Viva Leisure Limited Overview
Viva Leisure is Australia's second-largest fitness network and the only ASX-listed operator in the Australian fitness sector. It runs a vertically integrated, multi-brand model spanning corporate-owned mid-market clubs (Club Lime, the country's largest non-franchised health club brand), a value tier (newly launched Zoo Fit), boutique studios (HIIT Republic, GroundUp, Psycle Life), and a capital-light franchise system (Plus Fitness), complemented by minority stakes in World Gym Australia and Boutique Fitness Studios (the ANZ master franchisee for Club Pilates, StretchLab, CycleBar and Rumble). Its key differentiator is a wholly in-house technology stack — The Hub (member management), Viva Pay (payments, >A$400m annual transaction volume), Access Control and Viva 360 (member intelligence) — now being carved into a standalone subsidiary, Meridium Global, under strategic review. FY2026 delivered record revenue of A$237.1m, underlying NPAT of A$18.9m and a maiden dividend, as management pivots from acquisition-led growth toward operating leverage and a one-million-member target by FY2029 [S1, S2, S21].
What the company does
Viva Leisure operates and franchises gyms, health clubs and boutique fitness studios, and owns and operates the technology and payments platform that runs them. In its own words in the FY2026 results release, Viva today runs two distinct businesses: an international fitness network, and the technology and payments platform that supports it [S1]. The company's boilerplate describes itself as a vertically integrated health and fitness group operating one of the largest and most diverse networks of fitness, wellness and technology assets in the region, with 534 open locations and more than 700,000 members across Australia, New Zealand and India, and Singapore and the United Kingdom opening in 2027 [S1].
Business model and the "three pillars"
Through FY2026 management framed the business as three pillars [S3]:
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Health Clubs (corporate-owned): Viva leases sites, funds the fit-out, and earns recurring direct-debit membership fees. This is the dominant revenue line (A$208.2m in FY2026, 87.8% of group revenue) [S1].
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Franchise: Primarily Plus Fitness (wholly owned franchisor), plus equity-accounted/investment income from World Gym Australia (25%) and Boutique Fitness Studios (34%). Franchisees fund their own sites; Viva earns franchise fees and investment income (A$9.0m in FY2026) [S1].
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Technology, Payments, Licensing & Retail (TPLR): Viva Pay transaction revenue, technology licensing, access control, vending and supplements (Supp Society, Gorilla X products). In FY2026 this was split into "Supplements, licensing and retail" (A$12.8m) and a new standalone "Payments and Technology" reporting segment (A$7.1m net of eliminations; A$20.2m gross) [S1].
Revenue model mix
| Revenue character | Share of FY2026 revenue (approx.) | Basis |
|---|---|---|
| Subscription (recurring membership direct debits, corporate clubs) | ~88% | Health Clubs A$208.2m of A$237.1m [S1] |
| Franchise fees and investment income (royalty-like) | ~4% | A$9.0m [S1] |
| Product/retail (supplements, vending, merchandise) and licensing | ~5% | A$12.8m [S1] |
| Payments and technology services (transaction/processing, platform) | ~3% net (≈8.5% gross before eliminations) | A$7.1m net / A$20.2m gross [S1] |
Management states that more than 90% of revenue is recurring [S5]. The company notes its revenue is direct-debit billed across 534 locations and multiple brands and price points, so no single site, region or member segment is material [S1].
Value chain position
Viva sits at the consumer-facing service end of the fitness value chain (site operation, membership acquisition, programming) but has integrated backwards into the infrastructure layer that most gym operators buy from third parties: member-management software, payment processing, physical access control hardware and data/CRM analytics. This vertical integration means Viva captures payment-processing economics on its own and its franchisees' membership billing, and can license the stack to third parties (World Gym, Boutique Fitness Studios and prospective external licensees) [S1, S5, S21].
Customer types and end-markets
Retail consumers: adult members across price points — value (Zoo Fit from A$8.88/week), mid-market (Club Lime), premium/boutique (GroundUp, HIIT Republic, Club Pilates via BFS) [S20].
Families: Zoo Fit's "Fit Fam" membership (from A$24.80/week for two adults and two teenagers aged 13–17), described as a first in the Australian industry [S20].
Franchisees: small-business owners operating Plus Fitness, World Gym and BFS studios, who are customers for Viva's technology and payments services [S1].
Merchants (payments): Viva Pay holds settlement funds on behalf of merchants (A$4.4m reduction in such balances in FY2026) [S1].
End-markets are the Australian gym and fitness centre industry (A$3.66bn revenue in 2025/26 per IBISWorld) [S10], the New Zealand and Indian franchise markets, and prospective Singapore, Philippines and UK franchise markets [S14].
Independent characterisation
Viva is best understood as a lease-heavy, mid-market corporate gym operator with an embedded, under-recognised fintech/SaaS asset. On a statutory basis (AASB 16), EBITDA margins look exceptional (47.4% adjusted), but this reflects rent being reclassified into depreciation and interest; the economically relevant "underlying" (pre-AASB 16) EBITDA margin is 22.6% [S1]. The key investment debate is whether (a) density-driven operating leverage in a young estate can keep compounding earnings faster than revenue, and (b) Meridium Global can be valued as a payments/technology business rather than as part of a fitness operator. Capital intensity has fallen sharply (acquisitions and investments dropped from A$36.9m in FY2025 to A$4.4m in FY2026) [S1], marking a transition from a roll-up to a cash-generating, dividend-paying operator.
Strategy
Stated strategy themes
"Shaping the Future of Fitness": corporate brand tagline signalling evolution from a gym operator to a smart, scalable fitness ecosystem (2025 rebrand).
"The Viva Story": management's published blueprint for growth, innovation and leadership [S4].
Three pillars: Health Clubs, Franchise, TPLR [S3].
