The Gym Group H1 Profit Rises 48% as Shares Jump 8%

The Gym Group reported a 48% increase in statutory profit before tax to GBP 4.9 million for the first half of 2026, driven by higher membership counts and cost management that sent its shares up 7.77% to $208 from $193 following the earnings release.

"Average membership was up 5%, with revenue for the period up 10%, 3% on a like-for-like basis. With this revenue growth and continued cost discipline, EBITDA LNR was up 12% to GBP 30.8 million," said Will Shu, chief executive, in a statement detailing the results.

Revenue and Earnings Breakdown

Total revenue for the six-month period rose 10% year-on-year to GBP 133.1 million, according to the company's earnings report. Adjusted profit before tax climbed 31% to GBP 6.4 million, while earnings before interest, taxes, depreciation, and amortization less normalized rent (EBITDA LNR) increased 12% to GBP 30.8 million.

The financial gains reflect higher engagement across the operator's fitness network. Average membership surpassed the 1-million threshold, representing a 5% increase compared to the same period a year earlier. Additionally, average revenue per member per month rose 5% to GBP 22.14.

Cash Flow and Expansion Plans

Executive leadership highlighted the company's liquidity position as a driver for ongoing development initiatives. Free cash flow reached GBP 27.7 million, marking a 10% improvement that supported both site expansion and an active share buyback program. Non-property net debt stood at GBP 58 million at the close of the period.

"Free cash flow was GBP 27.7 million, up 10%, supporting our accelerated rollout and the ongoing share buyback. Non-property net debt was GBP 58 million," said Luke Tait, chief financial officer, during the earnings call.

The fitness operator plans to continue expanding its physical footprint without taking on external debt financing. Management confirmed targets to open at least 20 new gym locations throughout 2026, with all capital expenditures funded entirely from generated free cash flow.

"We continue to accelerate the rollout of quality new sites. We expect to open at least 20 gyms in 2026, all funded from free cash flow," Shu added.