# Life Time Group Holdings (LTH.US)

Canonical: https://gigainvestors.com/s/LTH

Analysis as of: 2026-10-16T07:29:57.877Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $40.56 per share; close as of 2026-10-15.

Estimated value: low $6.06 per share, central $6.79 per share, high $7.77 per share. Buy at or below the central value $6.79 per share. Valuation as of 2026-10-16T07:29:57.877Z; scenarios are not confidence intervals.

Expected annual return: 4.0% at the stated quote. About 4.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 23.92×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.11×

- FY2019: 0.09×

- FY2020: -0.38×

- FY2021: -0.38×

- FY2022: 0.06×

- FY2023: 0.10×

- FY2024: 0.14×

- FY2025: 0.16×

- LTM to Jun 2026: 0.17×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.2%

- ROIC, second-lowest year: -6.6%

- Typical minus recent gross margin: -2.0 pp

- Typical gross margin (annual median): 45.7%

- Recent gross margin (lower of latest and 3-year median): 47.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 31.3%

- ROIC including acquisitions, ten-year median: -0.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 3.0%

- FY2020: -6.6%

- FY2021: -8.5%

- FY2022: 1.8%

- FY2023: 3.4%

- FY2024: 5.0%

- FY2025: 4.3%

- LTM to Jun 2026: 6.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.70×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $710M

- Net income, five-year total: $1.0B

- Working capital / revenue, annual change: -0.9 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

- LTM to Jun 2026: 0.25×

### management: pass

- buybacks unrelated to price (informational)

- Per-share earnings: 0.22 to 0.74 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 9.2%

- Diluted shares, 5-year annual growth: 9.2%

- Per-share value growth: 28.0%

- Per-share value change: $0.52

- Per-share value, starting three-year median: $0.22

- Per-share value, ending three-year median: $0.74

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 4.3%

Chart: Earnings per share; fiscal year observations.

- FY2018: $0.30

- FY2019: $0.22

- FY2020: -$2.48

- FY2021: -$3.73

- FY2022: -$0.01

- FY2023: $0.37

- FY2024: $0.74

- FY2025: $1.66

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.33×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -5.3%

- FY2020: -4.4%

- FY2021: -8.9%

- FY2022: -3.1%

- FY2023: -5.5%

- FY2024: -5.9%

- FY2025: -5.7%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 25.1% a year for ten years · sales +6.2%

Story as of 2026-10-16T09:59:06.301Z; price observation 2026-10-15.

Price needs cash profits to grow 25.1% a year for ten years

- 2026-05-06: Life Time Group (LTH) Soars 12% on Stellar Earnings, Upbeat Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/life-time-group-lth-soars-012112999.html))

### Sales · FY2025–2026

sales +6.2%; source https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm; observed 2026-02-24.

- FY2018: $1.7B 

- FY2019: $1.9B 

- FY2020: $948M 

- FY2021: $1.3B 

- FY2022: $1.8B 

- FY2023: $2.2B 

- FY2024: $2.6B 

- FY2025: $3.0B 

- FY2026: $3.2B 

### Gross margin · FY2026

gross margin 69.3%; source https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm; observed 2026-02-24.

- FY2018: 45.7% 

- FY2019: 45.2% 

- FY2020: 30.4% 

- FY2021: 36.0% 

- FY2022: 41.4% 

- FY2023: 46.6% 

- FY2024: 46.9% 

- FY2025: 47.6% 

- FY2026: 69.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in leisure; annual sales are USD 3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm (filed 2026-02-24); FY2025: revenue 2995255000; grossProfit 1426644000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LTH.US: Life Time Group Holdings, Inc., through its subsidiaries, provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. The company offers fitness floors with equipment, locker rooms, group fitness studios, cycle, yoga, pilates studios, bar and lounge, free weight and resistance equipment, cardiovascular equipment, steam room and sauna, cold plunges, racquetball and squash spaces, recovery spaces, indoor and outdoor pools and bistros, indoor and outdoor tennis and pickleball courts, basketball, volleyball courts, LifeSpa, LifeCafe, and childcare and kids academy learning spaces. It also provides dynamic personal training, dynamic stretch, small group training, weight loss coaching, nutrition coaching, medi-spa, physical therapy and chiropractic, assessments and lab testing, sport specific coaching, endurance coaching, swim lessons and team coaching, towel and locker service, experience life, and ARORA and MIORA community services. In addition, the company engages in athletic leagues and tournaments, athletic events, LT Games, social events, outdoor group runs, outdoor group cycle rides, and charity events; organizing kids' birthday parties, parents night out, summer and vacation camps for kids, sports training camps, swim meets, charity events; and providing nutritional supplements and apparels, as well as designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment in suburban and urban locations of metropolitan areas. Further, its digital platform provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. The company was founded in 1992 and is headquartered in Chanhassen, Minnesota.

