Holmes Place International (HLMS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 3.93% YoY to NIS 148.618m; reported gross profit increased 19.48% to NIS 41.697m.

• Average membership reached 215,943, versus 196,223 in Q1 2025; period-end membership was 219,171, versus 199,325.

• Operated 81 fitness and wellness clubs in Israel as of March 31, 2026, with continued expansion across club formats.

• A five-day security-related closure and subsequent restrictions affected Q1 operations; operations have since normalized.

Financial highlights

• Reported gross margin rose to 28.06% from 24.41%; excluding IFRS 16, gross profit increased 17.87% to NIS 31.395m and margin rose to 21.12% from 18.63%.

• Excluding IFRS 16, operating profit was NIS 17.173m versus NIS 16.719m; operating margin was 11.56% versus 11.69%.

• Excluding IFRS 16, profit before tax rose 11.22% to NIS 15.710m, net income rose 10.08% to NIS 12.490m, and EBITDA rose 11.73% to NIS 27.187m.

• Net income attributable to shareholders was ₪10.3m, versus ₪8.0m; reported EBITDA was ₪61.9m, versus ₪56.4m.

• Operating cash flow was ₪41.7m, down from ₪45.5m in Q1 2025.

Outlook and guidance

• Two clubs were forecast to open in June 2026; Family Even Yehuda was expected to open toward summer 2026.

• 2026 plans include 2–3 additional ICON clubs, two Holmes Place Family clubs and 3–4 Revo Pilates studios.

• No material annual impact from the security operation is expected if there are no further club closure days or escalation; temporary revenue loss is expected to be offset over the year.