Holmes Place International (HLMS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 11.18% YoY to ₪142.99m; EBITDA excluding IFRS 16 increased 7.66% to ₪24.3m, while net income on that basis fell 24.57% to ₪11.3m.

• Average quarterly membership reached 196,223 versus 177,914 in Q1 2024; period-end membership was 199,325 versus 181,004.

• Operated 73 fitness clubs and 27 external facilities at March 31, 2025; five clubs were under advanced construction, with 3–6 additional openings expected in 2025.

• No material operational impact from the Iron Swords war was reported; all clubs were operating normally.

Financial highlights

• Revenue was ₪142.99m versus ₪128.61m; reported gross profit was ₪34.90m versus ₪32.65m, while gross profit excluding IFRS 16 was ₪26.6m versus ₪26.1m.

• Operating profit excluding IFRS 16 rose 13.61% to ₪16.7m; net income excluding IFRS 16 fell 24.57% to ₪11.3m from ₪15.0m.

• Reported IFRS net income was ₪8.01m versus ₪14.72m; reported EBITDA including IFRS 16 was ₪56.4m versus ₪50.4m.

• Operating cash flow was ₪23.74m versus ₪30.53m in Q1 2024.

Outlook and guidance

• Expects to open 3–6 new clubs in 2025 and continues to evaluate locations.

• Presales began for Icon clubs in Or Akiva and Sderot; a Family club in Be'er Yaakov is expected to open between year-end 2025 and Q1 2026.

• No significant liquidity issues anticipated despite negative working capital, supported by positive cash flow and available credit; inflation and interest rates are expected to moderate in 2026, with no material demand impact foreseen.