Abstract
Life Time Group Holdings, Inc. will report quarterly results on May 5, 2026, Pre-Market, with expectations centered on double-digit year-over-year growth in revenue and earnings and investor focus on membership trends, pricing actions, margin durability, and commentary on in-center revenue momentum.
Market Forecast
For the current quarter, projections indicate revenue of 786.79 million US dollars, up 15.19% year over year, EBIT of 119.76 million US dollars, up 20.31% year over year, and adjusted EPS of 0.35, up 33.60% year over year. Margin guidance has not been disclosed, but comparisons will be made against last quarter’s gross margin of 49.08% and net profit margin of 16.51%.
The main business is expected to benefit from sustained pricing actions and resilient in-club spending; membership net additions may be softer than the Street’s earlier assumptions, yet revenue growth appears supported by higher value memberships and solid utilization. The most promising near-term opportunity lies in in-center spend (food and beverage, spa, training, youth and family programming), which generated roughly 21.53 million US dollars last quarter and is expected to grow by more than 5% year over year on a same-store basis as price actions and utilization lift attach rates.
Last Quarter Review
Life Time Group Holdings, Inc. delivered revenue of 745.10 million US dollars last quarter (+12.33% YoY), with a gross profit margin of 49.08%, GAAP net profit attributable to the parent company of 123.00 million US dollars, a net profit margin of 16.51%, and adjusted EPS of 0.54 (+217.65% YoY).
A notable highlight was performance versus internal and external expectations: revenue topped projections by 12.14 million US dollars and adjusted EPS exceeded estimates by 0.19, while net profit momentum improved quarter over quarter by 20.09%.
In terms of business mix, Core revenue represented approximately 97.11% of last quarter’s total, or about 723.57 million US dollars, while Other/in-center revenue accounted for roughly 2.89%, or about 21.53 million US dollars, alongside a company-wide revenue increase of 12.33% year over year.
Current Quarter Outlook
Main revenue engine and pricing dynamics
The core revenue engine hinges on membership levels, utilization, and pricing. Recent commentary indicates that net membership additions in the first quarter could be softer than the Street’s earlier assumptions because of churn in lower-price third-party membership cohorts, with one well-followed view calling for about 13,000 net adds versus consensus closer to 21,000. Even with softer net adds, the revenue trajectory for the quarter appears supported by the forecast of 786.79 million US dollars (+15.19% YoY), suggesting that pricing and mix improvements are doing the heavy lifting. This is consistent with ongoing adjustments to legacy pricing, higher value family memberships, and elevated pre-sale price points in new and ramping locations, which tend to increase average revenue per member while curbing churn relative to entry-level tiers.
Operationally, the company’s ability to sustain a near-50% gross margin while growing revenue by double digits will be central to how the market interprets unit-level health. Labor, utilities, and facility upkeep are watch items given their sensitivity to broader wage and energy trends, but the last reported quarter’s 49.08% gross margin sets a higher-quality baseline for evaluating any seasonal pressure in Q1. The net profit margin at 16.51% also gives investors a point of reference for assessing EBIT conversion in the upcoming print, where forecast EBIT stands at 119.76 million US dollars (+20.31% YoY).
From a timing perspective, early-year quarters can sometimes show greater promotional or churn noise as benefit periods reset and third-party arrangements get recalibrated. However, the quantitative guideposts are constructive: double-digit revenue growth, mid-teens to high-teens EBIT growth, and more than 30% EPS growth year over year for the quarter, even as net adds expectations moderate. Investors will also parse any update on early second-quarter membership trends to confirm that any low-price churn is temporary and that price/mix improvements are compounding as planned.
In-center spend and ancillary services
The Other/in-center revenue category, which captured roughly 21.53 million US dollars last quarter, is positioned as a tangible lever for both growth and margin quality. Commentary in the past several weeks emphasized opportunities in food and beverage, spa services, coaching/training, and family programming, with the aggregate of these services expected to post more than 5% same-store growth in 2026. This matters for two reasons: first, in-center spend typically has attractive incremental margins when labor is scheduled against predictable utilization; second, rising in-center attachment raises overall revenue per membership without requiring the same level of capital intensity as building new square footage.
This segment also benefits from a healthier membership mix. Family memberships tend to churn less than individual memberships and create more cross-sell opportunities across dining, spa, youth activities, and training. That reduces volatility in monthly revenue streams and increases the likelihood that price increases are retained. The near-term catalyst is execution: ensuring that programming, staffing, and digital booking experiences nudge members toward higher-value activities during peak and off-peak hours. Small process wins here—such as more effective promotion of bundled services or dynamic scheduling to fill underutilized slots—can translate into visible lift in in-center revenue and a modest tailwind to company-wide gross margin.
In the quarter to be reported, the market will look for management color on attach-rate momentum, particularly whether the in-center category is tracking ahead of last year’s pace during a period when net membership additions may undershoot earlier expectations. Taken together with the core membership revenue, a robust in-center performance would help validate the forecasted 15.19% revenue growth and support the 33.60% projected increase in EPS.