Network optimisation (FY2026): deliberately slowing greenfield openings to fill existing clubs and "prove the model" [S1].
Capital-light breadth: franchise growth funded entirely by franchisees [S1].
"Each membership counts twice": every member added grows both club revenue and payments/technology revenue [S1].
Strategic initiatives (last 24 months)
| Initiative | Date | Description / targets | Source |
|---|---|---|---|
| Meridium Global | Announced 19 Aug 2026 | Payments and technology assets transferred into a new subsidiary operating as a standalone business; strategic review exploring partnerships or a strategic investor while Viva retains majority ownership; aim to have the platform valued against payments/technology peers | S1, S22 |
| Viva 360 member intelligence | FY2026 deployment; FY2027 intervention | Churn model (89.1% accuracy), suspension model, lookalike targeting; automated intervention tuned on a profit curve in FY2027 | S1 |
| One million members by FY2029 | Aug 2026 | Current ~6,000 net adds/month implies >900,000 without changes; greenfield reacceleration closes the gap | S1 |
| Greenfield reacceleration | FY2027 onward | >20 net new corporate locations (vs 3 in FY2026), larger-format Club Lime, Zoo Fit and World Gym sites secured | S1 |
| Franchise pipeline | Ongoing | >150 franchise locations sold/in pipeline (Plus Fitness, World Gym, BFS); 170 total sold/pipeline across AU, Singapore, UK | S1 |
| Zoo Fit launch and re-brand program | Launched Jul 2026 | Value brand; 20-site refurbishment/re-brand expected to deliver ~30–40% average revenue uplift per location within three months, no new lease required; first converted site reportedly exceeded that in its first month; Forrestdale example: ~A$1.2–1.3m annual EBITDA on ~A$3m fit-out | S1, S20, S22 |
| International franchising | Nov–Dec 2024 agreements; openings 2027 | Plus Fitness master franchises for Singapore, Philippines and UK (10-year UK term with two 10-year options) | S14 |
| Capital returns | Feb 2026; Aug 2026 | On-market buy-back up to 10% (to 1 Mar 2027); maiden dividend; payout policy 40–60% of underlying NPAT | S1, S7 |
| Technology licensing | FY2026 onward | Third-party licensing launch; Hub rollout to World Gym; Viva Pay integration into World Gym not before 2027 | S3, S4, S5 |
| Sports partnerships | 2,026 | Fremantle Dockers (3-year, AFL/AFLW), Canberra Raiders (Club Lime extended to 2028), Perth Bears NRL (Zoo Fit) | S20, Viva website |
| Sustainability | Ongoing | Reduced printing of annual reports (only to electing shareholders); no formal emissions targets disclosed | S25 |
Management guidance and medium-term targets
| Item | Detail | Source |
|---|---|---|
| FY2026 guidance outcome | All five metrics exceeded (revenue >A$237.0m → A$237.1m; adjusted EBITDA >A$111.0m → A$112.3m; underlying EBITDA >A$53.0m → A$53.7m; statutory NPAT >A$12.0m (upgraded) → A$12.8m; underlying NPAT >A$17.0m (upgraded) → A$18.9m) | S1 |
| FY2027 numeric guidance | Not provided in retrieved sources (qualitative: reaccelerated rollout funded from cash flow and facilities) | S1 |
| Membership target | 1,000,000 network members by FY2029 | S1 |
| Dividend policy | 40–60% of underlying NPAT, subject to reinvestment and balance sheet | S1 |
| Leverage | Covenant 2.50x; current 1.77x | S1 |
Products & Services
Health Clubs (corporate)
| Brand | Description | Target customer | Launch / status | Pricing (where disclosed) |
|---|---|---|---|---|
| Club Lime | Flagship mid-market 24/7 health club brand; 135 of the ~202 corporate locations; Australia's largest non-franchised health club brand; present in ACT, NSW, QLD, VIC, WA, NT | Mainstream adults seeking full-service gym, classes, roaming access | Since 2004 (brand of first club era) | Not disclosed in retrieved sources |
| Club Pink | Women-only club concept within the Club Lime family | Women | Operating (launch year not disclosed) | — |
| Zoo Fit | Value-tier, large-format 24/7 gym with wellness/recovery (saunas), ladies-only zones, crèche; first in WA (Wanneroo, Mandurah), then Clarkson, Port Kennedy, Butler, Kennedy Park, Forrestdale; ACT, NSW, QLD planned; 20-site refurbishment/re-brand program from existing estate | Price-sensitive members, families | Launched Jul 2026 | From A$8.88/week (gym), A$14.88/week (gym + wellness), "Fit Fam" from A$24.80/week |
| HIIT Republic | Boutique high-intensity interval training studios | Class-focused, younger urban members | Pre-IPO brand | — |
| GroundUp | Boutique reformer Pilates, barre, yoga studios; "GroundUp Wellness" contrast-therapy (infra-red sauna, ice baths, red-light therapy) co-located | Premium boutique and wellness consumers | Launched pre-2024; Wellness added 2024 | — |
| Psycle Life | Boutique indoor cycling (branded "Psycle Life by Club Lime") | Cycling class enthusiasts | Pre-IPO brand | — |
| Rebalance | Pilates and yoga studios acquired in FY2022; flagged for re-branding into Club Pilates under the BFS arrangement | Pilates/yoga consumers | Acquired H1 FY2022 | — |
| World Gym (corporate sites) | Three wholly owned big-box World Gym clubs in Queensland (Stafford, Coomera, Underwood) plus 50:50 JV corporate rollout | Strength/performance-focused members | Acquired Dec 2024–Q3 FY2025 | — |
Sources: [S1, S13, S16, S17, S19, S20, S21, S24, and Viva corporate brand release].
