Viva Leisure Ltd. reported a 46.4% jump in underlying net profit to $18.9 million for the year ended June 30, 2026, driven by network optimization and membership growth. The Australian fitness operator’s statutory net profit after tax surged 144.5% to $12.8 million, while earnings per share rose 150.6% to 13.1 cents.
Revenue increased 12.2% year-over-year to $237.1 million, marking the seventh consecutive year of growth. Adjusted EBITDA climbed 13.3% to $112.3 million, lifting the EBITDA margin by 50 basis points to 47.4%. Adjusted free cash flow rose 7.7% to $35.1 million, supported by operating cash flow of $76.4 million.
The company’s total network membership reached 694,243, up 73,000 from the prior year, with an average of 1,351 members per club. Portfolio utilization exceeded 80% for the first time, while the health clubs segment generated $208.2 million in revenue, accounting for 87.8% of total sales. The franchise network, comprising 330 locations, added 17,117 members and contributed $9.0 million in revenue.
Technology investments, including the Viva 360 AI platform, supported operational efficiency. The platform’s churn prediction model achieved 89.1% accuracy across 72 features, while the suspension prediction system provided 7–30 days of advance warning. Meridium Global, the payments and technology unit, reported standalone EBITDA of $13.4 million, up from $3.7 million in FY2025, processing over $400 million in transaction volume.
Viva Leisure allocated $31.3 million to growth initiatives, including $21.4 million in capital expenditure, $5.5 million in technology, and $4.4 million in acquisitions. The company also initiated a maiden fully franked dividend of 3.0 cents per share, payable October 20, 2026. Net leverage declined to 1.77x from 2.04x, below the bank covenant of 2.50x.
Shares in Viva Leisure rose 10.25% to $1.56, extending gains from the prior close of $1.415. The stock has traded between $1.305 and $1.875 over the past 52 weeks.
