Year-on-year. Finally, the demand for our PT services remains strong, with 315,000 PT classes delivered which is representing 18% growth year-on-year, which is highlighting the increasing focus of our members on personalized fitness experiences. Expansion remains a key pillar of our growth strategy, and we continue to execute with a clear and disciplined rollout plan. Today, we operate 59 clubs across the kingdom. During 2025, we opened five new clubs, including three Body Masters and two Body Motions while also reopening two Body Masters clubs following a full refurbishment to ensure our facilities continue to meet the highest standards. Our footprint today is well-diversified geographically. The central region remains our largest market while we continue expanding across the eastern, western, northern, and southern regions which is allowing us to capture demand across multiple cities and communities.
Looking ahead, we have a strong pipeline of 16 new clubs currently in progress. Of these, three are already in pre-opening sales phase, seven are under construction, while six are waiting for the required licenses to start construction very soon, [Non-English content]. These upcoming clubs are well-distributed geographically, with the majority in the central region, as you can see, and additional expansion across the western and eastern regions. From a brand perspective, the pipeline is evenly split between Body Masters and Body Motions. Most importantly, all 16 clubs which are in the pipeline are expected to open gradually within the next 14 months which provides clear visibility into the next phase of our growth. This slide highlights the impact of our brand transformation and multi-brand strategy.
Starting with membership, our average Q4 member base increased from about 123,000 in Q4 2024 to approximately 155,000 in Q4 2025, reflecting strong growth across all our formats. At the same time, we are seeing higher average members per club, increasing from roughly 2,000 to 2,200 members per club which is demonstrating stronger utilization of our facilities. This growth in membership is also translating directly into higher activity levels across our clubs. The total visits increased from 2.8 million to 3.3 million visits in Q4 which is showing that members are engaging more frequently with our platform. Another key indicator of engagement is PT demand. PT sessions increased significantly from around 65,000 to more than 92,000 sessions. Similarly, we can see that all those metrics witness a significant growth as well, even when looking at the full year period, year-on-year.
This highlights the positive impact of our new identity and improved operational and marketing initiatives. This slide illustrates the consistent expansion of our active member base over the past quarter.
Apologies for the interruption, management, can you please move closer to the mic? We have been receiving messages that the volume is a bit low. If you can move closer to the mic, please.
Can you hear me better now?
Hopefully. Once again, apologies for the interruption. Please continue.
In this slide, it illustrates the consistent expansion of our active member base over the past quarters, reflecting both our network growth and increasing brand strength. Starting from around 110,000 members back in Q2 2024, we have seen steady growth quarter after quarter, reaching 154,600 members at the peak in Q3 2025. As we close the year, the average active member base in Q4 stood at approximately 148,000, demonstrating the strong scale we have achieved across the network. Overall, this chart highlights a clear upward trajectory with membership expanding by roughly 19% year-on-year, driven by our club expansion, strong acquisition, and growing brand recognition. This slide shows the composition of our subscription units, both for the fourth quarter and for the full year.
Overall, what we see here is a very stable mix of subscription durations, both quarter-on-quarter and year-on-year. The three-months package remains the core product, representing the majority of subscriptions in both periods. When we combine the three-months package with what we call here the other category, which mainly consists of shorter duration subscriptions which are very close to the three months offering, the overall short-term segment remains broadly consistent across the periods. This means that customer behavior has not materially changed. Members continue to prefer flexible entry options and short durations which is typical in our market. I will leave you now with my colleague, Abdullah, to give you a brief about the financial performance during Q4 and full year 2025.
Thank you, Wael, and welcome everyone. This slide shows the company's strong performance in both Q4 and full year 2025. In Q4, revenue increased to SAR 104 million compared to SAR 89 million last year, while gross profit reached SAR 34 million. Operating profit, net income, and EBITDA also increased, reflecting strong operational performance. Looking at full year, revenue reached SAR 376 million, and gross profit increased to SAR 112 million. At the same time, EBITDA reached SAR 148 million, and the free cash flow improved significantly, SAR 46 million. Overall, these results show solid growth and improving profitability for the company. In this slide, we can see the total assets increased from around SAR 794 million in 2024 to SAR 945 million in 2025, reflecting the company's growth and expansion. At the same time, equity increased, which improved the company's capital structure.
