Gym Group profit doubles as fitness firm flexes its muscles
The Gym Group more than doubled its profit as it bulks up its low-cost fitness offering and opens new sites.
The low-cost fitness group posted pre-tax profit of £10.6m in the year to December 2025, up 194 per cent from last year, as revenue nudged up eight per cent to £245m.
London’s only listed gym operator is targeting Gen-Z as a core consumer group, as the firm claims 44 per cent of its members belong to this generation and 73 per cent of them exercise at least twice a week.
The Gym Group runs 260 24-hour locations across the UK and counts more than 900,000 members.
The firm, which is listed on the FTSE all-share, opened 16 new sites last year and plans to unveil 20 more this year as part of plans to expand into around 75 more locations over the next three years.
The group’s share price rose two per cent on Wednesday’s market open, to 178p.
Gym Group expands ‘premium’ sites
Though the group offers low-cost gym access and flexible memberships, the firm is attempting to deliver a high-end atmosphere with a set of locations featuring an “elevated, more premium design format”.
All of the 16 new sites opened last year were part of this premium design range, bringing the total of this type to 37 locations.
The Gym Group is also investing in technology and data, it said, by implementing a member referral program, new member retention strategies and a drive to cut payment failure rates.
The firm began a £10m share buyback program at the end of last year, and has so far repurchased more than one million of its shares.
Adam Vettesse, market analyst at Etoro, said: “Overall, it’s a healthy turnaround story for the everyday punter, affordable fitness is booming despite cost-of-living concerns, particularly among Gen Z. Self-funded growth plus a £10 million share buyback also scream confidence.
“Shares have continued their positive start to the year and have opened strongly this morning. Investors will now be looking for this trajectory to continue and reclaim some old ground lost in prior years.”