Life Time Group Holdings, Inc.

Welcome to Lifetime Group Holdings Incorporated's third quarter 2025 earnings conference call. At this time, all participants will be in listening mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during today's conference, please press star zero from your telephone keypad. Please note, this conference is being recorded. At this time, I'll turn the conference over to Conor Weinberg, Vice President of Capital Markets and Investor Relations. Thank you, Conor. You may now begin your presentation.

Good morning, and thank you for joining us for the third quarter 2025 Lifetime Group Holdings Earnings Conference Call. With me today are Barah McCrotty, 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 and earnings supplement 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 good morning, everyone. Starting with our third quarter results, total revenue increased 12.9% to $783 million. Average monthly dues grew 10.0% year-over-year to $218. Comparable center revenue grew 10.6%. We are proud of the sustained growth in our comparable center revenue, driven by continued strong performance in both dues and our in-center businesses. particularly in our dynamic personal training. As a result, we have raised our full-year comparable center revenue guidance to be between 10.8 and 11.0%. We ended the quarter with nearly 841,000 center memberships, including on-hold memberships. Total memberships reached approximately 891,000, in line with our expectations. Net income for the quarter was $102 million, an increase of 147%, and includes an approximately $5.7 million tax-affected gain on sale leasebacks. This compares to a $3.5 million tax-affected loss in the prior year quarter. This quarter's net income also benefited from $16.2 million in tax-adjusted proceeds from employee retention credits received under the CARES Act. Adjusted net income, which excludes the impacts of gain and losses on sale leasebacks, share-based compensation, ERC credits, and other non-recurring items, was $93 million, up 65.2% year over year. Adjusted EBITDA was $220 million, an increase of 22%, and our adjusted EBITDA margin improved by 210 basis points to 28.1%. Net cash provided by operating activities rose approximately 66% to $251 million compared to the prior year quarter. Our consistently strong cash flow from operating activities remains a key driver of our long-term growth strategy. Free cash flow was $63 million for the third quarter. In Q3, we closed on the sale-leaseback of one property, generating net proceeds of approximately $34 million. We expect to complete between $55 million and $65 million of additional sale leaseback transactions before the end of this year. We delivered another strong quarter and remain encouraged by our continued momentum as we approach the close of a successful year. We look forward to giving everyone a preview of our full year 2025 performance and our initial thoughts on 2026 in the second half of January. With that, I will now pass the call over to Bram. Bram?