Franchise brands and investments
| Brand / entity | Ownership | Description | Scale |
|---|---|---|---|
| Plus Fitness | 100% (franchisor) | Express 24/7 value gym franchise founded in 2009; AU, NZ, India operating; Singapore, Philippines, UK under master franchise agreements | ~197 locations at acquisition (2020); 199 open at FY2025 [S4, S19] |
| World Gym Australia | 25% equity + call option over remaining 75% (36 months from Dec 2024) | Big-box strength-heritage franchise; Taiwan-listed World Gym Corporation owns the global brand | 53 sites at deal (Dec 2024); ~60 locations after first Canberra (Belconnen) opening in 2026 [S13; Health Club Management] |
| Boutique Fitness Studios (BFS) | 34% equity + option to acquire 100% (A$5.8m plus earn-out, within two years of Sep 2024 — status of exercise not disclosed) | ANZ master franchisee of Xponential Fitness brands Club Pilates, StretchLab, CycleBar, Rumble Boxing | 48 open / 106 sold at deal; 62 open and 105 secured at FY2025 [S4, S12] |
| Gorilla X Labs | 33% | Gold Coast sports nutrition: ready-to-drink beverages, protein powders, supplements, merchandise; sold in World Gym clubs, online and major supermarkets | Undisclosed sum [S15] |
Supplements, licensing and retail
| Offering | Description | Disclosed metrics |
|---|---|---|
| Supp Society | Viva's own supplements brand and exclusive online store | Vending and supplements revenue exceeded A$500,000/month by HY2026 [S3] |
| Vending | In-club vending | Included above |
| Third-party licensing | Licensing of Viva technology to non-owned operators | "Growing pipeline" (HY2026); third-party licensing slated to launch in FY2026 [S3, S4] |
Payments and Technology (Meridium Global)
| Platform | Function | Disclosed capabilities / metrics |
|---|---|---|
| Viva Pay | Integrated payments processing for corporate and franchise membership billing | >A$300m annual total transaction volume (Feb 2025) rising to >A$400m (Aug 2026); contributes over A$6m per year (HY2026); rolled out across Plus Fitness (May 2024), BFS; World Gym integration not before 2027 [S1, S3, S5] |
| The Hub | Proprietary member management system | Deployed across corporate network; being implemented at World Gym franchise locations [S5] |
| Access Control | Proprietary physical access hardware/software; NFC Apple/Android digital wallet passes | NFC passes across >120 locations (Oct 2024); being introduced across World Gym [S23] |
| Viva 360 | In-house member intelligence platform — single "golden record" per member, natural-language querying of certified data | Churn model with 89.1% accuracy using 72 engineered features scored on every member; suspension model giving 7–30 days' warning; lookalike targeting on owned data; automated intervention layer deploying through FY2027 [S1] |
| Fling Pass / Viva Pass | Multi-venue access/pass product (referred to as "Viva Pass" in development in 2024 and "Fling Pass" in 2026 materials) | Commercial metrics not disclosed [S12, S20] |
| Revenue-generating fitness apps | Consumer apps within the platform | — |
Financial Narrative
Data notes: Company-reported figures [S1, S4] are used where available; otherwise S&P Global Market Intelligence standardised data [S8]. Blank cells indicate the figure was not disclosed in retrieved sources. Viva reports under AASB 16; "adjusted" and "statutory" EBITDA include lease rent reclassification, while "underlying" (pre-AASB 16) EBITDA deducts rent and is the better proxy for cash operating earnings.
Income statement
Sources: [S1, S4, S8, S13/MT Newswires for FY2024 EBITDA figures]. FY2024 statutory EBITDA (A$78.9m) and pre-AASB16 EBITDA (A$35.4m) are as reported in the FY2025 comparatives [S4]. Diluted EPS was not disclosed in retrieved sources. FY2021 revenue was A$83.72m and net loss A$6.38m [S8].
Margins
Calculated by analyst from 6.1. Company-reported margins: adjusted EBITDA margin 47.4% (+50bp) and underlying EBITDA margin 22.6% (+90bp) in FY2026 [S1]. The FY2024 adjusted margin shown uses statutory EBITDA (A$78.9m) as the closest comparable.
Revenue CAGR: FY2022–FY2026 four-year CAGR of 27.1%; FY2023–FY2026 three-year CAGR of 18.9% (analyst calculation from [S8]).
Commentary. The five-year revenue trajectory has three phases. FY2022 was COVID-impaired (revenue +8.5%, statutory loss of A$12.1m with an operating loss) [S8]. FY2023 rebounded 55% on the reopening and the full-year effect of corporatised Plus Fitness sites and Rebalance [S8, S25]. FY2024–FY2025 were acquisition-heavy years (iFitness NT, eight WA clubs, World Gym clubs, BFS and WGA stakes), with FY2025 revenue up 30% — of which management attributed 48.2% (A$19.3m) of the Health Clubs increase to organic growth [S4]. FY2026 marks the inflection: with only three net new corporate sites, revenue still grew 12.2% while operating costs grew 10.2%, converting 51 cents of each incremental revenue dollar into adjusted EBITDA; EBIT rose 32.0%, pre-tax profit 145.1% and statutory NPAT 144.5% [S1]. This is classic operating leverage in a fixed-cost estate: average members per corporate club rose from 1,286 to 1,351 and portfolio utilisation exceeded 80% for the first time [S1]. Normalisations in FY2026 totalled A$2.3m (pre-opening rents and site closure costs A$1.53m, share-based payments A$0.55m, due diligence and project costs A$0.23m) [S1], a modest gap between statutory and "adjusted" EBITDA. The larger gap between statutory NPAT (A$12.8m) and underlying NPAT (A$18.9m) reflects additional underlying adjustments not fully itemised in the announcement; investors should reconcile these in the full financial statements.
