Financial Analysis

Commitments and Contingencies Life Time, Inc. et al. v. Zurich American Insurance Company On August 19, 2020, Life Time, Inc., several of its subsidiaries, and a joint venture entity, Bloomingdale Life Time Fitness LLC (collectively, the Life Time Parties) filed a complaint against Zurich American Insurance Company (Zurich) in the Fourth Judicial District of the State of Minnesota, County of Hennepin (the District Court) (Case No. 27-CV-20-10599) (the Action) seeking declaratory relief and damages with respect to Zurichs failure under a property/business interruption insurance policy to provide certain coverage to the Life Time Parties related to the closure or suspension by governmental authorities of their business activities due to the spread or threat of the spread of COVID-19. On March 15, 2021, certain of the Life Time Parties filed a First Amended Complaint in the Action adding claims against Zurich under a Builders Risk policy related to the suspension of multiple construction projects. The Court granted Zurichs dispositive motions on July 25, 2024, dismissing the Life Time Parties claims with prejudice, and entered judgment on July 26, 2024. The Life Time Parties appealed from that judgment to the Minnesota Court of Appeals (the Court of Appeals). On August 11, 2025, the Court of Appeals reversed the District Courts order granting summary judgment in favor of Zurich, holding that governmental closure orders were the causes of Life Time Parties losses under the proper …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Debt consisted of the following: June 30, 2026 December 31, 2025 Term Loan Facility, maturing November 2031 $ 987,538 $ 992,512 Revolving Credit Facility, maturing September 2029 6.000% Senior Secured Notes, maturing November 2031 500,000 500,000 Mortgage Notes, various maturities 22,991 29,423 Other debt 3,285 3,298 Fair value adjustment 53 130 Total debt 1,513,867 1,525,363 Less unamortized debt discounts and issuance costs (16,094) (17,576) Total debt less unamortized debt discounts and issuance costs 1,497,773 1,507,787 Less current maturities (31,774) (21,848) Long-term debt, less current maturities $ 1,465,999 $ 1,485,939 Term Loan Facility The variable rate interest payments on our Term Loan Facility are hedged by our interest rate swaps. Pursuant to these interest rate swaps, we effectively pay fixed interest on our outstanding Term Loan Facility borrowings at 3.409%, plus an applicable margin. With the upgrade of our issuer credit rating by S&P Global Ratings on June 18, 2025, our applicable margin was reduced by 0.25% to 2.25% effective on June 19, 2025, and with the amendment to our Term Loan Facility on August 18, 2025, our applicable margin was reduced by an additional 0.25% to 2.00%. As a result, the effective fixed interest rate associated with our outstanding Term Loan Facility borrowings a t June 30, 2026 was 5.409%. We are required to make quarterly principal payments of 0.25% of the outstanding balance on the Term Loan Facility. See Note 5, Derivat …

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The following is a summary of revenue, by major revenue stream, that we recognized during the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Membership dues and enrollment fees $ 597,244 $ 527,309 $ 1,158,698 $ 1,028,962 In-center revenue 240,158 208,556 446,270 392,557 Total center revenue 837,402 735,865 1,604,968 1,421,519 Other revenue 28,594 25,604 49,728 45,991 Total revenue $ 865,996 $ 761,469 $ 1,654,696 $ 1,467,510 The timing associated with the revenue we recognized during the three months ended June 30, 2026 and 2025 is as follows: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Center Revenue Other Revenue Total Revenue Center Revenue Other Revenue Total Revenue Services transferred over time $ 741,841 $ 27,917 $ 769,758 $ 651,288 $ 25,604 $ 676,892 Goods and services transferred at a point in time 95,561 677 96,238 84,577 84,577 Total revenue $ 837,402 $ 28,594 $ 865,996 $ 735,865 $ 25,604 $ 761,469 The timing associated with the revenue we recognized during the six months ended June 30, 2026 and 2025 is as follows: Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Center Revenue Other Revenue Total Revenue Center Revenue Other Revenue Total Revenue Services transferred over time $ 1,431,109 $ 48,845 $ 1,479,954 $ 1,263,805 $ 45,991 $ 1,309,796 Goods and services transferred at a point in time 173,859 883 174,742 157,714 157,714 Total revenue $ 1,604,968 $ …

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Leases Sale-Leaseback Transactions with Unrelated Third Parties During the six months ended June 30, 2026 , we entered into and consummated sale-leaseback transactions with two unr elated third parties. Under these transactions, we sold five properties with a combined net book value of $207.0 million for gross proceeds of $201.0 million , which were reduced by transaction costs of $0.8 million , for net cash proceeds of $200.2 million . The estimated fair value of the properties sold was $209.8 million . The entire $200.2 million of net cash proceeds received in connection with these sale-leaseback transactions is reported within investing activities on our condensed consolidated statement of cash flows for the six months ended June 30, 2026. We recognized a net gain of $2.0 million on these sale-leaseback transactions during the three and six months ended June 30, 2026, which is included in Other operating expense in our condensed consolidated statement of operations. Right-of-use assets and lease liabilities recognized in connection with these sale-leaseback transactions were $125.8 million and $115.7 million , respectively.

