Life Time Group Holdings: Optimizing Membership Quality and Club Economics Drives Long-Term Buy Thesis

Owen Rickert has given his Buy rating due to a combination of factors that point to strengthening fundamentals and attractive long‑term prospects for Life Time Group Holdings. After meeting with management, he sees a business that is executing well, with operations and club‑level economics improving as the company refines its strategy. Management’s emphasis on optimizing membership quality and mix, rather than simply maximizing the headline membership count, supports higher revenue per membership and per club, which Rickert views as a key driver of value.

Additionally, Rickert highlights the strategic push toward multi-user and family memberships, which, although counted as a single membership, produce substantially greater revenue, engagement, and in‑club spending while also showing stronger retention. He notes that newer clubs are intentionally targeting a lower membership base of about 4,000 members, reflecting higher utilization and a better member experience, yet still achieving attractive economic outcomes more quickly than in the past. This shift means slower membership growth in raw numbers should not be interpreted as a negative, as the underlying revenue productivity is rising. Taken together, these dynamics underpin his confidence in the company’s trajectory into 2026 and beyond, supporting his Buy recommendation.