Core Insights - The Gym Group reported strong progress in its 2025 full-year results, highlighting membership growth, increased revenue, and improved profitability as it continues to invest in new sites and its "Next Chapter" growth plan [7] Financial Performance - Revenue increased by 8% to GBP 244.9 million, with a 3% like-for-like growth and average members rising to 945,000, up 4% year-over-year [6] - EBITDA less normalized rent rose 19% to GBP 56.7 million, exceeding consensus by GBP 1.2 million, with an EBITDA margin improvement to 23%, up 2 percentage points from the previous year [5] - Statutory profit before tax was GBP 7.4 million, an increase of GBP 4.9 million year-over-year, while adjusted profit before tax rose to GBP 10.6 million, up GBP 7 million [5] Cost Management - Like-for-like site costs fell 1% in the first half and rose 3% in the second half, resulting in a 1% increase for the full year, which was better than prior guidance of 2% [2][4] - Central costs increased by 5% year-over-year but improved as a percentage of revenue, falling 0.4% to 11.3%, with expectations to drop below 11% of revenue in 2026 [8] Membership and Revenue Growth - The average headline rate of a standard membership increased to GBP 25.64, up GBP 1.11 year-over-year, with like-for-like revenue rising 3% [3] - Closing membership rose by 4% in 2025, with average revenue per member per month increasing by 4% to GBP 21.60 [6] Expansion and Future Outlook - The company opened 16 new sites in 2025 and expects to open at least 20 gyms in 2026, with guidance indicating 20-22 sites planned [14] - Early 2026 trading showed a strong start with 9% revenue growth year-to-date, driven by 4% average member growth and a 5% increase in average revenue per member per month [15] - For 2026, the company guided to like-for-like sales growth of about 3% and like-for-like site cost inflation of 3%-4% [16] Capital Allocation and Debt Management - Free cash flow rose 10% to GBP 38.3 million, supported by a GBP 5.3 million working capital inflow [9] - Net debt ended the year at GBP 59.3 million, down GBP 2 million from December 2024, with a net debt to EBITDA leverage ratio falling to 1x from 1.3x a year earlier [10] - The company initiated a GBP 10 million share buyback program and has purchased and canceled 1.1 million shares to date [11]