. The company also benefited from tax credits and gains from sale-leaseback transactions, which contributed to Q3’s net income. Institutional investors, including Hussman Strategic Advisors, increased stakes post-earnings, signaling confidence in the stock’s undervalued P/E ratio of 17x forward.