Viva Leisure Ltd. (VVA) AI Stock Analysis

• Market Cap: AU$164.57M
• Dividend Yield: N/A
• Average Volume (3M): 61.83K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.49
• Revenue Growth: 30.36%
• EPS Growth: 47.61%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.05
• 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: AU$2.00
• Price Target Upside: 21.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$240.25M

• Rating: 64 Neutral
• Price Target: AU$2.00 ▲(21.95% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is primarily driven by solid financial performance from strong revenue growth and healthy operating margins, partially offset by high leverage and modest net profitability. Technicals are supportive with the price above key moving averages, but momentum is mixed due to a slightly negative MACD. Valuation is moderate with a mid-range P/E and no dividend yield data.

Positive Factors

Strong Revenue Growth

Sustained top-line growth of ~15% indicates expanding demand and successful network expansion. Over a 2–6 month horizon, this momentum supports membership traction, franchise rollouts and scale benefits, making revenue a durable driver of operating leverage.

Membership-based recurring revenue

A subscription-style membership model produces predictable, recurring cash flows that support steady revenue and retention-focused economics. This structural revenue mix improves forecastability and underpins franchise royalties and in-club upsell opportunities over the medium term.

Healthy operating margins and gross margin

Very high gross margin combined with healthy EBIT/EBITDA margins implies efficient cost control and strong operating leverage. These margins provide durable cash generation capacity and margin resilience as the business scales franchise and company-owned clubs.

Negative Factors

High Financial Leverage

A debt-to-equity ratio above 3x signals material leverage that increases interest burden and refinancing risk. Over months, high leverage can constrain capital allocation, limit ability to invest in new clubs or franchise support, and reduce resilience to revenue shocks.

Low Net Profitability

A net margin near 2.5% shows limited conversion of revenue into attributable profits despite healthy operating margins. This narrows buffers against downturns, limits retained earnings for reinvestment and constrains long-term returns to equity holders.

Negative Free Cash Flow Growth

Despite strong operating cash flow, negative free cash flow growth suggests rising capex, working capital or cash outflows. Persisting FCF decline limits debt reduction, franchise investment and dividend capacity, weakening financial flexibility over several months.

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

Strong revenue growth (15.18%) and healthy EBIT/EBITDA margins support operating performance, but profitability is modest (2.49% net margin). Balance sheet leverage is a key risk with a high debt-to-equity ratio (3.46). Cash generation is solid, though negative free cash flow growth is a concern.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	228.57M	210.28M	161.48M	141.04M	90.76M	83.60M
Gross Profit	115.12M	210.28M	48.41M	42.17M	13.02M	18.53M
EBITDA	79.13M	78.71M	59.12M	67.48M	37.73M	35.30M
Net Income	8.51M	5.23M	3.25M	3.40M	-12.14M	-6.38M
Balance Sheet
Total Assets	603.26M	612.39M	542.49M	449.02M	436.14M	398.14M
Cash, Cash Equivalents and Short-Term Investments	18.21M	12.88M	22.27M	6.83M	10.07M	17.29M
Total Debt	597.44M	383.68M	319.34M	266.17M	264.63M	230.17M
Total Liabilities	486.81M	501.47M	433.40M	359.00M	350.33M	311.78M
Stockholders Equity	116.45M	110.92M	109.08M	90.02M	85.81M	86.35M
Cash Flow
Free Cash Flow	59.15M	40.59M	40.57M	33.52M	15.52M	-2.50M
Operating Cash Flow	81.14M	70.04M	59.45M	53.13M	27.95M	25.36M
Investing Cash Flow	-34.59M	-66.19M	-32.89M	-25.15M	-31.84M	-54.80M
Financing Cash Flow	-46.61M	-13.25M	-11.11M	-31.22M	-3.32M	16.63M

Viva Leisure Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1.64 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.61, and above the 200-day MA of 1.54, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VVA.

Viva Leisure Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JYC	72 Outperform	AU$171.21M	18.15	21.22%	5.01%	1.82%	-18.84%
STP	66 Neutral	AU$48.19M	-11.87	24.28%	20.30%	2.76%	1.93%
VVA	64 Neutral	AU$164.57M	19.33	4.75%	―	30.36%	47.61%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GLB	60 Neutral	AU$117.11M	13.83	12.77%	7.43%	-7.21%	-14.55%
SHJ	57 Neutral	AU$126.20M	12.58	0.21%	7.14%	4.44%	-90.57%
CEH	51 Neutral	AU$225.37M	―	-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.