The Gym Group (GYM) H1 2025 earnings summary

Executive summary

• Revenue increased 8% year-over-year to £121.0m, with closing membership up 5% and average members up 4%; like-for-like revenue grew 3%.

• Group Adjusted EBITDA Less Normalised Rent rose 24% year-over-year to £27.4m, reflecting operational leverage and cost management.

• Free cash flow increased 8% to £25.1m, supporting new site openings, refurbishments, and technology investments.

• UK gym market penetration reached 16.6%, with strong Gen Z engagement and structural growth tailwinds.

• On track to open 14-16 new sites in 2025 and 18-22 in 2026, all funded from free cash flow.

Financial highlights

• Average members in H1: 953,000, up 4% year-over-year; ARPMM up 4% to £21.16.

• Statutory profit before tax: £3.3m, up from £0.2m; adjusted profit before tax: £4.9m.

• Free cash flow: £25.1m, up 8% year-over-year; net debt reduced by £10.1m to £51.2m.

• EBITDA margin improved to 23%, up 3 percentage points year-over-year.

• Net cash inflow from operating activities was £55.5m, up 7% year-over-year.

Outlook and guidance

• Trading momentum continued into July and August; five new gyms opened year-to-date.

• Full-year like-for-like revenue expected to grow ~3%, with cost growth at ~2%.

• Full-year Group Adjusted EBITDA Less Normalised Rent expected at the top end of £50.6m–£52.8m analyst range.

• No cash tax expected until 2028 due to prior losses and capital allowances.

• Net debt expected to return to ~£60m by year-end due to H2 CapEx weighting.