The Gym Group (LON:GYM) Posts Earnings Results

The Gym Group (LON:GYM) released its quarterly earnings data on Wednesday. The company reported GBX 5.60 EPS for the quarter, Digital Look Earnings reports. The Gym Group had a return on equity of 5.63% and a net margin of 3.19%.

Here are the key takeaways from The Gym Group’s conference call:

• Strong financials: Revenue rose 8% to £244.9m and EBITDA less normalized rent increased 19% to £56.7m, with free cash flow up 10% to £38.3m and net debt reduced to £59.3m (1x leverage).
• Self‑funded rollout and returns: The group opened 16 sites in 2025, plans at least 20 (20–22) in 2026 and is targeting ~75 new sites over three years, all funded from free cash flow while mature site ROIC rose to 27% and new cohorts are tracking toward 30% ROIC.
• Confident 2026 outlook and trading: January–February revenue was +9% year‑on‑year and management expects like‑for‑like sales ~3%, central costs <11% of revenue and 2026 EBITDA (less normalized rent) to be at the top end of analysts' forecasts.
• Investment and one‑off costs increased: total cash CapEx rose to £51.2m (expansionary £33.9m), implementation costs for new member/payment systems increased non‑underlying charges (~£3.2m) and share‑based payments rose to £5.5m, which pressure near‑term reported profit.
• Cost and cash‑flow timing risks: management warns of higher like‑for‑like site cost inflation (3–4%, H1 weighted) driven by a non‑commodity electricity increase and expects no further net‑debt reduction this year due to accelerated, FCF‑funded openings.

The Gym Group Stock Up 0.4%

The Gym Group stock opened at GBX 175.45 on Wednesday. The company has a market capitalization of £307.41 million, a P/E ratio of 42.79, a PEG ratio of -12.95 and a beta of 0.96. The company has a debt-to-equity ratio of 295.70, a quick ratio of 0.27 and a current ratio of 0.19. The Gym Group has a fifty-two week low of GBX 119 and a fifty-two week high of GBX 186.80. The stock has a 50-day simple moving average of GBX 169.41 and a 200-day simple moving average of GBX 152.30.

Wall Street Analyst Weigh In

GYM has been the subject of a number of research analyst reports. Royal Bank Of Canada raised The Gym Group to an “outperform” rating and upped their price target for the company from GBX 155 to GBX 200 in a report on Friday, January 16th. Berenberg Bank raised their price objective on shares of The Gym Group from GBX 200 to GBX 230 and gave the stock a “buy” rating in a report on Monday, January 19th. Five research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of GBX 202.

The Gym Group announced that its board has authorized a stock buyback plan on Thursday, January 15th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

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.