Life Time Group Holdings, Inc. (LTH): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, how do you value a company that has redefined the gym as an athletic country club, especially when its growth is outpacing the broader market? Life Time Group Holdings, Inc. (LTH) is no longer just a fitness chain; it's a premium lifestyle ecosystem, and its recent financial performance confirms its market dominance, reporting a trailing twelve-month revenue of approximately $2.91 billion as of Q3 2025 and being named to the 2025 Fortune 100 Fastest-Growing Companies list. With over 849,000 center memberships and average monthly dues climbing to $219, the company's model-which blends high-end amenities with high-margin in-center services-is defintely working. You need to understand the mechanics of this model, so let's dig into the history, ownership, and how this unique approach to wellness generates that kind of cash flow.

Life Time Group Holdings, Inc. (LTH) History

Life Time Group Holdings, Inc. (LTH) didn't start as the luxury athletic country club you see today; it began as a single health club with a vision for a whole-life ecosystem. The company's trajectory is a classic example of a founder-led business that twice navigated the public markets, using private equity to strategically transform its model. It's a story about betting on a premium, comprehensive approach to health and wellness.

The core of Life Time's evolution is its transition from a traditional gym chain to a holistic, resort-like destination, a move that has fueled its recent growth, culminating in a projected $2.94 billion to $2.98 billion in revenue for the 2025 fiscal year.

Given Company's Founding Timeline

Year established

The company was established in 1992.

Original location

The first Life Time Fitness center opened in Brooklyn Park, Minnesota.

Founding team members

Life Time was founded by Bahram Akradi, who continues to serve as the Founder, Chairman, and Chief Executive Officer.

Initial capital/funding

The initial capital investment totaled $2.7 million, which came primarily from Bahram Akradi's personal savings, plus investments from friends and family.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest shifts in Life Time's history weren't just about opening more clubs; they were about fundamentally redefining the business model. The company realized that to command a premium price and foster deep member loyalty, it had to stop being a gym and start being a lifestyle destination.

The 2015 privatization was defintely the most crucial strategic pivot. Taking the company private for $4 billion allowed management to invest heavily in the luxury 'athletic country club' format, expanding services like LifeSpa, LifeCafe, and Kids Academy, without the short-term earnings pressure of public shareholders.

This strategic transformation led directly to their second IPO in 2021, which raised $702.0 million and provided the capital to accelerate the new, diversified growth model.

Here's the quick math on the model shift: Life Time's Q1 2025 average monthly dues grew 11.8% year-over-year to $208, showing members are willing to pay for the elevated experience.

The company's focus on an integrated ecosystem is clear in its recent initiatives:

• Ecosystem Expansion: Launched Life Time Work (co-working) and Life Time Living (residential) to capture more of a member's daily spending and time.
• Digital Integration: Developed the Life Time Digital app, which, as of late 2025, includes the L•AI•C™ AI-powered health companion, extending the brand's reach outside the physical club.
• Pickleball Investment: Aggressively expanded pickleball facilities nationwide, capitalizing on the sport's massive growth and attracting a new, engaged demographic.

This commitment to a holistic, high-end experience is why Life Time Group Holdings, Inc. has been able to generate strong financial results, including Q1 2025 net income that surged by over 205% to $76.1 million. You can see how this philosophy is formalized in their core documents: Mission Statement, Vision, & Core Values of Life Time Group Holdings, Inc. (LTH).

Life Time Group Holdings, Inc. (LTH) Ownership Structure

Life Time Group Holdings, Inc. (LTH) is primarily controlled by institutional investors, a common structure for a publicly traded company, but its founder still holds a significant stake. This balance means the company's strategy is influenced by both large financial firms and the long-term vision of its original leadership.

Given Company's Current Status

Life Time is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol LTH. This status requires the company to adhere to strict financial reporting standards set by the Securities and Exchange Commission (SEC), providing transparency for all investors.

The company completed its third-quarter 2025 reporting cycle in November 2025, confirming its position as a large accelerated filer. This public status means its stock is accessible to a diverse spectrum of investors, from massive funds to individual retail accounts. You can find more on the company's guiding principles here: Mission Statement, Vision, & Core Values of Life Time Group Holdings, Inc. (LTH).

