The Gym Group plc Q2 2025 Earnings Recap

The Gym Group reported robust first-half 2025 results with an 8% revenue increase, driven by a 5% rise in memberships and a 24% jump in EBITDA less normalized rent, reflecting efficient cost management and strong underlying demand.

Key Takeaways

• Membership growth of 5% and average revenue per member up 4%, contributing to total revenue of GBP 121 million.
• EBITDA less normalized rent surged 24% to GBP 27.4 million, enhancing EBITDA margin to 23%.
• Free cash flow improved 8% to GBP 25.1 million, allowing for a net debt reduction of GBP 10.1 million to GBP 51.2 million, with a stable net debt-to-EBITDA ratio of 1x.
• Company on track to open 14 to 16 new sites in 2025, part of a three-year plan to launch approximately 50 new locations, funded by cash flow.
• Like-for-like site costs decreased by 1%, supported by lower electricity prices, although full-year guidance predicts 2% growth due to inflationary pressures.