Life Time Group Holdings, Inc.

Greetings. Welcome to the Lifetime Group Holdings, Inc. Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Connor Weinberg, Vice President of Capital Markets and Invest Relations. Thank you. You may begin.

Good morning, and thank you for joining us for the Second Quarter 2025 Lifetime Group Holdings Earnings Conference Call. With me today are Barama Crotty, Founder, Chairman, and CEO, and Eric Weaver, Executive Vice President and CFO. During the call, we will make forward-looking statements which involve a number of risks and uncertainties that may cause actual results to differ materially from those forward-looking statements made today. There is a comprehensive discussion of risk factors in the company's SEC filings, which you are encouraged to review. The company will also discuss certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, adjusted diluted EPS, net debt to adjusted EBITDA, or what we refer to as net debt leverage ratio, and free cash flow. This information, along with the reconciliations to the most directly comparable GAAP measures, are included when applicable in the company's earnings release issued this morning, our 8K filed with the SEC, and on the investor relations section of our website. With that, I will turn the call over to Eric.

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 .4% increase in incentive revenue. Comparable center revenue grew 11.2%. Given continued strong performance in both dues and incentive businesses, we are raising our full year comparable center revenue guidance to be between .5% and 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 .6% year over year to $219. Average revenue per center membership was $888, an increase of .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-effective 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 .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, marking our fifth consecutive quarter of delivering positive free cash flow. 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, and the remaining 10 million was reported in the financing section. With that, I will now turn the call over to Brahm. Brahm?