Viva Leisure Upgrades FY26 NPAT Guidance on TPLR Division Strength
Viva Leisure has lifted its FY26 net profit after tax guidance by more than 130%, driven by strong margins and a booming technology segment, while reaffirming revenue and EBITDA targets.
- Statutory NPAT guidance upgraded to over $12 million
- Underlying NPAT guidance raised above $17 million
- Revenue and EBITDA guidance reaffirmed
- TPLR division growing around 30% year-on-year
- Network membership increased to approximately 680,000
NPAT Guidance Surges on Margin Discipline and Technology Growth
Viva Leisure Limited (ASX:VVA) has boosted its FY26 statutory net profit after tax (NPAT) guidance to exceed $12 million, marking a more than 130% jump on FY25’s $5.2 million. Underlying NPAT is also upgraded to over $17 million, surpassing the prior forecast of $16 million. This upgrade comes despite revenue and EBITDA guidance remaining unchanged, highlighting the company's strong margin management and operating leverage.
The company’s Technology, Payments, Licensing & Retail (TPLR) division is a key driver of this profit upgrade, tracking approximately 30% growth year-on-year and now accounting for 8.1% of group revenue, up from 6.5% in the prior half. Viva Pay alone contributes over $6 million annually, with retail operations like vending and supplements running at a similar annualised rate. The division’s high margins and scalability underpin the improved earnings outlook.
Membership Growth and Network Optimisation Support Earnings
Viva Leisure’s network membership has grown nearly 9.5% to around 680,000 members, up from 620,902 at FY25 close. Corporate clubs are operating at peak utilisation, averaging about 1,330 members per club and an 80% portfolio utilisation rate; the highest in company history. This operational efficiency is generating strong free cash flow and validating the company’s business model.
Revenue guidance remains steady at above $237 million, representing a 12.2% increase on FY25. Statutory and underlying EBITDA guidance are also reaffirmed at above $111 million and $53 million respectively. The deliberate slowdown in greenfield rollout announced in August 2025 is reflected in these stable revenue targets, with management signalling a reacceleration of new location openings from FY27.
Pipeline of New Locations Poised to Accelerate Growth
The company’s franchise networks; including Plus Fitness, World Gym Australia, and Boutique Fitness Studios; along with its corporate development pipeline, have over 100 committed locations yet to open. More than 30 of these are expected to launch in the first half of FY27, providing a robust foundation for network expansion and revenue growth in the coming years.
Viva Leisure’s net leverage stands at a conservative 1.90x, comfortably below its 2.50x covenant, supported by ongoing on-market share buy-back activity. This financial discipline complements its operational momentum, positioning the company well for future growth.
The company’s strategy of combining fitness assets with a growing technology and payments platform is paying dividends, as seen in the accelerating TPLR division and strong earnings upgrades. This builds on the momentum reported earlier in the year, where the group’s half-year results showed a 47% rise in NPAT and a 45% surge in TPLR revenue, reinforcing the resilience of Viva Leisure’s diversified model underlying NPAT rises 46.8% technology segment grew 45% .
Bottom Line?
Viva Leisure’s upgraded profit guidance and strong TPLR growth set the stage for a reacceleration in expansion from FY27, but investors will want to watch execution on new club openings and margin sustainability.
Questions in the middle?
- How will Viva Leisure balance margin expansion with the planned greenfield rollout acceleration in FY27?
- What impact will the growing TPLR division have on overall group profitability and cash flow going forward?
- Can the company maintain peak utilisation rates across its corporate clubs as the network scales?
