Abstract
Life Time Group Holdings, Inc. is scheduled to post its fiscal fourth-quarter results on February 24, 2026 Pre-Market, with the market looking for low double-digit revenue growth and a year-over-year advance in adjusted EPS, alongside a focus on margin trajectory and guidance for fiscal 2026.Market Forecast
Market expectations point to fourth-quarter revenue around $740.51 million, implying approximately 12.58% year-over-year growth, while the company’s preliminary projection, issued in late January, calls for $743.00 million to $745.00 million, or roughly 12% growth versus the year-ago quarter. The company guided adjusted EPS of $0.32 to $0.34, up from $0.27 a year earlier, which equates to an approximate 19% to 26% year-over-year increase; there is no formal gross margin or net margin guidance, and consensus margin expectations are not widely disclosed.The main revenue base continues to be the company’s “core revenue” line, and guidance indicates momentum is supported by member activity and in-center spend alongside continued price discipline into the seasonal January–February demand window. The most promising contribution within the mix remains ancillary “Other” revenue, which totaled $21.75 million last quarter on a small base and is expected to track overall growth trends given expanding services and activity intensity; year-over-year figures for this line were not separately disclosed, though the company’s total revenue grew 12.90% year over year in the prior quarter.
Last Quarter Review
In the previous quarter, Life Time Group Holdings, Inc. delivered revenue of $782.65 million (+12.90% year over year), a gross profit margin of 47.06%, GAAP net profit attributable to the parent company of $102.00 million, a net profit margin of 13.09%, and adjusted EPS of $0.45, up 114.29% from the year-ago period. A key financial highlight was the quarter-on-quarter acceleration in net profit, which increased by 42.06%, reflecting improved operating leverage and cost execution through the seasonal peak. Within the revenue mix, core revenue contributed $760.90 million, or 97.22% of the total, while “Other” revenue contributed $21.75 million; while segment-level year-over-year growth rates were not disclosed, the company-level revenue growth of 12.90% provides context for demand resilience.Current Quarter Outlook (with major analytical insights)
Core revenue trajectory and what to watch
The core revenue line, which represented 97.22% of last quarter’s sales at $760.90 million, remains the primary engine for the upcoming report. The company has guided fourth-quarter revenue to a range of $743.00 million to $745.00 million, suggesting a sequential step-down from the strong third-quarter level, which aligns with normal seasonality and timing of openings, yet still reflects about 12% year-over-year growth. Into the February 24, 2026 print, the demand setup is shaped by the early-year uplift in membership activity, continued pricing actions that flowed through during the year, and ongoing initiatives to deepen in-location spend across training, youth, aquatics, and wellness offerings. Investors should focus on membership net adds, average dues, and in-center monetization metrics as the primary variables that could drive a positive or negative deviation to the company’s own revenue outlook.Margin dynamics inside core revenue will be closely watched after last quarter’s 47.06% gross margin and 13.09% net margin. A modest pullback in sequential revenue combined with staffing normalization and broader cost inflation can create near-term pressure; however, the prior quarter’s 42.06% quarter-on-quarter jump in net profit demonstrates the company’s capacity to expand throughput with disciplined cost control when volumes are strong. If core traffic and spending patterns track the company’s guide, the model implies steady unit economics into the report, with the potential for limited margin compression if labor and utility inputs trend higher than internal plans. Any commentary on price cadence for early 2026 and retention metrics will be critical for assessing revenue quality and the durability of margin performance into the first half of 2026.
The company’s EBIT forecast framework indicated $108.71 million for the quarter on a consensus basis, with implied year-over-year growth of 28.92%, which underscores the operating leverage available when volume and mix cooperate. Actual results may differ depending on the precise balance of membership growth versus promotional activity and the cadence of new-center ramp costs. If realized EBIT tracks above $108.71 million alongside revenue near the guided range, that combination would signal healthy conversion from top line to operating income and support the case for the company’s full-year 2026 revenue framework.
