Sport Clubs Company (6018) Q3 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q3 and nine months of 2025, driven by expansion, rebranding, and increased memberships, reaching 167,000 members, up 28.8% year-on-year.

• Opened five new clubs year-to-date, with 16 new projects under development and a total of 59 clubs across the Kingdom.

• New identity clubs and rebranding initiatives significantly outperformed older formats in revenue, EBITDA, and member count.

• Deferred revenue reached record levels, supporting forward visibility.

• 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-on-year to SAR 105.1 million; nine-month revenue up 14.1% to SAR 272.0 million.

• Q3 2025 net income increased 14.6% to SAR 16.3 million; nine-month net income up 12.6% to SAR 26.6 million.

• Gross profit for Q3 2025 grew 22.6% year-on-year; EBITDA up 10.7% to SAR 43.3 million.

• Free cash flow surged 760.9% in Q3 2025 and 306.2% for nine months, reaching SAR 50.7 million.

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

Outlook and guidance

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

• 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%.

• Plan to refurbish 2–4 clubs annually starting 2026, aiming for 80–85% of portfolio as new identity clubs within 3–4 years.

• Aggressive, geographically balanced network growth focused on main cities.

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