Life Time Group Holdings, Inc.LTH
Life Time Group Holdings, Inc. Leases Disclosure
Leases
Lease Cost
Lease cost included in our consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 consisted of the following:
| Year Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | 2023 | Classification in Consolidated Statements of Operations | ||||||||||||||||||||
Lease cost: | |||||||||||||||||||||||
Operating lease cost | $ | 311,887 | $ | 282,271 | $ | 261,144 | Rent | ||||||||||||||||
Short-term lease cost | 2,611 | 4,328 | 4,105 | Rent | |||||||||||||||||||
Variable lease cost | 24,672 | 18,346 | 9,873 | Rent | |||||||||||||||||||
Variable lease cost | 84,224 | 72,763 | 66,007 | Center operations | |||||||||||||||||||
Finance lease and financing obligations cost: | |||||||||||||||||||||||
Amortization of right-of-use assets | 2,517 | 905 | 1,024 | Depreciation and amortization | |||||||||||||||||||
Interest on lease liabilities | 983 | 160 | 98 | Interest expense, net of interest income | |||||||||||||||||||
Interest on financing obligations | 3,784 | 2,818 | 2,401 | Interest expense, net of interest income | |||||||||||||||||||
Total lease cost | $ | 430,678 | $ | 381,591 | $ | 344,652 | |||||||||||||||||
Sale-Leaseback Transactions
Sale-Leaseback Transactions with Unrelated Third Parties
During the year ended December 31, 2025, we entered into and consummated sale-leaseback transactions with three unrelated third parties. Under these transactions, we sold seven properties with a combined net book value of $239.5 million for an aggregate gross sales price of $249.9 million, of which $239.0 million was received in cash and $10.9 million was received in the form of non-cash consideration. The non-cash consideration represented property conveyed to us by a buyer in lieu of cash, measured at $11.8 million fair value, net of $0.9 million of cash paid back to the buyer. The aggregate gross sales price of $249.9 million was reduced by transaction costs of $1.3 million, resulting in a net aggregate sales price of $248.6 million. The estimated fair value of the property sold was $253.6 million. Of the $237.7 million net cash we received in connection with these sale-leaseback transactions, $227.4 million and $10.3 million is reported within investing activities and financing activities, respectively, on our consolidated statement of cash flows for the year ended December 31, 2025. We recognized a net gain of $12.8 million on these sale-leaseback transactions during the year ended December 31, 2025, which is included in Other operating expense in our consolidated statement of operations.
During the year ended December 31, 2024, we entered into and consummated sale-leaseback transactions with three unrelated third parties. Under these transactions, we sold five properties for gross proceeds of $173.2 million, which was reduced by transaction costs of $1.2 million, for net cash proceeds of $172.0 million. The estimated fair value of the property sold was $182.2 million. Of the $172.0 million net cash we received in connection with these sale-leaseback transactions, $167.7 million and $4.3 million is reported within investing activities and financing activities, respectively, on our consolidated statement of cash flows for the year ended December 31, 2024. During the year ended December 31, 2024, we recognized a net gain of $19.8 million on sale-leaseback transactions, which is included in Other operating expense in our consolidated statement of operations.
During the year ended December 31, 2023, we entered into and consummated sale-leaseback transactions with unrelated third parties. Under these transactions, we sold three properties for gross proceeds of $124.0 million, which was reduced by transaction costs of $0.7 million, for net cash proceeds of $123.3 million. The estimated fair value of the property sold was $128.4 million. Of the $123.3 million net cash we received in connection with these sale-leaseback transactions, $121.8 million and $1.5 million is reported within investing activities and financing activities, respectively, on our consolidated statement of cash flows for the year ended December 31, 2023. During the year ended December 31, 2023, we recognized a loss of $13.6 million on sale-leaseback transactions, which is included in Other operating expense in our consolidated statement of operations.
Related Party Sale-Leaseback Transactions and Leases
For information on sale-leaseback transactions with related parties, as well as other related party leases not associated with sale-leaseback transactions, see Note 14, Related Party Transactions.
