Gym Group plc (GYM.L) is the UK’s second-largest low-cost gym operator with over 230 sites. The company benefits from a subscription-based model with high retention, low churn, and strong cash generation. As the estate matures, average revenue per member is increasing through price hikes and ancillary sales, while new club openings are achieving faster breakeven. We expect EBITDA margins to expand from ~28% to over 30% in the next 12 months, driven by operational leverage and cost controls. The stock trades at ~10x EV/EBITDA, a discount to European peers like Basic-Fit (20x+), offering a compelling risk/reward. Key catalysts include: (1) continued like-for-like revenue growth from price increases and higher utilization, (2) acceleration in new club openings to 20+ per year, (3) potential special dividend or buyback as free cash flow grows, and (4) possible M&A interest given the fragmented UK market. Risks include cost inflation (energy, labor) and competition from PureGym and budget operators. Balance sheet is solid with net debt/EBITDA below 2x and ample liquidity. Disclaimer: This is not financial advice. Investing involves risk, including loss of principal. Do your own research.