Life Time fitness fanatics paid significantly more in dues last year to use the Chanhassen-based company's growing list of resort-like fitness facilities, which is helping Life Time recover from the pitfalls of the pandemic.

Though the health and fitness business still has a ways to go to turn a profit, it reported Wednesday losing about $1.8 million last year. That's a stark rally from the loss of nearly $580 million it reported in 2021 when it still struggled to fully reopen clubs under COVID-19 restrictions.

Revenue for the full year came in a little more than $1.8 billion, a jump of 38% from 2021.

Life Time generated slightly more money than what the company predicted in January when it estimated it would lose $2 million to $4 million for the year.

In October, November and December, Life Time earned a profit of $13.7 million, a huge departure from the almost $305 million it lost during the same time in 2021 and more than what its leaders forecasted at the beginning of the year.

"Our main priority in 2022 was to grow back our revenue ... and prove that our business model is intact and healthy," Life Time CEO Bahram Akradi said Wednesday.

The jump in revenue is mainly because Life Time has aggressively continued to increase its cost of membership. In 2022, membership dues and enrollment fees jumped 38% compared to the year before to $1.3 billion. In the fourth quarter of last year, Life Time's average monthly dues per center membership increased approximately 20% to $162. Akradi said that new memberships currently cost about $208 a month.

Life Time Group Holdings shares have finished down about 6.5% on Wednesday.

Akradi has been unapologetic about the increases in club membership saying that Life Time centers, which have a host of amenities including cafes and spas, are worth the cost.

"We feel we have significant pricing power and opportunity driven by a strong value proposition," he said.

Executives estimate the company will turn a profit of $10 to $11 million for the three-month quarter that ends March 31.

Life Time, which operates about 160 fitness centers, plans to open 10 new centers this year. It is also expanding its dedicated pickleball courts, small group training and personal training sessions as well as new programming for older members.