Holmes Place International (HLMS) Q3 2025 earnings summary

Executive summary

• Revenue and EBITDA increased year-over-year in Q3 2025 and the first nine months of 2025, with continued growth in membership numbers and expansion of club locations, now operating 75 clubs with 206,402 average subscribers in Q3 2025.

• Expanded through new club openings, acquisitions including 51% of Revo Fitness, and new management contracts for country clubs.

• Managed through significant macroeconomic and geopolitical challenges, including the Iron Swords war and Operation Am K'lavie, with only a temporary impact on operations and no material annual effect.

• Dividend distributions continued, with a new policy to distribute at least half of net profit annually, and a recent declaration of an additional ₪11 million dividend.

• A private share placement in September 2025 raised ₪70 million, bringing a new significant shareholder and supporting expansion.

Financial highlights

• Q3 2025 revenue rose to ₪153 million, up 3.91% from Q3 2024; EBITDA reached ₪25.5 million, up 2.92%.

• For the first nine months of 2025, revenue grew to ₪552.2M, up from ₪410.9M year-over-year; EBITDA increased to ₪173.7M from ₪159.5M.

• Net profit for Q3 2025 was ₪13.6 million, a 46.8% increase year-over-year, but net income for the nine months declined to ₪19.0M due to higher costs and temporary war impacts.

• Gross margin for the nine months was ₪143.3M, up from ₪106.7M year-over-year.

• Average quarterly membership rose to 203,107 in Q3 2025 from 193,137 in Q3 2024.

Outlook and guidance

• New club openings are planned for late 2025 and mid-2026, with construction progressing on additional locations in both Holmes Place and Icon segments.

• Expects continued growth in subscriber base and EBITDA, especially from the Revo Fitness acquisition.

• Macroeconomic risks (inflation, interest rates, security situation) could impact future performance.