The Gym Group (GYM) H2 2025 earnings summary

Executive summary

• Revenue grew 8% year-over-year to £244.9m, with closing membership up 4% and yield up 4%.

• EBITDA less normalized rent increased 19% to £56.7m, and statutory profit before tax rose 196% to £7.4m.

• Free cash flow improved 10% to £38.3m, supporting accelerated rollout and investment in new sites and technology.

• Mature site ROIC rose 2 points to 27%, with 16 new sites opened in 2025 and strong early performance.

• Market share and brand awareness increased, with a focus on value, convenience, and digital engagement.

Financial highlights

• Revenue reached £244.9m (+8% YoY); average revenue per member per month up 4% to £21.60.

• EBITDA less normalized rent was £56.7m (+19% YoY); EBITDA margin improved to 23%.

• Statutory profit before tax was £7.4m (+196% YoY); adjusted diluted EPS was 5.3p (+83% YoY).

• Free cash flow increased 10% to £38.3m, enabling site expansion and net debt reduction to £59.3m.

• Adjusted leverage ratio improved to 1.0x from 1.3x; fixed charge cover at 2.1x.

Outlook and guidance

• Expect to open 20-22 new gyms in 2026, with CapEx of £60-65m, all funded from free cash flow.

• Like-for-like sales growth expected at ~3% and site cost inflation at 3-4%, with H1 weighting.

• 2026 EBITDA less normalized rent expected at the top end of analyst forecasts (£59.6m–£60.7m).

• Revenue YTD up 9% vs Feb 2025; membership at 999k (+8% vs Dec 2025).

• Electricity rates fixed until October 2027.