The Gym Group (LON:GYM) Announces Earnings Results

The Gym Group (LON:GYM) announced its 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 Performance

GYM stock traded down GBX 7.50 during midday trading on Thursday, hitting GBX 198.50. The stock had a trading volume of 202,858 shares, compared to its average volume of 533,895. The firm has a market capitalization of £343.93 million, a price-to-earnings ratio of 49.62, a P/E/G ratio of -12.95 and a beta of 0.83. The Gym Group has a 52 week low of GBX 131.20 and a 52 week high of GBX 220. The stock has a 50-day simple moving average of GBX 204.82 and a 200 day simple moving average of GBX 192.25. The company has a current ratio of 0.15, a quick ratio of 0.27 and a debt-to-equity ratio of 289.13.

Key Stories Impacting The Gym Group

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

• Positive Sentiment: First-half sales increased by roughly 10% following membership price increases, while the company also reported a rise in underlying profit. The results suggest that higher prices have so far been absorbed without materially weakening demand. The Gym Group feeling fit as sales jump The Gym Group sales jump by a tenth after membership prices increased
• Positive Sentiment: The Gym Group upgraded its outlook, citing resilient demand from younger customers, including Gen Z, despite the summer heatwave and competing World Cup coverage. Management is also considering further price increases, indicating confidence in customer retention and the brand’s value proposition. Gym Group upgrades outlook as Gen-Z shuns heatwave and World Cup The Gym Group eyes further price hikes as Gen Z prioritises fitness
• Positive Sentiment: Shore Capital upgraded GYM to “buy” with a GBX 280 price target, while Jefferies reaffirmed its “buy” rating and set a GBX 250 target. Both targets are above the stock’s recent level near GBX 200, providing a bullish signal from sell-side analysts.
• Neutral Sentiment: The company reported quarterly EPS of GBX 3.10, with a 3.02% net margin and 5.35% return on equity. Profitability improved, but margins remain modest, so sustained membership growth and pricing execution will be needed to justify further valuation gains. The Gym Group earnings results
• Negative Sentiment: Further membership price increases could eventually increase cancellation risk or make the chain less attractive to cost-conscious customers. Investors will therefore focus on whether future price rises continue to lift revenue without damaging membership numbers.

Wall Street Analyst Weigh In

A number of research firms have issued reports on GYM. Jefferies Financial Group restated a “buy” rating and set a GBX 250 price target on shares of The Gym Group in a report on Wednesday. Berenberg Bank lifted their price target on The Gym Group from GBX 255 to GBX 295 and gave the stock a “buy” rating in a research report on Friday, August 14th. Shore Capital Group upgraded The Gym Group to a “buy” rating and set a GBX 280 price target for the company in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 230 price objective 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 stock currently has an average rating of “Buy” and a consensus 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.