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Date
Tuesday, August 5, 2025 at 2:00 p.m. ET
Call participants
President, Chief Executive Officer, and Chairman — Bahram Akradi
Chief Financial Officer — Erik Weaver
Vice President, Investor Relations — Connor Weinberg
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Takeaways
Total Revenue-- $761 million total revenue for Q2 2025, up 14%, driven by membership dues and incentive revenue growth.
Comparable Center Revenue-- Comparable center revenue increased 11.2% in Q2 2025, indicating broad system-wide growth across the company’s centers.
Membership Dues and Enrollment Fees-- Membership dues and enrollment fees rose 14% year over year, supported by higher engagement.
Incentive Revenue-- Incentive revenue increased 14.4%, further contributing to total revenue growth.
Ending Center Memberships-- Exceeded 849,000 center memberships, with total memberships, including on-hold, at approximately 899,000.
Average Monthly Dues-- Average monthly dues increased 10.6% year over year to $19.
Average Revenue Per Center Membership-- Average revenue per center membership reached $888, an increase of 11.8% from the prior year quarter.
Net Income-- Net income (GAAP) was $72.1 million, up 36.5% (GAAP), including a $9 million tax-effective loss on sale leaseback transactions.
Adjusted Net Income-- Adjusted net income was $84.1 million, an increase of 60.5% year over year in adjusted net income, excluding sale leaseback impacts (non-GAAP).
Adjusted EBITDA-- Adjusted EBITDA was $211 million, an increase of 21.6% compared to the prior year quarter, with adjusted EBITDA margin improvement of 170 basis points to 27.7%.
Operating Cash Flow-- Net cash provided by operating activities was $196 million. Operating cash flow was up approximately 15% compared to the prior year quarter.
Free Cash Flow-- Free cash flow totaled $112 million in Q2 2025.
Sale Leaseback Proceeds-- Net proceeds of $149 million from three property transactions. ($139 million as investing activity, $10 million was reported as a financing activity).
Balance Sheet Position-- Achieved double B credit rating, no revolver balance, and more than $175 million cash on hand at the end of Q2 2025.
Sale Leaseback Market-- Remains open and attractive; company expects to close an additional $100 million in transactions during the second half of the year.
Club Pipeline Development-- Shift in priority to accelerated growth, with new clubs primarily ground-up builds and openings in 2024 and 2025.
Visits Per Membership-- Visits per membership increased 5.7% versus the same quarter last year, while total system swipes rose 7.9%.
Life Time Digital-- Digital accounts reached 2.3 million. Life Time Digital accounts increased 216% year over year.
LASI AI Launch-- AI-powered personal health companion introduced to digital and center access members.
LTH Nutritional Supplement Revenue-- LTH nutritional supplement revenue increased 31% versus the prior year quarter.
MURA Locations-- Subscription and revenue for MURA locations continue sequential monthly growth. Four to six additional sites are targeted for the second half of 2025.
Average Club Size-- New locations will average nearly 100,000 square feet for clubs opening in 2024 and 2025, indicating upmarket facility investments.
Personal Training Revenues-- Identified as a key pillar of in-center revenue growth; not attributed to seasonality but program innovation.
Retention Levels-- Described as "record levels" for Q2 2025 further improved during Q2 2025, per Akradi.
Pipeline Depth-- Management maintains 85 to 100 real estate deals under consideration at all times, supporting pipeline visibility.
Seasonality Acknowledgment-- Company expects typical Q3 membership seasonality without signs of member demand weakness.
Club Maturation Strategy-- Company intentionally limits initial membership ramp at new clubs during the first three to six months of operation to optimize member experience and capacity management.
Summary
Life Time Group Holdings(LTH -0.09%) was driven by robust member engagement, margin expansion, and effective monetization strategies, and signaled an organizational shift toward prioritizing new club openings, with a targeted increase to twelve to fourteen locations in the next year. Ancillary business lines, including Life Time Digital, LASI AI, and nutritional supplements, reported notable account growth and revenue increases, with Life Time Digital accounts up 216% year over year and nutritional supplement revenues up 31% versus the prior year quarter, shaping future expansion efforts.
