Viva Leisure Ltd. (VVA) AI Stock Analysis

• Market Cap: AU$136.49M
• Dividend Yield: N/A
• Average Volume (3M): 61.83K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.57
• Revenue Growth: 30.36%
• EPS Growth: 47.61%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.07
• Shares Outstanding: 98,546,370
• 10 Day Avg. Volume: 67,265
• 30 Day Avg. Volume: 61,832
• PEG Ratio: 0.54
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 3.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$1.50 ▼(-8.54% Downside)

Viva Leisure Ltd.'s stock score is primarily influenced by its strong financial performance, despite high leverage and modest profitability. Technical indicators suggest potential bearish momentum, and the valuation appears high relative to earnings. The absence of dividend yield further impacts the attractiveness of the stock.

Positive Factors

Sustained Revenue Expansion

Viva Leisure's multi-year top-line acceleration indicates durable demand for fitness access and successful expansion. Consistent revenue growth supports reinvestment, network scale economics and franchise roll‑out, underpinning mid-term cash flow predictability and growth optionality.

Very High Gross Margin

Reported extremely high gross margin reflects strong revenue capture versus direct costs, implying efficient unit economics across clubs and low variable cost exposure. This margin cushion supports operating leverage as membership base scales and helps absorb fixed-cost inflation over time.

Recurring & Franchise Revenue Model

Core revenue from recurring membership fees combined with franchise income creates steady, subscription-like cash flows and scalable expansion via franchising. That mix yields predictable revenue, reduces capital intensity per location and supports margin resilience over multiple quarters.

Negative Factors

High Financial Leverage

A debt-to-equity ratio of 3.46 signals substantial leverage that constrains financial flexibility. Elevated debt increases interest expense sensitivity, limits ability to pursue opportunistic expansion or absorb demand shocks, and raises refinancing and liquidity risks over the medium term.

Thin Net Profitability

Despite strong gross and EBITDA margins, a low net margin near 2.5% limits retained earnings and capacity to fund capex, franchise support or debt reduction from operating profits. This compresses resilience to cost inflation, pricing pressure or slower membership growth over months ahead.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests cash generation lags reinvestment or working capital needs. That trend undermines capacity to deleverage, invest in club upgrades or support franchise partners without external funding, elevating medium‑term execution and liquidity risk.

Viva Leisure Ltd. Business Overview & Revenue Model

Company Description

Viva Leisure Limited operates health clubs. As of August 18, 2022, the company operated approximately 152 health clubs under the Club Lime and Hiit Republic brand names within the Australian Capital Territory, New South Wales, Victoria, Queensland, and Western Australia; and approximately 200 franchised health clubs under the Plus Fitness brand in Australia, New Zealand, and India. It also provides debit services. The company was founded in 2004 and is based in Mitchell, Australia.

How the Company Makes Money

Viva Leisure generates revenue primarily through membership fees from its fitness clubs, which include both monthly and annual subscription models. The company also earns income from ancillary services such as personal training sessions, group fitness classes, and wellness programs. Additional revenue streams come from retail sales of fitness-related products and partnerships with corporate clients for employee wellness programs. Significant partnerships with health fund providers and community organizations also contribute to its earnings by increasing membership uptake and providing additional services to clients.

Viva Leisure Ltd. Financial Statement Overview

Summary

Viva Leisure Ltd. demonstrates robust revenue growth and operational efficiency, with strong gross profit and EBITDA margins. However, challenges include high leverage and modest profitability. Cash flow generation is solid, but negative free cash flow growth warrants attention.

Income Statement

Viva Leisure Ltd. has shown a strong revenue growth rate of 15.18% in the most recent year, indicating a positive trajectory. The gross profit margin is exceptionally high at 100%, suggesting efficient cost management. However, the net profit margin is relatively low at 2.49%, indicating room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.46, which suggests significant leverage and potential financial risk. However, the equity ratio indicates that 18.11% of the company's assets are financed by equity, which is a moderate level. The return on equity is low, suggesting limited profitability from shareholders' investments.

Cash Flow

Operating cash flow is strong, covering nearly all net income, indicating good cash generation from operations. However, free cash flow growth is negative, which could signal potential challenges in maintaining liquidity. The free cash flow to net income ratio is moderate, suggesting a balanced cash conversion cycle.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	211.30M	210.28M	161.48M	141.04M	90.76M	83.60M
Gross Profit	143.79M	210.28M	48.41M	42.17M	13.02M	18.53M
EBITDA	49.04M	78.71M	59.12M	67.48M	37.73M	35.30M
Net Income	5.23M	5.23M	3.25M	3.40M	-12.14M	-6.38M
Balance Sheet
Total Assets	612.39M	612.39M	542.49M	449.02M	436.14M	398.14M
Cash, Cash Equivalents and Short-Term Investments	12.88M	12.88M	22.27M	6.83M	10.07M	17.29M
Total Debt	383.68M	383.68M	319.34M	266.17M	264.63M	230.17M
Total Liabilities	501.47M	501.47M	433.40M	359.00M	350.33M	311.78M
Stockholders Equity	110.92M	110.92M	109.08M	90.02M	85.81M	86.35M
Cash Flow
Free Cash Flow	45.41M	40.59M	40.57M	33.52M	15.52M	-2.50M
Operating Cash Flow	70.04M	70.04M	59.45M	53.13M	27.95M	25.36M
Investing Cash Flow	-66.39M	-66.19M	-32.89M	-25.15M	-31.84M	-54.80M
Financing Cash Flow	-13.25M	-13.25M	-11.11M	-31.22M	-3.32M	16.63M

Viva Leisure Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VVA, the sentiment is Negative. The current price of 1.64 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.61, and above the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VVA.

Viva Leisure Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STP	71 Outperform	AU$59.31M	4.69	24.28%	20.30%	2.76%	1.93%
JYC	67 Neutral	AU$157.90M	21.47	21.22%	5.01%	1.82%	-18.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GLB	60 Neutral	AU$112.60M	11.64	12.77%	7.43%	-7.21%	-14.55%
VVA	58 Neutral	AU$136.49M	26.43	4.75%	―	30.36%	47.61%
SHJ	57 Neutral	AU$120.27M	212.12	0.21%	7.14%	4.44%	-90.57%
CEH	51 Neutral	AU$207.88M	-594.44	-0.05%	―	10.76%	95.79%

Viva Leisure Ltd. Corporate Events

Viva Leisure Sets Date for HY2026 Results and Investor Webinar

Viva Leisure will release its financial results for the half year ended 31 December 2025 on 12 February 2026 and will host an investor webinar the same day, led by CEO and Managing Director Harry Konstantinou and CFO Kym Gallagher. The briefing, which includes a Q&A session, underscores the company’s ongoing engagement with investors and provides a forum for stakeholders to gain deeper insight into current trading conditions and strategic progress across its growing fitness and technology ecosystem.

The most recent analyst rating on (AU:VVA) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Viva Leisure Ltd. stock, see the AU:VVA Stock Forecast page.

Viva Leisure’s 2025 AGM: Key Resolutions and Outcomes

Viva Leisure Limited held its 2025 Annual General Meeting, where several resolutions were voted on by shareholders. Key outcomes included the adoption of the Remuneration Report, re-election of Andrew Burns as a Non-Executive Director, and approval of options issuance to CEO Harry Konstantinou. However, the proposal for a 10% Placement Facility was not carried. These results reflect the company’s ongoing governance and strategic decisions, impacting its operational and market strategies.

The most recent analyst rating on (AU:VVA) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Viva Leisure Ltd. stock, see the AU:VVA Stock Forecast page.