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Debt-to-equity improved to 1.29 from 1.88 a year ago, but total debt remains elevated at $4.3B, and the current ratio of 0.66 indicates potential short-term liquidity pressure.
| Total Current Assets | 436.09M | 385.76M | 170.97M | 174.52M | 131.04M | 131.52M | 165.7M | 210.78M |
| Cash & Short-Term Investments | 223.65M | 232.17M | 10.88M | 29.97M | 25.51M | 31.64M | 33.2M | 47.95M |
| Cash Only | 223.65M | 232.17M | 10.88M | 29.97M | 25.51M | 31.64M | 33.2M | 47.95M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 26.31M | 36.32M | 38.52M | 59.28M | 23M | 24.95M | 21.39M | 58.36M |
| Days Sales Outstanding | 4.32 | 4.43 | 5.36 | 9.76 | 4.61 | 6.91 | 8.23 | 11.21 |
| Inventory | 66.72M | 67.62M | 60.27M | 52.8M | 45.66M | 41.01M | 36.28M | 44.31M |
| Days Inventory Outstanding | 25.38 | 15.73 | 15.8 | 16.27 | 15.6 | 17.73 | 20.06 | 15.53 |
| Other Current Assets | 34.6M | 15.48M | 31.48M | 26.99M | 26.87M | 3.15M | 56.9M | 38.79M |
| Total Non-Current Assets | 7.92B | 8.4B | 6.98B | 6.86B | 6.49B | 6.13B | 5.85B | 5.97B |
| Property, Plant & Equipment | 6.41B | 6.13B | 5.51B | 5.37B | 5.02B | 4.66B | 4.4B | 4.51B |
| Fixed Asset Turnover | 0.52x | 0.49x | 0.48x | 0.41x | 0.36x | 0.28x | 0.22x | 0.42x |
| Goodwill | 1.24B | 1.24B | 1.24B | 1.24B | 1.23B | 1.23B | 1.23B | 1.23B |
| Intangible Assets | 180.73M | 180.81M | 171.64M | 172.13M | 173.4M | 174.24M | 164.42M | 168.24M |
| Long-Term Investments | 1.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 97.64M | 80.71M | 67.58M | 75.91M | 69.74M | 61.74M | 52.95M | 57.67M |
| Total Assets | 8.36B | 8.79B | 7.15B | 7.03B | 6.63B | 6.26B | 6.02B | 6.18B |
| Asset Turnover | 0.38x | 0.34x | 0.37x | 0.32x | 0.28x | 0.21x | 0.16x | 0.31x |
| Asset Growth % | 52.72% | 22.89% | 1.71% | 6.14% | 5.89% | 3.97% | -2.57% | - |
| Total Current Liabilities | 663.56M | 609.51M | 520.1M | 557.2M | 457.41M | 406.25M | 443.13M | 391.59M |
| Accounts Payable | 267.65M | 233.79M | 87.81M | 81.25M | 73.97M | 71.31M | 54.1M | 53.95M |
| Days Payables Outstanding | 88.15 | 54.4 | 23.02 | 25.04 | 25.28 | 30.83 | 29.92 | 18.91 |
| Short-Term Debt | 31.77M | 113.17M | 22.58M | 73.85M | 15.22M | 23.53M | 139.27M | 36.23M |
| Deferred Revenue (Current) | 237.34M | 60.31M | 58.25M | 49.3M | 36.86M | 33.87M | 42.27M | 44.79M |
| Other Current Liabilities | 0 | 149.19M | 25.06M | 16.13M | 14.53M | 4.66M | 1.4M | 989K |
| Current Ratio | 0.66x | 0.63x | 0.33x | 0.31x | 0.29x | 0.32x | 0.37x | 0.54x |
| Quick Ratio | 0.56x | 0.52x | 0.21x | 0.22x | 0.19x | 0.22x | 0.29x | 0.43x |
| Cash Conversion Cycle | -58.45 | -34.24 | -1.86 | 0.99 | -5.07 | -6.19 | -1.62 | 7.83 |
| Total Non-Current Liabilities | 4.39B | 5.05B | 4.02B | 4.22B | 4.04B | 3.76B | 4.09B | 4.03B |
| Long-Term Debt | 1.47B | 4.04B | 1.51B | 1.86B | 1.81B | 1.78B | 2.13B | 2.22B |
| Capital Lease Obligations | 10.37B | 2.59B | 2.38B | 2.27B | 2.16B | 1.91B | 1.74B | 1.49B |
| Deferred Tax Liabilities | 1.47B | 953.6M | 85.25M | 56.07M | 41.39M | 55.21M | 195.12M | 295M |
| Other Non-Current Liabilities | 57.5M | -2.54B | 42.58M | 36.88M | 34.18M | 18.22M | 26.17M | 22.59M |
| Total Liabilities | 5.06B | 5.66B | 4.54B | 4.78B | 4.5B | 4.17B | 4.54B | 4.43B |
| Total Debt | 4.26B | 6.75B | 3.99B | 4.26B | 4.04B | 3.76B | 4.06B | 3.78B |
| Net Debt | 4.04B | 6.52B | 3.98B | 4.23B | 4.01B | 3.73B | 4.03B | 3.73B |
| Debt / Equity | 1.29x | 2.16x | 1.53x | 1.89x | 1.90x | 1.80x | 2.74x | 2.16x |
| Debt / EBITDA | 4.92x | 8.68x | 6.31x | 9.07x | 11.89x | - | - | 9.71x |
| Net Debt / EBITDA | 4.66x | 8.38x | 6.29x | 9.01x | 11.81x | - | - | 9.59x |
| Interest Coverage | 11.97x | - | 2.41x | 1.72x | 0.98x | -2.21x | -2.80x | 1.30x |
| Total Equity | 3.3B | 3.13B | 2.61B | 2.25B | 2.12B | 2.09B | 1.48B | 1.75B |
| Equity Growth % | 69.11% | 19.76% | 15.8% | 6.11% | 1.57% | 41.18% | -15.36% | - |
| Book Value per Share | 14.52 | 13.86 | 12.36 | 11.05 | 10.97 | 10.83 | 7.74 | 9.14 |
| Total Shareholders' Equity | 3.3B | 3.13B | 2.61B | 2.25B | 2.12B | 2.09B | 1.48B | 1.75B |
| Common Stock | 2.23M | 2.21M | 2.08M | 1.97M | 1.94M | 1.93M | 1.45M | 1.42M |
| Retained Earnings | 142.55M | -46.9M | -420.57M | -576.81M | -652.88M | -651.08M | -71.71M | 288.48M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -6.24M | -12.13M | -12.8M | -6.92M | -9.22M | -3.02M | -3.23M | -4.65M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage and lease obligations
