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The Gym Group Accelerates Growth After Profits and Cash Flow Surge in 2025

Story Highlights
  • The Gym Group delivered strong 2025 earnings and cash flow growth, funding expansion while reducing leverage.
  • Its Next Chapter plan is lifting returns as it accelerates a cash-funded rollout and launches a £10m buyback.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
The Gym Group Accelerates Growth After Profits and Cash Flow Surge in 2025

Meet Samuel – Your Personal Investing Prophet

The Gym ( (GB:GYM) ) has issued an announcement.

The Gym Group reported robust 2025 results, with revenue up 8%, adjusted EBITDA less normalised rent rising 19% to £56.7m, and adjusted profit before tax nearly tripling, supported by higher membership, improved yield and tight cost control. Strong free cash flow of £38.3m funded 16 new sites, estate enhancements and technology investment, while non-property net debt edged down and leverage fell to 1.0 times, underpinned by an expanded and extended bank facility.

Operationally, the company’s “Next Chapter” growth plan is driving higher returns, with mature site ROIC reaching 27% and rising to 30% excluding workforce-dependent gyms, backed by sustained member satisfaction and increased visit frequency. Management is accelerating expansion to about 75 new, free-cash-flow-funded sites over three years, expects 2026 EBITDA less normalised rent at the top end of forecasts, and has initiated a £10m share buyback, signalling confidence in long-term growth and reinforcing its position in the structurally growing low-cost fitness market.

The most recent analyst rating on (GB:GYM) stock is a Buy with a £250.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

The Gym Group’s stock score is driven by strong financial recovery and positive earnings call sentiment. However, high leverage and a relatively high P/E ratio pose risks. Technical indicators suggest moderate bullish momentum, while strategic initiatives like the employee share scheme support future growth.

To see Spark’s full report on GB:GYM stock, click here.

More about The Gym

The Gym Group is a U.K.-based operator of low-cost, 24/7 gyms offering flexible, no-contract memberships aimed at value-conscious consumers. As of 31 December 2025, it operated 260 sites across the country with over 900,000 members and around 70 million annual visits, and it has positioned itself as a high-value, low-cost leader with validated science-based net-zero targets.

Average Trading Volume: 252,278

Technical Sentiment Signal: Buy

Current Market Cap: £305.8M

For detailed information about GYM stock, go to TipRanks’ Stock Analysis page.

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