Basic-Fit’s Era of Quality Growth: Guidance Raised, Franchise and M&A Pivot
A Record First Half
Basic-Fit's first half of 2026 was marked by broad-based double-digit growth across all headline metrics. Revenue rose 18% to €800 million, driven by strong membership gains and disciplined pricing. Underlying EBITDA less rent jumped 36% to €204 million, with the company's focus on cost control and operating leverage clearly paying off. The club network expanded to 2,190 clubs, and memberships reached 6.1 million, a 34% increase year-on-year, though the consolidation of Clever Fit flatters these numbers. Stripping out the acquisition, organic growth remains robust: Basic-Fit branded clubs added 576,000 net members, and average members per club rose to 3,000. As CEO René Moos noted, “We have delivered a strong first half of 2026 with double-digit growth across every headline metric.” — René Moos, Chief Executive Officer · 2026-07-28 This performance prompted management to raise its underlying EBITDA less rent guidance for the second time, to €430-460 million, while maintaining revenue guidance of €1.64-1.69 billion.
The Multivertical Growth Engine
The most notable strategic development is the formal launch of a three-pronged growth model: organic expansion, inorganic M&A, and franchising. The company's new catchphrase, multivertical growth, reflects a shift from pure organic club openings to a more capital-efficient approach. René Moos explained the rationale:
The acquisition of Wellyou for €52 million (5.3x EBITDA) is a prime example of the bolt-on strategy, adding 41 clubs in Germany and accelerating the path to critical mass. Management sees significant upside in the Wellyou portfolio. As Moos put it, “their average ARPU is much lower than ours. I think that is a very good opportunity to actually get them in our system and that way, increase the turnover.” — René Moos, Chief Executive Officer · 2026-07-28 Meanwhile, the Clever Fit integration is progressing well, with a new franchise board and improved supplier contracts. The company is also laying the groundwork for a Basic-Fit franchise, building on its existing know-how.Combining these three routes gives us more flexibility to allocate capital to the best return opportunities, and over time, that will lift our group returns.
Financial Discipline and Free Cash Flow Inflection
A key highlight of the half was the sharp improvement in free cash flow, which turned positive at €25 million versus -€57 million in the prior year. This was driven by higher EBITDA, lower CapEx, and better working capital management. CFO Maurice de Kleer commented, “free cash flow improved to €25 million from a negative €57 million in 2025.” — Maurice de Kleer, Chief Financial Officer · 2026-07-28 The company also proactively refinanced its debt, issuing a new €308 million convertible bond maturing in 2031, replacing more expensive short-term facilities and extending its maturity profile. This, combined with strong cash generation, reduced net leverage to 2.3x from 2.7x. The company expects an even stronger H2 free cash flow performance, with management pointing to significant seasonality and a further reduction in club openings.
Interestingly, this pivot to capital efficiency marks a departure from the company's earlier focus on rapid expansion. In the Q1 2025 call, Moos had said about franchise: “We only want to announce, when we have concrete steps. So we will announce more detail in time.” — Rene Moos, CEO · 2025-04-17 Now, the franchise launch is imminent, and the company is actively managing its capital allocation. In 2023, the CFO had guided to cash flow positivity, “We expect to be cash flow positive in 2024 and also already in the last quarter of 2023.” — Hans van der Aar, CFO · 2023-07-25 That promise has been fulfilled and exceeded.
The company's cost control efforts are also noteworthy. Management highlighted procurement improvements, energy hedging, and the optimisation of staff costs in France, all contributing to the EBITDA beat. With the second half traditionally stronger, the full-year outlook appears well-supported.
Outlook and Conclusion
Basic-Fit is entering a new phase of growth, leveraging its scale and brand to generate higher returns on invested capital. The combination of organic growth, strategic M&A, and franchising offers multiple avenues for value creation. With a strengthened balance sheet and rising free cash flow, the company is well-positioned to execute its multivertical growth strategy. Analysts will be watching the integration of Wellyou and the first franchise deals, but the initial signals are encouraging.