Life Time Group Holdings, Inc. (LTH) saw its stock surge 6.45% in pre-market trading on Thursday, February 27, 2025. The pre-market rally was driven by the company's impressive fourth-quarter financial results and an upwardly revised outlook for fiscal 2025.

In the fourth quarter of 2024, LTH reported adjusted earnings of $0.27 per diluted share, significantly higher than the $0.20 expected by analysts. The company's revenue for the quarter came in at $663.3 million, outperforming analysts' estimates of $659 million. The robust performance was fueled by strong growth in membership dues and in-center revenue, driven by an increase in average dues, membership growth in new and ramping centers, and higher member utilization of in-center offerings.

Building on the solid fourth-quarter results, LTH raised its revenue guidance for fiscal 2025 to a range of $2.93 billion to $2.98 billion, up from its previous outlook of $2.91 billion to $2.97 billion. The company also lifted its net income guidance for 2025 to a range of $277 million to $284 million, compared to the previous range of $262 million to $269 million.

Life Time Group's management attributed the upbeat guidance to continued strong momentum in membership growth and revenue, as well as expanded operating leverage and margin expansion. The company expects to open between 10 and 12 new centers in 2025 and maintain a net debt leverage ratio at or below 2.25 times.

The impressive fourth-quarter performance and the optimistic 2025 outlook have bolstered investor confidence in Life Time Group's growth prospects, driving the significant pre-market surge in the stock.