The Gym Group (LON:GYM) Posts Earnings Results

The Gym Group (LON:GYM) announced its earnings results on Wednesday. The company reported GBX 3.10 earnings per share for the quarter, Digital Look Earnings reports. The Gym Group had a net margin of 3.02% and a return on equity of 5.35%.

Here are the key takeaways from The Gym Group’s conference call:

• Strong first-half performance: Revenue increased 10% to £133.1 million, EBITDA less normalized rent rose 12% to £30.8 million, and adjusted profit before tax increased 31% to £6.4 million. Average membership exceeded 1 million, while like-for-like revenue grew 3%.
• Management expects full-year EBITDA less normalized rent to be at the top end of the £60.5 million–£62 million analyst forecast range, with like-for-like site-cost inflation now expected at the lower end of the 3%–4% guidance range. The company also expects no cash tax until 2030.
• The Gym Group is accelerating investment while maintaining leverage at 1x, targeting at least 20 new gyms in 2026 and approximately 75 over three years, funded from free cash flow. Recent new-site cohorts and major refurbishments are tracking toward roughly 30% ROIC, and the £10 million share buyback is expected to be completed by year-end.
• The company highlighted substantial long-term market potential, including rising U.K. gym penetration, demand from younger consumers and possible benefits from GLP-1 usage. It is also exploring smaller and larger gym formats, member referrals and partnerships in the broader health and fitness ecosystem.
• New gym openings remain back-weighted in 2026, creating execution pressure for delivery teams, although management still expects to meet the target of at least 20 openings. Like-for-like membership volumes are expected to remain broadly flat as continued competitor expansion creates an estimated 1%–2% drag.

The Gym Group Price Performance

GYM traded down GBX 7.50 on Thursday, hitting GBX 198.50. 176,762 shares of the company were exchanged, compared to its average volume of 533,745. The Gym Group has a fifty-two week low of GBX 131.20 and a fifty-two week high of GBX 220. The company has a debt-to-equity ratio of 289.13, a quick ratio of 0.27 and a current ratio of 0.15. The firm has a market capitalization of £343.93 million, a P/E ratio of 49.62, a price-to-earnings-growth ratio of -12.95 and a beta of 0.83. The business’s fifty day moving average is GBX 204.82 and its 200 day moving average is GBX 192.25.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Shore Capital Group upgraded The Gym Group to a “buy” rating and set a GBX 280 target price on the stock in a research note on Wednesday. Berenberg Bank increased their price target on The Gym Group from GBX 255 to GBX 295 and gave the stock a “buy” rating in a report on Friday, August 14th. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 250 price objective on shares of The Gym Group in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 230 price objective on shares of The Gym Group in a research report on Friday, September 4th. Five analysts have rated the stock with a Buy rating, According to MarketBeat, The Gym Group has a consensus rating of “Buy” and an average target price of GBX 251.

Key Headlines Impacting The Gym Group

Here are the key news stories impacting The Gym Group this week:

• Positive Sentiment: First-half sales increased by roughly 10% after membership price increases, while the company said demand remained resilient. The Gym Group also highlighted strong fitness interest among younger customers, including Gen Z. City A.M. article
• Positive Sentiment: Management upgraded its outlook, supported by membership growth, higher prices and continued demand despite potential seasonal distractions such as the summer heatwave and World Cup. Bdaily article
• Positive Sentiment: The company reported first-half bottom-line growth and quarterly earnings of GBX 3.10 per share. Its reported net margin was 3.02%, with return on equity of 5.35%. RTTNews article
• Positive Sentiment: Shore Capital upgraded The Gym Group to “buy” and set a GBX 280 price target. Jefferies reaffirmed its “buy” rating with a GBX 250 target, both above the recent trading level and indicating continued analyst confidence.
• Neutral Sentiment: The company is considering further membership price increases as customers continue to prioritize fitness, which could support revenue but may eventually test customer retention and demand. MSN article
• Negative Sentiment: Despite the positive update and analyst support, the shares have moved lower. Investors may be concerned about the company’s relatively high valuation and substantial debt relative to equity, which could limit the immediate upside from stronger operating results.

The Gym Group Company Profile

The Gym Group plc, together with its subsidiaries, operates a network of gym facilities under the Gym Group brand name in the United Kingdom. The company was founded in 2007 and is based in Croydon, the United Kingdom.