Return on equity remains strong at around 20%, reflecting a company's ability to generate good return for shareholders. Finally, we also see the debt-to-equity ratio decreased significantly, reaching about 52% in 2025, showing lower leverage. This slide shows the revenue mix improvement in Q4 2025. Total revenue increased from SAR 89 million in Q4 2024 to SAR 104 million in Q4 2025, mainly driven by a growth in subscriptions, which increased by about 22%. Subscription revenue reached around SAR 89 million, supported mainly by Body Masters Premium and Body Motions. Revenue from PT and other health services also increased to about SAR 13 million, showing higher demand for additional services. As a result, gross profit increased to SAR 35 million, reflecting better revenue mix and stronger performance in Q4. This slide shows the revenue mix improvement for full year 2025.
Total revenue increased from SAR 327 million in 2024 to SAR 376 million in 2025, mainly driven by growth in subscription, which increased by about 19%. Subscription revenue reached around SAR 310 million, once again supported mainly by Body Masters Premium and Body Motions. Revenue from PT and other health services remained stable at around SAR 40 million during the year. As a result, gross profit increased to SAR 112 million, reflecting better revenue mix and stronger performance. Overall, the company achieved solid growth during 2025. This slide shows the growth in deferred revenue, which reflects strong membership sales. Deferred revenue, as we can see, increased from about SAR 94 million in 2024 to SAR 102 million in 2025, showing continual demand on our subscriptions.
On the right side, we can see when this revenue will be recognized. Around 41% will be recognized in Q1 2026, followed by 29% in Q2, and the remaining in H2 2026. This reflects strong forward coverage and stable future income. This slide shows the company's strong cash generation in 2025. We can see the cash from operating activity increased significantly from about SAR 104 million in 2024 to SAR 159 million in 2025, reflecting the strong operational performance.
At the same time, cash used in investing activities increased to about SAR 117 million, mainly due to investment in expanding and opening new clubs. Cash used in financing activities decreased significantly compared to last year, mainly due to the IPO proceeds received during the year. As a result, the company moved from negative net cash in 2024 to positive net cash of about SAR 42 million in 2025. I will pass the mic back to Wael to continue presenting the remaining slides. Thank you.
Thank you, Abdullah. In this section, I will walk you through what I consider the most important slide of this presentation, which is showing how the new identity clubs are performing across key financial and operational metrics. You'll see how the expansion with the new identity clubs will be the real game changer that will take the company, in my opinion, to completely new dimensions of success and new heights in market leadership during the coming few years, [Non-English content], and which I believe that you must have already started seeing it from now. Here, we are comparing the performance of the old clubs with the classic identity opened before 2021, with the new identity clubs opened in 2021 and after.
Starting with revenue per club, Body Masters clubs operating under the new identity generated around SAR 11.1 million per club, compared to only SAR 4.4 million under the previous identity, representing an increase of over 150%. Similarly, Body Motions clubs also showed strong improvement, with revenue per club increasing by about 28%, reaching SAR 7 million. The improvement is even more evident at the EBITDA level. For Body Masters clubs, EBITDA per club increased from SAR 1.9 million to SAR 7.1 million. Body Motions clubs also delivered solid EBITDA growth, increasing by around 44%. At the net income level, the transformation becomes even clearer. Body Masters clubs improved net income per club from SAR 800,000 to SAR 5.7 million, while Body Motions nearly doubled profitability per club, which is reaching SAR 2 million. Finally, this performance is driven by higher membership density per club.
Body Masters clubs increased from about 1,900 members per club to 4,500, while Body Motions grew from 1,400 to 1,800 members per club. Overall, these results clearly show that our rebranding strategy is delivering tangible financial and operational benefits, significantly enhancing club productivity, profitability, and member engagements across the network. Now as I previously mentioned, the new identity clubs in our portfolio represent today 21 clubs out of 59 clubs in total. Just imagine how the picture will be when we open the 16 new clubs in our pipeline, followed by another at least 10 clubs per year onwards.
In addition to the aggressive expansion with the new identity clubs, we are moving forward in parallel with a full refurbishment of a number of old clubs to upgrade them to the new identity, especially after we've seen how effective is the renovation and refurbishment to transform the old clubs into the new identity. This slide shows the like-for-like performance of two fully refurbished clubs. For club one, active members increased from around 2,100 at the end of 2024 to about 5,100 by the end of 2025, representing a growth of more than 140% year-on-year following the refurbishment and rebranding. Similarly for club two, it also showed a strong improvement with membership increasing from approximately 1,200 members to 1,600 with a higher margin, so reflecting a growth of nearly 35% over the same period.
These examples demonstrate the strong uplift we typically see when existing clubs are upgraded and repositioned under the new brand identity. This is why we are going more aggressive with the refurbishment plan in 2026. This concludes our presentation, and we are now open for questions. Brother Fahad?