Balance sheet
Source: [S8]; net bank debt calculated by analyst as borrowings less cash. Data discrepancy flag: S&P classifies long-term debt at A$100.5m in FY2025 versus A$29.1m in FY2024, a step-change larger than net drawdowns visible in the cash flow statement (debt issued A$36.4m, repaid A$45.0m in FY2025). This may reflect reclassification of other financial liabilities (e.g., acquisition-related or deferred consideration) by the data provider. The company's own leverage metric — net leverage of 2.04x (FY2025) and 1.77x (FY2026) against a 2.50x bank covenant [S1] — implies bank net debt of roughly A$94–95m on underlying EBITDA, broadly consistent with the S&P FY2025–FY2026 figures. Net assets increased to A$122.4m from A$110.9m [S1]. Closing cash fell A$7.1m to A$5.8m, of which approximately A$4.4m was a reduction in Viva Pay merchant settlement funds (a timing item); liquidity is held in undrawn facilities rather than cash [S1].
Commentary. The balance sheet is structurally lease-heavy (A$292m of lease liabilities at FY2026 versus A$122m equity) and goodwill-heavy (goodwill plus intangibles of A$126m now exceeds equity, giving negative tangible book value of A$3.9m) [S8]. Negative working capital is structural for a prepaid/direct-debit subscription model. The FY2025 re-leveraging funded the WGA/BFS/WA acquisitions; FY2026 began deleveraging (net debt repaid A$44.3m gross of new draws on S&P data; leverage down 0.27x) [S1, S8].
Cash flow
Sources: [S1, S8]. The maiden dividend (A$2.9m) is payable 20 October 2026, i.e., in FY2027 [S1].
Commentary. Operating cash flow has grown every year (FY2022–FY2026 CAGR ~28.6%, analyst calculation). The critical analytical distinction is the treatment of lease payments: after deducting lease principal, S&P free cash flow is a thin A$3.6–9.7m in FY2024–FY2026. The company's "adjusted free cash flow" (A$35.1m in FY2026) is defined differently (it appears to deduct rent and maintenance capex but not growth capex), and FY2026 was the first year this fully funded growth reinvestment (A$31.3m) plus the buy-back [S1]. Maintenance capex of A$6.1m (2.6% of revenue) reflects a young estate [S1] — a factor that will rise as clubs age.
Ratios
Calculated by analyst from [S8] unless stated; S&P reports FY2026 ROE of 10.96% on average equity, ROA 4.48% (S&P methodology) and interest coverage 1.84x [S8]. Net leverage per [S1]. Cash conversion cycle: not meaningful/not disclosed — Viva collects membership fees in advance via direct debit, carries minimal inventory (A$1.9m) and runs negative working capital, so the conventional metric is structurally negative.
Commentary. Returns remain modest on a statutory basis because AASB 16 inflates the asset base and interest line, but the trajectory is clearly improving: ROE more than doubled in FY2026. Interest coverage (≈1.8x on total interest including lease interest) is the tightest metric and the main constraint on leverage-funded growth; bank covenants are measured on a pre-AASB 16 basis where headroom (1.77x vs 2.50x) is adequate [S1].
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View Subscription PlansFinancial Detail
Segment / Stream Details
| Segment / stream | What it contains | Key products / brands |
|---|---|---|
Health Clubs | Corporate-owned gyms and studios (204 locations at 30 Jun 2026) | Club Lime, Club Pink, Zoo Fit (corporate), HIIT Republic, GroundUp, Psycle Life, corporate Plus Fitness sites, three corporate World Gym clubs (Stafford, Coomera, Underwood) |
Franchise and investment income | Franchise fees from Plus Fitness network; share of results from World Gym Australia (25%) and Boutique Fitness Studios (34%) | Plus Fitness (AU, NZ, India; Singapore, Philippines, UK agreements), World Gym, Club Pilates/StretchLab/CycleBar/Rumble (via BFS) |
Supplements, licensing and retail | Supplements and merchandise, vending, licensing | Supp Society, Gorilla X products (33% investee), vending |
Payments and Technology (to become Meridium Global) | Payment processing, member management platform, access control, member intelligence, fitness apps | Viva Pay, The Hub, Access Control, Viva 360, Fling Pass |
Revenue by Segment
| Segment | FY2025 | FY2026 |
|---|---|---|
Health Clubs revenue (AUD Mn) | 187.5 | 208.2 |
Franchise and investment income (AUD Mn) | 7.9 | 9.0 |
Supplements licensing and retail (AUD Mn) | 10.8 | 12.8 |
Payments and Technology net of eliminations (AUD Mn) | 5.0 | 7.1 |
Payments and Technology gross before eliminations (AUD Mn) | 7.3 | 20.2 |
Total revenue (AUD Mn) | 211.3 | 237.1 |
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View Subscription PlansRevenue by Segment (FY2024–FY2025)
