The Gym Group (GYM) H1 2025 earnings summary

Executive summary

• Revenue rose 8% year-over-year to £121.0m, driven by a 4% increase in average members and a 4% rise in ARPMM; closing membership up 5% year-on-year.

• Group Adjusted EBITDA Less Normalised Rent increased 24% to £27.4m, reflecting operational leverage and outpacing cost inflation.

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

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

• On track to open 14-16 new sites in 2025, all funded from free cash flow, with further expansion planned for 2026.

Financial highlights

• Statutory profit before tax was £3.3m, up from break-even or £0.2m year-over-year.

• Average members increased 4% to 953k; ARPMM up 4% to £21.16.

• EBITDA less normalized rent was £27.4m (+24%); EBITDA margin improved to 23% (+3pp).

• Free cash flow increased 8% to £25.1m; net debt reduced by £10.1m to £51.2m; leverage at 1.0x.

• Expansionary capex was £12.6m; maintenance capex at 5% of revenue.

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 LNR 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 anticipated to return to ~£60m by year-end as H2 capex is weighted.