The Gym Group Raises 2026 Profit Forecast on Strong H1 Momentum

The Gym Group announced it expects full-year earnings for 2026 to reach the top end of analyst estimates, citing sustained business momentum and strong performance in the first half of the year. The company's upgraded outlook reflects healthy growth in both membership and revenue.

Upgraded Outlook

The low-cost fitness chain now anticipates its fiscal 2026 EBITDA less normalized rent will be at the high end of the consensus range. According to a company-compiled consensus, this points to a figure around £62.0 million, an approximate 1% increase to the average estimate of £61.1 million.

The Gym Group also stated it is on track to deliver 3% like-for-like revenue growth for the full year, consistent with its first-half performance. Furthermore, it now expects like-for-like cost growth to be at the lower end of its previously guided 3% to 4% range, indicating improved cost control.

First-Half Performance

The positive forecast is supported by strong results for the first six months of the year, where the company saw broad-based growth across key financial metrics.

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• Revenue: Climbed 10% year-over-year to £133.1 million.
• EBITDA less normalized rent: Rose 12% to £30.8 million.
• Adjusted profit before tax: Grew 31% to £6.4 million.
• Free cash flow: Increased 10% to £27.7 million.

Membership numbers also showed a positive trend, with total members increasing 7.4% since the end of 2025 to 0.99 million. Average revenue per member per month rose 5% to £22.14, while the company maintained its leverage at 1.0 times.

Expansion and Investment

The company is continuing its expansion and refurbishment strategy, which it plans to fund from free cash flow. It opened four new locations in the first half and has 11 sites currently under construction, remaining on target to open at least 20 new gyms for the full year.

Over the next three years, The Gym Group aims to open approximately 75 new sites. The company noted that its site refurbishment program is yielding strong returns, with the ten locations updated in 2025 achieving a 10% membership increase and tracking towards a 30% return on invested capital.