This article first appeared on GuruFocus .

Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• SATS ASA ( FRA:2S0 ) reported a 22,000 increase in its member base, reaching a total of 755,000 members for the year 2025.

• The company achieved a 9% increase in total revenues and an 18% rise in EBITDA for the full year 2025.

• Q4 2025 saw a significant increase in EBITDA by 28% and EBIT by 34% year on year.

• Free cash flow for Q4 2025 was 244 million, up 59% compared to Q4 2024, showcasing strong cash generation.

• The board proposed a semiannual dividend of NOK 0.67 per share, reflecting strong shareholder returns.

Negative Points

• The net member change in Q4 was only 1,000, indicating a slowdown in member growth compared to previous quarters.

• Operating costs increased by 2% in Q4, driven by investments in group training, which may pressure margins if not managed carefully.

• The company anticipates elevated costs in Q1 2026 due to a non-current employee gathering, which could impact short-term profitability.

• Expansion efforts are limited, with only one club opened in the quarter and a visible pipeline that remains constrained.

• Higher price increases in 2026 are expected to result in lower net growth compared to the extraordinary member growth seen in Q1 2025.

Q & A Highlights

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Q: Can you elaborate on the factors driving the strong financial performance in Q4 2025? A: Andre Rave, CEO: The strong performance in Q4 was driven by higher activity levels, disciplined cost management, and strong operational leverage. Revenues increased by 9%, EBITDA by 28%, and EBIT by 34% year-on-year. This was supported by a 6% increase in visits and a 22,000-member growth, reflecting improved asset productivity and member engagement.

Q: How is SATS ASA managing its cost structure while investing in growth? A: Cecilia Elda, CFO: We maintain a tight approach to costs and investments, with club operating costs increasing by only 2% on a currency-adjusted basis. Investments in group training and targeted product improvements are deliberate choices to drive higher activity levels, lower churn, and higher lifetime value. Overall, cost development is in line with inflation, adjusted for selective investments.

Q: What are the key drivers behind the increase in membership and visits? A: Andre Rave, CEO: Membership growth and higher workout frequency per member are key drivers. We added 20,000 more group training classes in Q4, which has led to higher engagement and lower churn. The increase in unique visits, rather than just more frequent visits by active members, indicates strong member loyalty and lifetime value.