Sport Clubs to maintain momentum in Q4 2025: CEO

Wael El Merhabi, CEO of Sport Clubs Company

Sport Clubs Company, which owns the Body Masters brand, is expected to maintain its positive momentum during Q4 2025, backed by several operational and marketing factors, CEO Wael El Merhabi told Argaam in an interview.

The top executive also indicated that the company ended Q3 with a record level of deferred revenues, which provides greater visibility on topline growth and improved operating cash flows for the remainder of the year.

These factors collectively support the company’s expectations for continued strong performance and positive results in Q4 2025 in the health-and-fitness club segment, he added.

El Merhabi also highlighted that the decline in Body Experts revenues in Q3 2025 is due to the nature of the segment’s business model, as Body Experts continues to strengthen its position in the integrated fitness-solutions market through broader strategic partnerships and enhanced services.

Below are the details of the CEO’s interview with Argaam:

What were the main factors that backed the 14.6% profit growth in Q3 2025 despite the exceptional listing-related expenses?

We succeeded in posting strong profit growth in Q3 2025 despite non-recurring listing expenses. Revenues grew 7.5% quarter-on-quarter, driven by the revenue growth from existing clubs, strong performance from five newly opened clubs this year, which exceeded expectations, a notable improvement in revenues from a club reopened in Q3 after full renovation, continued growth in service-based revenues (personal training, body assessments, nutrition services, etc.) by 7.5%. As a result, gross profit margins improved from 32.2% to 36.8%.

These combined factors enabled the company to achieve 14.6% net-profit growth despite the listing costs, reflecting the strength and sustainability of the company’s business model and expansion strategy.

How many new members joined by the end of Q3? What was the growth rate in male and female memberships?

This year, we achieved a record number of members across our clubs, reflecting growing trust in our brands and the quality of our offerings. Total membership rose from 129,710 to 167,090 members, an increase of 37,370, or 29% QoQ.

This strong growth came from both male and female members, driven by network expansion, enhanced operational experience, improved programs, and marketing initiatives that boosted the attractiveness of our brands.

What was the direct financial impact of opening five new clubs and reopening one renovated branch?

The five newly opened clubs, along with the reopened renovated branch, had a direct and positive financial impact. They collectively added around 25,600 new members, significantly boosting operating revenues. Their financial performance exceeded expectations, backed by strong subscription rates and high demand for in-club services.

This expansion, combined with the upgraded branch experience, strengthened revenues, improved profitability, and enhanced cash flows by supporting both new memberships and member retention.

Why did the sports-solutions segment (Body Experts) see a 96.7% revenue decline? Is there a plan for revival?

The decline in Body Experts revenues in Q3 2025 year-on-year is due to the nature of its business: a 360-degree fitness-solutions provider dependent on project availability, competitive bidding, and government/private-sector procurement cycles.

While the Q3 2024 results included a large revenue contribution from a major project with the Royal Commission for AlUla, Q3 2025 did not include a project of similar scale.

Despite this seasonal variation, Body Experts continues to expand strategic partnerships and develop tailored solutions for government and private clients, positioning the segment for sustained growth ahead.

Is there a plan to expand the “Body Masters Premium” brand to new cities after the Dammam branch opening?

Yes. The company’s expansion for Body Masters will primarily focus on the premium category due to rising demand for high-value fitness experiences. Meanwhile, Body Motions will continue its expansion, leveraging the rapid growth in the women’s fitness segment.

This year was among the strongest for network development, with 16 new locations secured—some under construction and others in licensing—most set to open in 2026.

This reflects a strategic and well-paced expansion aligned with market demand across the Kingdom.

What are your expectations for the company’s Q4 performance?

We expect continued positive momentum in Q4 2025, backed by several operational and marketing drivers: Most of the clubs that were opened in 2025 began operations in Q2 and Q3, so their full financial impact has not yet been reflected in Q3 results. A stronger impact is expected in Q4 and beyond.

In addition, the company ended Q3 with record deferred revenues, offering strong visibility for topline growth and improved operating cash flows in the remaining months of the year.

All these elements reinforce our expectations for strong performance and positive results in Q4 across the sports-club segment, fully aligned with our growth and sustainable-expansion strategy.