Life Time’s Q1 Revenue Climbs 11.7% to $788.7M, Price Target Raised to $41
Life Time reported Q1 revenue of $788.7 million, up 11.7%, with EPS of $0.42, net income rising 15.8% and adjusted EBITDA climbing 18.3%, driven by a shift to higher-dues memberships and reduced medical memberships. Jefferies upped its price target to $41, reflecting nearly 40% upside as Life Time plans 12–14 new large-format clubs in 2026.
1. Q1 Financial Performance
Life Time delivered robust Q1 results with total revenue of $788.7 million, marking an 11.7% year-over-year increase. Earnings per share reached $0.42, net income grew 15.8% to $88.1 million, and adjusted EBITDA rose 18.3% to $226.7 million, underpinned by stronger dues revenue.
2. Membership Strategy Shift
Management shifted focus to an affluent club positioning, replacing lower-dues legacy memberships with higher-priced tiers and intentionally reducing lower-revenue medical memberships. This curation strategy prioritizes exclusivity and enhanced member experience at the expense of raw volume.
3. Analyst Target and Expansion Plans
Jefferies increased its price target to $41, implying nearly 40% upside from current levels. The company plans to open 12–14 new large-format clubs in 2026, supporting its upscale growth strategy and revenue expansion.