Sport Clubs Company (6018) Q3 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q3 and the first nine months of 2025, driven by expansion, rebranding, and increased memberships.

• Member base and club visits increased significantly year-over-year, reflecting higher engagement and retention.

• Expanded club network to 59 locations, with 16 new projects under development.

• Report covers unaudited interim results for the three- and nine-month periods ended 30 September 2025, following a successful IPO and listing on Tadawul in July 2025.

• Principal activities include sports equipment retail, gym operations, and real estate investments for sports facilities.

Financial highlights

• Q3 2025 revenue rose 7.4% year-over-year to SAR 105.1M; 9M 2025 revenue up 14.1% to SAR 272.0M.

• Q3 2025 net income increased 14.6% to SAR 16.3M; 9M 2025 net income up 12.6% to SAR 26.6M.

• Gross profit for 9M 2025 was SAR 78.06M, up from SAR 66.42M year-over-year.

• EBITDA margin improved to 41.2% in Q3 2025 and 38.6% for 9M 2025.

• Deferred revenue grew 31.7% year-over-year to SAR 126.2M as of September 2025.

Outlook and guidance

• Plans to open 16 new clubs within 16 months, with continued focus on premium and express formats.

• Revenue growth guidance for 2025–2026: 2–4.5% for existing clubs, higher for new models.

• Average gross margin expected at 40–47% for new clubs, with consolidated EBITDA margin guidance of 43–54%.

• Management notes business typically improves in Q4 due to favorable weather and promotional offers.