The Gym Group (LON:GYM) Releases Earnings Results

The Gym Group (LON:GYM) announced its quarterly 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 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 Price Performance

Shares of GYM stock traded up GBX 13 during trading hours on Wednesday, reaching GBX 206. The company’s stock had a trading volume of 493,010 shares, compared to its average volume of 535,809. The company has a quick ratio of 0.27, a current ratio of 0.15 and a debt-to-equity ratio of 289.13. The company has a market capitalization of £356.93 million, a price-to-earnings ratio of 51.50, a PEG ratio of -12.95 and a beta of 0.83. The Gym Group has a fifty-two week low of GBX 131.20 and a fifty-two week high of GBX 220. The firm’s 50 day simple moving average is GBX 204.82 and its 200-day simple moving average is GBX 192.25.

More The Gym Group News

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

• Positive Sentiment: Sales and outlook improve: Revenue reportedly increased by about a tenth after membership price increases, while the company upgraded its outlook. Management also indicated that further price rises could be possible as younger customers, particularly Gen Z, continue to prioritise fitness. The Gym Group feeling fit as sales jump
• Positive Sentiment: Demand proved resilient: The Gym Group said gym attendance benefited as consumers avoided the heatwave and World Cup-related distractions, supporting membership growth and its upgraded expectations. Gym Group upgrades outlook as Gen-Z shuns heatwave and World Cup
• Positive Sentiment: Profitability improved: The company reported a rise in its first-half bottom line and quarterly earnings of 3.10 pence per share. Its reported net margin was 3.02%, although profitability remains relatively modest. The Gym Group Plc Reveals Climb In H1 Bottom Line
• Positive Sentiment: Broker support strengthened: Shore Capital upgraded GYM to “buy” with a 280p target, while Jefferies reaffirmed its “buy” rating and 250p target. These targets imply analysts believe the stock has meaningful upside from recent levels.
• Neutral Sentiment: Key risks remain: The company’s current ratio of 0.15, quick ratio of 0.27 and debt-to-equity ratio of 289.13 point to a leveraged balance sheet and limited short-term liquidity. Sustaining membership growth and price increases will be important for justifying the stock’s elevated valuation.

Analyst Ratings Changes

Several research analysts have recently weighed in on GYM shares. 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 report on Wednesday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 230 target price on shares of The Gym Group in a report on Friday, September 4th. Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 250 price objective on shares of The Gym Group in a research report on Wednesday. Finally, Berenberg Bank lifted their target price on shares of The Gym Group from GBX 255 to GBX 295 and gave the stock a “buy” rating in a report on Friday, August 14th. Five analysts have rated the stock with a Buy rating, According to MarketBeat, the stock has a consensus 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.