7092.T

• Core Business Performance

  • The company delivered both top-line and bottom-line growth for the quarter, with profit growth outpacing revenue growth, driven by completion of initial investment for new growth segments, expanded membership base, and improved operational efficiency.
  • Sales, operating profit, and EBITDA have grown steadily quarter-over-quarter. After a temporary margin decline from H2 FY2024 due to national promotion and existing store investment, margins have recovered since FY2025, reaching 21.2% operating margin and 26.9% EBITDA margin in 2Q FY2026 while continuing growth investment.
  • Selling, general and administrative expenses are growing with business scale but remain well controlled: labor cost ratio holds steady at ~11%, and advertising expense stays between 4-7% of revenue outside of campaign periods, with a focus on efficient, targeted investment.
  • A positive growth cycle is active: increasing per-store membership raises profitability, which boosts franchisor interest in new openings, which further expands the member base. National promotions have accelerated this cycle by increasing brand awareness and driving new membership.

• Milestone Achievements

  • Hit key milestones in 2025: 100 million members exceeded in May, 1,200 domestic stores exceeded in June. The company launched the "AnyTime YEAR!" anniversary campaign with member-focused content and multi-channel marketing to further boost brand affinity.

• New Initiatives

  • Explored new store formats: Announced a planned 2027 opening of a co-located store with Oshima Shipbuilding in Nagasaki, a new corporate co-location format that supports community revitalization.
  • Overseas business update: Germany's second directly operated store opened with over 2,000 initial members and is already profitable; third store opening is delayed several months due to permit waits but is now on track for February 2026 opening, with three additional stores planned for next fiscal year. Singapore added a third store at Nanyang Technological University, and acts as a regional hub to learn global operational best practices to apply to domestic and German expansion.
  • New brand update: The Bar Method, a barre-focused workout brand targeting women, has opened two stores and is building its operating model, instructor training pipeline, and revenue model with future franchising in mind.
  • EC business update: Launched official store A PROP with original fitness products including proprietary whey protein, added a store affiliate program in October 2025 that kickbacks to stores for purchases driven by their members to diversify store revenue and grow EC sales.

• Financial Health

  • The 3-year 9.6 billion yen mid-term growth investment plan is progressing on schedule, focused on existing store value improvement, brand strengthening, and operational efficiency.
  • Operating cash flow remains consistently positive, net cash is growing, and equity ratio holds at 65.9%, indicating a strong, healthy balance sheet.

• Domestic new store opening target: Maintains plan to open ~75 new stores per year, to reach 1,400 total domestic stores within 3 years. Progress in the first half of the fiscal year is in line with plan, as store openings are seasonally concentrated in Q3 and Q4, so full-year target is expected to be met by end-March 2026.
  • Long-term domestic store expansion: Management intends to maintain a 70-80 new store per year pace for the foreseeable future, supported by continued franchisee demand, with no fixed hard upper limit for total store count.
  • Promotion: Will move to the next phase of national promotion starting December 2025, focused on further expanding brand awareness and supporting continued per-store membership growth.
  • New growth segments: Will continue investment and scaling of all three new growth areas (overseas expansion, The Bar Method, EC/merchandising), moving from launch to growth phase as planned.

1. Domestic AnyTime Fitness (core segment): 2Q reported revenue of 9.98 billion yen, up 15.6% year-over-year; operating profit of 1.952 billion yen, up 36.0% year-over-year. This segment accounts for nearly all of the company's consolidated revenue, as the new growth segments are still in early investment/launch phases. As of end-September 2025, the segment has 1,217 total domestic stores (1,036 franchised (FC), 181 company-operated), with 1,087,000 total members, and an average of 894 members per store. Both royalty revenue from FC stores and membership fee revenue from directly operated stores grew, driven by store network expansion and rising membership. A decline in product sales within FC revenue is due to a shift from key sales to app access pass fees, which are recorded as royalty/fee income. 2. Overseas AnyTime Fitness: As of end-September 2025, the segment operates 5 total stores: 2 in Germany (1 added in the quarter) and 3 in Singapore (1 added in the quarter). Revenue contribution is negligible as the segment is in early expansion. 3. The Bar Method (new boutique brand): 2 stores are currently open, operating in early launch phase with no meaningful revenue contribution yet. 4. A PROP EC/merchandising: Launched in December 2024, still in early growth phase with minimal revenue contribution.

• Permitting delays for new overseas store openings: In Germany, obtaining municipal construction permits for the third store took longer than initially expected, pushing the opening date back by several months.
  • Potential member frustration from overcrowding: Management acknowledges that growing per-store membership can lead to equipment access issues, and addresses this risk via targeted new store openings near high-membership locations rather than capping membership growth.

Q: How can domestic existing store membership growth be accelerated, and does management want to speed up this growth? Is new store opening on track? / A: Management confirms new store opening is on target for 70-75 stores per year to hit 1,400 stores in 3 years. Openings are seasonally concentrated in late Q3 and Q4, so first half progress appears slower but is on track, with strong franchisee interest in new openings. Membership growth is tracking at 10+% year-over-year, driven by national promotions paired with local store campaigns and member retention initiatives that create a stable growing cycle with low churn. Management is satisfied with the current pace and focused on sustainable growth rather than arbitrary acceleration.

Q: With average per-store membership now over 890, should overcrowding be a concern, and will you speed up new openings or slow membership growth to address it? / A: Higher per-store membership actually increases franchisee interest in opening new locations, which is healthy. Management does not over-pursue membership density to protect member experience, and has no plans to slow membership growth. The current stable pace of 70-80 new stores per year paired with targeted national promotions balances growth and experience, with new openings placed near dense existing locations to relieve crowding naturally.

Q: How do you view growing competition from low-cost and similar-price gym chains, and what is your competitive strategy? / A: Low-cost unstaffed gyms are not direct competitors: they attract mostly beginner users, and many users move to AnyTime when they want more serious training and better equipment. AnyTime differentiates itself by having on-site staff to assist with equipment use, a focus on clean, comfortable, exercise-focused environments, and building a positive community brand. Management does not see similar-price expanding competitors as a major threat, as the company focuses on building long-term brand trust rather than rapid size for size's sake.

Q: How has the German business performed, and what is the outlook for overseas expansion? / A: The second German store, in a small regional city, opened with over 2,000 initial members and is already profitable thanks to low rent and its large 250-tsubo layout with group and personal training offerings. Germany has a higher fitness participation rate than Japan, and few mid-priced national brands, so this is a good market for expansion. Three more stores are already planned, and the local management team is experienced. Management expects German business to become a profitable growth contributor alongside the domestic core business over time.