Life Time Reports Strong 2024 Financial Performance
Krissy Vann | Host, All Things Fitness and Wellness
Life Time Group Holdings, Inc. has released its financial results for the fourth quarter and full year ending December 31, 2024, reporting significant growth in revenue, net income, and membership. The company also outlined plans for future expansion and strategic initiatives to adapt to evolving market demands.
In the fourth quarter, Life Time reported total revenue of $663.3 million, an 18.7% increase from $558.8 million in the same period the previous year. Net income rose 57.0% to $37.2 million, up from $23.7 million in the fourth quarter of 2023. Adjusted EBITDA reached $177.0 million, a 28.5% increase from the prior year's $137.7 million. Center memberships grew by 6.4%, reaching 812,062 by the end of the quarter, compared to 763,216 at the end of 2023.
For the full year, the company reported total revenue of $2.621 million, an 18.2% increase from $2.216 million in 2023. Net income more than doubled, increasing 105.3% to $156.2 million, compared to $76.1 million in the prior year. Adjusted EBITDA for the year was $676.8 million, a 26.1% increase from $536.8 million in 2023. The company also reduced its net debt leverage ratio to under 2.3 times by the end of the year.
Life Time opened eight new centers in 2024, bringing its total number of locations to 179. The company reported positive net cash provided by operating activities and free cash flow for the third consecutive quarter, reflecting ongoing efforts to strengthen its financial position.
Bahram Akradi, Founder, Chairman, and CEO of Life Time, stated: "I am pleased with our performance in 2024, and I would like to thank all of our team members for their passion and dedication to helping our company and brand reach this new level of excellence. We delivered strong double-digit revenue and Adjusted EBITDA growth, reduced our leverage, and generated positive free cash flow. We exceeded every single financial objective we had set forth. More importantly, the strength and desirability of Life Time resulted in record levels of member engagement coupled with our highest level of visits per membership, and record membership retention, driving the highest revenue per membership we have seen in our 32-year history."
Looking ahead, Life Time has raised its financial outlook for 2025 based on early results. The company plans to continue expanding its footprint by opening additional centers and enhancing its offerings to meet the evolving needs of its members. Initiatives include integrating advanced wellness services and leveraging technology to improve member experiences.
These strategic efforts underscore Life Time's commitment to adapting to market trends and maintaining its position as a leader in the health and wellness industry.
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Credit: Life Time