What may drive the stock after the print
Three sets of datapoints are likely to drive share reaction immediately after results. The first is membership flow and composition: even if net adds land closer to 13,000 than 21,000, the market will weigh that against evidence of stronger price/mix and utilization. Management’s commentary around lower-churn family plans, adjustments to legacy pricing, and pre-sale dynamics at new clubs will frame whether softer net adds are transitory noise or the start of a cooler demand trend in lower-price cohorts. Any quantitative read-through on April and early May trends could matter as much as the Q1 figures themselves.
The second is margin trajectory versus Q4’s strong baselines. With last quarter’s gross margin at 49.08% and net margin at 16.51%, investors will parse whether mix shift toward in-center services and higher-value memberships enabled incremental margin expansion despite seasonal cost pressures. EBIT of 119.76 million US dollars is projected to be up 20.31% year over year; hitting or beating that, while maintaining discipline on operating costs, would reinforce the earnings power implied by the 33.60% EPS growth forecast.
The third driver is how 2026 full-year guardrails are reiterated and refined against the previously communicated revenue framework of roughly 3.30 to 3.33 billion US dollars. The Street will look for confirmation that the development pipeline remains on track, that pre-sales are meeting revised pricing bands, and that unit-level returns meet underwriting given the cost of capital. Updates on the cadence of openings, capex phasing, and any tweaks to the membership strategy will help investors assess whether near-term net adds variability meaningfully alters the medium-term revenue and EBIT path or simply represents quarterly noise.
Analyst Opinions
Based on recent published views in 2026, the balance of opinions is overwhelmingly bullish. We tally bullish to bearish at approximately 100% to 0% over the period from January through late April, with multiple well-followed firms reiterating positive stances and constructive price targets as the company heads into its report on May 5, 2026.
Institutions highlighting the constructive case include Oppenheimer (Buy, 43 US dollars price target), Bank of America (Buy, 43 US dollars), UBS (Buy, 43 US dollars), Jefferies (Buy, 40 US dollars), and KeyBanc (Overweight, 40 US dollars). Another recent reiteration of a Buy rating underscored conviction in a differentiated premium club model and durable growth profile, while an Outperform stance from a widely followed broker emphasized that expected softness in low-price third-party membership net adds this quarter should be negligible to the broader model. The center of gravity across these opinions is consistent: price and mix are offsetting any near-term variability in lower-price cohorts, the pipeline of clubs supports multi-year growth, and in-center monetization is poised to contribute an incremental layer of revenue and profit improvement.
Across these bullish notes, three themes stand out. First, pricing power and the shift toward higher-value memberships are central to the revenue and earnings algorithm for 2026. Analysts point to pre-sale price increases and ongoing adjustments to legacy pricing as levers that raise average revenue per membership without materially inflating churn, especially where the membership base tilts toward families. Second, better unit economics and improved utilization are expected to sustain low double-digit revenue growth at current scale. That framework lines up with the quarter’s forecast—786.79 million US dollars of revenue (+15.19% YoY), 119.76 million US dollars of EBIT (+20.31% YoY), and 0.35 EPS (+33.60% YoY)—and leaves room for upside if in-center attach rates continue to rise. Third, the healthy development pipeline remains an underpinning of multi-year outlooks. While individual quarters can see noise—this quarter via lower net adds from low-price third-party cohorts—consensus expects that new clubs at higher pre-sale prices and improved operational execution will reinforce revenue visibility and earnings compounding.
The most nuanced debate within the bullish cohort centers on margin durability near last quarter’s quality baseline. With a 49.08% gross margin and 16.51% net margin in the prior quarter, the path forward involves balancing labor scheduling, energy costs, and facility operating expenses against pricing and utilization gains. A number of analysts argue that in-center monetization can deliver attractive incremental profitability because labor can be flexed against known demand patterns and because these services carry favorable revenue-per-visit dynamics. If this plays out as expected, it could allow EBIT to grow faster than revenue even if membership additions come in modestly below earlier hopes this quarter.
On the demand side, most bullish analyses characterize current net adds moderation as cohort-specific rather than broad-based. The reasoning is that churn is concentrated in lower-price third-party arrangements that are less central to the core value proposition; meanwhile, the mix is shifting to family plans, which historically present lower churn and more consistent spend. Should management confirm this pattern in its commentary, investors are likely to view the quarter’s membership outcome as a manageable headwind that is already reflected in conservative expectations for net adds and will be overshadowed by price/mix and in-center revenue strength.
Lastly, the Street is aligned on the catalysts that could validate these positive theses. A clean revenue beat relative to the 786.79 million US dollars forecast, EBIT tracking at or ahead of 119.76 million US dollars, and adjusted EPS at or above 0.35 would demonstrate that the company is executing through the minor membership volatility described by some brokers. Clear data points on in-center spend growth—especially if management quantifies same-store gains above 5%—would add confidence that the next leg of earnings improvement is underway. Reinforcement of the 2026 revenue framework near 3.30 to 3.33 billion US dollars would round out the constructive case, supporting the view that the majority of near-term variability is transitory rather than structural.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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