Sport Clubs Company (6018) investor relations material

Executive summary

• Q1 2026 marked a strong start with revenue up 4.5% year-over-year to SAR 86.1 million and net income up 29.2% to SAR 4.4 million, supported by robust membership growth of 26% to 146.3K and operational improvements.

• Expansion continued with five new clubs added in the past year, reaching 59 by March and 61 by April 2026.

• Rebranding and refurbishment efforts drove significant increases in club performance, member engagement, and profitability.

• Subscriptions and personal training revenues were the main growth drivers, with subscriptions up 20.9% and PT/other services up 137% year-over-year.

• The report covers the three months ended 31 March 2026, following the company's IPO and listing on Tadawul in July 2025.

Financial highlights

• Revenue increased by 4.5% year-over-year to SAR 86.1 million; gross profit rose 26.7% to SAR 21.8 million; operating profit up 15.2% to SAR 11.7 million.

• Net income grew 29.2% to SAR 4.4 million; EBITDA rose 11.4% to SAR 31.4 million; EPS increased by 17.5% to SAR 0.038.

• Deferred revenue climbed 34% year-over-year to SAR 106.1 million, indicating strong future revenue visibility.

• Net cash from operating activities was SAR 29.2 million, with cash used in investing at SAR 29.9 million.

• Total assets stood at SAR 951.5 million, with equity of SAR 271.7 million as of 31 March 2026.

Outlook and guidance

• Expansion pipeline includes 14 clubs under development after two new Jeddah clubs opened in April 2026.

• Three clubs scheduled for full refurbishment in 2026, with more locations under negotiation.

• Management expects continued strong growth and improved profitability as new identity clubs increase in the portfolio; EBITDA margin guidance is 43–45% (2025–2026), rising to 50–54% (2027–2029).

• Revenue growth for Body Masters projected at 2–3% (2025–2026) and 2–3% (2027–2029); 9–11 new clubs expected in 2025–2026.

• Management notes business seasonality, with stronger performance expected in Q4 due to promotions and favorable conditions.