Life Time Group Holdings (LTH), the US premium fitness-club operator, beat Wall Street’s third-quarter expectations and raised its full-year 2026 outlook. Its shares are still trading near, but below, a recent buy point, while slower earnings growth has drawn attention to whether the company can fund its expansion from operating cash flow. Life Time reported the results on October 29.
Revenue rises 14% as earnings growth slows
Life Time posted third-quarter earnings of 46 cents per share on revenue of $893.5 million. Revenue grew 14% year over year, while earnings per share increased 1%. The company said demand remained strong at both newly opened and established clubs, with member retention also supporting results.
The earnings beat and higher full-year outlook provide operating support for Life Time’s expansion plans. But the gap between revenue and earnings growth leaves costs and cash flow important measures to watch. The company did not provide the revised figures for its 2026 outlook in the available details.
Company targets 12 to 14 new clubs a year
Management said it aims to fund 12 to 14 new club openings annually by 2029 to 2030 using internally generated cash flow, while gradually moving away from sale-leaseback transactions. Under that approach, Life Time sells properties it has built and leases them back for use, keeping some new facilities off its balance sheet.
If the company can finance expansion with internal funds as planned, its funding and property strategy would change. The target, however, does not establish how quickly the transition will happen or provide details of the funding arrangements.
Life Time operates premium fitness centers in the US and Canada. Its clubs offer fitness equipment, strength training, yoga and Pilates classes, as well as tennis and pickleball courts, pools and lounge areas. The company’s membership model and range of amenities form the backdrop to its growth plans, but its quarterly results remain a key measure of its capacity to expand.
Shares trade below a recent buy point
Life Time shares have recently hovered below their latest buy point. The stock carries a Composite Rating of 98, placing it among the higher-rated companies in the leisure services industry group. Such ratings and technical levels are screening measures, not substitutes for assessing the company’s financial performance and operating plans.
The reported figures include third-quarter earnings of 46 cents per share and revenue of $893.5 million, alongside an increased 2026 outlook. The target of 12 to 14 club openings a year by 2029 to 2030 remains a management plan tied to internally generated cash flow.