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

The Gym Group (LON:GYM) issued 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 return on equity of 5.35% and a net margin of 3.02%.

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 6.6%

LON GYM opened at GBX 205.65 on Wednesday. The stock has a market cap of £356.32 million, a P/E ratio of 51.41, a PEG ratio of -12.95 and a beta of 0.83. The company’s fifty day simple moving average is GBX 204.92 and its 200-day simple moving average is GBX 192.04. 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 Gym Group has a 52 week low of GBX 131.20 and a 52 week high of GBX 220.

Analyst Ratings Changes

Several brokerages have commented on GYM. Berenberg Bank upped their price target 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. Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 250 price objective on shares of The Gym Group in a research note on Wednesday. Shore Capital Group reiterated a “buy” rating and set a GBX 280 target price on shares of The Gym Group in a report on Friday, September 4th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 230 target price on shares of The Gym Group in a research report on Friday, September 4th. Five equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average 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.