NANTUCKET TAKES: Premium, Recurring & Accelerating Growth Built on Productivity

Research evidence excerpt

NANTUCKET TAKES: Premium, Recurring & Accelerating Growth Built on Productivity

*Rev. (MM)

community-driven experience is the ultimate defensible asset. LTH deploys 26 distinct club formats

with a 14-month build cycle and 3-year forward pipeline reflecting a disciplined, market-specific

expansion.

Two-Thirds of the Base Pays Below Rack Supporting a Multi-Year Tailwind. Most of LTH's

member base pays below today's rack rate, representing ~$20M of additional monthly revenue

if fully closed. Mgmt uses 80 member attributes to surgically apply pricing, contributing ~3% of

revenue growth. Rack ranges from $179 in legacy suburban markets to $399 in premium coastal

locations, raised on demand. This is scarcity-based pricing power requiring zero incremental capex.

The High-Income Consumer Is the Anchor and Limits Recession Risk. LTH's consumer sits at

the top of the K, with zero sensitivity to gas, grocery inflation, or sentiment swings. Even during

April's tariff shock, acquisition dipped briefly then snapped back. If a major downturn hit, it would

show first in incentive businesses (i.e. café, spa, DPT) not membership retention. The core recurring

stream is the last to feel pressure. At $300+ monthly dues, sunk-cost psychology reinforces usage,

usage reinforces retention.

The Growth Algo Is Visible, Repeatable, and Will Be Self-Funding. LTH targets LDD% rev growth.

New clubs reach 50% capacity in Yr 1 and 95% by Yr 3 with 30%+ ROICs. Mature centers layer MSD Randal J. Konik * | Equity Analyst

% comps via pricing and in-center monetization including Miora (8 locations, path to 75+, 30%+ (212) 708-2719 | rkonik@jefferies.com

margins), CTR (60 clubs by YE), and DPT (up LDD% YoY). SLBs fund growth today; however >$400M Carlos Gallagher * | Equity Associate