LTH's debt-to-equity ratio fell from 1.88 in 2024Q1 to 1.29 by 2026Q2, while equity grew from $2.3B to $3.3B, according to recent SEC filings, indicating a strengthening balance sheet.
The reduction in leverage is driven by retained earnings turning positive and a significant debt paydown in 2025Q4, where total debt dropped from $6.7B to $4.2B. This suggests that the company is prioritizing deleveraging, which may enhance financial flexibility for future expansion. However, the sharp debt reduction in one quarter warrants verification, as it could involve refinancing or asset sales.
Total debt fell from $6.7B in 2025Q4 to $4.3B in 2026Q2, but the D/E ratio of 1.29 remains elevated, and sale-leaseback arrangements may understate true obligations, as reported in financial statements.
The substantial debt paydown appears to be a strategic move to reduce interest expense and refinancing risk, especially in a rising rate environment. However, the company's heavy reliance on sale-leasebacks means that off-balance-sheet lease liabilities could be significant, potentially making the effective leverage higher than reported. Investors should monitor the lease-adjusted debt metrics to assess the true financial risk.
PPE net increased from $5.4B in 2024Q1 to $6.4B in 2026Q2, representing over 76% of total assets, based on reported figures, underscoring the capital-intensive nature of LTH's athletic country club model.
The consistent growth in PPE reflects ongoing investment in new centers and existing facility upgrades, which is essential for maintaining the premium experience that differentiates LTH from competitors. However, this asset intensity implies high maintenance capex requirements and potential depreciation drag. Goodwill has remained stable at $1.2B, suggesting no impairment concerns, but the aging portfolio may require increasing maintenance spending to sustain the luxury perception.
Retained earnings swung from -$551.9M in 2024Q1 to +$142.6M in 2026Q2, a $694.5M improvement, according to financial statements, signaling a turning point in profitability and equity quality.
The transition to positive retained earnings is a critical milestone, indicating that LTH is now generating sufficient profits to build equity organically. This improvement is supported by strong operating performance and may reduce the need for external capital. However, the company continues to use stock-based compensation, which dilutes shareholders, and the aggressive expansion into residential real estate could strain equity if projects underperform.
Cash increased from $10.9M in 2024Q4 to $223.6M in 2026Q2, but the current ratio of 0.66 remains below 1, based on reported figures, indicating potential short-term liquidity pressure.
While the cash balance has improved significantly, the current ratio remains weak, suggesting that current liabilities exceed current assets. This is typical for asset-heavy businesses with large debt maturities, but it implies reliance on operating cash flow and refinancing to meet short-term obligations. The negative free cash flow in 2026Q2, driven by high capex, could further strain liquidity if not managed carefully.
Sale-leaseback transactions and stock-based compensation may understate true leverage and dilute equity, as reported in filings, making headline debt and equity figures potentially misleading for LTH.
The company's extensive use of sale-leasebacks means that many of its properties are not on the balance sheet, which could significantly increase the effective debt burden when adjusted for operating leases. Additionally, SBC of $15.4M in 2026Q2 adds to dilution, which is not fully captured in the equity figure. These factors suggest that the reported balance sheet may appear healthier than the economic reality, and investors should adjust for these items when assessing financial risk.
Quick answers to the most common questions about buying LTH stock.
As of 2025, Life Time Group Holdings, Inc. (LTH) had total assets of $8.79B including $385.8M in current assets.
Life Time Group Holdings, Inc. (LTH) carries total debt of $6.75B, offset by $232.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Life Time Group Holdings, Inc. (LTH) has total shareholders' equity (book value) of $3.13B ($13.86 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Life Time Group Holdings, Inc. (LTH) reported a current ratio of 0.63x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.