Life Time Reports Strong 2024 Results, Eyes Expansion in 2025
Krissy Vann | Host, All Things Fitness and Wellness
Life Time has announced its preliminary unaudited financial results for the fourth quarter and full year of fiscal 2024, alongside its guidance for 2025. These results reflect strong growth in revenue, profitability, and membership engagement, with a clear focus on continued expansion in the year ahead.
For the fourth quarter of 2024, Life Time estimates total revenue to be between $661 million and $663 million, marking an 18.5% increase from the same period last year. Annual revenue for 2024 is projected at $2,619 million to $2,621 million, an 18.2% rise compared to 2023. Net income for the quarter is expected to increase by 35% to $31 million to $33 million, while annual net income is anticipated to nearly double, reaching $150 million to $152 million—a growth of 98.4%.
The company also reported notable improvements in profitability metrics. Adjusted EBITDA for the fourth quarter is projected at $174 million to $176 million, up 27.1%, while the annual figure is estimated at $674 million to $676 million, representing a 25.7% increase. Adjusted net income is expected to grow by 42.1% for the quarter and 49.6% for the year, reaching $52 million to $56 million and $192 million to $196 million, respectively. Diluted earnings per share (EPS) are estimated at $0.14 to $0.15 for the fourth quarter and $0.71 to $0.72 for the year, with adjusted diluted EPS at $0.24 to $0.25 and $0.91 to $0.92.
Membership growth contributed significantly to these results, with the company ending the year with 812,062 members, a 6.4% increase from 2023. Average revenue per membership also grew by 12.4%, reaching $3,158 to $3,160 annually. Comparable center revenue increased by 12.0% to 12.2% for the year, supported by strong member engagement and retention.
Looking ahead to 2025, Life Time expects total revenue to grow by 12.2%, reaching $2,910 million to $2,970 million. Net income is forecasted to rise by 75.8% to $262 million to $269 million, while Adjusted EBITDA is projected at $760 million to $780 million, reflecting a 14.1% increase. The company also plans to open 10 to 12 new centers and achieve comparable center revenue growth of 7% to 8%.
Rent expenses are expected to range from $337 million to $347 million, including $35 million to $38 million in non-cash rent. Interest expenses are anticipated to decline due to reduced debt levels and refinancing completed in late 2024.
Life Time’s CEO, Bahram Akradi, highlighted the company’s strong performance and growth potential, stating, "I am extremely proud of our financial performance in 2024. Our results demonstrate the strong desirability for our athletic country clubs, programs, and services. Record levels of member engagement and retention are fueling our growth strategy, and we are well-positioned for continued success in 2025."
The company also aims to maintain positive free cash flow and manage its net debt to Adjusted EBITDA leverage ratio at or below 2.25 times. These initiatives reflect Life Time’s commitment to financial discipline and operational efficiency as it continues to expand its presence in the fitness industry.
Life Time plans to release its full fiscal year 2024 results on February 27, 2025. These preliminary results offer a glimpse into the company’s strong momentum and its ability to deliver consistent growth.
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Credit: REGYMAN Fitness