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Basic-Fit N.V. reported robust financial results for the third quarter of 2025, driven by strong membership growth and strategic expansion. The company recorded a 60% year-over-year increase in total revenue for the first nine months, reaching €1.034 billion. Basic-Fit’s stock rose by 2.82%, closing at €25.56, as investors reacted positively to the company’s performance and outlook. According to InvestingPro data, the stock has shown impressive momentum with a 33.75% gain over the past six months, and analysis suggests the company is currently undervalued based on its Fair Value assessment.
Key Takeaways
- Total revenue for the first nine months surged by 60% year-over-year.
- Membership numbers increased significantly, with 218,000 new members in Q3.
- The company opened 78 new clubs, bringing the total to 1,653.
- Basic-Fit aims to reduce its net leverage ratio below 2x by 2026.
- The stock price increased by 2.82% following the earnings release.
Company Performance
Basic-Fit demonstrated strong operational performance in Q3 2025, bolstered by a significant rise in membership numbers. The fitness chain opened 78 new clubs in the first nine months of the year, focusing on expanding its 24/7 model in Germany and Spain. This expansion contributed to the company’s robust revenue growth and solidified its position as the largest fitness chain in Europe. InvestingPro analysis reveals impressive gross profit margins of nearly 80% and an EBITDA of €393.4 million for the last twelve months, indicating strong operational efficiency.
Financial Highlights
- Total revenue: €1.034 billion (60% increase YoY)
- Average revenue per member: €24.60
- New memberships in Q3: 218,000 (95% increase YoY)
- Mature clubs membership average: 3,176 members
Outlook & Guidance
Basic-Fit is optimistic about its future prospects, expecting to meet its revenue guidance of €1.375 to €1.425 billion for the year. The company is targeting a €40 million share buyback program and aims to reduce its net leverage ratio below 2x by 2026. Additionally, Basic-Fit plans to launch a franchise platform and continue increasing average revenue per member. InvestingPro analysts maintain a positive outlook, with consensus forecasts pointing to profitability this year and an EPS forecast of €0.81 for 2025. For deeper insights into Basic-Fit’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Executive Commentary
CEO Rene Moos expressed confidence in the company’s return to normalcy post-COVID, stating, "We are back to normal again now." CFO Maurice De Kleer emphasized the company’s commitment to delivering value, saying, "We remain as ever committed to delivering value to our members, our investors, our employees, and to all our stakeholders."
Risks and Challenges
- Economic downturns could impact consumer spending on fitness memberships.
- Increasing competition in the fitness industry may pressure pricing strategies.
- Potential delays in club openings due to supply chain disruptions.
- Fluctuations in foreign exchange rates could affect financial performance.
- Regulatory changes in key markets could impact operations.
Basic-Fit’s strong Q3 performance and strategic initiatives position the company well for continued growth. However, it remains vigilant of potential risks that could impact its trajectory.
Full transcript - Basic Fit NV (BFIT) Q3 2025:
Conference Operator: Hello and welcome to Basic-Fit N.V. Q3 2024 trading update call and live audio webcast. Please note that today’s conference is being recorded and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now turn the call over to your host for today’s conference, Richard Piekaar, Head of Investor Relations. Sir, you may begin.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Thank you and good afternoon and welcome everyone to our Q3 2025 conference call and webcast. With me today are CEO Rene Moos and our CFO Maurice De Kleer. This call is, as usual, being broadcast live on our website, and a recording of this call will be available shortly afterwards. As usual, I would also like to point out that our safe harbor applies. We will start with Rene, who will discuss the highlights and the operational developments during the first nine months, and we will then move to Rene, who will reiterate our outlook. After these prepared remarks, we will open the call for questions, and with that, Rene, I hand it over to you.
Rene Moos, CEO, Basic-Fit N.V.: Thank you, Richard, and welcome everyone to today’s call. In the first nine months of 2025, Basic-Fit N.V. continued to see strong member in-growth across all countries, putting us in a good position for the fourth quarter and the full year. We announced in March that we took the decision to slow down club openings over the course of 2025 and 2026 to focus on improving our balance sheet, lowering our net leverage ratio to below 2 times in 2026, as well as starting a €40 million share buyback program. All of this with the intention of delivering value to our shareholders. With this in mind, in the first nine months of 2025, we increased our club count by 78, bringing our total club number to 1,653. Most of our new club openings were in our growth markets, France and Spain, followed by the Benelux and Germany.
