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

The Gym Group (LON:GYM) issued its quarterly earnings results on Wednesday. The company reported GBX 3.10 EPS 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 6.7%

GYM traded up GBX 13 during trading on Wednesday, reaching GBX 206. The company had a trading volume of 493,010 shares, compared to its average volume of 535,809. The company has a market cap of £356.93 million, a P/E ratio of 51.50, a PEG ratio of -12.95 and a beta of 0.83. The Gym Group has a 12 month low of GBX 131.20 and a 12 month high of GBX 220. The company has a debt-to-equity ratio of 289.13, a current ratio of 0.15 and a quick ratio of 0.27. The business’s fifty day moving average price is GBX 204.92 and its 200 day moving average price is GBX 192.04.

Wall Street Analyst Weigh In

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

Key The Gym Group News

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

• Positive Sentiment: Sales and outlook improve: The Gym Group reported that sales increased by roughly a tenth, helped by higher membership prices. Management also upgraded its outlook, citing resilient demand and growing fitness priorities among younger customers. The Gym Group feeling fit as sales jump Gym Group upgrades outlook as Gen Z shuns heatwave and World Cup
• Positive Sentiment: Pricing power remains intact: The company is considering further membership-price increases as Gen Z and other customers continue to prioritise fitness. This could support revenue growth and margins, provided membership retention remains strong. The Gym Group eyes further price hikes as Gen Z prioritises fitness
• Positive Sentiment: Earnings increased: The Gym Group reported quarterly earnings of GBX 3.10 per share, with a 3.02% net margin and 5.35% return on equity. The improved bottom line reinforces the positive operating update. The Gym Group Plc Reveals Climb In H1 Bottom Line
• Positive Sentiment: Analyst support strengthened: Shore Capital upgraded the stock to “buy” and set a GBX 280 target, while Jefferies reaffirmed its “buy” rating with a GBX 250 target. Both targets imply additional upside based on the latest trading level. London Stock Exchange
• Negative Sentiment: Valuation and balance-sheet risks remain: Despite the improved outlook, The Gym Group trades at a relatively high earnings multiple and carries substantial leverage. Further price increases could also test customer retention, making execution and membership growth important to sustaining the rally.

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.