The Gym Group (LON:GYM – Get Free Report) released its earnings results on Wednesday. The company reported GBX 3.10 earnings per share for the quarter, Digital Look Earnings reports. The Gym Group had a net margin of 3.02% and a return on equity of 5.35%.
Here are the key takeaways from The Gym Group’s conference call:
- Strong first-half performance: Revenue increased 10% to £133.1 million, EBITDA less normalized rent rose 12% to £30.8 million, and adjusted profit before tax increased 31% to £6.4 million. Average membership exceeded 1 million, while like-for-like revenue grew 3%.
- Management expects full-year EBITDA less normalized rent to be at the top end of the £60.5 million–£62 million analyst forecast range, with like-for-like site-cost inflation now expected at the lower end of the 3%–4% guidance range. The company also expects no cash tax until 2030.
- The Gym Group is accelerating investment while maintaining leverage at 1x, targeting at least 20 new gyms in 2026 and approximately 75 over three years, funded from free cash flow. Recent new-site cohorts and major refurbishments are tracking toward roughly 30% ROIC, and the £10 million share buyback is expected to be completed by year-end.
- The company highlighted substantial long-term market potential, including rising U.K. gym penetration, demand from younger consumers and possible benefits from GLP-1 usage. It is also exploring smaller and larger gym formats, member referrals and partnerships in the broader health and fitness ecosystem.
- New gym openings remain back-weighted in 2026, creating execution pressure for delivery teams, although management still expects to meet the target of at least 20 openings. Like-for-like membership volumes are expected to remain broadly flat as continued competitor expansion creates an estimated 1%–2% drag.
The Gym Group Stock Performance
LON:GYM traded down GBX 1 during mid-day trading on Thursday, hitting GBX 205. The stock had a trading volume of 157,506 shares, compared to its average volume of 533,635. The company has a current ratio of 0.15, a quick ratio of 0.27 and a debt-to-equity ratio of 289.13. The company has a 50 day simple moving average of GBX 204.82 and a 200-day simple moving average of GBX 192.25. The stock has a market capitalization of £355.20 million, a price-to-earnings ratio of 51.25, a P/E/G ratio of -12.95 and a beta of 0.83. The Gym Group has a 52 week low of GBX 131.20 and a 52 week high of GBX 220.
Analyst Ratings Changes
Read Our Latest Analysis on GYM
Key The Gym Group News
Here are the key news stories impacting The Gym Group this week:
- Positive Sentiment: Strong first-half performance: The company reported a 10% increase in sales after raising membership prices, while first-half profit also climbed. This indicates resilient demand and improving pricing power. The Gym Group sales jump by a tenth after membership prices increased
- Positive Sentiment: Upgraded outlook: Management raised its outlook as younger consumers, particularly Gen Z, continued prioritising fitness. The business also benefited from customers choosing gyms during the summer heatwave and around the football World Cup. Gym Group upgrades outlook as Gen-Z shuns heatwave and World Cup
- Positive Sentiment: Further price increases possible: The Gym Group is considering additional membership price rises, potentially supporting revenue and margins if customer retention remains strong. The Gym Group eyes further price hikes
- Positive Sentiment: Broker support: Shore Capital upgraded GYM to “buy” with a GBX 280 target, while Jefferies reaffirmed its “buy” rating and GBX 250 target. Both targets imply meaningful upside from the stock’s recent trading level.
- Neutral Sentiment: Reported earnings: The Gym Group posted quarterly earnings of GBX 3.10 per share, with a 3.02% net margin and 5.35% return on equity. The results provide evidence of profitability, but margins remain relatively modest. The Gym Group quarterly earnings report
- Negative Sentiment: Valuation and balance-sheet risks: At roughly GBX 205, the shares trade near their 12-month high and at a high earnings multiple, while the company’s debt-to-equity ratio is elevated. These factors could limit near-term gains despite the improved outlook.
About The Gym Group
The Gym Group plc, together with its subsidiaries, operates a network of gym facilities under the Gym Group brand name in the United Kingdom. The company was founded in 2007 and is based in Croydon, the United Kingdom.
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