Holmes Place International (HLMS) Q1 2025 earnings summary

Executive summary

• Operates 73 fitness clubs in Israel as of March 31, 2025, with 117,083 Holmes Place and 82,242 Icon Fitness subscribers, plus 27 external facilities.

• Opened new clubs and is in advanced construction on five more; expects to open 3–6 additional clubs in 2025.

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

Financial highlights

• Q1 2025 revenue: ₪142.99M, up from ₪128.61M in Q1 2024; gross profit: ₪34.90M vs. ₪32.65M.

• Net income for Q1 2025: ₪8.01M, up from ₪14.72M in Q1 2024; EBITDA: ₪24.33M vs. ₪21.32M.

• Operating cash flow for Q1 2025: ₪23.74M, compared to ₪30.53M in Q1 2024.

• Dividend of ₪12M distributed in May 2025.

Outlook and guidance

• Expects to open 3–6 new clubs in 2025, with ongoing evaluation of new locations.

• No significant liquidity issues anticipated despite negative working capital, supported by positive cash flow and available credit.

• Inflation and interest rates expected to moderate in 2026; company does not foresee material impact on demand.