Viva Leisure Posts $116.5m Revenue with 45% Surge in Tech Segment
Viva Leisure has reported a robust half-year performance with underlying NPAT up 46.8% and revenue climbing to $116.5 million, driven by strong organic membership growth and a booming technology segment.
- Underlying NPAT rises 46.8% to $8.1 million
- Revenue grows 17.6% to $116.5 million with eight consecutive half-on-half increases
- Technology, Payments, Licensing & Retail (TPLR) segment revenue up 45%, now 8.1% of group revenue
- Senior debt reduced by $2.6 million; net leverage approximately 1.7x
- On-market share buyback recommenced for up to 10% of issued shares
Strong Half-Year Growth Amid Network Optimisation
Viva Leisure Limited (ASX, VVA) has delivered a compelling half-year financial update for HY2026, showcasing a continuation of its growth trajectory with revenue reaching $116.5 million, marking an impressive 17.6% increase year-on-year. This marks the company’s eighth consecutive half-on-half revenue growth period, underscoring the effectiveness of its network optimisation strategy and organic membership expansion.
The company’s underlying net profit after tax (NPAT) surged 46.8% to $8.1 million, while statutory NPAT more than doubled, rising 168% to $5.2 million. These results reflect strong profit conversion and cash generation, with adjusted free cash flow increasing by 25% to $19.9 million.
Technology Segment Accelerates as Key Growth Driver
A standout performer within Viva Leisure’s portfolio is the Technology, Payments, Licensing & Retail (TPLR) segment, which grew revenue by 45% year-on-year to $9.3 million, now representing 8.1% of total group revenue. This segment, described by management as the highest-margin and most scalable part of the business, is driving a shift in capital allocation away from physical club rollouts towards technology and platform development.
Innovations such as the upcoming World Gym door access pilot and new revenue-generating technology products slated for launch in the second half of FY2026 highlight Viva’s commitment to leveraging technology as a competitive moat. The company’s payments platform, Viva Pay, currently contributes over $6 million annually and is on track for further expansion.
Network Expansion and Membership Growth
Despite adding only one net new site during the half, Viva Leisure’s corporate network grew organically by over 7,000 members, a clear indicator that network optimisation efforts are translating into higher utilisation and member engagement. The total membership base now exceeds 656,000 across 518 locations, including franchises and corporate clubs.
The company also reported a strong pipeline with 171 franchise locations sold and expected to open over the next 12 to 24 months across Australia, Singapore, and the UK, including the first Plus Fitness location in the UK scheduled for April 2026.
Financial Discipline and Capital Management
Viva Leisure has prudently reduced senior debt by $2.6 million, bringing net leverage to approximately 1.7 times EBITDA. The company has recommenced an on-market share buyback program of up to 10% of issued ordinary shares, signalling confidence in its valuation and commitment to enhancing shareholder returns.
FY2026 guidance was upgraded, with revenue expected to exceed $237 million and statutory NPAT forecasted above $11.5 million, comfortably surpassing analyst consensus by more than 20%. Underlying EBITDA is also projected to grow beyond $53 million.
Looking Ahead
Viva Leisure’s strategic focus on technology investment, network optimisation, and disciplined capital management positions it well to sustain momentum. The company’s ability to convert scale into returns, particularly through its fast-growing TPLR segment, will be critical as it navigates competitive pressures and expansion into new markets.
Bottom Line?
Viva Leisure’s HY2026 results set a strong foundation, but investors will watch closely how technology investments translate into sustained profitability and market share gains.
Questions in the middle?
- How will Viva Leisure balance capital allocation between physical expansion and technology development going forward?
- What impact will the on-market share buyback have on share price and investor sentiment?
- Can the TPLR segment maintain its rapid growth and become a larger proportion of total revenue?
