The Gym Group (LON:GYM) recently reported strong progress in its 2025 full-year results presentation, showcasing growth in membership, revenue, and profitability. The company’s “Next Chapter” growth plan has been instrumental in driving these positive outcomes.
In 2025, The Gym Group saw a 4% increase in closing membership, with revenue rising by 8% to GBP 244.9 million, including 3% like-for-like growth. The average number of members reached 945,000, marking a 4% year-over-year increase, while average revenue per member per month rose to GBP 21.60.
EBITDA less normalized rent increased by 19% to GBP 56.7 million, surpassing consensus expectations by GBP 1.2 million. The EBITDA margin also improved to 23%, up 2 percentage points from the previous year. Statutory profit before tax increased to GBP 7.4 million, while adjusted profit before tax reached GBP 10.6 million.
The company attributed over 70% of its revenue growth to new site openings, reflecting an accelerated rollout strategy. Costs were managed effectively, with like-for-like site cost inflation at 1% for the full year, below prior guidance of 2%.
Yield improvement was achieved through measured price increases and optimization at newer gyms, resulting in an average headline rate of GBP 25.64 for a standard membership. Like-for-like revenue rose by 3%, with average membership remaining flat and average yield increasing by 3%.
On the cost side, The Gym Group highlighted lower electricity commodity prices and an energy optimization program as key offsets to inflationary pressures. The company installed 210 voltage optimization units across its estate and identified additional potential savings through further initiatives.
Free cash flow increased by 10% to GBP 38.3 million, supported by a working capital inflow of GBP 5.3 million. Net debt decreased to GBP 59.3 million, with the net debt to EBITDA leverage ratio falling to 1x from 1.3x a year earlier.
Looking ahead, The Gym Group reiterated its capital allocation priorities, which include maintaining the estate, keeping leverage below 2x, funding organic growth, and returning excess capital to shareholders. The company has initiated a 10 million share buyback and expects to open at least 20 new gyms in 2026.
CEO Will Orr emphasized the company’s focus on strengthening its core through pricing strategies, acquisition efforts, and customer retention initiatives. The Gym Group’s commitment to enhancing customer satisfaction and expanding its offerings bodes well for its future growth and success.
