Life Time Group Holdings Inc. Common Stock (LTH)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I ask first whether the business earns durable returns. Life Time operates health and fitness clubs in the U.S. and Canada, a capital-intensive, competitive leisure business. The growth is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $866.0M and net income was $101.4M, or $0.45 per diluted share. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $761.5M and net income was $72.1M, or $0.32 per diluted share. That is roughly 14% revenue growth and 41% profit growth. Full-year fiscal 2025, the year ended 2025-12-31, had revenue of $3.0B and net income of $373.7M, versus fiscal 2024, the year ended 2024-12-31, with revenue of $2.6B and net income of $156.2M, and fiscal 2023, the year ended 2023-12-31, with revenue of $2.2B and net income of $76.1M. But quality is mixed. FairStock's calculated ROE of 13.44% is decent, yet ROCE of 4.17% is low for a business that consumes capital. Debt-to-equity of 1.29 and an Altman Z-Score of 1.21 signal balance-sheet risk. Trailing free cash flow is -$151.0M, a -1.7% FCF yield. FairStock's Graham Number is $24.68, so at the 2026-10-13 close of $39.66 the stock trades at a -60.70% margin of safety—a premium to that conservative value. At that close, FairStock calculates a P/E of 21.67 and P/B of 2.68. The PEG ratio is 0.53. FairStock classifies it as a TURNAROUND—returned to profit after a loss within the last three years. The market is paying up for a turnaround that is still capital-hungry.

In plain English: Life Time Group Holdings runs fitness and wellness clubs in the United States and Canada. The business is improving, with sales and profits growing in the latest reported quarter, but it is using more cash than it brings in and carries a lot of debt. At the recent price, the shares look expensive compared with the company's profits and net assets, so the market seems to expect the strong growth to continue.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer