The Gym Group (LON:GYM) Announces 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 return on equity of 5.95% and a net margin of 3.27%.

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 Trading Up 0.3%

LON GYM opened at GBX 199 on Friday. The Gym Group has a 12 month low of GBX 131.20 and a 12 month high of GBX 220. The company has a current ratio of 0.17, a quick ratio of 0.27 and a debt-to-equity ratio of 293.82. The stock’s fifty day moving average price is GBX 204.51 and its 200-day moving average price is GBX 192.41. The stock has a market cap of £344.80 million, a P/E ratio of 49.75, a P/E/G ratio of -12.95 and a beta of 0.83.

Analysts Set New Price Targets

Several research firms recently weighed in on GYM. Berenberg Bank lifted their price target on The Gym Group from GBX 255 to GBX 295 and gave the company a “buy” rating in a research report on Friday, August 14th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 230 price objective on shares of The Gym Group in a report on Friday, September 4th. Jefferies Financial Group restated a “buy” rating and set a GBX 250 target price on shares of The Gym Group in a report on Wednesday. Finally, Shore Capital Group upgraded shares of The Gym Group to a “buy” rating and set a GBX 280 price target for the company in a research note 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 an average target price of GBX 251.

About The Gym Group

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.