The Gym Group (LSE:GYM) posted a strong financial performance in 2025, reporting an 8% increase in revenue while adjusted EBITDA less normalised rent climbed 19% to £56.7m. Adjusted profit before tax almost tripled year on year, supported by growing membership numbers, stronger yield and disciplined cost management.
Free cash flow reached £38.3m during the year, enabling the company to fund 16 new gym openings alongside upgrades to its existing estate and further technology investment. Despite this expansion, non-property net debt declined slightly and leverage improved to 1.0 times, helped by the extension and expansion of its bank financing facilities.
Operational momentum has been driven by the company’s “Next Chapter” strategy, which is delivering stronger returns across the portfolio. Mature-site return on invested capital reached 27%, increasing to 30% when excluding workforce-dependent gyms. Customer satisfaction remains high and member visit frequency continues to rise, reinforcing operational performance.
Management plans to accelerate expansion, targeting roughly 75 new gyms over the next three years, all expected to be funded through free cash flow. The company also anticipates that EBITDA less normalised rent in 2026 will land at the upper end of market expectations. In addition, a £10m share buyback programme has been launched, signalling confidence in the group’s long-term growth prospects and strengthening its position in the expanding low-cost fitness segment.
The company’s outlook reflects its improving financial profile and positive sentiment from recent earnings commentary. Nonetheless, investors should note potential risks including leverage levels and a comparatively elevated price-to-earnings valuation. Technical signals currently point to moderate bullish momentum, while initiatives such as an employee share scheme are intended to further align staff incentives with future growth.
More about The Gym
The Gym Group is a UK-based operator of affordable, round-the-clock fitness facilities designed for cost-conscious consumers seeking flexible memberships without long-term contracts. As of 31 December 2025, the company ran 260 gyms nationwide, serving more than 900,000 members and hosting around 70 million visits annually. The business has established itself as a leader in the value-focused fitness segment and has set validated science-based targets to achieve net-zero emissions.
Leave a Reply