Thank you, panelists. Ladies and gentlemen, we will now commence with the Q&A session. You may raise your hand by pressing the hand icon at the bottom of your screen to speak with the panelists, or alternatively, you may drop your question onto the Q&A chat box. With that being said, we will however prioritize raised hands. Please limit your questions to two at a time so we may satisfy as many questions from participants as possible. However, you are more than welcome to join the back of the queue if you have a follow-up. With that being said, the Q&A session is now open.
As we wait for questions to line up, I would start with a question of my own. I would like to ask the management that we just saw the slide where you have shown the increase in members per club of the refurbished gyms. How has the active membership per club been for the non-upgraded clubs? The overall membership growth is good, but I believe there might be some cannibalization, some movement from old clubs within nearby areas to these new clubs. How is the active membership per club been for non-upgraded clubs in 2025?
Okay. Thank you, Fahad. Actually, the growth that we have made in 2025 was a combination of many factors. Actually, it's not only because of the opening of new clubs, it's not only because of the refurbishment of some of the old clubs, but as well we witnessed a like-for-like growth in revenues, which is usually coming from a like-for-like growth in members as well. This is just to answer your question, but let me elaborate a little bit more to say here that when we open new clubs, we always make sure that we do not have any cannibalization. We do that by using some scientific tools to select our new locations. Sometimes, these are exceptions, but sometimes we may have some cannibalization.
But we make sure that this cannibalization does not exceed 15%, in a way that opening the new club with a 15% cannibalization still is better than not opening. The combination of increase in the number of members from both clubs is still better than not opening the new location.
Thank you, management, for the detailed response. Our next question comes from the line of Mr. Dilshan. Mr. Dilshan, your line is unmuted. You can unmute yourself locally and go ahead with your question.
Thank you. I'm Dilshan from Majd Investment in Dammam. It's part of Almajdouie Group. My first question is on the CapEx of the new branches. What is your average CapEx for Body Experts, Motion, and also the Masters? What is your average breakeven level in terms of months or in terms of revenue, or in terms of members? Just to get an idea of the CapEx and the breakeven level. Thank you.
Okay. In terms of CapEx, you know that it depends because sometimes we open a club which is from scratch. It's a greenfield project. We do the building, and we do the finishing. In such a case, we talk about something like SAR 17 million-SAR 18 million, or SAR 18 million-SAR 19 million for Body Masters clubs, which is around 3,000+ sq m , including the equipment. For Body Motions, it costs a little bit lower because we're talking here about a size which is a bit smaller. We're talking about 2,500, 2,600 sq m. However sometimes, we open clubs in a current shell. We don't need to invest in constructing the building. The building is ready, we just do the finishing. In such case, the CapEx is way lower. We may pay something like SAR 10 million-SAR 12 million.
Similarly, for Body Motions, a little bit lower because of the size, as I mentioned. Now in terms of breakeven, we cannot have one unique number, whether we are talking about number of active members or revenue or number of months is because it depends on the club itself and the characteristics of this club. Sometimes we have a club which is in a very strong area, where the rent is higher than other places. The number of manpower needed there is higher than the usual. I t depends from a club to another club. However, to answer your question, I would say that we're talking about something like 2,500 members on average to breakeven. As you know, anything that comes on top of the 2,500 members, plus or minus, goes directly to the bottom line with something like 90% of the subscription price.
Because the nature of this business is very high fixed cost, very high contribution margin. Once you reach the breakeven, about 85%-90% of the revenue you realize on top of the breakeven point goes directly to the bottom line.
Okay. Thank you very much.
You're welcome.
Thank you, panelists, and thank you, Mr. Dilshan, for the question. Our next question comes from the line of Mr. Abdullah Al-Salamah. Mr. Abdullah, your line is unmuted. Please unmute yourself locally and go ahead with your question. Mr. Abdullah Al-Salamah, we have unmuted your line. Please unmute yourself locally and go ahead with your question.
[Non-English content ]
[Non-English content ], Abdullah.
[Non-English content] Congratulations, first, on the result. This is Abdullah from SABB. I have a few questions from my side, if you allow me. First, with regard to the performance for the female. The male segment showed a relatively stronger performance, but when you compare it to Body Motions, Body Motions was slower. If you could elaborate on the main drivers for the slowdown that happened in Q4 for Body Motions. That's my first question.
Okay. Would you like to carry on with the other-
One by one.
For Body Motions, Abdullah, there are lots of factors. Number one, in Q4 2025, we did not go aggressive in our offers for Body Motions. That's why it is positive, actually. We had a growth, but it's not as strong as the growth that we witnessed in Body Masters. Another reason is because we opened only two clubs for Body Motions while we opened three new clubs for Body Masters and two clubs were refurbished, fully refurbished for Body Masters. This made the growth for Body Masters stronger than Body Motions. As well, there is another very important factor that affected the growth for both Body Masters and Body Motions, but Body Motions more, which is the new PT program that we launched at the beginning of 2025. At the beginning of 2025, we launched a new PT program.