### Why customers stay

Margins ranged from 46.6% to 47.6% during 2023–25; it earns 3.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 46.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 46.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 47.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 9-year return on capital observations [[2019,0.029685507537344745],[2020,-0.0663367943402495],[2021,-0.08535121875761581],[2022,0.017831529619365273],[2023,0.03442691554911459],[2024,0.04999373096394507],[2025,0.043342520845693185],[2026,0.06608293174505701]]; median 0.03205621154322967. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 449505000; upkeep 244397000; owner earnings 76063000. Growth capex / owner earnings = 5.909640692583779.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 249854000; upkeep 274681000; owner earnings 156240000. Growth capex / owner earnings = 1.599167946748592.

- Source: https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm (filed 2026-02-24); FY2025: growth capex 595138000; upkeep 296345000; owner earnings 373671000. Growth capex / owner earnings = 1.5926791214731675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2018,0],[2019,23155000],[2020,0],[2021,0],[2022,0],[2023,4510000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 8.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LTH.US SharesStats.PercentInsiders = 8.67 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 25.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.3543408894249861. Price 40.56; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-10: $17.34 per share

- 2021-11: $20.09 per share

- 2021-12: $17.21 per share

- 2022-01: $15.02 per share

- 2022-02: $15.55 per share

- 2022-03: $14.54 per share

- 2022-04: $14.30 per share

- 2022-05: $14.65 per share

- 2022-06: $12.88 per share

- 2022-07: $14.50 per share

- 2022-08: $11.85 per share

- 2022-09: $9.75 per share

- 2022-10: $10.49 per share

- 2022-11: $12.83 per share

- 2022-12: $11.96 per share

- 2023-01: $18.79 per share

- 2023-02: $18.07 per share

- 2023-03: $15.96 per share

- 2023-04: $20.79 per share

- 2023-05: $19.01 per share

- 2023-06: $19.67 per share

- 2023-07: $18.09 per share

- 2023-08: $17.20 per share

- 2023-09: $15.21 per share

- 2023-10: $11.82 per share

- 2023-11: $15.16 per share

- 2023-12: $15.08 per share

- 2024-01: $13.30 per share

- 2024-02: $13.74 per share

- 2024-03: $15.52 per share

- 2024-04: $13.66 per share

- 2024-05: $16.78 per share

- 2024-06: $18.83 per share

- 2024-07: $20.77 per share

- 2024-08: $23.52 per share

- 2024-09: $24.42 per share

- 2024-10: $22.28 per share

- 2024-11: $24.27 per share

- 2024-12: $22.12 per share

- 2025-01: $28.99 per share

- 2025-02: $30.46 per share

- 2025-03: $30.20 per share

- 2025-04: $30.66 per share

- 2025-05: $28.60 per share

- 2025-06: $30.33 per share

- 2025-07: $28.72 per share

- 2025-08: $27.92 per share

- 2025-09: $27.60 per share

- 2025-10: $24.73 per share

- 2025-11: $27.92 per share

- 2025-12: $26.58 per share

- 2026-01: $29.17 per share

- 2026-02: $27.00 per share

- 2026-03: $26.94 per share

- 2026-04: $26.81 per share

- 2026-05: $33.08 per share

- 2026-06: $40.84 per share

- 2026-07: $45.10 per share

- 2026-08: $42.02 per share

- 2026-09: $39.88 per share

- 2026-10: $40.56 per share

## Annual estimated value (USD per share)

- FY2025: low $5.75 per share, central $6.43 per share, high $7.35 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1869198/000186919826000010/lth-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.