Given Company's Ownership Breakdown

As of November 2025, institutional investors hold the overwhelming majority of shares, which gives them substantial collective voting power on major corporate decisions. This level of ownership, at nearly 80%, means major decisions defintely require institutional buy-in.

Here's the quick math on the share registry breakdown, based on the most recent filings:

Leonard Green & Partners, a private equity firm, remains one of the largest single shareholders, a holdover from the company's prior private structure. Their continued large stake, alongside other institutional giants, means the focus remains on capital efficiency and scale.

Given Company's Leadership

The company is steered by a seasoned executive team, many of whom have been with Life Time for decades, creating a strong, consistent culture. The average tenure for the management team is a solid 8.6 years, which is a good sign of stability.

The core leadership, as of November 2025, includes:

• Bahram Akradi: Founder, Chairman, and Chief Executive Officer. He has led the company since its inception in 1992 and directly owns a significant portion of insider shares.
• Erik Weaver: Executive Vice President and Chief Financial Officer (CFO). He manages the company's capital structure and financial reporting.
• Eric Buss: Executive Vice President, Chief Administrative Officer.
• Parham Javaheri: Executive Vice President, President Club Operations and Chief of Property Development.
• RJ Singh: Executive Vice President, Chief Digital Officer.

This team is responsible for delivering on the 2025 fiscal year guidance, which projects revenue to be between $2.925 billion and $2.99 billion, a tight target that demands disciplined execution across operations and new club development. Their decisions directly impact the company's ability to hit its adjusted EBITDA target of $780 million to $800 million for the year. That's a lot of pressure to maintain growth.

Life Time Group Holdings, Inc. (LTH) Mission and Values

Life Time Group Holdings, Inc. (LTH) defines its purpose by a commitment to holistic well-being, aiming to empower people to live healthy, happy lives through a comprehensive ecosystem of athletic country clubs and digital services. This focus on a healthy way of life extends beyond profit, shaping a culture supported by over 43,000 dedicated team members.

Life Time Group Holdings, Inc.'s Core Purpose

The company's cultural DNA is rooted in the belief that health is a lifelong pursuit, which is why their offerings span from 90 days old to 90+ years old. This long-term, all-encompassing approach is what drives member engagement, which in turn fuels financial performance; for instance, Q3 2025 total visits were up 7% year-over-year.

Official mission statement

The core mission is an active mandate, not a passive ideal, centered on delivering an unmatched experience. It's about building a complete healthy living, healthy aging, and healthy entertainment community.

• Empower people to live healthy, happy lives.
• Provide the best places, programs, and performance.
• Serve people across the entire life spectrum-from 90 days to 90+ years old.

Honestly, the mission is simple: make health a lifestyle, not a chore.

Vision statement

While Life Time Group Holdings doesn't use a single, formal vision statement, its long-term aspiration is clear: to be the premier healthy lifestyle brand that inspires a healthier world. The company is defintely executing on this by expanding its physical footprint, with plans to open 10 to 12 new centers in 2025, plus growing its digital reach.

• Inspire healthier, happier lives globally.
• Redefine health, fitness, and wellness experiences.
• Maintain a strong balance sheet to fund accelerated development, like improving the net debt leverage ratio to 1.6 times as of September 30, 2025.

You can see this commitment in their financial results, like the Q3 2025 Net Income of $102.4 million, which surged 147.3% over the prior year quarter, showing that purpose and profit aren't mutually exclusive. If you're looking at the bigger picture, you should be Exploring Life Time Group Holdings, Inc. (LTH) Investor Profile: Who's Buying and Why?

Life Time Group Holdings, Inc. slogan/tagline

The company is often identified by a phrase that encapsulates its market position and brand promise, though it's not a traditional short slogan.

• The Healthy Way of Life Company.
• Healthy living, healthy aging, healthy entertainment.

Here's the quick math: with a full-year 2025 revenue outlook projected between $2.94 billion and $2.98 billion, the focus on a comprehensive healthy way of life is a significant revenue driver. What this estimate hides is the operational complexity of managing 840,622 center memberships while maintaining premium service.

Life Time Group Holdings, Inc. (LTH) How It Works

Life Time Group Holdings, Inc. operates as a comprehensive, luxury athletic country club chain, creating value by combining expansive, resort-like physical facilities with a growing suite of premium, in-center services and a proprietary digital platform.