At the very beginning of the year, this program faced some resistance. That's why it didn't deliver the results compared to Q1 2024, and that was expected. However, we knew that down the road it will exceed the expectation. It will outperform the old program, this is what happened actually in Q2, Q3, and Q4. It hit us in Q1. Because the PT revenues represents a much higher share of the total revenues in Body Motions compared to Body Masters, it hit the total revenues of Body Motions more than Body Masters. These are the factors why the growth in Body Motions came slower than Body Masters in 2025. Let me here just stress on one point, which is the PT program. I mentioned this point during the last earnings call.
I said that we are very optimistic with the new PT program, and our optimism proved to be in its place. Even if you look at Q3 and Q4, the PT performance compared to last year is way higher. We believe that even in 2026 will be even stronger.
[Non-English content] My second question is on gross margin. We noticed a year-over-year decline in the Q4. What was the key drivers behind the pressure in gross margin?
The gross margin in Q4, there were two reasons why the gross margin is lower than last year, Q-to-Q. Number one is in Q4 2024, we went a little bit more aggressive with our offers, which was not the case in Q4 2025. We did not have to go for something more aggressive. This is one of the reasons. Number two, in Q4 2024, we had revenues coming from AlUla project, which was not the case in Q4 2025. In total, Q4 2025, the revenues, I mean, was higher than Q4 2024, despite the fact that we didn't have any revenues coming from AlUla, which was coming with a high gross margin.
AlUla uplifted the margins a year ago, Q4?
Yes. Despite the fact that we didn't have any revenues coming from AlUla in Q4 2025, we still had a good gross margin, relatively speaking, compared to Q4 2024.
It means in AlUla, the revenue coming from Body Experts regarding.
Yes.
Other project.
Not from the clubs that we opened, because the first part of AlUla project was a project of Body Experts fitness solutions sector. Once we delivered the project, we are now operating those two clubs, Body Masters and Body Motions in AlUla, under the brands of Body Masters and Body Motions, and they are contributing with the same gross margins like all the other clubs in the portfolio.
Very clear. My last question, if you allow me. Now with around 16 clubs in the pipeline, how confident are you in maintaining the same ramp-up periods for the new clubs? We've seen one of the players, when they went aggressive in the expansions, the ramp-up period extended, and margin deteriorates. How confident are you in maintaining the ramp-up period?
Very good question. We can go even more aggressive if we want with the number of clubs. However, we are always trying to balance between quality, between margin, and between the number of clubs to be added to the portfolio. That's why we are not going more than those clubs that we mentioned. We make sure that when we are selecting a club, we are selecting it, as I previously mentioned, scientifically, using some AI tools to make sure that when we are opening a club, we are opening it in the right location, in the place where we have enough population density. The purchasing power is meeting the minimum required to make sure that this club is going to be profitable, generating the required rate of return that we are looking for, and not having any cannibalization or a very minimal cannibalization.
To answer your question, we are confident that, [Non-English content], we will maintain our gross margin with these new clubs. We will make sure that this will not reduce our overall margin. As I previously mentioned also about our strategy for openings, we make sure always that we do pre-opening sales, which help us a lot in reducing the period to reach break even. Like this, we make sure that the club is either profitable from day one or will not take long period to become profitable.
Very clear and very informative. Thank you, management. Thank you, Wael.
Thank you, Mr. Abdullah, and thank you, panelists. Our next question comes from the line of Mr. Yash. Mr. Yash, your line is unmuted. Please go ahead and put forward your question.
Hi, am I audible?
Yes, you are.
Thank you, management, for sharing your presentation. I had two questions. First one was on the competitive landscape. How do you see the competitive landscape given the fact that Leejam, our competitor, is adding another 24 clubs in FY 2026 and has announced around 150 additions in the next five years? These can be massive additions. Can this influence a policy change for our company? I will stop here before asking my next question.
Okay. For the first question, it is not only about one competitor. Now, the market is full of competitors opening lots of clubs. It is not about the number of clubs, as I said, to be opened. We are making sure that when we open a club in a certain area, this club is competitive. It can easily compete with any competitor in terms of quality. I would like here to remind everyone about our value proposition, which is one of our main factor of success, which is providing the best service or providing the best value for money. Okay. We are not really concerned a lot with the competition. We know the competitors today. We know what they are offering. We know what we are offering. We are just making sure that the area where we are opening is the right area in terms of clientele. Okay.
