Viva Leisure (VVA) H2 2025 earnings summary

Executive summary

• Achieved record membership exceeding 620,902 and nearly 500 locations, cementing position as the second largest fitness operator in Australia, with a 60.2% CAGR in locations since IPO.

• Revenue surpassed $211.3 million for the first time, up 30% year-over-year.

• Statutory EBITDA rose 25.6% to $99.1 million, with EPS up 47.6%.

• NPAT increased 60.9% to $5.2 million.

• Business model is resilient, with strong organic and acquisition-driven growth, and a diversified multi-brand, multi-segment portfolio.

Financial highlights

• Revenue increased by $48.7 million, with $19.3 million from organic growth in health clubs.

• Technology, payments, licensing, and services revenue grew 127.7% to $14.8 million, now the highest margin division.

• Adjusted free cash flow rose 6.8% to $32.6 million.

• Normalized NPAT reached $7.3 million; statutory NPAT was $5.2 million, up 60.9% year-over-year.

• Borrowings increased to $100.5 million, mainly to fund acquisitions and growth projects.

Outlook and guidance

• Q4 2025 revenue and EBITDA exceeded guidance, providing a base case for FY 2026 of $106 million EBITDA (post-AASB 16), a 7% increase.

• Q4 annualised revenue guidance for FY2026 is $228.0 million, with pre-AASB16 EBITDA guidance above $50 million.

• Growth CapEx expected to decrease to $11 million in FY 2026, supporting higher free cash flow.

• 172 new locations secured for future opening, mostly franchise, providing high-margin, low-capital growth.

• Licensing to third parties in TPLS segment to commence in FY2026.