Oct 30, 2026 earnings call — Membership mix and in-center revenue growth
Life Time raised full year comparable center revenue guidance to 8.5% to 8.7% and reported total revenue of $893.5 million.
Revenue $0.9B (est $0.9B) · EPS $0.51 (est $0.41)
Key quotes
"Qualified medical memberships declined by approximately 21,500 or 19.6% year-over-year. All other memberships increased by approximately 39,600 or 5.4%."
"In-center business growth was driven largely by double-digit growth in Dynamic Personal training and LifeSpa."
"Our net debt leverage ratio is 1.3x. We have more than $900 million of liquidity, and we expect to deliver another year of positive free cash flow."
Analyst Q&A 13
membership growth and cash use
Q (Randal Konik · Jefferies): He asked why membership growth excluding qualified medical is accelerating and whether mid-single-digit growth is sustainable. He also asked if the free cash flow timeline to $400 million by 2030 could accelerate and how excess cash might be deployed.
A: Management said the membership mix is improving and larger new clubs are driving acceleration. They expect growth near or above 5% to be sustainable as they open 7 clubs in Q4 and plan 12 to 14 clubs next year. They reiterated the 2030 free cash flow target while saying they have flexibility and will choose the lowest cost of capital when deploying cash.
"So that's exactly right. You're seeing kind of that acceleration as we look at that absent the impact of those qualified medical." — Erik Weaver (CFO)
in-center revenue drivers and pipeline
Q (Jake Nebosch · Guggenheim Partners): He asked what is driving the sequential acceleration in average in-center revenue per member and whether seasonality or pools explain it. He also asked about the size and mix of the '27 and '28 club development pipeline and how many ground-up versus urban projects.
A: They said the gains are largely from stronger in-center business execution; in-center comps contributed meaningfully. On pipeline, management said opportunity quantity and quality are very strong, timing varies by project, and they are confident they can deliver the higher end of the 12 to 14 clubs for the foreseeable future while also seeing international interest.
"So we are very confident right now that we can deliver the higher end of the 12 to 14 for the foreseeable future." — Bahram Akradi (CEO·CHAIR)
sustainability of in-center spend and leasebacks
Q (Arpine Kocharyan · UBS): She asked whether revenue per center member growth is sustainable as newer larger clubs join and where further in-center spend gains could come from. She also asked about the depth of the sale-leaseback market given rising rates.
A: Management said there is wide variance across roughly 200 locations, so they see significant opportunity to lift lower-performing clubs through execution and are not currently seeing macro pressure. On leasebacks they said cap rates do not move one-for-one with the 10-year and attractive sale-leaseback rates remain available; small cap rate differences are not material to their numbers.
"We have significant variance between the execution level of our in-center businesses within our 200 -- roughly 200 locations that we have right now." — Bahram Akradi (CEO·CHAIR)
qualified medical membership runway
Q (Barclays): She asked how much more runway exists to reduce qualified medical members and where that membership slice will settle. She also asked how different factors will contribute to membership mix and comp growth.
A: They said qualified medical members have never been a large part of dues revenue and the company is negotiating with partners to manage them without creating capacity issues. Management expects that qualified medical membership will continue to decline slowly as a percentage of total members and become a de minimis share of dues. The comp will show both a mix effect and increased volume as the 12 to 14 larger-format clubs open.
"Ultimately, as a percentage of our total membership numbers, these numbers will continue to decline, but very, very slowly from here going forward based on our negotiations." — Bahram Akradi (CEO·CHAIR)
pickleball and spa progress
Q (Brian Nagel · Oppenheimer): He asked for an update on pickleball engagement and whether failures in pickleball-only sites create share opportunities for Life Time. He also asked for more detail on spa performance and runway.
A: Management said failures of pickleball-only franchises were expected and Life Time's multi-offering model is different; their pickleball business is performing very strongly. On spa, they said execution, recruiting top talent, and higher engagement are driving nice revenue growth and they see significant runway remaining for spa and cafe initiatives.
"So we have an incredible success with the way we are executing our pickleball." — Bahram Akradi (CEO·CHAIR)
qualified medical in-center spend and market share
Q (Eric Des Lauriers · Craig-Hallum Capital Group): He asked whether qualified medical members differ on in-center spend as that mix declines. He also asked how much membership growth is from a growing market versus share gains from competitors.
A: They said qualified medical members tend to swipe less and are less engaged in in-center businesses, so reducing that mix is a net positive. On market share, they said the company is moving into higher-end markets where members are willing to spend more on health and wellness and they are not seeing consumer weakness among their target customers.
