Leejam Sports Company Announces Its Annual Consolidated Financial Results for the year Ended in On 31 December 2025 (Twelve months)

- A 3% increase in subscription and membership revenues compared to Q4 2024. This growth came as a result of increase in the number of centers, despite the decrease in like-for-like (LFL) centers revenues resulting from a decline in membership numbers.

- Stable personal training service revenues compared to Q4 2024, mainly due to a stable number of trainers.

Fitness centers performance in Q4 2025 was as follows:

- Non-like-for-like centers (Non-LFL): Revenues increased by 57% to SAR 79 million, driven by accelerated growth from newly opened centers since 01/01/2024. Growth in women’s centers within this category reached 77%, while men’s centers grew by 45%.

- Like-for-like centers (LFL): Revenues declined by 4% to SAR 347 Million due to competition in several centers, as well as some operational challenges such as road closures and parking availability, which temporarily affected customer experience. Revenues from women’s centers in this category declined by 10%, while men’s centers declined by 2%.

- A 4% increase in the total cost of revenues compared to Q4 2024, driven by the increase in the number of centers.

- A 60% increase in finance costs, primarily driven by higher average borrowing balance during current quarter as compared to Q4 2024 coupled with impact of finance cost on new leases for operational clubs.

- Recognition of a non-recurring item representing impairment of an investment in an associate amounting to SAR 9.6 million.

- Recognition of a non-recurring item representing impairment of an investment in a subsidiary amounting to SAR 3.2 million.

- Recognition of losses from the Company’s share in the results of an associate amounting to SAR 1.3 million.

This came despite the following:

- Recording a non-recurring gain of SAR 2.6 million resulting from the sale of a land plot in Qatif Governorate.

- A 1% decrease in SG&A.

After excluding all non-recurring items, net profit attributable to the Company’s shareholders for Q4 2025 amounted to SAR 92 million, compared to SAR 100 million in Q4 2024, representing a decline of 9%.

- A 7% increase in subscription and membership revenues compared to 2024, driven by an increase in the number of centers and the average number of members during the year.

- 36% increase in rental revenue as compared to 2024.

- A 6% increase in personal training service revenues compared to 2024.

The performance of the company’s segments during 2025 was as follows:

- Non-like-for-like centers (Non-LFL): Revenues increased by 95% to SAR 263 million, driven by accelerated growth from the centers opened from 01/01/2024. Growth in ladies’ centers within this category reached 107%, while men’s centers grew by 88%.

- Like-for-like centers (LFL): Revenues declined by 1% to SAR 1.332 billion due to temporary closures for the renovation of certain clubs, intensified competition across several centers, as well as some operational challenges such as road closures and parking availability, which temporarily affected customer experience. Revenues from women’s centers in this category declined by 6%, while men’s centers grew by 1%.

- Recognition of a non-recurring gain of SAR 92 million in 2024 from the sale of three land plots.

- A 14% increase in the total cost of revenues compared to 2024, driven by the increase in the number of centers.

- A 20% increase in finance costs, mainly driven by higher financing costs related to lease liabilities.

- A 10% increase in general and administrative expenses and selling and marketing expenses due to increased investment in attracting qualified talent, digital transformation projects, organizational development initiatives, and higher marketing investments.

- Recognition of a non-recurring item representing impairment of an investment in an associate amounting to SAR 9.6 million.

- Recognition of losses from the Company’s share in the results of an associate amounting to SAR 7 million.

- Recognition of a non-recurring item representing impairment of an investment in a subsidiary amounting to SAR 3.2 million.

- Lower income from short-term Murabaha, with SAR 0.9 million recorded in 2025 compared to SAR 8.2 million in 2024.

-

This came despite the following:

- Recognition of a non-recurring gain of SAR 11 million resulting from reversal of previously recognized impairment, major portion of which pertains to an under construction club on which construction resumed during the year.

- Recognition of a non-recurring gain of SAR 3.7 million resulting from the reversal of a Zakat provision related to prior periods.

- Recognition of a non-recurring gain of SAR 2.6 million resulting from the sale of a land plot in Qatif Governorate.

After excluding all non-recurring items, net profit attributable to the Company’s shareholders for 2025 amounted to SAR 301 million compared to SAR 350 million in 2024, representing a decline of 14%.

- The group opened 16 centers in 2025 which was less than targeted due to delay from contractors.

- EBITDA in Q4 2025 grow from 47% to 50% driven by stable GP margin and controlled SG&A.

- Free Cash Flow (FCF) increased 105% to SAR 399 million in 2025 driven by lower CapEx following the completion of some of the project and lower opening.

- FCF per center (after lease payments) grew 216% to SAR 1.45 million which was led the growth in FCF.

- During Q4 2025, The group has purchased 1,083,514 of its shares at average price of SAR 121.7124 per share.

Leejam Sports Company investment arm (Sports Hive Limited) concluded a comprehensive assessment to all its investments and pilots’ projects as it approaches the end of its 2025 strategy. As a result, the company has taken the following actions:

Physiothrabia:

In a mutual agreement with Burjeel Holdings, Sports Hive agreed to dissolve the Integrated Medical Care Services Company (Physiothrabia). This came after approximately two years of exploring and testing the investment, and following a comprehensive assessment of Physiothrabia’s operational performance, financial results, and prevailing market dynamics. The book value of the investment as of 31 December 2025 was SAR 9.6 million. The company impaired the carrying value, and it impacted the financial results of Q4 2025. While the investment in Physiothrabia provided valuable operational and the expected customer value it didn’t provide the expected returns of the investment.

Sports Hub:

Sports Hive impaired its investment in “Sports Hub” due to operational and legal challenges that have affected the progress of the investment during the period. The Company recorded an impairment of the investment’s carrying value amounting to SAR 3.2 million as of 31 December 2025. The Company has taken, and will continue to take, all relevant regulatory and legal measures to exit this investment, ensuring the protection of its legal and financial rights as well as the rights of its shareholders.

Tsports:

Sports Hive signed a Share Purchase and Subscription Agreement with Athletics Holding Company (AHC), Arcapita Group Holding Limited, Sports Hive Limited (a wholly owned subsidiary of Leejam), and Al-Tatheer Sports Company (“T-Sports”), pursuant to which AHC will acquire 30% of T-Sports for SAR 9 million, contribute 100% ownership of NuYu for Sports LLC in exchange for an additional 15% stake, and will further inject growth capital alongside Sports Hive on a pro-rata basis. Upon completion, Sports Hive is expected to hold 55% of T-Sports and AHC 45%, with T-Sports becoming the full owner of NuYu. Completion and closing of the transaction are expected during Q1 2026, subject to customary conditions precedent. This partnership is expected to support T-Sports’ growth by leveraging AHC and Sports Hive’s combined experience in concept studio operations, strengthening operational capabilities and accelerating development in this segment

The Company’s Chief Executive Officer, Mr. Abdulelah Al-Nemr, commented:

“As we prepare to launch our next five-year strategy, we are refining our investment focus to prioritize opportunities that offer stronger scalability, clearer value creation, and closer alignment with our long-term growth objectives. As part of this approach, we have taken the decision to exit certain secondary investments to ensure our capital is deployed where it can generate the greatest strategic and financial impact. At the same time, our confidence in the Saudi physiotherapy and wellness sector remains strong.

This decision reflects our disciplined capital allocation approach and our commitment to sustainable shareholder value. We will continue to actively optimize our investment portfolio to enhance capital efficiency while maintaining flexibility to pursue future opportunities in the sports and wellness space and beyond.”