Company reported "Visits remain at an all-time high" with Per-member club visits and system-wide transaction swipes both increased on a year-over-year basis.
Bahram Akradi stated the firm's new double B credit rating is "a critical milestone that provides us the opportunity to lower interest costs and increase earnings."
Pipeline visibility extends well into future years with management citing "85 to a 100 deals in the pipeline" as ongoing strategic targets.
Disciplined capacity management at club openings continues, as the company aims for "long-term benefit" over short-term membership volume maximization.
Industry glossary
Sale Leaseback: A transaction where Life Time sells club property and immediately leases it back to unlock capital while continuing operations at the same location.
Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, further adjusted for items such as gains or losses from sale leaseback transactions to present underlying operational performance.
Comparable Center Revenue: Sales from clubs open for at least 13 months, allowing for year-over-year performance assessment of established centers only.
MURA: Life Time's specialty health and wellness locations offering enhanced amenity and subscription experiences.
LASI: Life Time's AI-powered digital personal health companion designed for club and digital members.
LTH (Nutritional Supplement Line): Proprietary supplement brand sold through Life Time clubs and digital channels.
Full Conference Call Transcript
Erik Weaver: Thank you, Connor, and thank you all for joining us this morning. Let me begin with our second quarter results. Total revenue increased 14% to $761 million driven by a 14% increase in membership dues and enrollment fees and a 14.4% increase in incentive revenue. Comparable center revenue grew 11.2%. Given continued strong performance in both dues and in-center businesses, we are raising our full-year comparable center revenue guidance to be between 9.5-10%. We ended the quarter with more than 849,000 center memberships. Including on-hold memberships, total memberships reached approximately 899,000. Average monthly dues grew 10.6% year over year to $19. Average revenue per center membership was $888, an increase of 11.8% from the prior year quarter.
Net income for the quarter was $72.1 million, an increase of 36.5%, and includes approximately $9 million of tax-effective losses on sale leaseback. This compares to a $6 million tax-affected gain in the prior year quarter. More importantly, adjusted net income, which excludes the impact of gains and losses on sale leasebacks, was $84.1 million, up 60.5% year over year. Adjusted EBITDA was $211 million, an increase of 21.6%, and our adjusted EBITDA margin improved by 170 basis points to 27.7%. Net cash provided by operating activities rose approximately 15% to $196 million compared to the prior year quarter. Free cash flow was $112 million for the second quarter.
We remain committed to funding our growth through net cash from operations and sale leasebacks with a target of sustaining annual positive free cash flow. In Q2, we closed on the sale leaseback of three properties generating net proceeds of approximately $149 million. $139 million of these proceeds were reported in the investing section of our cash flow statement. The remaining $10 million was reported in the financing section. With that, I will now turn the call over to Bahram.
Bahram Akradi: Thank you, Erik. We had a great quarter thanks to the efforts of our entire team. And as a result of that, we are once again in a position to raise our full-year revenue and adjusted EBITDA guidance. Visits remain at an all-time high with visits per membership up 5.7% versus the same quarter last year. Retention continues to stay at record levels as well with Q2 improving over the prior year quarter. We accomplished all of this while strengthening our balance sheet and achieving a double B credit rating, a critical milestone that provides us the opportunity to lower interest costs and increase earnings.
As to liquidity, at the end of Q2, we had no balance on our revolver, more than $175 million in cash on hand. Following our most recent sale leaseback, the sale leaseback market remains open and attractive, and we expect to close another $100 million in transactions in the second half of the year. With the methodical and sequential progress we have made over the past four years, we are now perfectly positioned to shift our focus a bit. Growth is now our top priority. To that end, we are modestly accelerating the development of our new club openings from our robust pipeline. These new clubs will average nearly 100,000 square feet and will primarily be ground-up developments.