| Segment | FY2024 | FY2025 |
|---|---|---|
Health Clubs revenue (AUD Mn) | 147.5 | 187.5 |
Technology Payments Licensing and Services (AUD Mn) | 6.5 | 14.8 |
Other revenue (AUD Mn) | 0.2 | 1.1 |
Franchise revenue derived by subtraction (AUD Mn) | 8.4 | 7.9 |
Total revenue (AUD Mn) | 162.6 | 211.3 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Health Clubs revenue growth (%) | — | 27.1 | 11.0 |
Health Clubs share of group revenue (%) | 90.7 | 88.7 | 87.8 |
Franchise and investment income growth (%) | — | — | 13.5 |
Franchise share of group revenue (%) | 5.2 | 3.7 | 3.8 |
Supplements licensing and retail growth (%) | — | — | 18.5 |
Supplements licensing and retail share of revenue (%) | — | 5.1 | 5.4 |
Payments and Technology net growth (%) | — | — | 39.8 |
Payments and Technology net share of revenue (%) | — | 2.4 | 3.0 |
TPLS legacy growth (%) | — | 127.7 | — |
Results by Segment and Segment Margins & Growth (%)
| Metric | FY2025 | FY2026 |
|---|---|---|
Payments and Technology standalone EBITDA pre eliminations (AUD Mn) | 3.7 | 13.4 |
Payments and Technology EBITDA margin on gross revenue (%) | 50.7 | 66.3 |
Revenue by Segment (HY2025–HY2026)
| Segment (half-year) | HY2025 | HY2026 |
|---|---|---|
Health Clubs revenue (AUD Mn) | 88.5 | 102.9 |
Franchise and investment income (AUD Mn) | — | 4.2 |
TPLR or Technology Payments and Other (AUD Mn) | 6.4 | 9.3 |
Group revenue (AUD Mn) | 99.0 | 116.5 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (AUD Mn) | 90.83 | 141.18 | 162.63 | 211.3 | 237.1 |
Revenue growth (%) | 8.5 | 55.4 | 15.2 | 29.9 | 12.2 |
Gross profit S&P basis (AUD Mn) | 56.78 | 94.39 | 110.2 | 143.79 | 162.86 |
Operating income S&P basis (AUD Mn) | -0.1 | 23.38 | 25.23 | 35.38 | 44.53 |
EBIT company reported (AUD Mn) | — | — | — | 31.8 | 42.0 |
Statutory EBITDA company reported (AUD Mn) | — | — | 78.9 | 96.0 | 110.0 |
Adjusted EBITDA company reported (AUD Mn) | — | — | — | 99.1 | 112.3 |
Underlying pre-AASB16 EBITDA (AUD Mn) | — | — | 35.4 | 45.9 | 53.7 |
EBITDA S&P standardised (AUD Mn) | 7.25 | 32.08 | 36.31 | 49.04 | 59.77 |
Pre-tax income (AUD Mn) | — | — | — | 7.3 | 17.8 |
Statutory net income (AUD Mn) | -12.14 | 3.4 | 3.25 | 5.23 | 12.78 |
Underlying NPAT (AUD Mn) | — | — | — | 12.9 | 18.9 |
Basic EPS statutory (AUD cents) | — | — | — | 5.24 | 13.13 |
Underlying EPS (AUD cents) | — | — | — | 12.60 | 19.43 |
Dividend per share (AUD cents) | 0 | 0 | 0 | 0 | 3.0 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin S&P basis (%) | 62.5 | 66.9 | 67.8 | 68.1 | 68.7 |
Operating margin S&P basis (%) | -0.1 | 16.6 | 15.5 | 16.7 | 18.8 |
Adjusted EBITDA margin (%) | — | — | 48.5 | 46.9 | 47.4 |
Underlying EBITDA margin (%) | — | — | 21.8 | 21.7 | 22.6 |
Net margin statutory (%) | -13.4 | 2.4 | 2.0 | 2.5 | 5.4 |
Balance Sheet and Share Count (M)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (AUD Mn) | 436.14 | 449.02 | 542.49 | 612.39 | 631.0 |
Cash and equivalents (AUD Mn) | 10.07 | 6.83 | 22.27 | 12.88 | 5.84 |
Current portion of borrowings (AUD Mn) | 4.44 | 5.31 | 8.29 | 0 | 0 |
Long-term borrowings (AUD Mn) | 15.7 | 14.08 | 20.82 | 100.53 | 98.99 |
Current lease liabilities (AUD Mn) | 29.11 | 34.03 | 43.07 | 41.98 | 47.29 |
Non-current lease liabilities (AUD Mn) | 215.39 | 212.74 | 247.15 | 241.17 | 244.65 |
Total debt including leases (AUD Mn) | 264.63 | 266.17 | 319.34 | 383.68 | 390.94 |
Net debt including leases (AUD Mn) | 254.56 | 259.34 | 297.07 | 370.8 | 385.09 |
Net bank debt excluding leases (AUD Mn) | 10.07 | 12.56 | 6.84 | 87.65 | 93.15 |
Shareholders equity (AUD Mn) | 85.81 | 90.02 | 109.08 | 110.92 | 122.38 |
Goodwill (AUD Mn) | 64.81 | 71.26 | 84.66 | 112.44 | 116.63 |
Other intangibles (AUD Mn) | 1.39 | 3.51 | 7.29 | 8.17 | 9.64 |
Property plant and equipment incl right-of-use (AUD Mn) | 276.37 | 282.98 | 328.92 | 371.14 | 386.94 |
Working capital (AUD Mn) | -31.84 | -47.93 | -49.88 | -49.91 | -59.93 |
Shares outstanding (M) | 89.51 | 89.95 | 100.98 | 98.26 | 97.39 |
Cash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (AUD Mn) | 27.95 | 53.13 | 59.45 | 70.04 | 76.4 |
Capital expenditure PP&E (AUD Mn) | 11.43 | 16.44 | 13.75 | 24.63 | 27.42 |
Capitalised intangibles and software (AUD Mn) | 0.99 | 3.18 | 5.12 | 4.67 | 5.46 |
Free cash flow S&P basis pre-leases (AUD Mn) | 16.51 | 36.7 | 45.69 | 45.41 | 48.97 |
Lease principal payments (AUD Mn) | 24.69 | 30.05 | 36.03 | 41.85 | 42.62 |
Free cash flow after leases S&P basis (AUD Mn) | -8.18 | 6.64 | 9.66 | 3.56 | 6.36 |
Company adjusted free cash flow (AUD Mn) | — | — | — | 32.6 | 35.1 |
Cash acquisitions (AUD Mn) | 19.5 | 5.93 | 14.05 | 30.32 | 4.38 |