This model drives a high average revenue per center membership-with average monthly dues reaching approximately $218 in Q3 2025-by catering to an affluent, health-conscious consumer who values an integrated, high-end wellness ecosystem. Breaking Down Life Time Group Holdings, Inc. (LTH) Financial Health: Key Insights for Investors

Life Time Group Holdings, Inc.'s Product/Service Portfolio

Life Time Group Holdings, Inc.'s Operational Framework

The company's operational framework centers on maximizing revenue per member (yield) and leveraging its real estate portfolio to fund expansion. Honestly, it's a real estate play wrapped in a luxury fitness brand.

• Revenue Diversification: Total revenue for the first nine months of 2025 reached approximately $2.25 billion, with membership dues and enrollment fees representing the largest, most defintely recurring revenue stream, accounting for over 72% of total Center revenue in 2024.
• New Center Growth: Life Time plans to open between 10 to 12 new centers in 2025, strategically locating them in high-disposable-income metropolitan and suburban areas to maintain the premium pricing model.
• In-Center Business Ramping: Non-dues revenue, including Dynamic Personal Training, LTH supplements, and MIORA (medical aesthetics) locations, is a key growth accelerator, with in-center business revenue up 14.4% year-over-year in Q3 2025.
• Capital Strategy (Sale-Leaseback): Life Time uses sale-leaseback transactions-selling owned properties and then leasing them back-to generate significant non-operating cash flow, such as the approximately $34 million in net proceeds from one property sale-leaseback in Q3 2025, which funds new club development.

Life Time Group Holdings, Inc.'s Strategic Advantages

Life Time's market success comes from its ability to command premium pricing and create a sticky, integrated ecosystem that competitors struggle to replicate at scale.

• Luxury Positioning and Affluent Base: The 'athletic country club' model positions the company above traditional gyms, attracting a less price-sensitive, higher-income demographic. This strategy results in a more stable membership base and higher average revenue per membership.
• Integrated Ecosystem and Experience: The company offers a true 360-degree approach-fitness, spa, nutrition, and digital-all under one roof, serving members from 90 days old to 90+ years. This breadth of offering increases member visits (12.5 per month in Q3 2025) and engagement, reducing churn risk.
• Recurring Revenue and Scale: With nearly 841,000 center memberships as of Q3 2025, the business benefits from a significant, highly predictable recurring revenue stream, supported by a strong comparable center revenue growth guidance of 9.5% to 10.0% for the full year.

Life Time Group Holdings, Inc. (LTH) How It Makes Money

Life Time Group Holdings, Inc. (LTH) generates revenue primarily by operating a premium, integrated network of athletic country clubs, essentially selling a high-end, all-inclusive wellness lifestyle. The company's financial engine is dual-pronged: a highly predictable stream from recurring membership dues and a high-margin, growing stream from in-center services like personal training, spas, and dining.

This model is defintely working; for the third quarter of 2025, Life Time Group Holdings reported a total revenue of $782.6 million, an increase of 12.9% over the prior year quarter.

Life Time Group Holdings' Revenue Breakdown

The company strategically balances stable, recurring membership fees with higher-margin ancillary services. The trend shows that while membership dues remain the largest component, the in-center businesses are growing at a faster clip, increasing their contribution to the overall revenue mix.

Here's the quick math: Membership Dues and Enrollment Fees grew at 10.0% year-over-year (YOY) in Q3 2025, while the In-Center Business Revenue surged by 14.4% YOY, showing the success of monetizing the existing member base through high-value offerings.

Business Economics

Life Time Group Holdings' economic model is built on high-value unit economics (the financial performance of a single location) and an asset-light expansion strategy. They focus on maximizing the average revenue per member (ARPM) rather than simply chasing membership volume.

• Premium Pricing Power: The average monthly dues reached $218 in Q3 2025, up 10.0% year-over-year, reflecting the company's successful repositioning as a premium, resort-like brand.
• High ARPM: Average center revenue per center membership was approximately $907 for Q3 2025 (quarterly), a rise of 11.3% year-over-year. This is driven by members spending more on services like Dynamic Personal Training, which saw particularly strong growth.
• Asset-Light Strategy: The company uses sale-leaseback transactions to finance its growth, which involves selling the real estate of a newly built center and immediately leasing it back. This strategy generates significant cash flow, such as the $33.9 million in net proceeds from one such transaction in Q3 2025, which is then reinvested into new club development.
• Member Mix Optimization: Management prioritizes attracting couples and families, which typically have higher average dues and greater utilization of ancillary services like LifeSpa, LifeCafe, and Kids Academy, increasing the overall profitability of each center.