Clubs opened in '24 and '25. We are excited about the significant growth opportunities ahead, including several high-potential accelerators. Life Time Digital now has 2.3 million accounts, up 216% year over year. We recently launched LASI, our AI-powered personal health companion, to digital and center access members. Our LTH nutritional supplement line continues to grow with revenues up 31% versus the prior year quarter. Our first two MURA locations continue to perform well with subscription and revenues growing month over month. Several additional locations are slated to open in the second half of the year. In short, we are pleased with our current momentum.
We are laser-focused on accelerating club growth and capitalizing on our asset-light high-margin expansion opportunities to drive sustained revenue and adjusted EBITDA growth. With that, we will open the call for questions.
Operator: Thank you. Our first question is from Brian Nagel with Oppenheimer and Company. Please proceed.
Brian Nagel: Hey, guys. Good morning. Thank you. I know it's been a topic that a lot of we've been discussing here for a bit now, going back to the first quarter conference call, we discussed what may have been softer initial trend in new member sign-ups as we headed into the summer pool season. We obviously got the numbers today. So I just wanted to question I'm asking is how, from your perspective, did membership new membership sign-ups track through the quarter? Did they perform in line with your expectations? Did you see some type of recovery as the quarter progressed?
Bahram Akradi: Yes. Brian, good to hear from you. This is Bahram. You know, as I mentioned during the last call, a single month is really no indication of anything. And I just had to emphasize that you know, I covered that with you guys. The back half of the quarter, basically, it was just timing. The members that planned to come, you know, maybe a slightly slower, the first half of the quarter to come in, but they came back in. And so we were able to finish the month and make up for the little slow membership sign-ups in the first, you know, forty days of the quarter, and it just all made it up particular to do that.
Brian Nagel: And then my follow-up question, you know, again, we're seeing the numbers today, but just any further commentary on your efforts or abilities to further monetize that membership? And we talked kind of quarter and quarter out about, you know, selectively lifting dues versus wrap rates and such. But are you seeing anything change in that dynamic whatsoever?
Bahram Akradi: Memberships are strong. The customers are using the club a lot. They are engaging in all in centers. And you know, we're just at this point, you know, we were cautious that the first half of the year, as I mentioned to you guys, because of the macro picture, not because of tariffs or anything like that. We just wanted to know that you know, there isn't gonna be a sort of a meltdown. So we also were focused on getting our double B rating and getting a strong balance sheet, so the company can really bulldozer through any condition. If it's great, we'll go faster. If it's tough conditions, we're gonna do great in that condition as well.
That's been the strategy. Now we have the strength in the balance sheet. We have the double B. Leverage is low. And we can see continued opportunity to grow the business faster and faster while we maintain the leverage or even have it go lower. So I really don't have anything to look at and be concerned about just day-to-day operation and take advantage of all the growth opportunities ahead. And just to kind of maybe put a quantitative point on that, Brian. I mean, you look at our revenue per membership, for Q2, it's up nearly 12%. So I think our ability to monetize that has been very effective.
Brian Nagel: Great, guys. Very helpful. Thanks for all the color. Congrats again.
Bahram Akradi: Thank you.
Operator: Our next question is from Alex Perry with Bank of America. Please proceed.
Alex Perry: Hi, thanks for taking my questions here. And congrats on a strong quarter. I just wanted to talk a little bit more about the unit guide commentary. I think you sort of narrowed the unit guide from 10 to 12 units this year to 10. Was there a timing shift sort of into next year that sort of leads you to accelerate the growth next year? Did the timeline of openings sort of get elongated based on build schedules? Just trying sort of square up the unit guide this year versus next year. Thanks.
Bahram Akradi: So I think, as we mentioned, the 2025 was more of a collection of, you know, some of the clubs that they're going into existing spaces. Great locations opportunistic but not I know sometimes in there in a in a markets like New York Florida. They're they're a little smaller than a 100,000 square feet because they're more urban. And then some conversion clubs. We were also focused on, you know, really watching the spend and the balance sheet to make sure we sort of get to that exact level that we wanted to make sure the company sits financially.