Year to date, we’ve opened 82 clubs and remain on track to reach our target of around 100 club openings in 2025. At the end of Q3, we had 4.73 million Basic-Fit N.V. members across all of our countries. The positive membership development seen in the first half of the year continued in the third quarter with a growth of 218,000 memberships. This is 95% higher than the same period last year. This increase is all the more impressive when we take into account that Basic-Fit N.V. opened 54% fewer clubs over the first nine months compared to the same period last year. This considerably stronger performance was driven by solid membership development in all countries, with visible in-growth in both our mature and immature clubs. At the end of the third quarter, our 1,217 mature clubs had an average of 3,176 members.
This is up from 3,074 members at the end of the second quarter. Looking at some country-specific details now, in the Benelux, our countries continue to perform well. Spanish clubs continue to be on track, supported by national marketing campaigns. In France, with the management change we did and the higher levels of maintenance seen this year and last year, we have delivered the anticipated structural improvement resulting in higher member satisfaction and an improved membership development. Furthermore, we expect a €35 million in additional cost for staffed 24/7 club operations to be fully mitigated on a run-rate basis by year-end. In Germany, increased brand awareness is supporting our incremental and targeted rollout strategy, which shows improved membership in-growth, giving us confidence that we are on the right path there. Total revenue for the first nine months was €1.034 billion, a 60% increase over the same period last year.
Stronger revenue was boosted by the new membership structure we introduced at the beginning of this year. This moved our average revenue per member to €24.60. The average revenue per member was lower than what was announced in the second quarter of 2025. I’d briefly like to explain why. The first one is mathematical. Due to the strong number of joiners in Q3, especially in the month of September, combined with the limited amount of time that these members had to contribute to the revenue, it has slightly lowered the average for the first nine months. Additionally, the strong growth of France and Spain, where VAT rates are higher, has also had a modest impact. The underlying trend in average revenue per member remains very positive, and we expect it to continue increasing in the next couple of years. Let’s now look at how we are upgrading the member experience.
As the largest fitness chain in Europe, we continue to evolve to meet the ever-changing needs of our members. Our aim has always been to give our members the best possible value-for-money experience and to make fitness accessible for everyone. How are we doing that? Moving to a 24/7 model gives our members the freedom and convenience to work out how they want and when they want. In the first nine months of 2025, we continue to expand our 24/7 model into Germany and Spain. When 24/7 is not possible, for example, in a residential building or for zoning reasons, we extended the opening hours. In selected clubs in the Benelux, we introduced strength circuit training and relax and recovery zones, capturing the fitness and wellness trends seen across the fitness landscape, with the aim of further increasing the uptake of the Ultimate membership.
These services, in addition to improvements in club operation and maintenance, are also having an impact on member sentiment. For the first nine months, we had an average Google review score of 4.3 across our countries. This upward trend proves that we’re giving our members what they want. With that, I will hand it over to Maurice for the final slides.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Yes, thanks Rene. At our full year results, we updated our strategy and gave an outlook replacing the guidance set at our Capital Markets Day in 2023. I’d like to confirm that guidance now. In the first nine months of 2025, we opened net 78 clubs and 82 clubs year to date. With the operational improvements made or in progress, we remain on track to meet revenue guidance of between €1.375 to €1.425 billion. We are also on track to meet the underlying EBITDA less rent guidance of €330 to €370 million. Furthermore, we expect to be cash flow positive in 2025. As for franchising, we see great opportunities in launching our own franchise platform where we can leverage our scale advantages, technologies, and knowledge. The franchise business will require limited CapEx and opens the possibility to expand into new countries.
In the past quarters, we continue to pursue different franchise options, and we continue to expect to update the market on our franchising plans before year-end 2025. Looking at longer-term targets outside of the scope of 2025, we are committed to reducing our leverage by two times adjusted EBITDA in 2026. With the strong developments year to date and the adjusted capital allocation in our updated strategy, we feel comfortable about reaching this target. Over the past two years, we also have been reducing the overhead costs, including marketing as a percentage of revenue. We are on track to achieve the targeted 11.5% to 12% of revenue in 2025. In conclusion, as we pursue our updated strategy, we remain as ever committed to delivering value to our members, our investors, our employees, and to all our stakeholders.
With this, I end our presentation and open it up to questions from analysts and investors.
Conference Operator: Thank you, sir. Your lines are now open. If you would like to ask a question at this time, please press the star key followed by the number one on your telephone keypad. Please ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment. If you find that your question has already been answered, you may remove yourself from the queue by pressing star two. Again, please press star one to ask a question. We’ll pause for just a moment to allow everyone to signal. We will now take our first question from Chris Kippers of D Group Petercam. Please go ahead, your line is open.
