The Gym Group (LON:GYM) Posts Quarterly Earnings Results

The Gym Group (LON:GYM) issued its quarterly earnings data 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 Stock Up 7.3%

LON:GYM traded up GBX 14 during midday trading on Wednesday, reaching GBX 207. The company had a trading volume of 400,779 shares, compared to its average volume of 535,276. The Gym Group has a 12-month low of GBX 131.20 and a 12-month high of GBX 220. The firm has a market capitalization of £358.66 million, a price-to-earnings ratio of 51.75, a PEG ratio of -12.95 and a beta of 0.83. The company has a current ratio of 0.15, a quick ratio of 0.27 and a debt-to-equity ratio of 289.13. The stock’s fifty day simple moving average is GBX 204.92 and its 200-day simple moving average is GBX 192.04.

More The Gym Group News

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

• Positive Sentiment: Sales rose by about 10%. Recent membership-price increases helped drive revenue growth, while demand remained resilient as younger customers prioritised fitness. Gym Group upgrades outlook as Gen-Z shuns heatwave and World Cup
• Positive Sentiment: Management upgraded its outlook. The company said gym attendance and membership trends held up despite potential distractions such as the summer heatwave and World Cup, supporting confidence in further growth. The Gym Group feeling fit as sales jump
• Positive Sentiment: Further price increases are being considered. The Gym Group believes customers—particularly Gen Z—continue to value affordable fitness, potentially allowing it to improve revenue per member without undermining demand. The Gym Group eyes further price hikes as Gen Z prioritises fitness
• Positive Sentiment: Profitability improved in the first half. Reports highlighted a year-on-year increase in the company’s bottom line, while quarterly results showed earnings of GBX 3.10 per share, a 3.02% net margin and 5.35% return on equity. The Gym Group Plc Reveals Climb In H1 Bottom Line
• Positive Sentiment: Jefferies reaffirmed its Buy rating and set a GBX 250 price target, implying further upside from the shares’ current level and reinforcing positive investor sentiment.

Wall Street Analyst Weigh In

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

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.