The Gym Group (LON:GYM) Issues Earnings Results

The Gym Group (LON:GYM) announced its quarterly earnings results on Wednesday. The company reported GBX 3.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The Gym Group had a net margin of 3.27% and a return on equity of 5.95%.

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 Performance

Shares of LON GYM traded down GBX 0.50 during midday trading on Friday, hitting GBX 198. 1,220,057 shares of the company’s stock traded hands, compared to its average volume of 537,581. The company has a debt-to-equity ratio of 293.82, a quick ratio of 0.27 and a current ratio of 0.17. The stock has a market capitalization of £343.07 million, a price-to-earnings ratio of 49.50, a price-to-earnings-growth ratio of -12.95 and a beta of 0.83. The Gym Group has a 1 year low of GBX 131.20 and a 1 year high of GBX 220. The firm has a fifty day moving average of GBX 204.51 and a 200 day moving average of GBX 192.41.

Analysts Set New Price Targets

Several research firms recently issued reports on GYM. Shore Capital Group raised The Gym Group to a “buy” rating and set a GBX 280 target price on the stock in a research note on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating and set a GBX 250 price target on shares of The Gym Group in a research report on Wednesday. Berenberg Bank increased their price objective on The Gym Group from GBX 255 to GBX 295 and gave the stock a “buy” rating in a report on Friday, August 14th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 230 target price on shares of The Gym Group in a research note on Friday, September 4th. Five investment 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 price target 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.