So all of those, basically, resulted in the number of clubs that they're coming up being closer to that 10 number. And sometimes they just shift it a little bit construction takes a longer. Now, we also have spent quite a bit of time over this past four or five months on construction to make sure we get better bids. Better construction numbers, which we have been getting them now. It's super important. And so and then with all of those things set, you know, we are aiming to deliver in a like I said, twelve to fourteen and obviously, we're hoping to get this fourteen clubs open for the next year.
So I think that's really the key and we have a huge pipeline. There's more deals coming in. So we should be able to continue to grow. As I mentioned, earlier, the balance sheet also points out to the fact that we can do this growth and continue keeping this low leverage point that we have achieved now.
Alex Perry: That's really helpful. And then just my follow-up is on memberships. What is sort of the expectation for the back half in terms of membership? Should it sort of follow the normal seasonality curve that we see? Have you seen the really strong, what it sounds like, good strong exit rate out of the quarter in terms of gross adds sort of continue here as we move through July? Thanks.
Erik Weaver: Yeah. We're gonna continue, obviously, in Q3. We've got our typical seasonality. If you look back at last year, memberships went down 6,000. But I will say, if you look at last year, there was a little bit of some of our new builds kinda masking maybe a little bit of that seasonality. So in 2023, we had seven clubs, 600,000 square feet they would have been in year two of their ramp last year. And last year, we opened up four clubs with about 300,000 square feet. So you're gonna you know, last year was maybe a little bit light, because we had more clubs in their second year of ramp.
So the expectation is that, yes, Q3 will come down. We won't have the benefit of having as many clubs in you know, in Q3 this year, maybe, you know, 50% less square feet. So you need to take that into account.
Bahram Akradi: Yeah. To respond clearly is that we're not seeing anything that shows any sign of weakness. All we see is the seasonality of execution. It's just a normal seasonal ups and downs. In fact, things are going extremely well. In I wanna make a clear that we do not wanna make a practice of commenting on mid-quarter things going forward. I'm gonna make a comment now but I hope that in the future, But the first the half the first part of this quarter, is following the same trends of the last half of the quarter before. So, things are very, very good. But I want to make sure we are very clear. We don't wanna get into Q&A.
About the mid-quarter stuff. If it's okay with you guys.
Alex Perry: Perfect. No. That's incredibly helpful and makes a lot of sense. So for that. Best of luck going forward.
Bahram Akradi: Thank you, Alex.
Operator: Our next question is from John Heinbockel with Guggenheim Securities. Please proceed.
John Heinbockel: Hey, Bahram. I to start off with how you how you think about managing the pipeline. Right? I think that would be helpful, for everybody. Right? When you look out '26 or even now maybe thinking about '27, you know, how many projects are kind of in the pipeline? You think about doing 12 to 14. You know, they're sort of 15 to 20 or 20 plus candidates or maybe more than that, you know, kind of floating around in case some slip.
And then when you when you think about the timing of that and what you can do with, let's say, takeovers malls, right, stuff that has a shorter time horizon, You know, how quickly can you move on that?
Bahram Akradi: I love this, John. I think this is the challenge that you have in a public world is getting chasing your tail. We have always done the right thing for the company. The right thing for this company is use the strong. Cash flow that we're generating and put it to work. We have at all times the real estate team is working to have it be 85 to a 100 deals in the pipeline. Then that's the number that we are managing. We can step on the gas, try to expedite startups and constructions, when all things make sense. When just like right now, you know, the business is strong.
In center is strong, dues is strong, ramp is strong in the new clubs. And then the balance sheet is strong. So now is the you just basically say, okay, now can we expedite you know, some of these deals in the pipeline. But at no time, John, we're going to risk just trying to push a number out just because then you end up doing things that are not long-term benefit of the company. But I do not see a reason why we can't continue to deliver the growth year numbers that we have guided you guys to, that you know, light double-digit top-line revenue is what our target is. And we see a clear path to delivering that.
John Heinbockel: Maybe as a follow-up, right? When you think about the maturation of and I know every club is different, but a maturation sort of process here think the idea, right, wasn't it you know, you wanna sort of start out with, I don't know, 2,200, 2,300 members. Right? So, you know, the staff is new. The members are new. They gotta kinda feel it out. And then and then you grow from there pretty rapidly over a couple year period. Is that still the idea? Because, you know, the brand awareness is larger, the wait lists are bigger. Certainly open up stronger than that.
