Sport Clubs Company (6018) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a strong start with revenue up 4.5% year-over-year to SAR 86.1 million, net profit up 29.2% to SAR 4.4 million, and EBITDA up 11.4% to SAR 31.4 million, supported by robust membership growth and operational expansion.

• Membership base expanded 26% year-over-year to 146,300, with retention improving to 63% and total visits up 14.5%.

• Personal training and other services revenues surged 137% year-over-year, reflecting higher engagement and demand for premium services.

• Rebranding and refurbishment efforts drove significant increases in club performance and member engagement, with 23 out of 61 clubs now under the new identity or refurbished.

• The company operates through a wholly owned subsidiary and multiple regional branches, following its IPO and Tadawul listing in July 2025.

Financial highlights

• Revenue increased by 4.5% year-over-year to SAR 86.1 million in Q1 2026; gross profit rose 26.7% to SAR 21.8 million; operating profit increased 15.2% to SAR 11.7 million.

• Net income grew 29.2% to SAR 4.4 million, with EPS up 17.5% to SAR 0.038.

• EBITDA increased 11.4% to SAR 31.4 million; EBITDA margin reached 36.5%.

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

• Operating cash flow increased to SAR 29.2 million from SAR 12.4 million year-over-year, while net cash was negative due to strategic investments and debt repayment.

Outlook and guidance

• Expansion strategy remains aggressive, with 14 clubs in the active pipeline and three clubs scheduled for refurbishment in 2026.

• Management expects continued strong growth and profitability, driven by new identity clubs, ongoing network optimization, and disciplined operational efficiency.

• Revenue growth for Body Masters projected at 2–3% (2025–2026) and 2–3% (2027–2029); EBITDA margin guidance: 43–45% (2025–2026), rising to 50–54% (2027–2029).