Life Time's Q2 2025: Unpacking Contradictions in Membership Growth, Expansion Strategies, and Pricing Tactics

Revenue Growth and Membership Trends:
- Life Time Group Holdings reported revenue of $761 million for Q2 2025, up 14% year-on-year.
- The growth was primarily driven by a 14% increase in membership dues and enrollment fees, as well as a 14.4% increase in in-center revenue.
- Strong membership retention and high visit rates contributed to the solid financial performance.

Adjusted EBITDA and Profitability:
- Adjusted EBITDA for Q2 2025 was $211 million, an increase of 21.6% year-on-year, with an improved margin of 27.7%.
- The rise in adjusted EBITDA was due to increased revenue and effective cost management.

Membership and Club Expansion:
- The company ended Q2 with over 849,000 center memberships and approximately 899,000 total memberships.
- Life Time is planning to accelerate its club openings, targeting 12 to 14 new clubs in 2026, with an average size nearly 100,000 square feet.
- This growth strategy is supported by a solid balance sheet and BB credit rating.

Digital and Ancillary Revenue Streams:
- Life Time Digital now has 2.3 million accounts, up 216% year-on-year.
- The launch of L.AI.C. and the growth of the LTH nutritional supplements line, along with the success of MIORA locations, contributed to the expansion of digital and ancillary revenue streams.
- These developments are part of their strategic focus on high-margin expansion opportunities.