Revenue growth has moderated from 18.7% in 2024Q4 to 11.7% in 2026Q1, while operating income has scaled to $134.8 million, reflecting improved operational efficiency despite structural margin volatility.
| Sales/Revenue | 3.08B | 3B | 2.62B | 2.22B | 1.82B | 1.32B | 948.38M | 1.9B |
| Revenue Growth % | 12.73% | 14.28% | 18.24% | 21.62% | 38.28% | 38.98% | -50.1% | - |
| Cost of Goods Sold | 1.29B | 1.57B | 1.39B | 1.18B | 1.07B | 844.1M | 660.05M | 1.04B |
| COGS % of Revenue | - | 52.37% | 53.13% | 53.43% | 58.61% | 64.04% | 69.6% | 54.79% |
| Gross Profit | 1.79B | 1.43B | 1.23B | 1.03B | 754.35M | 473.95M | 288.33M | 859.24M |
| Gross Margin % | 58.17% | 47.63% | 46.87% | 46.57% | 41.39% | 35.96% | 30.4% | 45.21% |
| Gross Profit Growth % | - | 16.12% | 19.02% | 36.84% | 59.16% | 64.38% | -66.44% | - |
| Operating Expenses | 1.28B | 945.35M | 871.09M | 807.01M | 643.73M | 969.14M | 647.48M | 690.96M |
| OpEx % of Revenue | - | 31.56% | 33.24% | 36.41% | 35.32% | 73.53% | 68.27% | 36.36% |
| Selling, General & Admin | 504.4M | 583.78M | 525.99M | 476.25M | 460.12M | 694.93M | 336.15M | 393.65M |
| SG&A % of Revenue | - | 19.49% | 20.07% | 21.49% | 25.25% | 52.72% | 35.45% | 20.71% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 361.57M | 345.1M | 328.05M | 183.61M | 274.21M | 311.33M | 297.31M |
| Operating Income | 508.46M | 481.29M | 357.48M | 225.21M | 110.62M | -495.19M | -359.15M | 168.28M |
| Operating Margin % | 16.52% | 16.07% | 13.64% | 10.16% | 6.07% | -37.57% | -37.87% | 8.86% |
| Operating Income Growth % | - | 34.63% | 58.73% | 103.59% | 122.34% | -37.88% | -313.42% | - |
| EBITDA | 814.58M | 777.64M | 632.16M | 469.61M | 339.5M | -260.06M | -111.46M | 388.75M |
| EBITDA Margin % | 26.47% | 25.96% | 24.12% | 21.19% | 18.63% | -19.73% | -11.75% | 20.46% |
| EBITDA Growth % | 21.07% | 23.01% | 34.62% | 38.32% | 230.55% | -133.33% | -128.67% | - |
| D&A (Non-Cash Add-back) | 306.12M | 296.35M | 274.68M | 244.4M | 228.88M | 235.12M | 247.69M | 220.47M |
| EBIT | 530.6M | 481.29M | 357.48M | 225.21M | 110.62M | -495.19M | -359.34M | 168.28M |
| Net Interest Income | -55.92M | 0 | -148.09M | -130.8M | -113.54M | -224.52M | -128.39M | -128.96M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 55.92M | 0 | 148.09M | 130.8M | 113.54M | 224.52M | 128.39M | 128.96M |
| Other Income/Expense | 21.76M | 12.21M | -148.72M | -130.42M | -113.24M | -224.53M | -128.58M | -128.15M |
| Pretax Income | 530.22M | 493.5M | 208.77M | 94.79M | -2.62M | -719.71M | -487.73M | 40.13M |
| Pretax Margin % | 17.23% | 16.48% | 7.97% | 4.28% | -0.14% | -54.6% | -51.43% | 2.11% |
| Income Tax | 144.6M | 119.83M | 52.53M | 18.73M | -825K | -140.34M | -127.54M | 10.08M |
| Effective Tax Rate % | 27.27% | 24.28% | 25.16% | 19.76% | 31.51% | 19.5% | 26.15% | 25.12% |
| Net Income | 385.63M | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M | -360.19M | 30.02M |
| Net Margin % | 12.53% | 12.48% | 5.96% | 3.43% | -0.1% | -43.96% | -37.98% | 1.58% |
| Net Income Growth % | 85.88% | 139.16% | 105.41% | 4342.22% | 99.69% | -60.85% | -1299.64% | - |
| Net Income (Continuing) | 385.63M | 373.67M | 156.24M | 76.06M | -1.79M | -579.37M | -360.19M | 30.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.70 | 1.66 | 0.74 | 0.37 | -0.01 | -3.00 | -1.88 | 0.16 |
| EPS Growth % | 77.08% | 124.32% | 100% | - | 99.69% | -59.57% | -1275% | - |
| EPS (Basic) | - | 1.71 | 0.77 | 0.39 | -0.01 | -3.00 | -1.88 | 0.16 |
| Diluted Shares Outstanding | 227.45M | 225.5M | 211.16M | 204M | 193.57M | 193.06M | 191.48M | 191.48M |
| Basic Shares Outstanding | 221.85M | 218.03M | 201.64M | 195.67M | 193.57M | 193.06M | 191.48M | 191.48M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High fixed cost leverage
According to the provided quarterly income statements, LTH's year-over-year revenue growth has decelerated from 18.7% in 2024Q4 to 11.7% by 2026Q1, suggesting that the post-pandemic recovery tailwinds are fading as the company faces more difficult year-over-year comparisons across its suburban athletic country club portfolio.
