Sport Clubs Company (6018) Q3 2025 earnings summary

Executive summary

• Achieved strong revenue, profit, and membership growth in Q3 and nine months of 2025, driven by expansion, rebranding, and operational improvements.

• Expanded club network to 59 locations, with 16 new clubs in the pipeline and a record 167,000 members, up 28.8% year-on-year.

• Deferred revenue reached a record SAR 126.2 million (+31.7% YoY), supporting forward visibility.

• Member engagement and club visits increased significantly, reflecting higher retention and enhanced experience.

• 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.

Financial highlights

• Q3 2025 revenue rose 7.4% year-over-year to SAR 105.1 million; nine-month revenue up 14.1% to SAR 272.0 million.

• Q3 net income increased 14.6% to SAR 16.3 million; nine-month net income up 12.6% to SAR 26.6 million.

• Q3 gross profit up 22.6%; EBITDA up 10.7% to SAR 43.3 million; free cash flow surged to SAR 22.9 million.

• Gross profit margin reached 36.8% in Q3 and 28.7% for nine months; EBITDA margin 41.2% in Q3 and 38.6% for nine months.

• Cash and cash equivalents increased to SAR 74.04 million from SAR 5.03 million at year-end 2024.

Outlook and guidance

• Pipeline of 16 new clubs, with most expected to open in 2026, subject to licensing and regulatory approvals.

• Targeting 2–4 club refurbishments per year from 2026, aiming for 80–85% of portfolio as new identity clubs in 3–4 years.

• Revenue growth guidance for 2025–2026: 2–4.5% for existing clubs, higher for new models; average gross margin for new clubs expected at 40–47%.

• Management expects business to improve in Q4 due to favorable weather and promotional offers.