Equity issued (AUD Mn) | 11.71 | 0 | 16.0 | 0 | 0 |
Share buybacks (AUD Mn) | 0 | 0.43 | 0 | 4.65 | 1.81 |
Dividends paid (AUD Mn) | 0 | 0 | 0 | 0 | 0 |
Cash interest paid (AUD Mn) | 15.22 | 16.28 | 18.72 | 23.81 | 23.99 |
Cash Flow (FY2025–FY2026)
| Metric | FY2025 | FY2026 |
|---|---|---|
Growth capital expenditure (AUD Mn) | 19.1 | 21.4 |
Technology investment (AUD Mn) | 4.8 | 5.5 |
Acquisitions and investments (AUD Mn) | 36.9 | 4.4 |
Total growth reinvestment (AUD Mn) | 60.8 | 31.3 |
On-market buy-back (AUD Mn) | 4.7 | 1.8 |
Maintenance capex (AUD Mn) | — | 6.1 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE on closing equity (%) | -14.1 | 3.8 | 3.0 | 4.7 | 10.4 |
ROA on closing assets (%) | -2.8 | 0.8 | 0.6 | 0.9 | 2.0 |
ROIC S&P (%) | — | — | — | — | 6.29 |
Current ratio (x) | 0.31 | 0.19 | 0.35 | 0.29 | 0.19 |
Debt to equity including leases (x) | 3.08 | 2.96 | 2.93 | 3.46 | 3.19 |
Net bank leverage company definition (x) | — | — | — | 2.04 | 1.77 |
Interest coverage EBIT over interest S&P basis (x) | -0.01 | 1.44 | 1.35 | 1.44 | 1.84 |
Asset turnover revenue over closing assets (x) | 0.21 | 0.31 | 0.30 | 0.35 | 0.38 |
State/territory Details
| State/territory | Presence | Notes |
|---|---|---|
ACT | Corporate HQ and original market | Reliance on ACT membership has fallen markedly since IPO [S19] |
NSW | Corporate clubs; Sydney office | Club Lime, boutique, Plus Fitness |
QLD | Corporate clubs; Broadbeach office | World Gym corporate sites (Stafford, Coomera, Underwood) acquired Dec 2024 [S13] |
VIC | Corporate clubs; Melbourne office | — |
WA | Plus Fitness (14 sites as of 2024), eight acquired clubs re-branded Club Lime (2024), Zoo Fit launch market (2026) | Fastest-developing region; partnership with Fremantle Dockers (AFL/AFLW) and Perth Bears (NRL) [S16, S20] |
NT | Four iFitness 24/7 sites acquired Apr 2024, re-branded Club Lime | Entry market 2024 [S17] |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Last price | A$1.48 (16 Oct 2026) | S8 |
52-week change | −14.45% | S8 |
52-week range | A$1.305–A$1.875 | S29 |
Post-FY2026 result reaction | +10.25% to A$1.56 (19 Aug 2026) | S29 |
Beta (5-year) | 0.47 | S8 |
IPO price (Jun 2019) | A$1.00 | S18 |
Reference points | A$1.58 (24 Jun 2021); A$1.54 (19 May 2022); A$1.38 (20 Dec 2023); A$1.24 (24 Mar 2025) — from director trade prices | S26 |
Analysts (in S&P consensus) | 2 | S8 |
Average price target | A$2.93 (+98% vs A$1.48) | S8 |
Consensus rating | Strong Buy | S8 |
Revenue growth forecast (3-year) | 9.22% p.a. | S8 |
EPS growth forecast (3-year) | 12.95% p.a. | S8 |
Earlier reference | Buy, A$2.60 target (TipRanks, May 2025) | TipRanks |
Valuation Snapshot by Multiple
| Multiple | Value | Basis | Source |
|---|---|---|---|
P/E (trailing statutory) | 11.5x | FY2026 statutory EPS 13.13c | S8 |
P/E (underlying) | 7.6x | FY2026 underlying EPS 19.43c (analyst calc.) | S1 |
Forward P/E | 6.7x | S&P consensus | S8 |
EV/EBITDA (incl. leases) | 4.9x | S&P | S8 |
EV/underlying EBITDA (ex-leases) | ~4.5x | (146.3 + 93.2) / 53.7, analyst calc. | S1, S8 |
EV/Sales (incl. leases) | 2.24x | S&P | S8 |
P/B | 1.20x | S&P | S8 |
P/FCF | 2.99x | S&P (pre-lease FCF) | S8 |
Dividend yield | 2.03% | 3.0c maiden dividend | S8 |
Shareholder yield (div + buyback) | 4.94% | S&P | S8 |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share declared (AUD cents) | 0 | 0 | 0 | 0 | 3.0 |
Share buybacks (AUD Mn) | 0 | 0.43 | 0 | 4.65 | 1.81 |
Equity raised (AUD Mn) | 11.71 | 0 | 16.0 | 0 | 0 |
Shares outstanding year end (M) | 89.51 | 89.95 | 100.98 | 98.26 | 97.39 |
Capital Markets
| Item | Detail |
|---|---|
Moody's / S&P / Fitch ratings | None — Viva is unrated |
Bank facilities | Senior bank debt with a net leverage covenant of 2.50x; FY2026 net leverage 1.77x [S1] |
Debt maturity profile | Not publicly disclosed in retrieved sources (S&P shows no current portion of borrowings at FY2025–FY2026, implying no near-term bank maturities) [S8] |
Liquidity | Undrawn facility capacity (quantum not disclosed); closing cash A$5.8m [S1] |
Analyst Conclusions
Management guidance and consensus
Management did not issue numeric FY2027 guidance in the FY2026 release; qualitative guidance is for reaccelerated corporate openings (>20), continued franchise growth (>150 sold/pipeline), the Zoo Fit conversion uplift, Viva 360-driven retention gains, all funded from cash flow and existing facilities, and a one-million-member target by FY2029 [S1]. Post balance date, network membership passed 700,000 and corporate membership 278,000 [S1]. S&P consensus implies ~9% annual revenue growth and ~13% annual EPS growth over three years [S8].
