Viva Leisure delivers record FY2026 result and declares maiden dividend

Viva Leisure (ASX: VVA) has today released its results for the financial year ended 30 June 2026, reporting record revenue of $237.1 million, adjusted EBITDA of $112.3 million and underlying NPAT of $18.9 million. Guidance was exceeded on all five metrics, and the Board has declared the Company’s first dividend since listing in June 2019.

FY2026 was a deliberate year of network optimisation. Rather than chase new sites, Viva slowed its greenfield rollout and focused on getting more out of the clubs it already operates. Revenue grew 12.2 per cent while operating costs grew 10.2 per cent, adjusted EBITDA margin expanded 50 basis points to 47.4 per cent, and the entire growth program was funded from operating cash flow for the first time in the Company’s history.

The headline numbers

• Revenue of $237.1 million, up 12.2 per cent and a seventh consecutive year of growth
• Adjusted EBITDA of $112.3 million, up 13.3 per cent
• Underlying NPAT of $18.9 million, up 46.4 per cent
• Statutory NPAT of $12.8 million, up 144.5 per cent
• Adjusted free cash flow of $35.1 million, up 7.7 per cent
• Maiden fully franked dividend of 3.0 cents per share

More members from the clubs we already own

With just three net new corporate locations, Viva added more than 17,000 corporate members over the year, taking corporate membership to 275,688 and total network membership to 694,243 across 534 open locations.

Average membership per corporate club rose from 1,286 to 1,351, the highest in the Company’s history, and portfolio utilisation passed 80 per cent for the first time. That is organic growth, delivered without new leases, new fit-outs or new capital.

“FY2026 was the year we said we would slow the rollout and prove the model. We did both,” said Viva Leisure CEO and Managing Director Harry Konstantinou.

“Revenue grew 12.2 per cent while costs grew 10.2 per cent, EBITDA margin expanded by 50 basis points, and we exceeded guidance on every metric, including the NPAT guidance we upgraded in May. Underlying NPAT of $18.9 million is up 46 per cent, adjusted free cash flow reached $35.1 million, and leverage fell to 1.77 times without diverting a dollar from growth.”

“With just three net new corporate clubs we added more than 17,000 corporate members and lifted average membership per club to 1,351, the highest in our history. That is what this business looks like with the growth lever switched off. From here we reaccelerate, targeting one million network members by FY2029.”

A first dividend for shareholders

The Board has declared a maiden fully franked dividend of 3.0 cents per share, a total distribution of approximately $2.9 million. That represents 15 per cent of underlying NPAT and 8 per cent of adjusted free cash flow, leaving reinvestment capacity fully intact.

An ongoing dividend policy has been adopted targeting a payout of 40 to 60 per cent of underlying NPAT, subject to reinvestment requirements and balance sheet settings.

Key dates: ex-dividend 28 September 2026, record date 29 September 2026, payment 20 October 2026. The Dividend Reinvestment Plan will operate in respect of this dividend, with no discount applied to the issue price.

“On the back of that result, the Board has declared Viva’s first ever dividend. We are returning capital to shareholders alongside reinvestment, not instead of it,” Konstantinou said.

Introducing Meridium Global

The result also introduces Meridium Global, the most significant structural decision Viva has taken since listing.

Viva today operates two distinct businesses: an international fitness network, and the payments and technology platform that runs it. That platform was built entirely in-house rather than licensed, spanning multiple operating systems, access control hardware, member intelligence and revenue-generating fitness apps, with total transaction volume exceeding $400 million.

Its standalone EBITDA has moved from $3.7 million in FY2025 to $13.4 million in FY2026, before inter-segment eliminations. Those assets will transfer into a new subsidiary, Meridium Global, which will own and operate them as a standalone business. A strategic review is underway to determine how that value is best realised for shareholders.

Viva 360 turns retention into a prediction

Viva has commenced using Viva 360, its in-house member intelligence platform, which maps every member action to a single golden record and makes the entire member estate queryable in plain English against certified data.

Three models are now in production: a churn model with 89.1 per cent accuracy built on 72 engineered features and scored on every member, a suspension model providing 7 to 30 days of warning on silent revenue leakage, and lookalike targeting on owned data that sharpens acquisition before media is spent.

FY2026 delivered the ability to see churn before it happens. FY2027 deploys automated intervention against it.

One million members by FY2029

Membership growth has continued since balance date, with network membership passing 700,000 and corporate membership passing 278,000, both new records.

Viva is now targeting one million network members by FY2029. At the current rate of roughly 6,000 net new members a month, and with no change to FY2026 operating settings, the network reaches beyond 900,000. Reaccelerating greenfield openings closes the balance:

• More than 20 net new corporate locations planned from FY2027 onward, with larger-format Club Lime, Zoo Fit and World Gym sites already secured
• More than 150 franchise locations sold and in pipeline across Plus Fitness, World Gym and Boutique Fitness Studios, fully franchisee funded
• A refurbishment and re-brand program to Zoo Fit underway across 20 locations, expected to deliver approximately 30 to 40 per cent average revenue uplift per location within three months of completion, with no new lease required
• Retention gains as the Viva 360 intervention layer deploys through FY2027

Every member added also grows the payments and technology division, so each membership counts twice in the earnings profile.

“Thank you to our team across every club and studio. These numbers are yours,” Konstantinou said.

The full ASX announcement and FY2026 results presentation are available on the ASX and in the investor centre at vivaleisure.group