The Gym Group reported half-year 2026 results on September 9 that pushed adjusted EBITDA less normalized rent up 12% to £30.8 million, sending shares higher by 7.77% to £208, near the top of a 52-week range of £132 to £220.
Revenue for the period rose 10% year-over-year to £133.1 million, with like-for-like growth of 3%. Group Adjusted EBITDA LNR margin expanded 50 basis points to 23.1%. Adjusted profit before tax climbed 31% to £6.4 million, while statutory profit before tax rose 48% to £4.9 million. Adjusted diluted EPS increased 21% to 2.9 pence.
"Average membership was up 5%, with revenue for the period up 10%, 3% on a like-for-like basis. With this revenue growth and continued cost discipline, EBITDA LNR was up 12% to £30.8 million," Chief Executive Will Orr said.
Average membership reached 1,002,000, marking the first time the figure has crossed one million. Average revenue per member per month rose 5% to £22.14, and average tenure extended 4% to approximately 18.5 months. Fixed-term memberships made up 10% of the base.
The company's average monthly fee of £26.91 remained below competitors — £1.45 under PureGym and £4.18 below JD Gyms — while sitting well under mid-market gyms at £41.62 and premium operators at £132.02.
Free cash flow totalled £27.7 million, up 10% year-over-year, with operating free cash flow at £31.1 million. Expansionary capital expenditure was £18.5 million. Non-property net debt stood at £58.0 million against an adjusted leverage ratio of 1.0x. Total banking facilities increased to £117 million, split between a £60 million term loan and a £57 million revolving credit facility, amended in June 2026 with maturities extending to June 2028.
For the full year, the company expects Group Adjusted EBITDA LNR at the top end of analyst forecasts at £60.5 million to £62.0 million, with total capital expenditure of £60 million to £65 million. An effective tax rate of approximately 18% is anticipated for FY26, with no material cash tax expected until 2030. A £10 million share buyback is underway and is expected to complete by year-end.
The Gym Group opened four sites in the first half and has 11 under construction, with five sites exchanged. It plans to refurbish 21 locations in 2026, up from 10 last year, and expects to open at least 20 new gyms in 2026. Total gym count rose to 264 from 212 in H1 2022.
In broader market context, PwC research cited during the presentation projected UK GLP-1 drug users could rise from around 3 million in 2026 to 7 million in 2027. The UK gym market reached £7.3 billion over the past decade, growing at a 5.1% compound annual rate from 2016 to 2026, with penetration climbing to roughly 18% of the population.