Yes, good afternoon. Thank you for taking my questions. First question related to France. You’ve mentioned that the new management team combined with higher CapEx resulted in, you quoted, higher membership satisfaction and improved membership development. Does this imply that this membership development is somewhat weaker than other regions? Could you provide more details on that? I’ve got a second question regarding your average rates or your ARPU per member. Of course, we know the influx indeed in September is quite strong, but to what extent could you provide us with more details, whether it’s linked to indeed those high new members which don’t contribute for the full period, or could it also be linked to which formats you are selling? Could you provide more details on that? Thank you.
Rene Moos, CEO, Basic-Fit N.V.: Yeah, to start with France, because me answer the France answer if you take the ARPU question.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Yeah, that’s okay.
Rene Moos, CEO, Basic-Fit N.V.: The France management and the change, I would say, I’m doing this now at the top of my head, but I would say that France is actually doing better than the other regions. We had a big in-growth in the third quarter in the French region. That is also why we communicated that the €35 million is already this year being, say, cash flow break-even. The French management change and the investments we did are working out very well.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Yeah, the second question, I’ll go into that. The average yield per member decrease. Actually, it is as you said. The sequential yield decrease is due to the strong numbers of joiners in Q3 and particularly in September. If you do the math, the high influx of new members combined with their limited time contributing to revenue has slightly lowered the average of the first nine months. Additionally, the strong growth in France and Spain, where the VAT rates are higher, has also a modest negative impact. On the underlying trend in average revenue per member, that remains very positive and we expect it to continue increasing in the next couple of years.
Okay, thank you. Clear.
Conference Operator: Thank you. We’ll now take our next question from Robert Jan Vos of ABN AMRO. Please go ahead.
Yes, good afternoon. Thank you for taking my question. I have a follow-up also on the yield. Did you see any changes in the split between the different membership types at all? You provided two reasons for the slightly lower yield versus H1. Of course, the mix of membership types can also have an impact. Did you see anything worth mentioning there? That’s my first question. My second question, at H1, you mentioned several factors that should enable Basic-Fit N.V. reaching positive free cash flow after having reported quite negative free cash flow of almost €60 million in H1. My question is, did you see these factors materialize already in Q3 the way you had anticipated or maybe even more positive? Maybe a comment there would be very helpful. Thank you.
Rene Moos, CEO, Basic-Fit N.V.: I will take the first question again if you take a second. The ultimate percentage is stable. We have three different memberships, as you know. The most expensive membership, the Ultimate, is currently just above 40%. That is of the joiners, not of the total base. That is less than half. The in-growth, so all new joiners, a little bit above 40% is taking the Ultimate membership. Overall, that hasn’t changed. Actually, we’re very happy with that number and we’re trying to get that ultimate percentage even higher. That’s why we’re testing different things, that parts of the membership will only be available in the Ultimate membership. Eventually in time, and that’s why we also say, because we never change prices for our existing members, only the new joiners are paying these new prices.
It takes time for the whole group of members, the whole 4.7 million members, to go in this new system. It will take another one to two years, at least, to have the full base of members having 40% on the Ultimate.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Yeah. Robert, on your question about the free cash flow in 2025, what we see is an improving profitability in the second half of the year, driven by, of course, increasing membership and yields. That’s also leading to an improvement of underlying EBITDA less rent. Of course, we have a still continuing focus on limiting our cost. Additionally, we have the timing of our investments and some lower expansion and maintenance CapEx to be expected in the second half of the year. That combines these factors that will enable us to achieve a positive cash flow in 2025.
Okay, that’s clear. Thank you.
Conference Operator: Thank you. We’ll now take our next question from Rico Savarsi of ING. Please go ahead.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Yes, good afternoon and thank you for taking my question. My first question would be on the French 24/7 club operations and the costs related. Do you have any visibility or can you share anything new about the potential resolution on the staffing costs on these 24/7 club operations in France?
Rene Moos, CEO, Basic-Fit N.V.: To start, what we said before is that we saw in the first half that we have between 20, 30, or 30, 40 more joiners a month on those clubs, and we have continued to see that in the third quarter. Those costs will actually be gone by the end of the year. If you are mentioning how it is going, if the French government has signed the contracts already, we can actually do it. The thing is we continue to work with our advisors and also the industry bodies and the French public authorities. We remain very positive that in time we’ll be able to have the staffless clubs in France like we have in all other countries already. We will continue to do what we’re doing right now. We will stay flexible. Once that is actually in, then we can switch it quickly.
