Viva Leisure (ASX:VVA) has reached the point in a roll-out story where the arithmetic starts to change. FY2026 brought Revenue of A$237.1 million, statutory net profit up 144.5 per cent, Leverage down and, for the first time, a dividend. The gym operator now counts 534 open locations and close to 700,000 network members across several brands and four countries. With a Market Capitalisation of roughly A$153 million as at 11 September 2026 against that revenue base, Viva Leisure is a consumer name where the gap between scale and valuation may draw attention.

Latest Development

On 19 August 2026 Viva Leisure declared its maiden dividend: 3.0 cents per share, fully franked, worth approximately A$2.9 million in total. The shares trade ex-dividend on 28 September 2026, with a Record Date of 29 September 2026 and payment on 20 October 2026.

The Dividend accompanied FY2026 results that showed statutory net profit after tax of A$12.8 million, up 144.5 per cent, and underlying net profit of A$18.9 million, up 46.4 per cent. Net leverage fell to 1.77 times from 2.04 times, which is the context in which the board judged a distribution affordable.

Company Overview

Viva Leisure operates a multi-brand, technology-enabled fitness group that began with a single club in 2004. Its brands include Club Lime, Plus Fitness, HIIT Republic, Groundup, Zoo Fit, World Gym Australia and Rebalance, spanning corporate-owned and franchised sites. The group operates across four countries, with a presence in Australia, India, the United Kingdom and Asia, and describes a proprietary technology ecosystem covering fitness, technology and Fintech products.

Recent Developments

Network growth continued through FY2026, with 534 open locations at year end, an increase of 43, of which 204 were corporate sites, up three. Total network members reached 694,243, a rise of 73,341, while corporate members grew 17,117 to 275,688. Expansion during the period included Western Australia and United Kingdom master Franchise arrangements. Since the result, the company has lodged routine notices, including an application for Quotation and a cessation of securities on 7 September 2026 and a change of director's interest notice on 8 September 2026.

Financial and Operational Position

Revenue for the year ended 30 June 2026 was A$237.1 million, up 12.2 per cent. Statutory Earnings before interest, tax, Depreciation and Amortisation were A$110.0 million, up 14.6 per cent, with adjusted EBITDA of A$112.3 million, up 13.3 per cent. Statutory EBIT of A$42.0 million was 32.0 per cent higher.

Statutory Operating Cash Flow was A$76.4 million and adjusted free cash flow A$35.1 million, up 7.7 per cent. Net Assets stood at A$122.4 million.

What Investors May Watch Next

Management has set a target of one million network members by FY2029, supported by a reacceleration in greenfield development of more than 20 net new corporate locations a year and a franchise pipeline of over 150 sites. Payment of the maiden dividend in October 2026, the pace of new club openings, membership growth and further movement in net leverage are the measurable near-term markers.

Risks

Fitness memberships are discretionary and sensitive to household budgets, and attrition can move quickly. Rapid site growth carries execution and lease-commitment risk, and international expansion through master franchising introduces partner dependence. Leverage of 1.77 times has fallen but remains meaningful, and statutory profit is well below EBITDA because of depreciation and amortisation on a large leased footprint.

Conclusion

Viva Leisure enters FY2027 with more clubs, more members, lower leverage and its first dividend on the register — a combination that marks a shift from pure expansion towards balancing growth and returns. The verified FY2026 figures show Operating Leverage beginning to show up in profit rather than only in revenue. Whether the FY2029 membership target proves achievable is the question that will determine how closely investors follow this name.