Viva Leisure (VVA) H1 2025 earnings summary

Executive summary

• Achieved record-breaking growth in 1H FY2025, with revenue up 25.2% to $99.0 million and strong performance across all key metrics, supported by a diversified strategy spanning health clubs, franchising, and technology.

• Over 90% of revenue is recurring, supporting stability and consistent growth.

• Membership base expanded to over 593,000, with total locations increasing to 594 and a robust pipeline of new sites.

• Strategic focus on optimizing the existing network, prioritizing free cash flow, and leveraging technology integration.

• International franchise expansion underway, with new agreements in Singapore, Hong Kong, Philippines, UK, and India.

Financial highlights

• Revenue rose to $99.0 million, up 25.2% year-over-year; EBITDA increased 26.2% to $21.0 million; NPAT up 15.2% to $5.5 million.

• Adjusted free cash flow increased 22% to $15.9 million; operating cash flow reached $18.9 million.

• Health club membership grew 71.9% to 593,697; total network membership and locations expanded significantly.

• EBITDA margin improved to 21.2%, up 20bps year-over-year.

• Cash balance at period end was $18.1 million, supporting future growth.

Outlook and guidance

• Q4 FY25 guidance reaffirmed: quarterly revenue expected to exceed $56 million and EBITDA above $12.5 million; annualized revenue and EBITDA projected at over $224 million and $50 million, respectively.

• Strategic pivot to optimize existing network, moderate greenfield rollout, and prioritize free cash flow generation.

• Technology rollouts (Viva Pay, The Hub, unified access apps) and international franchise expansion planned.