Bull case
-
Operating leverage compounds: FY2026 converted 51c of each incremental revenue dollar to adjusted EBITDA; with >80% utilisation and a cost base "built to carry" growth, a further 6,000 net members/month at ~A$750 annual health-club revenue per member could sustain double-digit EBITDA growth [S1].
-
Meridium re-rating: a payments/technology business with A$13.4m standalone EBITDA (up ~3.6x) and >A$400m TTV could command a multiple well above the ~4.5x EV/underlying EBITDA at which the whole group trades; a minority strategic investor could crystallise value exceeding a large share of current market capitalisation [S1, S8].
-
Low-capital growth levers: Zoo Fit conversions (30–40% revenue uplift, no new leases; Forrestdale example ~A$1.2–1.3m EBITDA on ~A$3m fit-out) and franchisee-funded pipeline deliver high-return growth while dividends (40–60% payout) and buy-backs support returns [S1, S22].
Bear case
-
Leases are debt: A$292m of lease liabilities plus ~A$93m bank debt against EBIT of A$42m leaves total interest coverage near 1.8x; post-lease FCF was only A$6.4m in FY2026 [S8].
-
Reacceleration risk: FY2026's margin expansion was partly the product of switching off greenfield openings; moving back to >20 corporate sites reintroduces pre-opening losses, ramp-up drag and capex just as Zoo Fit cannibalisation risk rises [S1].
-
Low-growth, competitive market: industry revenue is growing only ~1–2% and Viva holds 6.6% share against far larger rivals; value-tier price competition in WA and cost-of-living pressure could cap pricing [S10].
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing |
|---|---|
| FY2026 Annual Report (remuneration, risk, segment notes, top-20 holders) | 22 Oct 2026 |
| 2026 AGM and any trading update / FY2027 guidance | Nov 2026 (date TBC) |
| Meridium Global strategic review update (investor/partner, valuation marker) | Undated — key swing factor |
| HY2027 results: margin impact of greenfield restart, Zoo Fit uplift data | ~Feb 2027 |
| Buy-back expiry/renewal | 1 Mar 2027 |
| First Plus Fitness openings in Singapore and UK | 2,027 |
| World Gym call option decision (75% within 36 months of Dec 2024) | By ~Dec 2027 |
| BFS option status and Club Pilates rollout | Ongoing |
| Membership trajectory vs ~6,000 net adds/month run-rate | Monthly/quarterly |
| Net leverage vs 2.50x covenant | Half-yearly |
Analyst verdict
Viva Leisure enters FY2027 as a materially different company from the acquisitive roll-up of FY2024–FY2025. FY2026 demonstrated that the estate assembled since the 2019 IPO can generate genuine operating leverage: revenue rose 12.2% on just three net new corporate clubs, underlying EBITDA rose 17.0% to A$53.7m, statutory NPAT more than doubled, leverage fell to 1.77x and the board declared the company's first dividend. Management also beat every guidance metric, including an upgraded NPAT range, which strengthens credibility heading into a reacceleration phase.
The valuation does not reflect this progress. At A$1.48, the shares trade on roughly 7.6x underlying earnings and ~4.5x EV/underlying EBITDA (ex-leases), are flat against 2021–2022 levels despite revenue of 2.6x FY2022, and sit roughly half the A$2.93 consensus target. Part of the discount is warranted: Viva is a lease-heavy, consumer-discretionary business whose post-lease free cash flow is thin, whose balance sheet carries negative tangible book value, and whose non-GAAP reporting has shifted definitions year to year. Liquidity is low and the register is concentrated.
The asymmetric element is Meridium Global. A vertically integrated payments and technology platform that grew standalone EBITDA from A$3.7m to A$13.4m in a year, processing over A$400m of transactions, is the kind of asset that a strategic or financial investor might value on technology multiples. If the review delivers an external valuation marker, the market will be forced to price the fitness operations separately — and on current numbers that implies meaningful upside.
