Free cash flow remains highly volatile, oscillating between a negative $66.4 million in 2024Q1 and a positive $64.0 million in 2024Q3, largely due to capital expenditures that reached 33.0% of revenue in 2026Q1.
| Cash from Operations | 885.46M | 870.52M | 575.12M | 463M | 200.97M | -20.03M | -95.98M | 358.72M |
| Operating CF Margin % | - | 29.06% | 21.94% | 20.89% | 11.03% | -1.52% | -10.12% | 18.88% |
| Operating CF Growth % | 136.12% | 51.36% | 24.21% | 130.39% | 1103.39% | 79.13% | -126.76% | - |
| Net Income | 385.63M | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M | -360.19M | 30.05M |
| Depreciation & Amortization | 225.43M | 296.35M | 274.68M | 244.4M | 228.88M | 235.12M | 247.69M | 220.47M |
| Stock-Based Compensation | 39.84M | 51.75M | 51.03M | 50.14M | 37.29M | 334.34M | 0 | 24.15M |
| Deferred Taxes | 86.31M | 87.49M | 29.46M | 14.58M | -13.56M | -139.94M | -99.91M | 3.44M |
| Other Non-Cash Items | 237.84M | 31.78M | 61.32M | 71.36M | -53.22M | 103.1M | 78.91M | 44.05M |
| Working Capital Changes | -1.49M | 29.49M | 2.39M | 6.46M | 3.37M | 26.72M | 37.52M | 36.56M |
| Change in Receivables | 14.79M | 5.79M | 2.71M | -22.21M | -5.99M | -1.74M | 11.64M | -7.05M |
| Change in Inventory | 5.85M | -7.32M | -7.52M | -7.13M | -4.7M | -4.73M | 8.04M | -2.59M |
| Change in Payables | 1.14M | 3.51M | 7.05M | 7.14M | 2.99M | 17.19M | 397K | -3.55M |
| Cash from Investing | -804.2M | -685.74M | -292.74M | -574.16M | -243.54M | -269.92M | -6.12M | -477.81M |
| Capital Expenditures | -749M | -891.48M | -524.53M | -693.9M | -591.18M | -328.91M | -265.62M | -624.02M |
| CapEx % of Revenue | 24.33% | 29.76% | 20.01% | 31.3% | 32.44% | 24.95% | 28.01% | 32.84% |
| Acquisitions | 138.77M | 0 | 0 | -5.71M | 351.85M | -9.53M | -100K | -50.63M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -193.97M | 205.75M | 231.79M | 125.45M | -4.21M | 68.52M | 259.6M | 196.83M |
| Cash from Financing | -8.49M | 19.39M | -284.38M | 115.55M | 36.8M | 288.4M | 87.39M | 133.32M |
| Debt Issued (Net) | -10.11M | -20.41M | 1.01B | 98.23M | 13.04M | -412.01M | -2.15M | 51.2M |
| Equity Issued (Net) | 15.52M | 46.78M | 123.96M | 19.25M | 3.75M | 701.93M | 90M | 105.27M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -10.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -13.9M | -6.98M | -1.42B | -1.93M | 20.01M | -1.51M | -460K | -23.16M |
| Net Change in Cash | 72.71M | 204.29M | -2.09M | 4.46M | -6.13M | -1.56M | -14.76M | 14.43M |
| Free Cash Flow | -123.56M | -20.96M | 50.58M | -230.9M | -390.21M | -348.94M | -361.6M | -265.3M |
| FCF Margin % | -4.01% | -0.7% | 1.93% | -10.42% | -21.41% | -26.47% | -38.13% | -13.96% |
| FCF Growth % | -178.03% | -141.43% | 121.91% | 40.83% | -11.83% | 3.5% | -36.3% | - |
| FCF per Share | -0.54 | -0.09 | 0.24 | -1.13 | -2.02 | -1.81 | -1.89 | -1.39 |
| FCF Conversion (FCF/Net Income) | -0.32x | 2.33x | 3.68x | 6.09x | -112.09x | 0.03x | 0.27x | 11.95x |
| Interest Paid | 30.35M | 0 | 136.86M | 0 | 105.15M | 0 | 0 | 0 |
| Taxes Paid | 22.66M | 0 | 18.18M | 0 | 10.64M | 0 | 0 | 0 |
High capital intensity requirements
According to the provided quarterly cash flow data, LTH consistently reports operating cash flow significantly higher than net income, with the OCF/NI ratio reaching a peak of 5.58 in 2023Q4, suggesting that non-cash charges and accruals play a dominant role in the company's reported profitability metrics.
The persistent gap between net income and operating cash flow suggests that reported earnings may not fully capture the cash-generative capacity of the business. Investors should monitor whether this divergence is driven by sustainable depreciation patterns or if it reflects aggressive capitalization of costs that may eventually pressure future cash flows.
As reported in financial statements, LTH's free cash flow trajectory remains highly inconsistent, oscillating between a negative $66.4 million in 2024Q1 and a positive $64.0 million in 2024Q3, indicating that the company's ability to generate surplus cash is frequently interrupted by heavy capital expenditure requirements.
The inability to maintain positive free cash flow across consecutive quarters suggests that the business model remains in a capital-intensive growth phase. This volatility implies that the company may remain reliant on external financing or asset recycling to fund its ongoing expansion and facility maintenance obligations.
Based on LTH's reported figures, capital expenditures as a percentage of revenue have remained elevated, peaking at 40.9% in 2025Q4, which highlights the significant financial burden of maintaining and expanding the company's expansive, amenity-rich suburban athletic country club footprint across its various geographic markets.
The high capital intensity suggests that a substantial portion of operating cash flow is immediately reinvested into the asset base, leaving little room for debt reduction or shareholder returns. This reliance on continuous capital deployment warrants further investigation into whether these expenditures are truly growth-oriented or merely necessary to prevent asset decay.
Data from the provided cash flow statements indicates that stock-based compensation and net acquisition activity frequently obscure the underlying cash reality, with acquisition-related cash flows reaching $138.8 million in multiple periods, complicating the assessment of true operational cash generation for the firm's core fitness business.
The frequent use of acquisition-related cash flows and stock-based compensation adjustments suggests that the headline cash flow figures may be flattered by non-operational activities. Analysts should be cautious, as these adjustments may mask the true cost of maintaining the company's competitive position in a high-barrier-to-entry market.
Quick answers to the most common questions about buying LTH stock.
Life Time Group Holdings, Inc. (LTH) generated $870.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Life Time Group Holdings, Inc. (LTH) reported negative free cash flow of $21.0M in 2025, indicating capital requirements exceeded cash from operations.
Life Time Group Holdings, Inc. (LTH) spent $891.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.