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New Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public entities to disclose the amounts of purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion, as applicable, included in each relevant expense caption presented in its income statement. We expect to adopt this accounting guidance for our Annual Report on Form 10-K for the year ended December 31, 2027. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes all references to software development project stages and requires that an entity capitalize software costs when both (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the probable-to-complete recognition threshold). We expect to adopt this accounting guidance for our Annual Report on Form 10-K for the year ended December 31, 2028. W …

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Revenue Revenue associated with our membership dues, enrollment fees, and certain services from our in-center businesses is recognized over time as earned. Revenue associated with products and services offered in our cafes and spas, as well as through e-commerce, is recognized at a point in time. The following is a summary of revenue, by major revenue stream, that we recognized during the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Membership dues and enrollment fees $ 597,244 $ 527,309 $ 1,158,698 $ 1,028,962 In-center revenue 240,158 208,556 446,270 392,557 Total center revenue 837,402 735,865 1,604,968 1,421,519 Other revenue 28,594 25,604 49,728 45,991 Total revenue $ 865,996 $ 761,469 $ 1,654,696 $ 1,467,510 The timing associated with the revenue we recognized during the three months ended June 30, 2026 and 2025 is as follows: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Center Revenue Other Revenue Total Revenue Center Revenue Other Revenue Total Revenue Services transferred over time $ 741,841 $ 27,917 $ 769,758 $ 651,288 $ 25,604 $ 676,892 Goods and services transferred at a point in time 95,561 677 96,238 84,577 84,577 Total revenue $ 837,402 $ 28,594 $ 865,996 $ 735,865 $ 25,604 $ 761,469 The timing associated with the revenue we recognized during the six months ended June 30, 2026 and 2025 is as follows: Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Segment Reporting We have one operating segment and one reportable segment. Our segment derives revenues from customers by providing premium health, fitness and wellness experiences and products at our athletic country club destinations and via our comprehensive digital platform and portfolio of iconic athletic events all with the objective of inspiring healthier, happier lives. We manage our business activities on a consolidated basis. The Companys chief operating decision maker (CODM) is the Chief Executive Officer (CEO). The CODM assesses performance for the segment and allocates resources based on consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. Our CODM does not review segment assets at a different asset level and is regularly provided with only the consolidated expenses as noted on the face of the consolidated statements of operations. New Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public entities to disclose the amounts of purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion, as applicable, included in each relevant expense caption …

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Stockholders Equity Share-Based Compensation Expense Share-based compensation expense for the three months ended June 30, 2026 was $15.4 million, of which $13.2 million and $2.2 million was associated with equity-classified awards and liability-classified awards, respectively. Share-based compensation expense for the six months ended June 30, 2026 was $26.0 million , of which $23.0 million and $3.0 million was associated with equity-classified awards and liability-classified awards, respectively. Share-based compensation expense for the three months ended June 30, 2025 was $16.4 million, of which $11.9 million and $4.5 million was associated with equity-classified awards and liability-classified awards, respectively. Share-based compensation expense for the six months ended June 30, 2025 was $28.3 million , of which $22.2 million and $6.1 million was associated with equity-classified awards and liability-classified awards, respectively. Restricted Stock Units During the six months ended June 30, 2026, the Company granted approximately 1.2 million restricted stock unit awards under the 2021 Incentive Award Plan, of which approximately 0.9 million were time-based vesting awards that vest in ratable installments primarily ranging from one to three years, and approximately 0.3 million were performance-based vesting awards granted to our executives in connection with our short-term incentive compensation program, in each case subject to continuous employment from the grant date th …

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Subsequent Events In preparing the accompanying condensed consolidated financial statements, we have evaluated the period from June 30, 2026 through the date the condensed consolidated financial statements were issued for material subsequent events. There have been no events or transactions du ring this time which would have a material effect on the condensed consolidated fina ncial statements and therefore would require recognition or disclosure.

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