Is the business good?
How good a business is LTH?
Life Time Group Holdings, Inc. earns 8.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.7%
Return on invested capital · cost of capital 9.0% · 0.27 points below what the capital costs: growth destroys value
- Operating margin
- 17%
Operating margin · Leisure median 11% · 12 months to Q1 2026
- Cash conversion
- −0.32×
Cash conversion · 0.76× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +1.7%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −38% |
| FY2021 | −38% |
| FY2022 | 6.1% |
| FY2023 | 10% |
| FY2024 | 14% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q1 2026
- 48%
- Operating margin12 months to Q1 2026
- 17%
- Net margin12 months to Q1 2026
- 13%
- Free cash flow margin
- −4.0%
- Revenue, trailing twelve months
- $3.08B
- Free cash flow, trailing twelve months
- −$124M
- Net income, trailing twelve months
- $386M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.