Ancillary and “Other” revenue momentum
“Other” revenue totaled $21.75 million last quarter, or 2.78% of total sales, and represents a collection of ancillary streams that scale with member engagement. While management did not disclose year-over-year growth for this line, the overall company revenue growth of 12.90% year over year last quarter indicates a supportive backdrop for ancillary activity as traffic and participation rise. With core traffic expected to be firm in early 2026, the “Other” line can benefit from add-on services and events that typically correlate with stronger in-location activity, offering incremental margin contribution even as the base remains relatively small.For this quarter, the uplift in ancillary revenue should be assessed in the context of in-person events, training utilization, family programming, and premium services. A higher mix of these offerings tends to support stable gross margins when compared with pure volume growth on dues because of the unit economics of add-on services. The principal risk for this category is a shortfall in engagement intensity or any pullback in discretionary spend, which would reduce the conversion of foot traffic into ancillary sales. Conversely, if management highlights rising penetration in value-added services, the “Other” category can outpace the company’s 12% revenue growth outlook and help cushion potential variability in core dues.
Investors should also track how “Other” revenue scales with new or recently refreshed locations. New centers can initially lean on promotional activity and ramp costs, but as they mature, higher attach rates for ancillary offerings can bolster revenue per member. Even though this segment remains small in absolute dollars, outperformance relative to the overall revenue trajectory can have an outsized effect on incremental margins, and it can serve as a qualitative signal of customer engagement depth.
Share-price swing factors into the print
The direction of the share price around the release will likely hinge on the degree of alignment between the company’s guidance and reported revenue and adjusted EPS. Based on the latest indications, revenue of $743.00 million to $745.00 million and adjusted EPS of $0.32 to $0.34 frame expectations; a print near the top end of both would be consistent with robust early-year activity. The consensus revenue marker of $740.51 million is slightly below the midpoint of the company’s range, suggesting the setup allows for a modest beat if member engagement and monetization metrics held through the quarter.Margins are a critical sensitivity. Last quarter’s 47.06% gross margin and 13.09% net margin establish a reference point, but this quarter’s margin profile will reflect seasonality and cost normalization. Upside could come from disciplined labor scheduling, utility cost management, and continued pricing benefits, while downside risks could include elevated variable costs tied to programming and any short-term headwinds from ramping new or renovated locations. Commentary around 2026 cost cadence, including labor, rent escalation, and maintenance capital, will inform how investors triangulate the sustainability of margin trends through the year.
Guidance for 2026 is another swing factor. The company indicated a 2026 revenue range of $3.30 billion to $3.33 billion in late January. If management reaffirms or tightens that range higher alongside constructive commentary on unit economics and member retention, the stock could respond favorably. Conversely, any cautious tone on cost inflation, attrition, or the timing of openings could prompt investors to fade near-term strength even if fourth-quarter results land within guidance. The balance between revenue quality, margin cadence, and capital discipline will frame the market’s reaction.
Analyst Opinions
Within the January 1 to February 17, 2026 window, institutional commentary signals a constructive skew, resulting in a bullish-to-bearish ratio of 1:0 based on identifiable reports in the period. A notable update in early February indicated that Life Time Group Holdings, Inc. carries an average Buy rating among covering analysts with a mean price target of $40.18. Around the same time, one large sell-side bank adjusted its price target to $43 from $45, a move that reflects fine-tuning rather than a change in stance and remains consistent with a supportive framework on the name’s cash flow trajectory and unit-level economics.The majority view emphasizes year-over-year progress in revenue and earnings, supported by improving operating leverage and a disciplined approach to pricing and costs. Analysts highlight that the company’s fourth-quarter guide—revenue of $743.00 million to $745.00 million and adjusted EPS of $0.32 to $0.34—sits above prior-year comparables and frames a credible setup for 2026 when paired with the company’s full-year revenue outlook of $3.30 billion to $3.33 billion. The prevailing argument in the positive camp is that conversion of high-traffic periods into sustained in-center monetization and controlled expense growth can underpin a durable margin profile through the first half of 2026.
Bullish commentary also notes that consensus EBIT of $108.71 million for the quarter, alongside a double-digit revenue growth trajectory, leaves room for favorable variance if demand indicators and cost execution remain intact. The investment debate is centered on whether the margin improvements evident last quarter can extend through seasonally softer periods without sacrificing growth. Supportive analysts believe that early-year demand, embedded pricing actions, and a rising mix of add-on services position the company to balance growth and profitability, albeit with ongoing scrutiny on expense lines. As a result, the dominant institutional stance into February 24, 2026 contends that the company’s guidance framework is achievable and that incremental beats are possible if engagement metrics and in-location monetization trends align with recent performance.
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