But are you are you sort of, you know, still significantly restraining your membership acquisition for the for the sake of experience?
Bahram Akradi: Well, you have to because it's when you open a brand new club, with 50% memberships and that first call it three to six months, as the natural capacity of the club, just so 50% more membership. The club feels as busy as a couple years down the road when you have twice as many members. Now why is that? Because the members are all new. They are using the club not as efficiently for themselves. I mean, as time goes on, the members dissipate themselves accordingly. Some like to go into busy times of the club, They like that busy. They like the social aspects of the club being busy.
They come at that time, and they're okay with the club being busy. Some don't like it, they start finding shoulder times. Where the club is less busy. So it's just a natural process that will take place in a club with the worst thing you can do is just get greedy and try to open a club with you know too many members and make that initial experience be awkward and strange. And we don't wanna do that. We don't need to. We're delivering the numbers that we're telling you we're gonna guide we guide you to by just managing the experience at all times.
John Heinbockel: Okay. Thank you.
Bahram Akradi: Mhmm.
Operator: Our next question is from Chris Woronka with Deutsche Bank. Please proceed.
Chris Woronka: Hey guys, good morning. Thanks for taking the question. Bahram, maybe you can add a little bit of color here. And this is somewhat of a follow on to the last question. I mean, I think one of the things that sometimes folks get confused about or lose sight of is the effect that the waitlist have on your member growth. So maybe you can add a little bit of color on if you wanna give us a number what, you know, what you look at on a I guess, member growth outside of clubs with waitlist or how that impacts things. But I think that would be super helpful to put things in perspective. Thanks.
Erik Weaver: Yeah. I mean, I can take that and Bahram can add to it. But again, we look at waitlist similar to how we look at enrollment fees. Waitlist is just to be clear, is not intended to be, you know, really a KPI. It is it is one of the tools that we use to manage the member experience. And we do that you know, we look at traffic. We look at, you know, hours of the day for a particular club. So a club may come on a wait list. It may come off a wait list. Again, it's it's a means for us to be able to manage that member experience.
And so again, look at it more that way as opposed and, know, again, similar to IFs, even in some ways similar to price. Just one of the tools that we leverage, if that's helpful.
Bahram Akradi: Now, we don't want that we don't want that to become a KPI for you guys. I think it's a it's a mistake to chase that. And we I have been probably redundant and maybe I don't wanna sound disrespectful in any shape or form. But I do wanna be clear. The reason we have built such a strong brand over thirty some years is because we have focused on the customer experience, at all times. Right? So our focus is to create a brand that is cool. A brand that is the place you will want to go to. A brand that the experience is coveted, and that is our key focus on execution.
And sometimes we need to implement a waitlist to make sure that doesn't get out of control. Sometimes we need to pull it off the waitlist not because of the demand is different but you know we may have execution issues on responding to the people and the experience actually gets worse because the club particular club isn't executing on addressing the people and the weight this correctly. So we are managing a lot of things.
And if you the analyst, buy side or sell side, is trying to take cues out of that It honestly can just mislead the group and so we are focused on being cautious right now with you guys is not giving you responses that creates you know, unwanted KPIs. This is not it should not be a KPI.
Erik Weaver: And what I would point you back to is two things. You know, we said visit per membership, 12.7. That's the highest it's been. And if you look at just total swipes across the system, they're up 7.9% versus prior year quarter. So the clubs are busy.
Bahram Akradi: Yeah. And really feel right. That's the most important thing.
Chris Woronka: Yeah. Understood. That's super helpful. Thanks, guys.
Bahram Akradi: Yep.
Operator: Our next question is from Eric DeLorius with Craig Hallum Capital Group. Please proceed.
Eric DeLorius: Great. Thank you for taking my questions and congrats on a very strong quarter here. First one for me, just on the average revenue per membership, you know, obviously, continues to demonstrate very robust growth, approaching $900 a quarter. Just curious how much room you see for this figure to continue increasing without materially impacting retention. You guys seeing any signs of fatigue among any, you know, demographics or geographies? And so overall, how do you assess whether you're kind of approaching a wallet share limit with members?