You can see the full scope of their integrated approach in the Mission Statement, Vision, & Core Values of Life Time Group Holdings, Inc. (LTH).

Life Time Group Holdings' Financial Performance

The company's latest financial results, as of Q3 2025, demonstrate strong operational leverage and a clear path to profitability, driven by revenue flow-through and margin expansion.

• Net Income Surge: Net income for Q3 2025 soared to $102.4 million, representing a massive 147.3% increase over the prior year quarter, showing significant improvement in the bottom line.
• Adjusted EBITDA Growth: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q3 2025 was $220.0 million, up 22.0% year-over-year, with the Adjusted EBITDA margin improving to 28.1%.
• Cash Flow Generation: Net cash provided by operating activities for the nine months ended September 30, 2025, was $630.7 million, a 53.1% increase from the prior year period, confirming the model's cash-generating power.
• Leverage Reduction: The net debt leverage ratio improved to 1.6 times as of September 30, 2025, down from 2.4 times a year earlier, significantly strengthening the balance sheet and reducing financial risk.
• Full-Year Outlook: Analysts project full-year 2025 sales to be approximately $3.01 billion, reflecting the sustained momentum and raised guidance from the company.

The core takeaway is that the business has moved past its capital-intensive phase and is now in a period of strong cash flow generation and margin expansion. They are building new clubs-planning 12 to 14 new clubs for 2026-while simultaneously deleveraging and increasing profitability in their existing centers.

Life Time Group Holdings, Inc. (LTH) Market Position & Future Outlook

Life Time Group Holdings, Inc. is firmly positioned as the undisputed leader in the premium athletic country club space, a niche that insulates it from the high-volume, low-price competition. The company's future trajectory looks strong, backed by a strategic focus on expanding its high-revenue-per-member model, with full-year 2025 revenue guidance narrowed to between $2.98 billion and $2.99 billion.

You're seeing a business that's executing its growth playbook flawlessly, turning its expansive, resort-like clubs into a high-margin ecosystem. This focus on the 'Healthy Way of Life' community, rather than just a gym membership, is why the company reported a net income of $102.4 million in the third quarter of 2025 alone.

Competitive Landscape

The health and fitness market is highly fragmented, so Life Time Group Holdings, Inc. doesn't compete directly on price, but on experience and breadth of offering. Here's a quick look at where the major players stand in terms of revenue share in the US market, which is estimated to be around $45.7 billion in 2025.

Opportunities & Challenges

As a seasoned analyst, I see clear near-term opportunities tied to their real estate and service model, but you defintely need to watch the capital-intensive nature of their growth. The company has done a great job of lowering its net debt leverage ratio to below 2.00 times, which gives them breathing room to pursue these initiatives.

Industry Position

Life Time Group Holdings, Inc. is not just a gym; it's a vertically integrated wellness resort operator. This positions the company in the premium tier, competing less with budget gyms like Planet Fitness and more with the luxury segment, like Equinox, and increasingly, with niche boutique brands like those under Xponential Fitness.

The company's strategy is simple: capture a greater share of the member's wallet and time by offering everything from childcare and spa services to pickleball courts and co-working spaces. This ecosystem approach is what drives the high average revenue per center membership. They are also actively expanding their digital and health offerings, including the L•AI•C™ AI-powered health companion, which helps lock in member loyalty.

Here's the quick math on their expansion: they plan to open 10 new centers in 2025, and are already planning for a new baseline of 12 to 14 new clubs in 2026 and beyond. This aggressive, but measured, real estate strategy is the primary growth engine for the next three years. Anyway, for a deeper dive into the numbers that support this growth, you should read Breaking Down Life Time Group Holdings, Inc. (LTH) Financial Health: Key Insights for Investors.

• Dominates the luxury segment with a holistic 'Healthy Way of Life' offering.
• Focuses on asset-light models (Life Time Work/Living) to improve capital efficiency.
• Leverages strong in-center service growth, particularly in Dynamic Personal Training.