Highlights

  • Viva Leisure lifted FY26 statutory NPAT guidance to more than AUD 12 million and underlying NPAT to above AUD 17 million.
  • Memberships reached 680,000, up from 620,902 at the end of FY25, while existing-club utilisation improved.
  • H1 FY26 Revenue rose 17.6% to AUD 116.5 million and statutory NPAT increased 168% to AUD 5.2 million.
  • The FY26 result will test Earnings quality, TPLR contribution, Lease costs and the funding profile of the FY27 expansion pipeline.

Viva Leisure is entering its FY26 result with expectations already elevated. The Club Lime and Plus Fitness owner has upgraded profit guidance twice, lifted memberships to 680,000 and shifted attention from rapid site expansion toward extracting more from the network it already owns. That changes the question around ASX:VVA: the coming result is less about whether growth exists and more about how durable the earnings mix has become.

Recent Developments

On 26 May 2026, Viva Leisure raised statutory net profit after tax guidance to more than AUD 12 million for the year ended 30 June 2026, from an earlier floor of AUD 11.5 million. Underlying NPAT guidance moved to above AUD 17 million, while revenue guidance remained above AUD 237 million and statutory EBITDA above AUD 111 million. Total memberships reached 680,000, around 9.5% higher than the 620,902 reported at the end of FY25.

The half-year result had already pointed in the same direction. H1 FY26 revenue increased 17.6% to AUD 116.5 million and statutory NPAT rose 168% to AUD 5.2 million. Management highlighted portfolio utilisation near 80% and roughly 1,330 members per club, indicating more growth is coming from better use of existing locations rather than store additions alone.

Why It Matters

That operating shift matters because a higher-utilisation network can produce faster Earnings growth without requiring the same level of Capital needed for aggressive greenfield expansion. Viva has also been building Technology, Payments, Licensing and Retail, or TPLR, as a second earnings engine. Viva Pay alone was described as generating more than AUD 6 million annually, while licensing and retail income carry different Economics from running physical gyms.

The Franchise model adds another layer. Plus Fitness and other franchise brands allow network growth without Viva funding every site from its own Balance Sheet . Management has more than 100 committed corporate and franchise locations in the pipeline, including over 30 launches expected in the first half of FY27.

The Assets described above remain central to the company's valuation and strategic direction.

Investment requirements remain tied to the expansion and execution milestones outlined above.

Company Overview

Viva Leisure is one of Australia's larger health-club operators, combining corporate-owned gyms with a franchise network. Its brands include Club Lime, hiit republic and Plus Fitness. The company listed in June 2019 with 29 sites and reported 491 open locations by the end of FY25. Alongside memberships, the group earns Revenue from payments, licensing and retail activities through TPLR.

Financial Snapshot

FY25 Revenue rose 30% to AUD 211.3 million, statutory EBITDA increased 25.6% to AUD 99.1 million and statutory NPAT rose 60.9% to AUD 5.2 million. Earnings Per Share were 5.24 cents. On a pre-AASB16 basis, however, EBITDA was AUD 45.9 million, underlining the importance of lease accounting in a Business that rents much of its floor space.

During FY25, Viva deployed AUD 30.2 million across strategic acquisitions, AUD 19.2 million in growth capex and AUD 4.7 million on a share buyback. No Dividend was declared. The company has also reported positive Free Cash Flow , giving management greater flexibility to fund the next stage of expansion internally.

What to Watch

The full-year FY26 result is the immediate focus. The market will be looking for confirmation that the upgraded statutory and Underlying Profit guidance was achieved, along with the split between statutory and pre-AASB16 EBITDA. The contribution and Margin of TPLR, membership retention, revenue per club and any update on the FY27 rollout will help show whether the current Operating Leverage is repeatable.

Risks

The central risk is earnings quality. A larger contribution from high-margin TPLR and licensing activities raises questions about how much of the profit acceleration comes from the core gym estate. Lease obligations remain a Fixed Cost , leaving margins exposed to rising rents or weaker membership retention. The acquisition-led growth history also creates integration risk, while gym memberships remain discretionary spending that can come under pressure when household budgets tighten.

What Could Confirm Viva Leisure's Earnings Momentum

Viva Leisure has moved from a period defined by network expansion to one where utilisation, recurring membership income and higher-margin ancillary businesses carry more weight. The next result will show whether that shift is producing a more durable earnings base or simply a strong year helped by favourable mix. With guidance already lifted twice, the FY26 numbers now carry the burden of confirming the story.