Viva Leisure Ltd (ASX: VVA) shares are up 6.13% on Thursday. At the time of writing, the shares are changing hands at $1.645 a piece. Today's share price surge follows the company's half-year results for the period ending 31 December 2025, which were released ahead of market open this morning.
The latest uptick means the shares are now 11.53% higher for the year.
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Viva Leisure shares storm higher on results day
Here's what the Australian health club operator posted this morning:
- Revenue up 17.6% to $116.5 million
- Underlying net profit after tax (NPAT) up 46.8% to $8.1 million
- Underlying EBITDA up 20.8% to $25.4 million
- Statutory NPAT up 168% to $5.2 million
- EPS up 173.8% to 5.32 cents
What happened in H1 FY26?
Viva Leisure posted a 17.6% jump in revenue to $116.5 million from $99 million in H1 FY25, driven by continued growth across health clubs and the high-margin TPLR segment.
The company's TPLR segment was the highest-margin and most scalable growth vector over the first half of FY26. Its revenue surged 44.7% to $9.3 million, now representing 8.1% of group revenue, up from 6.5% in the prior corresponding period (pcp).
The company also revealed a 46.8% surge in underlying NPAT to $8.1 million from $5.5 million in the pcp.
Underlying EBITDA came in at $25.4 million, up 20.8% from the $21 million posted in the pcp.
Statutory NPAT was 168% higher at $5.2 million from $2 million in the pcp. Viva Leisure said this demonstrates the company's "focus on profit conversion".
"During the period we deliberately shifted capital allocation from physical rollouts toward technology and platform development. TPLR revenue grew 45%, now representing 8.1% of group revenue, and we see this as the best return on investment," Viva Leisure CEO and Managing Director Harry Konstantinou said.
"Without acquisitions and with just one net new site for the half, the corporate network added over 7,000 members organically – a clear signal that our network optimisation is delivering results."
What's ahead for Viva Leisure this year?
The business is optimistic about the outlook for its full-year results. Viva Leisure expects revenue of $237 million in FY26, up from $211.3 million in FY25.
It also expects statutory EBITDA and underlying EBITDA to come in at $111 million and $53 million, respectively. This is up from $99 million and $45.9 million previously.
The company expects statutory NPAT of $11.5 million for the full year, up from $5.2 million in FY25.
The company said its strategic priorities are focused on converting scale into shareholder returns through continued network optimisation, TPLR expansion (targeting >$28m total TPLR revenue for FY 2027), and disciplined capital management.
The Board has resolved to recommence an on-market share buyback of up to a maximum of 10% of issued ordinary shares. The buyback will be funded from existing cash reserves and operating cash flows, and will be conducted in accordance with the ASX Listing Rules and the Corporations Act.
