The strong beat and raised guidance, combined with dual credit rating upgrades and improving leverage, signal accelerating operational momentum. Traders should watch for continued membership growth and in-center revenue expansion as the company opens 14 new clubs in 2026, with 7 remaining openings concentrated in Q4. The $500M share buyback program provides downside support.
Price Chart
Executive Summary
Life Time Group Holdings reported strong Q2 2026 results with total revenue of $866.0M (+13.7% YoY) and diluted EPS of $0.45 (+40.6% YoY), beating consensus estimates of $0.43 EPS on $845.7M revenue. The company raised its full-year 2026 guidance, including comparable center revenue growth of 7.9%-8.3% (up from 6.9%-7.5%) and Adjusted EBITDA guidance of $940M-$955M. Both Fitch and S&P upgraded the issuer credit rating to 'BB' from 'BB-', and the net debt leverage ratio improved to 1.4x from 1.8x a year ago, reinforcing a strong credit profile.
Key Financial Metrics
Key Facts
- Total revenue of $866.0M increased 13.7% YoY, beating $845.7M consensus.
- Diluted EPS of $0.45 increased 40.6% YoY, beating $0.43 consensus (11.0% beat).
- Adjusted EBITDA of $246.5M increased 16.8% YoY; margin expanded to 28.5% from 27.7%.
- Comparable center revenue growth of 9.1% in Q2, with full-year guidance raised to 7.9%-8.3% from 6.9%-7.5%.
- Full-year revenue guidance raised to $3.35B-$3.375B from $3.32B-$3.35B; Adjusted EBITDA guidance raised to $940M-$955M from $925M-$940M.
- Net debt leverage ratio improved to 1.4x from 1.8x YoY; Fitch and S&P both upgraded issuer credit rating to 'BB' from 'BB-'.
- Repurchased ~2.2M shares for ~$62.7M at avg $28.59 during Q2.
- Net cash provided by operating activities for H1 2026 was $408.4M, up 7.6% YoY.
Financial Impact
Revenue beat by $20.3M (+2.4% vs consensus); EPS beat by $0.05 (+11.0% vs consensus). Full-year revenue guidance raised by $30M at midpoint; Adjusted EBITDA guidance raised by $15M at midpoint.
Risk Factors
- Heavy growth capex ($885M-$910M) and 14 new club openings create execution risk and near-term cash flow pressure.
- Comparable center revenue growth decelerated to 9.1% from 11.2% YoY, suggesting maturing growth rates.
- Cash income tax expense guidance raised significantly to $103M-$105M from $80M-$83M, reducing free cash flow.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001869198-26-000041 |
| Document: lth-20260730.htm | 0001869198-26-000041 |
| Document: 0001869198-26-000041-index-headers.html | 0001869198-26-000041 |
| Document: 0001869198-26-000041-index.html | 0001869198-26-000041 |
| Document: 0001869198-26-000041.txt | 0001869198-26-000041 |
| 8-K Data (Synthetic) | 0001869198-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | Institutional Cluster | $41.48 $41.50 | ▲ +0.05% | ▼ −0.80% | $40.99 (−1.18%) |
Sep 3, 2026 29d ago | Court Ruling | $43.09 $43.23 | ▲ +0.32% | ▲ +0.71% | $40.99 (−4.87%) |
Aug 28, 2026 4w ago | Insider Cluster | $42.02 $41.83 | ▲ +0.45% | ▼ −0.23% | $40.99 (+2.45%) |
Aug 28, 2026 4w ago | Insider Cluster | $42.02 $41.83 | ▼ −0.45% | ▲ +0.23% | $40.99 (−2.45%) |
Aug 27, 2026 5w ago | 144 | $44.35 $43.51 | ▲ +1.89% | ▲ +1.67% | $40.99 (+7.58%) |
Aug 27, 2026 5w ago | 144 | $44.35 $43.51 | ▲ +1.89% | ▲ +1.67% | $40.99 (+7.58%) |
Aug 25, 2026 5w ago | Court Ruling | $44.55 $44.80 | ▲ +0.56% | ▲ +0.54% | $40.99 (−7.99%) |
Aug 12, 2026 7w ago | Insider Cluster | $44.31 $45.26 | ▼ −2.14% | ▼ −2.34% | $40.99 (+7.49%) |
Aug 11, 2026 7w ago | 144 | $43.81 $43.82 | ▼ −0.02% | ▲ +0.23% | $40.99 (+6.44%) |
Aug 11, 2026 7w ago | 144 | $43.81 $43.82 | ▼ −0.02% | ▲ +0.23% | $40.99 (+6.44%) |
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