Executive Summary

Q4 delivered strong growth with revenue up 18.7% to $663.3M, Adjusted EBITDA up 28.5% to $177.0M, and Adjusted EBITDA margin expanding 210 bps to 26.7% on record retention, higher average dues, and robust in‑center spend; comparable center revenue growth accelerated to 13.5% .
Management raised FY25 guidance vs. the January pre‑announcement: revenue to $2.925–$2.975B (from $2.910–$2.970B), Adjusted EBITDA to $780–$800M (from $760–$780M), and net income to $277–$284M (from $262–$269M), citing stronger early‑2025 dues and retention trends and cost control; interest expense guided to ~$90–$94M and tax rate ~27% .
Balance sheet and liquidity improved: net debt leverage fell to 2.28x (vs. 3.61x in 2023), liquidity was $619.7M; 2025 plan is to maintain ≤2.25x leverage and ~$1.5B debt, funding growth with operating cash flow and $250–$350M of expected sale‑leasebacks at ~6.5%–7% cap rates per management commentary .
Strategic catalysts: LT Digital has >1.7M subscribers growing >100k/month, “Lacy” AI companion and an Investor Day targeted for early summer/early August, MIORA longevity offering ramping, and LTH supplements scaling—management expects these asset‑light initiatives to support in‑center growth and brand reach .

What Went Well and What Went Wrong

What Went Well

Record engagement and retention drove the highest revenue per membership in Life Time’s 32‑year history; CEO: “We exceeded every single financial objective we had set forth” .
Mix and margin: Adjusted EBITDA grew 28.5% to $177.0M with margin up to 26.7%; net debt leverage improved to 2.28x vs. 3.61x in 2023, with $619.7M of available liquidity at year end .
In‑center momentum: management highlighted personal training comps nearly tripled YoY in Q4 at comparable clubs, reinforcing ancillary spend strength .

What Went Wrong

Sequential revenue declined from $693.2M in Q3 to $663.3M in Q4, and memberships fell by 14,440 QoQ to 812,062—consistent with seasonality; G&A also rose 13.1% on higher share‑based comp and benefits .
GAAP earnings included a $10.3M write‑off of unamortized debt costs tied to Q4 refinancing, pressuring GAAP net income vs. non‑GAAP; Adjusted net income was $60.3M (vs. GAAP $37.2M) .
Q4 free cash flow was $26.5M (vs. $138.3M in Q3), as higher capex and no Q4 sale‑leaseback proceeds muted FCF despite strong operating cash flow .

Financial Results

Headline P&L and KPIs (USD, unless noted)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$667.8	$693.2	$663.3
Revenue YoY %	+18.9%	+18.5%	+18.7%
Net Income ($M)	$52.8	$41.4	$37.2
Diluted EPS ($)	$0.26	$0.19	$0.17
Net Income Margin %	7.9%	6.0%	5.6%
Adjusted EBITDA ($M)	$173.5	$180.3	$177.0
Adjusted EBITDA Margin %	26.0%	26.0%	26.7%
Comparable Center Revenue Growth %	12.0%	12.1%	13.5%
Center Memberships (EOP)	832,636	826,502	812,062
Avg Center Revenue per Membership	$794	$815	$796

Revenue Mix and “Segments”

Revenue Mix	Q2 2024	Q3 2024	Q4 2024
Membership Dues & Enrollment ($M)	$462.7 (71.7%)	$488.1 (72.3%)	$477.8 (73.9%)
In‑Center Revenue ($M)	$182.3 (28.3%)	$186.7 (27.7%)	$168.6 (26.1%)
Total Center Revenue ($M)	$645.0	$674.8	$646.4
Other Revenue ($M)	$22.8	$18.5	$16.9
Total Revenue ($M)	$667.8	$693.2	$663.3

Cash Flow, Capex, Leverage, Footprint

KPI	Q2 2024	Q3 2024	Q4 2024
Net Cash from Operating Activities ($M)	$170.4	$151.1	$163.1
Free Cash Flow ($M)	$175.1	$138.3	$26.5
Total Capex ($M)	$144.3	$87.1	$136.3
Net Debt Leverage (x)	3.0x	2.4x	2.28x
Total Centers (EOP)	175	177	179

Estimates vs. Actuals

Wall Street (S&P Global) quarterly consensus for Q4 2024 and the prior two quarters was unavailable via the S&P Global API at the time of this analysis; therefore beat/miss cannot be determined. S&P Global consensus unavailable.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$2.910–$2.970B	$2.925–$2.975B	Raised
Net Income	FY 2025	$262–$269M	$277–$284M	Raised
Adjusted EBITDA	FY 2025	$760–$780M	$780–$800M	Raised
Rent	FY 2025	$337–$347M	$337–$347M	Maintained
Interest Expense (net)	FY 2025	~$90–$94M	~$90–$94M	Maintained
Tax Rate	FY 2025	—	~27%	New detail
Cash Taxes	FY 2025	—	$58–$62M	New detail
Comparable Center Revenue	FY 2025	7%–8%	7%–8%	Maintained
New Centers	FY 2025	10–12	10–12	Maintained

Management also reiterated plans to keep net leverage at or below 2.25x and fund growth with operating cash flow plus sale‑leaseback proceeds .

