The Fitness center Group (LON:GYM) outlined what it described as “robust progress” in its 2025 full-year outcomes presentation, highlighting membership development, larger income and bettering profitability because it continued to spend money on new websites and its “Subsequent Chapter” development plan.
Administration stated closing membership rose 4% in 2025, whereas income elevated 8% to GBP 244.9 million, together with 3% like-for-like development. Common members had been 945,000, up 4% year-over-year, and common income per member monthly rose 4% to GBP 21.60.
EBITDA much less normalized hire elevated 19% to GBP 56.7 million, which the corporate stated was GBP 1.2 million forward of consensus. The EBITDA margin improved to 23%, up 2 share factors from the prior 12 months. Statutory revenue earlier than tax was GBP 7.4 million, up GBP 4.9 million year-over-year, whereas adjusted revenue earlier than tax was GBP 10.6 million, up GBP 7 million.
CFO Luke Tait stated greater than 70% of income development was pushed by new website openings, reflecting an accelerated rollout. He added that prices “got here in barely higher than expectations,” together with like-for-like website price inflation of 1% for the total 12 months, under prior steering of two%.
The corporate stated yield improved by a mixture of measured value will increase and optimization at newer gyms, together with transferring members off introductory reductions. The typical headline fee of an ordinary membership rose to GBP 25.64, up GBP 1.11 year-over-year. Like-for-like income rose 3%, with common membership flat and common yield up 3%.
On prices, administration pointed to decrease electrical energy commodity costs in 2025 and an power optimization program as key offsets to inflationary pressures akin to wage and Nationwide Insurance coverage will increase. Tait stated like-for-like website prices fell 1% within the first half and rose 3% within the second half, leading to a 1% enhance for the total 12 months. He famous a 44% enhance within the non-commodity component of electrical energy prices in This autumn, and stated these will increase will annualize by 2026, making first-half website price inflation larger than the second half.
The corporate stated it had put in 210 voltage optimization items throughout its property and sees extra potential financial savings by air dealing with unit sensors and additional rollout. It additionally stated it launched a employees coaching academy to assist useful resource gyms extra effectively and appealed 116 ranking checklist valuations from 2023.
Central prices rose 5% year-over-year, reflecting inflationary wage will increase and funding in development initiatives, however improved as a share of income, falling 0.4% to 11.3%. Administration guided central prices would drop under 11% of income in 2026, citing anticipated working leverage.
Free money circulation rose 10% to GBP 38.3 million, supported by a GBP 5.3 million working capital influx and upkeep capital expenditure of GBP 17.3 million (about 6% of income). Complete money CapEx in 2025 was GBP 51.2 million, together with GBP 33.9 million of expansionary CapEx linked primarily to new website openings and investments in digital initiatives.
Web debt ended the 12 months at GBP 59.3 million, down GBP 2 million from December 2024, and the online debt to EBITDA leverage ratio fell to 1x from 1.3x a 12 months earlier. Tait stated the corporate doesn’t anticipate additional web debt discount by year-end 2026 as a consequence of accelerated website openings funded from free money circulation.
Administration reiterated its capital allocation priorities, which embody sustaining the property, conserving leverage under 2x, funding natural new website openings, and returning extra capital to shareholders. The corporate started a 10 million share buyback in January and stated it has bought and canceled 1.1 million shares so far.
CEO Will Orr stated the corporate continued to strengthen its core by pricing, acquisition and retention efforts, and pointed to new add-ons akin to visitor passes and multi-site choices, in addition to off-peak pricing modifications. He additionally highlighted enhancements in model consciousness and internet conversion, noting the enterprise had greater than 10 million non-member web site guests begin the shopping for journey in 2025 and that the corporate is working ongoing A/B exams to enhance conversion.
On retention, Orr stated common tenure elevated once more, supported by initiatives together with:
16% development in members taking long-term merchandise (e.g., 9 or 12 months)
39% enhance in early-life “kickstart” inductions
Additional app enhancements, with 93% of latest add-on gross sales made by way of the app
Orr additionally stated buyer satisfaction remained excessive, with 62% of members scoring the gyms 5 out of 5, and 92% scoring them 4 or 5 out of 5. In response to a query, he stated the drivers behind satisfaction embody “pleasant, professional folks,” robust gear, and clear and secure amenities.
The corporate accelerated its rollout, opening 16 new websites in 2025, and stated it expects to open at the least 20 gyms in 2026, with steering indicating 20-22 websites deliberate and openings once more more likely to be weighted towards the second half. Within the Q&A, administration stated it had opened one new gymnasium to this point, was “on website” at an extra three, and had exchanged on one other eight, for 12 secured. It expects common website sizes to stay broadly constant, round 14,000-15,000 sq ft, with a spread from just below 10,000 as much as almost 20,000 sq ft. Administration stated London weighting within the pipeline is anticipated to be “a bit decrease” than the prior two years, however “not vastly.”
The corporate stated it has seen a robust begin to 2026, with 9% income development year-to-date on the finish of February, pushed by 4% common member development and a 5% enhance in common income per member monthly. Like-for-like was 3%. Administration cited a run-rate EBITDA (adjusted for gyms opened on the finish of 2025 that aren’t but mature) of about GBP 65 million.
For 2026, the corporate guided to like-for-like gross sales development of about 3% and like-for-like website price inflation of 3%-4%, weighted towards the primary half. It additionally stated electrical energy charges are mounted till October 2027, and reiterated expectations for central prices to drop under 11% of income.
Primarily based on the present trajectory, Tait stated the corporate expects 2026 EBITDA much less normalized hire to be on the high finish of analysts’ forecast vary.
The Fitness center Group plc, along with its subsidiaries, operates a community of gymnasium amenities below the Fitness center Group model identify in the UK. The corporate was based in 2007 and relies in Croydon, the UK.
