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Holmes Place International (HLMS) investor relations material
Holmes Place International Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 was significantly impacted by a 12-day military operation, resulting in 9 days of club closures and reduced activity, but also led to cost savings from furloughed staff and lower variable expenses.
Operates 73 fitness and wellness clubs in Israel as of June 30, 2025, with 202,942 total subscribers across two main brands.
The company continued expansion, opening new clubs and acquiring fitness businesses, including a 51% stake in a women's pilates studio chain, pending regulatory approval.
No dividend was distributed for Q2 2025 due to the operation and acquisitions, though NIS 23 million was paid earlier in the year.
Financial highlights
Q2 2025 revenue rose 4.75% year-over-year to NIS 141.4 million; EBITDA reached NIS 23.8 million, down 3.3% from Q2 2024.
For H1 2025, revenue increased 7.9% to NIS 284.4 million, with EBITDA up 1.96% to NIS 48.1 million.
Gross profit for H1 2025 was ₪143.3 million, compared to ₪69.6 million in H1 2024.
Net income for Q2 2025 was NIS 4.96 million, a 49.9% decrease year-over-year; H1 2025 net income was ₪12.97 million.
Net cash from operating activities for H1 2025 was ₪40.26 million, a decrease from ₪77.3 million in H1 2024.
Outlook and guidance
The ARPU decline from new family club members is expected to persist, while the impact from the military operation is considered one-time and should normalize in the short term.
Growth is expected to continue through expansion of family clubs and Pilates, which, despite lower ARPU, are among the most profitable.
Plans to open 2–5 new clubs in 2025, with additional locations under negotiation.
Management sees no material liquidity risk despite negative working capital, supported by strong cash flow and available credit lines.
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