Viva Leisure Ltd (ASX: VVA) posted a 46.4% rise in underlying net profit after tax to $18.9 million for the year ended June 30, 2026, as revenue increased 12.2% to $237.1 million. Statutory net profit surged 144.5% to $12.8 million, driven by cost discipline and operating leverage.
The group’s adjusted EBITDA rose 13.3% to $112.3 million, lifting the EBITDA margin by 50 basis points to 47.4%. Underlying earnings per share climbed 150.6% to 19.43 cents, while adjusted free cash flow increased 7.7% to $35.1 million. Operating cash flow reached $76.4 million, up from $70.0 million a year earlier.
Revenue growth was led by health clubs, which contributed $208.2 million, or 87.8% of total revenue, an 11% increase. Corporate locations grew to 204 sites serving 275,688 members, while the franchise network expanded to 330 locations with 418,555 members. Franchise-related income rose 13.5% to $9.0 million.
Technology and payments revenue, including Meridium Global’s processing volumes exceeding $400 million, reached $7.1 million, up 39.8%. The group’s Viva 360 AI platform, used for churn prediction and member risk assessment, achieved 89.1% accuracy across 72 engineered features.
Net leverage declined to 1.77 times from 2.04 times, remaining below the 2.50 times bank covenant. Growth investments totaled $31.3 million, comprising $21.4 million in capital expenditure, $5.5 million in technology, and $4.4 million in acquisitions. Debt reduction of $1.7 million and an on-market buyback of $1.8 million were also executed.
Viva declared its maiden dividend of 3.0 cents per share, fully franked, with an ex-date of September 28 and payment scheduled for October 20. The shares rose 10.25% to $1.56, near the top of the 52-week range of $1.305 to $1.875.
CEO Harry Konstantinou highlighted the 12.2% revenue growth, 10.2% cost increase, and 50-basis-point EBITDA margin expansion, while CFO Kym Gallagher noted the business funded all growth from operating cash flow and reduced leverage.
