The Gym Group Raises FY26 Outlook on Strong Momentum

The Gym Group Exceeds FY25 Expectations, Upgrades FY26 Forecast

The Gym Group announced strong financial results for FY25, with key metrics surpassing market expectations. The company subsequently raised its FY26 guidance, signaling confidence in its continued growth trajectory and operational momentum into the new year.

Detailed Financial Performance

For the fiscal year 2025, the budget gym operator reported an EBITDA less normalised rent of £56.7 million, a 19% increase year-on-year and 2% above consensus. Revenues grew by 8% to £245 million, supported by a 4% rise in memberships to 945,000. The company also expanded its network to 260 locations after opening 16 new sites.

Future Outlook and Expansion Strategy

Looking ahead to FY26, The Gym Group now expects EBITDA less normalised rent to reach the top end of market forecasts at £60.7 million. The company has accelerated its expansion plans, guiding for at least 20 new site openings in FY26 and approximately 75 over the next three years. This growth will be financed through free cash flow, underscoring a sustainable expansion model.

Summary

The Gym Group's positive performance reflects successful operational execution and strong demand. With an upgraded outlook and an aggressive yet self-funded expansion strategy, the company is positioned for continued market share growth. Investors will monitor the integration of new sites and sustained membership trends.

FAQ

Q: What was The Gym Group's key financial achievement in FY25?
A: The company reported a 19% year-on-year increase in EBITDA less normalised rent to £56.7 million, exceeding market consensus.

Q: What is the company's expansion plan for FY26?
A: The Gym Group plans to open at least 20 new fitness centers in FY26, an increase from previous guidance, as part of a larger plan to open 75 sites over three years.

Source: Investing.com