"And quite honestly, a lot of those qualified medical memberships, they tend to swipe less, and they're obviously maybe even a little more less engaged in the in-center businesses." — Erik Weaver (CFO)
in-center trend durability and DPT detail
Q (Jonathan Keypour · Goldman Sachs): He asked whether the acceleration in in-center revenue will continue in Q4 given seasonality and what exactly is driving DPT results (attachment, frequency, pricing). He asked if trends hold in comp and new clubs.
A: They said seasonality from pools exists but, after removing seasonality, trends remain consistent. Management said they are adding more DPT trainers, trainer efficiency is improving and penetration increased; swimmer counts were up double digits, and the DPT/in-center gains show up in both comp and new clubs.
"I mean you can take this across the in-center business as you look at the number of swimmers we have, that was up double digits." — Erik Weaver (CFO)
bundling and adding sport spaces
Q (Chris Woronka · Deutsche Bank): He asked whether the company would offer bundles to increase spend among lower-spending members and whether any of the 200 sites could add standalone sports spaces like pickleball or tennis. He also asked about courts and sale-leaseback implications.
A: Management said they avoid promotional bundling and focus on improving the product and experience rather than promotions. They continually re-evaluate and repurpose underused spaces and are building new clubs with indoor and outdoor pickleball; they are closing the year just under 1,000 pickleball courts and expect to exceed 1,000 in early next year.
"We're almost closing the year just under 1,000 pickleball courts." — Bahram Akradi (CEO·CHAIR)
LT Social and G&A impact
Q (Owen Rickert · Northland): He asked if LT Social is mainly a retention tool or can it drive incremental revenue. He also asked whether higher G&A this quarter is due to LT Social and whether marketing will stay a higher percentage of revenue.
A: They said LT Social serves both retention and incremental revenue purposes, with initial focus on social connection and customer experience. Management said LT Social had little direct cost, G&A is scaling lower as a percent of revenue, and they do not plan to raise marketing as a percent of revenue; LT Social events will support retention and have monetization opportunities.
"The main function of the LT Social right now is to deliver that other dimension of health and well-being, which is a social health, the social connection, feeling happier, being in an environment with the people that you want to be with, you associate with." — Bahram Akradi (CEO·CHAIR)
Q4 margin drivers and AI impact
Q (Anthony Bonadio · Wells Fargo): He asked what drives the slight seasonal step-down in Q4 margin guidance beyond new club costs. He also asked if AI agents caused cancellations or negotiation pressure from consumers.
A: They said Q4 margin guidance reflects presale costs for late-opening clubs, new-club ramp margin compression, and outsized growth in lower-margin in-center revenue. On AI, management said they have seen zero impact because they have no contracts, a simple 30-day cancellation policy, and high member use (members visit an average of 13 times per month), so cancellations have not been an issue.
"And then as a reminder, proportionately, when you look at our revenue, we're seeing an outsized growth in our in-center versus we've seen that this year and last year, et cetera." — Erik Weaver (CFO)
why cap at 12-14 new clubs
Q (Andrew Didora · BofA): He asked what constrains openings above 14 clubs and what milestones would allow increasing the target. He also asked why 12 to 14 is the right annual pace.
A: They said they avoid overpromising and prefer cautious guidance; 12 to 14 allows them to grow while delivering the brand with quality. Management said it is possible some years to exceed 14 but they prefer not to model a higher number; from a numbers view they can reach their 10% to 12% revenue target with 14 clubs, and over time they'll need less sale-leaseback financing and by 2029, 2030 could grow without it.
"So the reality is can it possibly some year go more than 14? Yes." — Bahram Akradi (CEO·CHAIR)
AI use cases and club cadence for 2027
Q (Molly Baum · Morgan Stanley Investment Management Group): She asked where AI offers the biggest opportunities for members and club-level productivity and whether 2027 openings will be as back-end loaded as this year.
A: They said AI is being applied across the business from member navigation (L-AI-C linking to LT Shop) to managerial and back-office productivity and they are training teams to use AI tools. On cadence, they do not expect 2027 to be as back-end loaded; next year should be more balanced with fewer clubs concentrated in Q4.
"But if you go to L-AI-C and just say, take me to LT Shop, it will take you right to that." — Bahram Akradi (CEO·CHAIR)
MIORA progress and expansion
Q (Logan Reich · RBC): He asked for an update on MIORA's operating model and timing for rollout and sizing potential. He also asked whether other in-center services are being considered to capture more wallet share.
A: They said MIORA is a long-term opportunity with two channels: a broader Life Time Health and Wellness Hub and a more in-depth MIORA concierge. Management noted an early admin system failed and is being replaced, retention in MIORA runs around the 90% range, and long-term they expect MIORA across many markets while they also continue to develop other natural in-club programs and LT Social monetization paths.
"It's in the 90% range, which is really what we've expected from that physical connection." — Bahram Akradi (CEO·CHAIR)