Our synthesis: a constructive, catalyst-dependent view. The base case is earnings growth in the low double digits with improving capital returns; the upside case hinges on Meridium; the principal risks are execution of the greenfield restart, lease-cost inflation and interest coverage. Investors should focus monitoring on HY2027 margins, the Meridium timetable, and net leverage against the 2.50x covenant.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Tenure | Background and education | Committees |
|---|---|---|---|---|
Rhys Holleran | Independent Chair | Appointment date not stated on website; FY2022 report references his chairmanship (his "fourth report" as chair in Sep 2022 appears to be the CEO's — chair tenure not confirmed) | ~30 years' media executive experience; CEO at two IPOs (RG Capital Radio 2000; Macquarie Media Group 2005); led 2007 merger forming Southern Cross Media; former Chair of Commercial Radio Australia (7 years); Free TV Australia board 2007–2015; Chair, Greater Shepparton Foundation | Not disclosed in retrieved sources |
Harry Konstantinou | CEO and Managing Director; co-founder | Executive director since 2004; CEO/MD since Jul 2015 | Founder of Dynamite Internet, Velocity Internet, eSolve IT, Technology Warehouse Australia; 1998 ACT Telstra Entrepreneur Award; BA (Office Management), University of Canberra | Executive |
Louise Bolger | Independent Non-Executive Director | Since Jul 2021 | ~20 years in technology, financial services, telecoms; former General Counsel/Company Secretary of ASX-listed companies; former NED Superloop (ASX: SLC); LLB (Hons), BA (Griffith); MAICD; FGIA | Chair, People and Culture Committee |
Andrew Burns | Independent Non-Executive Director | Board since Apr 2022 (ARC Chair since Oct 2020) | 25+ years senior finance; CFO through three IPOs (Citadel Group 2014; Openpay 2019; RAS Technology 2021); BCom (University of Canberra); Executive MBA (AGSM, UNSW); Chartered Accountant; MAICD | Chair, Audit and Risk Committee |
Kym Gallagher | CFO and Company Secretary (listed on the Board page) | Joined 2014 (acting CFO); permanent CFO 2017 | Chartered Accountant; CFO of RG Capital Radio at IPO; Australian Media CFO for Macquarie Media Group's A$940m IPO; involved in A$1.35bn Southern Cross Broadcasters acquisition and A$725m Austereo integration | Whether he is a formally appointed director is not confirmed in retrieved sources |
Executive Leadership Team
| Name | Title | Tenure | Background |
|---|---|---|---|
Harry Konstantinou | CEO and Managing Director | Since 2004 (CEO title from 2015) | See above |
Kym Gallagher | CFO and Company Secretary | Since 2014 | See above |
Sean Hodges | Chief Operating Officer | Joined 2013; COO since 2016 | Led operational scaling, acquisitions integration, digital transformation |
Angelo Konstantinou | Chief Technology Officer; co-founder | Co-founder | Architect of Viva's front- and back-of-house IT; systems administrator at Dynamite Internet from 1997; board member, Hellenic Club of Canberra and Capital Football |
Rob Nolan | Chief Marketing and Data Officer | — | Leads marketing and data (named in Zoo Fit/Fremantle announcement) [S20] |
Ross Sutherland | Senior General Manager, Zoo Fit | — | Leads Zoo Fit brand [S20] |
Gordon Martin | Senior franchise executive (title shown on website as "Global General…", truncated) | — | Named #6 in Top 30 Franchise Executives 2026 (company website) |
“—” = not publicly disclosed.
Directors' Remuneration
| Item | Detail | Source |
|---|---|---|
CEO total compensation | A$1.34m (≈55.6% salary, 44.4% bonus including equity), based on Simply Wall St's FY2024 data | S26 |
CEO options | Shareholders approved option issues to Harry Konstantinou at the 2024 AGM (resolution 5) and 2025 AGM (resolution 4) | S28 |
CEO option exercise | 177,967 options exercised on 30 Sep 2025 (value ~A$322,120) | S26 |
Share-based payments expense | A$0.55m (FY2026 normalisation item); S&P shows A$0.49m stock-based compensation | S1, S8 |
Major Shareholders
| Holder | Shares | Stake | Date / source |
|---|---|---|---|
Perennial Value Management | 9,767,862 | 9.91% | Substantial holder notice, ~29 May–1 Jun 2026 [S11] |
Regal Partners | Not disclosed (active substantial-holder trading Aug–Nov 2025, including buying 1.54m shares in Nov 2025) | — | [S26] |
Copia Investment Partners | Ceased to be substantial holder 6 May 2026 (had 5.14% in Oct 2025) | <5% | [S11] |
Harry Konstantinou | 1,542,068 (direct, per Morningstar) | 1.57% (Simply Wall St cites ~1.8%) | [S26] |
John Konstantinou | 1,029,846 | 1.05% | [S26] |
Angelo Konstantinou | — | Listed among top holders | [S26] |
Rhys Holleran | 10,000 shares (plus 20,000 other securities) at 30 Jun 2025 | <0.1% | [S26] |
“—” = not publicly disclosed.
Competitive Landscape
Key Competitors
| Competitor | Segment(s) | Relative positioning | Data |
|---|---|---|---|
Anytime Fitness (Australia) | 24/7 franchise, mid/value | Market leader by revenue | Est. revenue A$774.4m, 20.6% share (IBISWorld 2025/26) [S10] |
Fitness & Lifestyle Group | Full-service, mid/premium | #2 by IBISWorld revenue | Est. revenue A$609.7m, 16.2% share [S10] |
Fernwood Women's Health Clubs | Women-only | Competes with Club Pink | 4.0% share [S10] |
Lift Brands Australia (Snap Fitness) | 24/7 franchise | Competes with Plus Fitness | 2.3% share; parent reported up for sale in 2024 [S10; welltodo] |
F45 Training | Boutique HIIT franchise | Competes with HIIT Republic | 1.2% share [S10] |
Jetts Fitness | 24/7 value/mid | Bought back franchises in 2022; expanding corporate clubs | Share not disclosed [welltodo] |
Revo Fitness | WA value 24/7 | Key competitor to Zoo Fit in WA | — |
Crunch Fitness (Australia) | Value big-box | Value-tier competitor | — |
Genesis Health + Fitness | Mid-market clubs | Mid-market competitor | — |
Independent Pilates/yoga studios | Boutique | IBISWorld flags Pilates/yoga as well positioned | ~8,600–9,000 industry businesses [S10] |
PureGym, The Gym Group (UK) | Value | Incumbents Plus Fitness UK will face | [fitt insider] |
“—” = not publicly disclosed.
Peer Comparison FY2026
| Metric | Viva Leisure | Anytime Fitness AU | Fitness & Lifestyle Group | Fernwood |
|---|---|---|---|---|
Revenue 2025/26 (AUD Mn) | 237.1 (FY2026 reported) | 774.4 (IBIS est.) | 609.7 (IBIS est.) | Not disclosed (4.0% share) |
Market share (%) | 6.6 | 20.6 | 16.2 | 4.0 |
Revenue growth (%) | 12.2 | — | — | — |
Underlying EBITDA margin (%) | 22.6 | — | — | — |
Technology/R&D intensity (% revenue) | 2.3 | — | — | — |
Ownership | ASX-listed | Private | Private | Private |
“—” = not publicly disclosed.
