Life Time Group Holdings, Inc. (LTH) shares surged 8.81% in pre-market trading on Tuesday following the release of its impressive third-quarter 2025 financial results and an upgraded full-year outlook. The fitness center operator demonstrated robust growth and improved profitability, exceeding analyst expectations.
For the third quarter, Life Time reported total revenue of $782.6 million, marking a 12.9% increase from the prior year and surpassing the analyst consensus estimate of $771.3 million. The company's net income soared to $102.4 million, representing a remarkable 147.3% year-over-year growth. Adjusted EBITDA rose by 22% to $220 million, significantly beating the analyst estimate of $203.1 million.
Adding to the positive sentiment, Life Time raised its full-year 2025 guidance. The company now expects annual revenue to range between $2.978 billion and $2.988 billion, up from its previous forecast and slightly above the FactSet consensus estimate of $2.98 billion. The upgraded outlook reflects management's confidence in continued growth, driven by increased membership dues, higher average dues, and improved member engagement. Life Time also plans to open a total of 10 new centers by the end of 2025, further supporting its expansion strategy.