The Gym Group PLC (LSE:GYM) has reported strong first-half 2026 results, with total revenue climbing 10% year on year to GBP133.1 million.
Like-for-like revenue growth came in at 3%, with average membership reaching just over one million, representing a 5% increase compared to the prior year period.
Average revenue per member per month rose 5% to GBP22.14, reflecting steady pricing momentum across the group’s expanding estate.
EBITDA less normalised rent grew 12% to GBP30.8 million, with the EBITDA margin improving by 0.5 percentage points to 23.1%.
Adjusted profit before tax jumped 31% to GBP6.4 million, while statutory profit before tax rose 48% to GBP4.9 million, with profit after tax reaching GBP4.3 million.
Free cash flow was strong at GBP27.7 million, up 10% year on year, funding accelerated new site openings and an ongoing share buyback program simultaneously.
The company has a GBP10 million share buyback program underway, with 3.1 million shares acquired year-to-date for just under GBP6 million at an average price of GBP1.81.
Non-property net debt stood at GBP58 million, GBP1.3 million lower than the 2025 year-end position, with adjusted leverage held at a conservative 1 times.
The group opened 4 new gyms in the first half and has 11 currently on site, with at least 20 new openings expected for the full year 2026 and 75 planned over three years.
Site cost inflation remains a headwind, with like-for-like site costs rising 3.5% in the first half, though management expects this pressure to ease in the second half of the year.
During the earnings call, CFO Luke Tait said the increased facility size this year gives the opportunity to do another buyback next year, and as long as the company keeps investing at an appropriate pace in higher-ROIC areas while leverage stays low, there is a good chance it would “go again” next year.
CEO Will Orr noted that site availability remains strong, with the core format staying at roughly 14,000-15,000 sq ft in Greater London and urban locations, supplemented at the margins by smaller-catchment and larger 20,000 sq ft destination sites.
On the topic of GLP-1 weight-loss drugs, Orr described growing penetration as a strong tailwind for the gym market, with users turning to gyms to sustain muscle mass and build healthy habits.
The group’s 2024 site openings are tracking above a 30% return on invested capital, with 2025 openings progressing strongly and underpinning management’s confidence in its ROIC hurdle rate.
For the full year, the company is guiding to like-for-like revenue growth of approximately 3% and EBITDA less normalised rent at the top end of the GBP60.5 million to GBP62.0 million range.