Earnings Call Themes & Trends

Topic	Q2 2024 (Q‑2)	Q3 2024 (Q‑1)	Q4 2024 (Current)	Trend
Retention, Dues, Pricing	Avg revenue/member $794; raised FY24 guide; net leverage 3.0x	Avg revenue/member $815; deleveraging to 2.4x; positive FCF pre‑SLB	Record retention; avg revenue/member $796; management expects >26% EBITDA margins	Strengthening retention/dues
In‑center revenue, PT	Solid in‑center mix (28.3%)	In‑center $186.7M; comps 12.1%	PT comps nearly tripled YoY in Q4 comps stores	Accelerating
Leverage & Liquidity	Net leverage 3.0x	Net leverage 2.4x; liquidity $529.7M	Net leverage 2.28x; liquidity $619.7M; target ≤2.25x	Improving
Sale‑leasebacks	4 properties, $142.7M proceeds	2 properties, ~$65M	2025 SLB expected $250–$350M; cap rates ~6.5%–7%	Increasing
New Center Pipeline	3 opens; 175 clubs	2 opens; 177 clubs	2 opens; 179 clubs; plan 10–12 in 2025	Robust
AI / Technology	—	—	“Lacy” AI companion; Investor Day early summer/August targeted	Emerging
LTH Supplements	—	—	Expanded LTH supplements; month‑over‑month growth; product line unveiled Nov 4	Ramping
MIORA (longevity)	—	—	MIORA scaling; second location imminent; low attrition vs. base	Ramping

Management Commentary

“We exceeded every single financial objective we had set forth… record levels of member engagement… record membership retention, driving the highest revenue per membership we have seen in our 32‑year history.” — Bahram Akradi, CEO .
“We have continued to expand our operating margins and now expect to achieve adjusted EBITDA margins in excess of 26%.” — Erik Weaver, CFO .
“We intend to maintain our current debt levels of approximately $1.5 billion… This implies a net debt leverage ratio of less than 2x by the end of this year.” — CEO .
“We have agreements… about $240–$250 million [of] sale‑leaseback from us for this year… $250–$300–$350 million sale‑leaseback… easily in the expectation for this year.” — CEO .
“LT Digital… has more than 1.7 million subscribers and it's growing more than 100,000 per month… [We] are about to open our second [MIORA] location next week.” — CEO .

Q&A Highlights

Funding growth and SLB market: Company expects $250–$350M of sale‑leasebacks in 2025 with long‑standing partners at ~6.5%–7% cap rates; proceeds will be recycled into growth while maintaining ~$1.5B debt and sub‑2.25x leverage .
Guidance raise rationale: Early 2025 trends—strong average dues, retention, and cost control—drove a lift in EBITDA guidance vs. mid‑January pre‑announce .
Comps cadence: Management expects Q1 comp to run above the 7%–8% FY guide due to lapping prior initiatives, with normalization into Q2–Q4 .
Capacity, pricing, enrollment fees: For saturated clubs, pricing/enrollment fees are used to manage demand; the company has systematically repriced legacy customers to rack rate over the past ~18 months, supporting dues growth .
In‑center and PT momentum: Comparable PT revenue nearly tripled YoY in Q4 comps stores; kids programming and camps remain a key differentiator with record participation .
AI and Investor Day: Significant AI initiatives under “Lacy” are planned to be showcased at an Investor Day targeted for early summer/early August .

Estimates Context

Consensus (S&P Global) quarterly EPS/Revenue/EBITDA estimates for Q4 2024 and the prior two quarters could not be retrieved via the S&P Global API at the time of analysis. As a result, we do not present beat/miss determinations versus Wall Street expectations. S&P Global consensus unavailable.

Key Takeaways for Investors

Operating momentum remains robust: comps accelerated to 13.5%, margins expanded to 26.7%, and retention/dues support durable revenue flow‑through .
De‑risked balance sheet and lower interest burden: net leverage at 2.28x with a path to ≤2.25x; FY25 net interest guided to ~$90–$94M, benefiting from refinancing and debt paydown .
2025 outlook raised: revenue, Adjusted EBITDA, and net income all increased vs. January pre‑announcement—near‑term catalyst for sentiment and estimate revisions once Street data is accessible .
Growth funding intact without over‑levering: $250–$350M expected sale‑leasebacks plus operating cash flow support 10–12 openings in 2025 while holding debt roughly flat at ~$1.5B .
Asset‑light flywheel emerging: LT Digital (>1.7M subs), LTH supplements, and MIORA longevity offer incremental in‑center and product monetization vectors with limited capital intensity; Investor Day could crystallize medium‑term upside .
Watch items: seasonal Q4 sequential downtick; elevated share‑based comp contributing to G&A; Q4 FCF moderated absent sale‑leaseback proceeds—monitor capex cadence and SLB execution through 2025 .

Appendix: Additional Context

Q4 non‑GAAP reconciliation highlights include a $10.3M write‑off of unamortized debt costs tied to Q4 refinancing, impacting GAAP results; Adjusted Net Income was $60.3M and Adjusted Diluted EPS $0.27 .
2025 operating assumptions include non‑cash rent expense of $35–$38M, ~27% tax rate, and $58–$62M cash taxes; comparable center revenue growth of 7%–8% .
Relevant prior‑quarter baselines: Q2 revenue $667.8M, Adj. EBITDA $173.5M; Q3 revenue $693.2M, Adj. EBITDA $180.3M; both delivered strong YoY growth and deleveraging progress .

Sources: LTH Q4/FY24 earnings press release and 8‑K, earnings call transcript, preliminary Q4 release, and relevant Q2/Q3 press releases .

Life Time Group Holdings, Inc. (LTH)·Q4 2024 Earnings Summary