Wellness, Not Worry: Life Time Sees Opportunity Regardless of Economic Outlook
With consumers prioritizing wellness and making greater use of their existing memberships, Life Time sees its premium model as well-positioned to thrive
Life Time kicked off 2025 with strong momentum, reporting an 18.3% jump in first-quarter revenue to $706 million, driven by higher membership dues, increased in-center spending and rising utilization across its upscale athletic country clubs. Center memberships rose 3% year-over-year, reflecting sustained demand for the brand’s premium offerings – a trend that has bolstered the company’s confidence in its high-end model as it plans to continue expanding with 10 to 12 new club openings annually.
“We continue to see increased member engagement, with visits and revenue per membership at new highs,” Life Time founder, chairman and CEO Bahram Akradi said. “The desirability of the Life Time brand is evident in our ongoing success in attracting and retaining increasingly higher quality memberships to our centers. Our balance sheet is strong, positioning us well to capitalize on the opportunities ahead.”
On the topic of tariffs, Akradi stated during Thursday’s earnings call that the company isn’t significantly impacted, at least directly, by current trade developments. The upscale fitness operator sources most of its equipment from Italy and Sweden rather than China, helping to insulate it from potential tariff-related disruptions. He added that Life Time has a plan in place to mitigate any effects and is positioned to “win either way,” underscoring the company’s confidence in navigating economic pressures.
Striking a tone similar to that of Planet Fitness leadership during its own Q1 earnings call this week, Akradi expressed optimism that uncertainty could actually benefit the upscale brand and translate into stronger engagement and retention for Life Time’s premium offerings.
“When you go through a recessionary period, customers start pulling back on spending on big spends, right? So they have more time. As they have more time, they use the stuff they own more,” he said. “They’re going to spend more time in the clubs, they’re going to utilize that membership better. And that extra utilization means better retention for us. We are well positioned for an economy that is growing or an economy that might be in recession for two, three quarters.”
Life Time continues to add new offerings for members to enhance the social wellness experience. FitVine, a better-for-you win brand, recently became official wine sponsor of Life Time Pickleball to provide exclusive wine tastings, immersive events and post-match celebrations, while cold plunges have been added to more than 70 clubs.
On the digital front, LT Digital, Life Time’s free app packed with content, has grown to more than 2 million subscribers. The company recently opened its LT Digital Studio in New York to generate additional content for the app, which is open to non-members. The app currently offers access to hundreds of on-demand and livestream classes, personalized health programs, curated wellness content, podcasts, pickleball training videos, meditation, wellness essentials and more.
It also serves as a gateway to LTH, Life Time’s growing supplement brand that Akradi intends to build into “the most trusted nutritional brand that exists.”
“One of the things about nutritional products is that there isn’t any sort of regulated, rigorous testing for them,” Akradi said. “We have always, for twenty years, tested our products to ensure they contain the right ingredients and deliver the right efficacy.”
Miora, Life Time’s clinic focused on longevity and performance, recently opened its second location and is right on schedule, according to the athletic country club operator. The clinic offers personalized health guidance, personal trainers, recovery and longevity therapies and weight loss medication.
“We have scheduled openings for at least half a dozen more throughout the rest of the year and then we’ll expand and start speeding up,” Akradi said.