Bahram Akradi: No. I mean, based on the results that we just posted, both in swipes as Erik just mentioned, dues revenue, and in-center execution. We are not seeing any weakness in any part of our business and anything with customer at this point.
Eric DeLorius: Alright. That's great. I guess just kind of as a follow-up there. So you called out in-center, personal training, cited as one of the drivers of that growth. Just curious if this is sort of typical seasonality where personal training kind of picks up heading into summer? Or is there something structurally, you know, some structural that you see kind of causing the increased utilization of personal training or perhaps other in-center offerings?
Bahram Akradi: It's the fundamental of the programming and the creation of dynamic personal training the execution of our team. There is constant methodical old planning of programs and it is not a seasonal thing. In fact, summer months typically aren't necessarily the big months where Which is really indication of the clubs working the way we wanted to work. And then the personal training is strong. And that's due to the programs that our team are executing. It's not seasonal.
Eric DeLorius: It's all great to hear. It's great. For taking my question. Congrats again.
Operator: Our next question is from Owen Rickert with Northland Securities. Please proceed.
Owen Rickert: Hey, Bahram. Hey, Erik. Thanks for taking my question.
Erik Weaver: You bet.
Owen Rickert: Can you guys kinda building off the last question, but can you comment on some of the in-center revenue trends and initiatives that are going on? I know DPT and some other members engagement events like the pool parties are crushing it. But what else is working well? And then are there some areas you can see some improvement with going forward?
Bahram Akradi: Look. The couple areas that we have been working on is LTH, Clearly, we are focused on building the absolute best nutritional lines line of products for everything from AMPM, men, women, multivitamins, performance vitamins to everything that has to do with, you know, hydration or sleep or proteins, different kinds of protein isolates, etcetera. We're working on that. We have always been focused on building the best product, as you guys know, we don't cut corners. We don't deliver second best. We are making sure the product is sound from a science standpoint, It is exactly what the people need. It doesn't have anything that they don't need. They shouldn't have in it.
And it tastes good and performs well. And all of our indication right now is that this LTH line can continue to grow and it has been growing in the clubs substantially as I mentioned in my remarks year on year. MIORA is one that we have taken two locations. We have been seeing month over month sequential growth. We see that those that business model maturing to exactly what we hoped it to be. And therefore, right now, we are hustling to get at least four to six additional neuro locations launched this year. And then gradually grow that business. So that's going well. The spa and the and F and B both.
Have quite a bit of additional opportunities and we're working on execution on both of those to make sure that we continue to get the extra growth that we can get out of those businesses and deliver the right experience as for our customers. So when they come to clubs, they get what they want. We are working on LACI. LACI is really a big vision. It's the vision of bringing to the customer a whole picture of their health rather than just workout or just nutrition or just sleep.
The vision of Lacey is to bring in, just like a Lifetime Club, is the whole ecosystem of health and well-being rather than just a like a club, like a studio of some sort. The Lacey is the AI companion for you with the vision for it is to help you, assist you with all aspects of your health and well-being. Where are we at with it? We just launched Lacey you know, the first drug I would call version is gonna do maybe two or three of the 30 things extremely well. And over the next couple years, we continue to expand on what Lacey can do for you exceptionally well.
But then ultimately it will deliver a whole picture of health view point for you based if it's personalized for you. It has put together over the last thirty two thirty three years. And so it's it's something really special. It takes a lot of work. It takes it's a big vision, takes a long time for it to get there. But we're making solid progress literally every thirty to ninety days. And then that will actually will help LTH, will help Myora, will take will help the clubs. It literally will help the whole ecosystem. You know, vision for that is millions and millions, not 2,000,000, but tens of millions of people using.
And so those are all the extra things we're working on in addition to adding you know, ramping up the club opening and square footage growth. And so lots at work and it's all working pretty well at this point.