Operating and Finance Lease Right-of-Use Assets and Lease-Related Liabilities
Operating and finance lease right-of-use assets and lease-related liabilities were as follows:
| December 31, | Classification on Consolidated Balance Sheets | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
Lease right-of-use assets: | |||||||||||||||||
Operating leases | $ | 2,479,804 | $ | 2,313,311 | Operating lease right-of-use assets | ||||||||||||
Finance leases (1) | 12,283 | 2,406 | |||||||||||||||
Total lease right-of-use assets | $ | 2,492,087 | $ | 2,315,717 | |||||||||||||
Lease-related liabilities: | |||||||||||||||||
Current | |||||||||||||||||
Operating leases | $ | 79,208 | $ | 70,462 | Current maturities of operating lease liabilities | ||||||||||||
Finance leases | 12,099 | 1,108 | |||||||||||||||
Financing obligations | 15 | 10 | Accrued expenses and other current liabilities | ||||||||||||||
Non-current | |||||||||||||||||
Operating leases | 2,555,513 | 2,381,094 | Operating lease liabilities, net of current portion | ||||||||||||||
Finance leases | 1,253 | 1,324 | |||||||||||||||
Financing obligations | 37,973 | 27,539 | Other liabilities | ||||||||||||||
Total lease-related liabilities | $ | 2,686,061 | $ | 2,481,537 | |||||||||||||
(1)Finance lease right-of-use assets were reported net of accumulated amortization of $3.3 million and $1.2 million at December 31, 2025 and 2024, respectively.
Remaining Lease Terms and Discount Rates
The weighted-average remaining lease terms and discount rates associated with our lease-related liabilities at December 31, 2025 were as follows:
| December 31, 2025 | |||||
Weighted-average remaining lease term (1) | |||||
Operating leases | 16.5 years | ||||
Finance leases | 1.0 years | ||||
| Financing obligations | 22.5 years | ||||
Weighted-average discount rate | |||||
Operating leases | 9.28 | % | |||
Finance leases | 7.34 | % | |||
| Financing obligations | 11.63 | % | |||
(1) The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option.
Supplemental Cash Flow Information
Supplemental cash flow information associated with our leases is as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Cash paid for amounts included in the measurement of lease-related liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 282,263 | $ | 254,128 | $ | 226,896 | |||||||||||
Operating cash flows from finance leases | 253 | 160 | 98 | ||||||||||||||
Financing cash flows from finance leases | 2,006 | 926 | 1,031 | ||||||||||||||
Operating cash flows from financing obligations | 3,635 | 2,716 | 2,307 | ||||||||||||||
| Financing cash flows from financing obligations | 10 | 4 | — | ||||||||||||||
Non-cash information: | |||||||||||||||||
Right-of-use assets obtained in exchange for initial lease liabilities: | |||||||||||||||||
Operating leases | 222,856 | 172,106 | 140,614 | ||||||||||||||
Finance leases | 12,200 | 1,942 | 1,347 | ||||||||||||||
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities: | |||||||||||||||||
Operating leases | 20,003 | 7,241 | 17,364 | ||||||||||||||
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions | 14,000 | 13,350 | 5,900 | ||||||||||||||
| Fair value of non-cash consideration received in connection with a sale-leaseback transaction | 10,900 | — | — | ||||||||||||||
Non-cash increase in financing obligations as a result of interest accretion | 149 | 102 | 94 | ||||||||||||||
Maturities of Operating Lease Liabilities, Finance Lease Liabilities and Financing Obligations
The maturities associated with our lease-related liabilities at December 31, 2025 are as follows:
| Operating Leases | Finance Leases | Financing Obligations | Total | ||||||||||||||||||||
| 2026 | $ | 23,168 | $ | 13,078 | $ | 4,279 | $ | 40,525 | |||||||||||||||
| 2027 | 309,416 | 1,103 | 4,338 | 314,857 | |||||||||||||||||||
| 2028 | 312,727 | 208 | 4,398 | 317,333 | |||||||||||||||||||
| 2029 | 306,732 | — | 4,461 | 311,193 | |||||||||||||||||||
| 2030 | 309,483 | — | 4,527 | 314,010 | |||||||||||||||||||
Thereafter | 3,860,439 | — | 91,301 | 3,951,740 | |||||||||||||||||||
Total lease payments | 5,121,965 | 14,389 | 113,304 | 5,249,658 | |||||||||||||||||||
Less: Imputed interest | 2,487,244 | 1,037 | 75,316 | 2,563,597 | |||||||||||||||||||
Present value of lease-related liabilities | $ | 2,634,721 | $ | 13,352 | $ | 37,988 | $ | 2,686,061 | |||||||||||||||
Leases Not Yet Commenced
As of December 31, 2025, we had entered into several leases associated with future centers that were executed, but for which we did not yet have control of the underlying assets. Accordingly, as of December 31, 2025, we did not recognize any right-of-use assets or lease liabilities associated with these leased locations on our consolidated balance sheet. These arrangements contain undiscounted lease payments that are payable during the initial lease terms, which range from to 20 years, totaling approximately $545.8 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 10, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.