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Canberra-headquartered gym operator Viva Leisure (ASX: VVA) has lifted its full-year bottom-line profit guidance to more than $12 million, up from the $11.5 million floor flagged earlier, underpinned by margin growth and a solid increase in memberships across its network of brands.
The net profit target represents growth of more than 130 per cent on the $5.2 million delivered in FY25, while the company also raised its underlying net profit after tax guidance to more than $17 million, from a previous floor of $16 million.
Viva Leisure has also reaffirmed revenue guidance of more than $237 million and statutory EBITDA of more than $111 million for FY26.
The upgrade is underpinned by margin discipline across Viva Leisure's portfolio of more than 200 corporate and franchise fitness clubs operating under the Plus Fitness, Hiit Republic, Club Lime and other brands.
The network is now averaging about 1,330 members per club at 80 per cent portfolio utilisation, with total memberships reaching 680,000 - a 9.5 per cent increase on the 620,902 recorded at the close of FY25.
The result builds on a strong first half, in which Viva Leisure posted revenue of $116.5 million, up 17.6 per cent, and statutory NPAT of $5.2 million, representing growth of 168 per cent on the prior corresponding period.
A key growth lever is the company's Technology, Payments, Licensing & Retail (TPLR) division, which is tracking at 30 per cent year-on-year growth and represents 8.1 per cent of group revenue at the half-year mark.
The division's Viva Pay platform is generating more than $6 million per annum, while the retail arm - spanning vending machines and supplements - has reached an annualised run-rate exceeding $6 million.
“FY26 has been a year of disciplined execution and earnings expansion," says Viva Leisure CEO Harry Konstantinou.
"With revenue tracking in line with guidance, margin expansion and the accelerating contribution of our TPLR division have allowed us to reaffirm EBITDA guidance and upgrade NPAT guidance, underscoring the quality and resilience of our earnings.
"The NPAT upgrade reflects favourable operating leverage, improved gross margins across the network, and TPLR delivering ahead of plan.
“With our corporate clubs now operating at peak utilisation we have validated our model and generated strong free cash flow."
Konstantinou has signalled that the company is preparing to re-accelerate its greenfield rollout from FY27, with more than 100 committed franchise and corporate locations still to open.
More than 30 of those sites are expected to launch in the first half of FY27.
This follows Viva Leisure last year investing in Gold Coast-based sports drinks startup Gorilla X , a deal designed to deepen the retail component of the TPLR strategy by channelling product through its gym network.
In 2024, Viva Leisure made a $16.7 million investment for 25 per cent of World Gym Australia (WGA).
Full-year revenue for FY25 was $211.3 million, with statutory EBITDA of $99.1 million and underlying EBITDA of $45.9 million.
The latest FY26 guidance implies statutory EBITDA growth of about 12 per cent and revenue growth of more than 12 per cent on those figures.
Underlying EBITDA guidance of more than $53 million represents growth of about 15 per cent.
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