The good thing is we reached extra members this month that we need to pay for the extra cost. That is a good thing. We still think that we will get the signature to be able to do it staffless in France.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: All right, thank you for this. Just to kind of double-click on this, if I understood correctly, you’re also able to lower these costs for running these 24/7 club operations if it turns out so that you cannot do unstaffed 24/7 clubs.
Rene Moos, CEO, Basic-Fit N.V.: Correct.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Is there kind of a point in time when you take matters into your own hands and kind of cut the costs proactively?
Rene Moos, CEO, Basic-Fit N.V.: In a way that would be positive because then we have less costs, like between €50 million or €20 million less costs, but you could look at it in a negative way because that means we think we will not get the authorities to approve this. We are really positive that the authorities will approve this. For the coming, at least, first half of next year, we will definitely not change anything.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: All right, perfect. Thank you very much. A second question would be on kind of capital allocation priorities in 2026. Of course, the first one is to get the leverage below two times, but let’s say there would be a resolution in France and you see that the free cash flow is coming in strong and you start seeing that, okay, the leverage will go sub two times. Will you then rather look at share buybacks or increasing the expansion CapEx in 2026? Can you share anything on this?
Rene Moos, CEO, Basic-Fit N.V.: Yeah, that is something that we want to communicate on our investor day at the beginning of next year.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: Understood. Thank you very much.
Rene Moos, CEO, Basic-Fit N.V.: Thank you.
Conference Operator: Thank you. We’ll now take our next question from Jeremy Kinside of Kempen. Please go ahead.
Good afternoon, everyone. I just have a very straightforward question. Obviously, your membership numbers this quarter were very strong, and you say that the growth has been strong across all regions, but particularly strong within your mature clubs. I’m just wondering, why do you think that is? Do you think it’s something to do with the actions you’ve taken within the business over the last wee while, or do you think it’s due to external forces?
Rene Moos, CEO, Basic-Fit N.V.: Yes, I guess it’s a combination of the two. I think the external, what is happening around us is not that it’s all completely normal and normalized, but it is stable, let’s call it that way. We have taken some actions to really focus on member satisfaction, and that’s also what we communicated already. I think that is very helpful because that shows that our members are happy. What we also saw is that the length of stay is again improving slightly, but the yield number is, so the number is around 4% a month now. The length of stay is between 24 and 25 months. Remember when we got listed, it was like 15 and 16 months. Every year it’s getting a little bit higher. Length of stay is, of course, a big driver for memberships. That is very good. I think overall we’re finally back to normal.
It’s been now a few years we have corona behind us. I would say that we also, in that period, we lost half of our members, but we also lost a lot of our older members. We lost a lot of our female members. They’re all coming slowly, but they’re coming back. We see the percentage of female members also increasing again. I would say we’re back to normal again now. That is helpful.
Sure. You said the mature club members per mature club growth is very strong. Doing some back of the envelope calculations, it suggests that the immature club growth is not quite as strong. Do you have any views or thoughts around how that could progress going forward, or if there are any other actions you can take to improve the immature clubs?
No, I think actually, I didn’t do the SIGAR calculation yet, but I think if you look at the immature clubs, I think it’s even better. It’s around or above 2,000, which is higher than it was last year or the year before. I think it’s better. What we said during the CMD end of 2023 is that we expect it would take between two and three years to reach 3,250 members again on mature clubs. Yeah, we’re close to that now. That’s going in the right direction. We still have the coming months. A month of October, January, February are definitely growing months. I think overall we will eventually reach that number again. That is very good. If you look at the new club openings, that is, I think, also good to mention is that the new openings every year are going a little bit better.
Let’s say four years ago, let’s call it we had 500 joiners in pre-sales, and every year we see like 100 more. We’re doing it last year better than 2023, and this year we’re seeing we’re doing it better than 2024. We’re getting better at it in opening new clubs. No, I think overall it’s a combination of mature and immature clubs, but we’re going in the right direction.
Great. Thank you.
Richard Piekaar, Head of Investor Relations, Basic-Fit N.V.: All right. If there are no further questions—oh, I see there is somebody else coming online. Operator, could you please give KBC the question, please? I see that apparently the operator has left the call, which is unfortunate. I’m not sure if you would like to hold on for a minute, please. Let’s see if we can solve this in the coming minute. I’m sorry that I have to say that there are some technical issues at the call provider. What I suggest is that anyone who still has some questions contact either Head or me, and we can then answer any remaining questions that are left. For now, thank you very much for joining us today, and we’ll be in touch. Thank you. Bye-bye.
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