Sport Clubs Company (6018) Q4 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth for Q4 and full year 2025, driven by network expansion, rebranding, and improved member experience, with membership base rising from 123,000 to 155,000 and club visits increasing from 2.8 million to 3.3 million.

• Expanded club network to 59 locations, opening 5 new clubs and completing 2 major refurbishments in 2025, significantly boosting memberships and engagement.

• Pipeline includes 16 new club sites, evenly split between Body Masters and Body Motions, expected to open over the next 14 months, supporting future growth.

• Rebranding and refurbishment initiatives led to significant increases in member engagement, visits, and per-club financial performance.

• Membership growth and club expansion reflect strong demand and a resilient operating model.

Financial highlights

• Q4 2025 revenue rose to SAR 104.3 million from SAR 89 million in Q4 2024; full year revenue up 14.9% to SAR 376.2 million.

• Q4 gross profit reached SAR 34.4–35 million; full year gross profit increased to SAR 112.5 million.

• EBITDA for 2025 reached SAR 148.3 million; free cash flow improved to SAR 45.9 million.

• Net income for Q4 2025 increased 16.6% year-over-year to SAR 14.6 million; full-year net income up 14.0% to SAR 41.2 million.

• Cash from operations increased to SAR 159.4 million in 2025, up from SAR 104.2 million in 2024.

Outlook and guidance

• 16 new clubs in the pipeline, with gradual openings over the next 14 months, providing clear growth visibility.

• Aggressive refurbishment plan for 2026, with three full and three partial refurbishments planned to enhance asset quality and customer experience.

• Revenue growth guidance for 2025–2026: 2.0%–3.0% for Body Masters Premium, 4.0%–4.5% for Body Motions.

• Average gross margin targets: 40%–47% for new model clubs, 35%–45% for Body Motions, and 25%–35% for Body Experts projects.

• EBITDA margin guidance: 43%–45% for 2025–2026, rising to 50%–54% by 2027–2029.