The rise of pickleball has had a significant impact on Life Time Group Holdings, a company that has strategically positioned itself to benefit from the surge in popularity of this sport. Pickleball, which experienced a boom during the Covid lockdown, has continued to attract more players across all levels, leading to a substantial increase in its player base in the U.S.
Life Time, being the largest provider of pickleball in the U.S., has made significant investments to capitalize on the growing demand for this sport. The company has increased its number of pickleball courts and sessions, demonstrating its commitment to offering pickleball as a key component of its recreational offerings. With more than 700 permanent courts and plans to expand to 1,000 courts by the end of 2025, Life Time is well-positioned to meet the increasing popularity of pickleball.
Bank of America analyst Alexander Perry has reiterated his buy rating on Life Time, citing the company’s strong financial performance and strategic focus on pickleball. With a 27% potential jump in share price, Life Time has seen significant investor optimism, especially after posting strong second-quarter results and raising its financial guidance for the year. Perry points out that pickleball has contributed up to 7% of Life Time’s membership dues, indicating the positive financial impact of this sport on the company.
Life Time’s CEO, Bahram Akradi, has highlighted the company’s continued investment in pickleball, with plans to expand its offerings and court facilities. The company’s focus on enhancing the pickleball experience, such as creating a specialized ball for the sport and hosting professional tournaments, reflects its commitment to providing high-quality recreational opportunities for its members. Additionally, with membership demand exceeding club capacity, Life Time has the potential to further increase prices and reduce membership churn, leading to sustained financial growth.
The rapid growth of pickleball has significantly benefited Life Time Group Holdings, positioning the company as a key player in the leisure industry. With a strong emphasis on pickleball and strategic investments in court facilities and professional tournaments, Life Time is well-positioned to capitalize on the continued popularity of this sport and drive future growth and financial success.