TacticScaleWhat Life Time Does & How It Makes Money (LTH)
Updated October 2026 · reflects Life Time's latest reported financials
Operator of premium athletic country clubs and wellness centers. It earns most of its money from recurring membership dues at its clubs.
How Life Time makes money
It earns most of its money from recurring membership dues at its clubs. It also charges extra for in-club services such as personal training, spa, cafe, kids programs, events and medical wellness offerings.
What Life Time does
Life Time Group Holdings, founded in 1992 and headquartered in Chanhassen, Minnesota, designs, builds and operates large resort-style athletic clubs in suburban and urban areas of the US and Canada. Its clubs combine fitness floors, group studios, indoor and outdoor pools, racquet and pickleball courts, recovery spaces, spas, cafes and childcare, which makes them a full lifestyle destination rather than a basic gym. The company pairs membership access with paid add-on services: personal and small-group training, nutrition and weight-loss coaching, medi-spa, physical therapy, lab testing, kids' camps, athletic events and leagues. It also sells supplements and apparel, and its digital platform offers live-streamed classes and remote coaching. It was formerly called LTF Holdings and took its current name in June 2021.
Products & services
- Life Time athletic clubs
- LifeSpa
- LifeCafe
- Dynamic Personal Training
- MIORA
- ARORA
What is Life Time worth?
On an owner-earnings DCF, Life Time's most-likely value is about $13 versus a recent price near $41 (68% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$4) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 41.8× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Travel + Leisure (TNL) · Planet Fitness (PLNT) · Xponential Fitness (XPOF) · Peloton Interactive (PTON) · lululemon athletica (LULU)