Viva Leisure (VVA) H1 2025 earnings summary

Executive summary

• Achieved record-breaking H1 FY2025 results with revenue up 25.2% to AUD 99 million and strong growth across all key metrics, supported by a diversified strategy in health clubs, franchising, and technology.

• Over 90% of revenue is recurring, emphasizing business model resilience and stability.

• Membership base expanded to 593,697, with 476–594 total locations and a robust pipeline of new sites.

• Strategic acquisitions and investments included equity stakes in Boutique Fitness Studios (34%) and World Gym Australia (25%), with call options for full ownership.

• International franchise agreements secured in Singapore, Hong Kong, Philippines, UK, and India.

Financial highlights

• Revenue rose to AUD 99 million, up 25.2% year-over-year; EBITDA reached AUD 21 million, up 26.2%; NPAT hit AUD 5.5 million, up 15.2%.

• Adjusted free cash flow increased 22% to AUD 15.9 million.

• EBITDA margin improved to 21.2%, up 20bps year-over-year, despite a 24.8% increase in operating costs.

• Net cash from operating activities was AUD 31.6 million, with cash at period end at AUD 18.1 million.

• Debt drawn at approx. AUD 100–108.6 million, with a AUD 130 million senior debt limit and stable net assets at AUD 109.2 million.

Outlook and guidance

• Q4 guidance reaffirmed: revenue to exceed AUD 56 million, annualized revenue over AUD 224 million for FY2026; Q4 EBITDA expected to exceed AUD 12.5 million, annualized EBITDA over AUD 50 million.

• Strategic focus on optimizing value from the existing network, moderating new site openings, and prioritizing free cash flow generation.

• Continued international franchise expansion and technology rollouts (Viva Pay, The Hub, unified access apps) planned.

• No new material risks identified; risk mitigation strategies remain as previously outlined.