Owen Rickert: Awesome. That was beyond helpful. Thanks, Bahram, and congrats on another excellent quarter.
Bahram Akradi: Thank you so much.
Operator: Our next question is from Logan Reich with RBC Capital Markets. Please proceed.
Logan Reich: Hey, good morning guys. Thanks for taking the question. Congrats on the strong results. Hey, want to ask one on pricing. I mean, your retention is at all-time highs. Swipes continues to improve. And I know you sort of all take that all into account when you're looking at pricing. But can you just give any sort of color on what pricing you took on legacy members in Q2 and then what sort of your outlook for the rest of the year? I think the implied same-store sales the second half of year is around a three fifty bps deceleration.
So I'm just wondering if there's anything specific we should be looking at in terms of the deceleration, or is there just some conservatism baked into the guidance? Thanks.
Erik Weaver: Yes. I mean, as you know, we always have some level of conservatism baked into the guidance. But we did raise the comp sales from 9.5% to 10%. You know, certainly wouldn't be unrealistic for us to, hit or go north of that. But, as it relates to pricing, you know, we typically do take legacy pricing Q2, Q4 and I would still point you to the fact that we still have, quite a bit of embedded pricing, right, in our legacy. We've talked about that. Before. So nothing really, I guess, what I would call, or unusual that wasn't really aligned with, you know, how we were thinking about our pricing strategy.
The raise and our ability to, you know, to hit that.
Logan Reich: Great. Super helpful. And then just a follow-up. It's sort of been asked a couple different ways. Maybe I'll take a different approach at it. Certainly, unit growth pipeline beyond '26. I appreciate the color on the 12 to 14 for next year. And I recognize you guys are very careful around making sure the new centers open successfully. I guess, what are the sort of things you guys need to do to continue accelerating the pipeline maybe beyond the 12 to 14 range and 27 in the years beyond?
Bahram Akradi: Look. As the company gets bigger, to maintain that 10% plus top-line growth. We also need to continue to deliver more growth more new club growth there are many ways that can manifest itself. We have a pipeline so solid right now, and real estate team is just adding to it, losing any sort of esteem on that. And so it's hard to, you know, just come and give you guys a number for '27. But you got to expect that it's at least 10 to 12 clubs a year as we've said before. And when we can deliver more, we deliver more than that.
Logan Reich: Great. Thanks, guys.
Bahram Akradi: Mhmm.
Operator: Our next question is from Molly Baum with Morgan Stanley. Please proceed.
Molly Baum: Hi. Yes, thanks for taking my question. This is Molly on for Steven. And I just want I know you talked a little bit about the maturation process. Of new stores, but I just wanted to, ask a follow-up that one. Can you talk a little bit more about how this same-store sales compare in your most mature markets versus those that have maybe been open for less than three years? And do you expect that new club waterfall to change at all given, you know, the opening of larger stores or just any detail about your expectations going forward? Thank you.
Bahram Akradi: Look. Once again, we are seeing growth across the board with our programming and with our dues growth. It's not isolated to any group. It's across the board. The overperformance is across the board in the system. So, that's pretty much the level of color that I like to provide. We don't wanna get into additional metrics. Yeah. So but I but I can tell you it's across the across the board. Is how the clubs are performing. It's it's in the older clubs. They're doing extremely well. New clubs are doing well, and ramping clubs are doing well.
Erik Weaver: Yeah. And just to add that, you guys kinda know our ramping profile, some of those and some of those clubs, they do, you know, kinda ramp quicker than, you know, some of our historical bills. And, you know, to Bahram's point, there's nothing really regional. As I look at, you know, the same-store sales in our various businesses, mean, you know, PT, aquatics, you know, spa, kids, they're all up versus the prior quarter. So it's nothing really regional. It's just everything across the system that's driving that growth.
Molly Baum: Got it. Thanks so much.
Bahram Akradi: Mhmm.
Operator: There are no further questions at this time. I would like to try the conference back over to Connor for closing remarks.
Connor Weinberg: Yes. Thank you, operator, and thank everyone for joining us this morning. Look forward to the next call with you.
Operator: Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.