The low-cost gym group that’s quietly taking over the UK
The Gym Group, the low-cost fitness chain known for its 24/7, no-contract gyms, is steadily expanding its footprint across the UK with a strategy that’s delivering consistent growth and drawing in nearly a million members.
On Wednesday (11 March) the group released its full-year results for 2025, revealing revenue climbed 8% to £244.9 million from £226.3 million the prior year. Adjusted EBITDA rose 13% to £98.9 million, while adjusted profit before tax nearly tripled to £10.6 million.
The numbers beat expectations, driven by a 4% increase in average membership and a similar uplift in average revenue per member per month (ARPMM), which reached £21.60.
Operationally, The Gym Group opened 16 new sites in 2025, pushing its total estate to 260 locations. Membership stood at over 900,000 by year-end, with early 2026 momentum pushing it to 999,000 by the end of February, up 8% year-on-year.
Like-for-like revenue grew 3%, and member satisfaction remains high, with 94% rating their experience 4 or 5 out of 5 stars. The company has also invested in technology upgrades, including new member management and payment systems, and rolled out a partnership with Wellhub to tap into corporate wellness demand.
The quiet expansion is paying off in profitability metrics too. Mature sites delivered a 27% return on invested capital (ROIC), with free cash flow improving 10% to £38.3 million. Net debt fell slightly, and leverage dropped to 1.0x.
Accelerated rollout
Looking ahead, the company is accelerating its rollout, targeting at least 20 new openings in 2026 and around 75 sites over the next three years, funded by free cash flow and requiring a 30% ROIC hurdle. It also launched a £10 million share buyback program in January 2026.
Guidance for 2026 points to adjusted EBITDA less normalised rent at the top end of analyst expectations (around £59.6 million to £60.7 million), with like-for-like revenue growth around 3%.
While PureGym and other competitors grab more spotlight in the budget gym space, The Gym Group’s focus on disciplined growth, pricing power, and high member engagement has positioned it as a steady winner in a sector benefiting from post-pandemic fitness trends and demand from younger demographics like Gen Z.
Investors appear to have taken note, with the stock showing resilience and analyst upgrades following earlier trading updates.