The deceleration in top-line expansion indicates that the initial surge in membership demand following the 2020-2021 period is stabilizing. Investors should monitor whether the company can maintain double-digit growth through its 'Life Time Work' and 'Life Time Living' initiatives, or if the core fitness business is reaching a saturation point in its primary suburban markets.
As reported in financial statements, LTH's gross margin experienced a significant outlier in 2026Q1 at 88.6%, a sharp deviation from the 46-49% range observed in previous quarters, which warrants further investigation into potential accounting reclassifications or non-recurring items impacting the cost of goods sold.
Excluding the anomalous 2026Q1 figure, the company's gross margin has remained remarkably consistent, reflecting a stable pricing power within its luxury fitness niche. However, the persistent gap between gross and operating margins suggests that corporate overhead and facility maintenance costs remain a significant drag on overall profitability.
Based on LTH's reported figures, operating income has shown a positive trend, rising from $58.7 million in 2023Q4 to $134.8 million in 2026Q1, which suggests that the company is beginning to realize meaningful operating leverage as its newer centers mature and reach higher utilization levels.
The ability to scale operating income faster than revenue growth is critical for a capital-intensive business model like LTH. This trend implies that management's focus on operational efficiency and tiered membership pricing is successfully offsetting the high fixed costs associated with maintaining expansive, resort-style athletic facilities.
Analysis of the income statement reveals that stock-based compensation has been a recurring expense, peaking at $20.6 million in 2024Q4, which periodically suppresses reported net income and complicates the assessment of true underlying profitability for shareholders evaluating the company's long-term earnings power.
The variability in stock-based compensation suggests that investors should focus on adjusted metrics to gauge the core performance of the business. Furthermore, the fluctuations in net income margins appear heavily influenced by these non-cash charges, necessitating a cautious approach when projecting future EPS growth based on GAAP figures alone.
Data from the provided income statements suggests that LTH's reliance on high-cost physical infrastructure creates a vulnerability, as evidenced by the significant quarterly fluctuations in COGS and SG&A that could threaten margin stability if inflationary pressures on labor and utilities continue to escalate.
Short-sellers may focus on the 'maintenance treadmill' risk, where the capital required to keep aging facilities at a luxury standard could eventually outpace depreciation estimates. If the company fails to maintain its premium positioning, the high fixed-cost structure could lead to rapid margin compression during any cyclical downturn in discretionary consumer spending.
Quick answers to the most common questions about buying LTH stock.
For fiscal year 2025, Life Time Group Holdings, Inc. (LTH) reported total revenue of $3.00B. This represents a 57.6% increase compared to $1.90B in 2019.
Life Time Group Holdings, Inc. (LTH) is profitable, generating $373.7M in net income for the fiscal year ending 2025 with a net profit margin of 12.5%.
Life Time Group Holdings, Inc. (LTH) reported an operating income of $481.3M, resulting in an operating profit margin of 16.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Life Time Group Holdings, Inc. (LTH) generated $1.43B in gross profit for the year, representing a gross profit margin of 47.6%. This demonstrates the company's core pricing power and production efficiency.