We make sure always that we maintain our operational excellency to make sure that we are able to compete with the high quality. Once we have this, we are not really concerned, as I said, with what the competitors are doing, whether they are there, they are not there, they are opening next to us. Because, as you said, sometimes we go to an area where there is no competition. Okay. We cannot open there in a way that we believe that we'll be always alone there. One day, a competitor will open and compete us there. We make sure always, even if we are alone in an area, we are always having the same high standards, like in all our clubs, to make sure that even if a competitor comes in, we will remain competitive and maintain our profitability.
Yeah. Focusing on our club we operate in.
Thank you so much, management, for such a detailed answer. My next question is, has the management devised any strategy on the pricing? If the management can shed some light on the pricing strategy that we have in place.
In terms of pricing, during the last few years, we were gradually increasing our rack rates in a way to go in line with the inflation in the market. Still, I can say that the increase we made is lower than the increase made in the cost. However, we were able to increase the number of members in order to be able to keep on growing the business. This shows that we still have room to increase our prices more. However, as I said, today we don't look at price by itself, we look at the value we are offering. We always try to make sure that the price we are offering is in line with the value that we are offering to our members.
If we look at the yield, which is the average of price per club per member, we can see that it kept on moving or increasing year-on-year gradually, which shows that even if we are not increasing our rack rate a lot, we're still managing to increase our price and margin through more studied offers that we are launching in the market.
Just to reiterate, the company has taken price hikes in the past, and there is still room left for some more price hikes, right?
Hello?
Hello. Was I audible?
Yeah. I said yes. I confirmed what you said.
Okay. Thank you so much. [Non-English content]
Thank you, Mr. Yash, and thank you, panelists, for your answers. I will now be moving on to the Q&A chat box. Our first question from the chat box comes from Mr. Amit Kumar. Can you elaborate on the decline in average members of Body Masters Express in 2025? I believe this is already answered.
No, it's not answered.
All right. Please go ahead.
Let me elaborate on this. Our strategy, which has been the strategy since beginning of 2024, is to grow only with Body Motions and Body Masters Premium. We decided since then to discontinue completely the growth with Body Masters Express. For many reasons, we'll not go through the reasons now, but mainly because the profitability and the ROI with the Premium format is way higher than the one for Body Masters Express. Even we noticed that the demand in the market for the Body Masters Premium is also much higher than the demand for the Body Masters Express format. Since then, we decided to discontinue this format. Since then, we're not growing with any new locations of Body Masters Express.
On the contrary, what's happening with the Express format is that we are either refurbishing the club, if it is applicable, and upgrading it to Premium wherever it's applicable, or if it is not applicable, we are not renewing any lease contract for the Express format. The number of the Express formats is getting reduced year after year. We today have seven clubs only of the Express format, and I believe, according to our plan, that in the coming two years, maximum three years, we'll end up with zero Express clubs. Either there will be shutdown after the lease contract expires. We're not planning to do a shutdown. Or if it is applicable, as I mentioned, we will go through full refurbishment and upgrading it to the Premium format.
Thank you, management. The next question is again from Mr. Amit Kumar. He asks, "There's a big increase in share of three-month memberships in 2025. How has the company managed to achieve this increase?"
Actually, it is not the increase in the three months. If you look at it, you see that the three months increased from 46% to 55%. Are you talking about Q4 or full year? Full year. It increased from 46.4% to 55.9%. However, you cannot look at it without looking at what we call the other subscription. The other subscription here, as I mentioned during the presentation, it is a subscription which is very close to the three months. Sometimes we do offers for 100 days, which is three months plus 10 days. Okay? These offers, they replace the three months. If we want to compare a real comparison, a fair comparison, apple to apple, we have to add the other subscription to the three months. If we do so, we are comparing in 2024, 66.8% compared to 67% or 68.7%. Okay?
We're talking about a difference of only less than 2%. I can say that there was no material change in the demand for short duration, whether we're talking about three months or three months and a few days.
Right. Thank you, management.
Welcome.
Can the company share per gym CapEx and full year CapEx guidance for 2026?
Can you say it again, please?
The question is on per gym CapEx and full year CapEx guidance for 2026. I believe the per gym was already guided, but if you can guide the full year CapEx for 2026.
As you can see in the future business guidance, we clarified exactly how much it costs a new Body Masters club and how much costs a new Body Motions club. You just have to multiply this by the number of clubs that is going under construction. Like this, you'll get the full CapEx. Now, what is worth saying here is that the full CapEx will be financed by three sources. Number one is the cash coming from operations. Number two, we have some good facilities from the bank, and we are using it for that. In addition to that, we got, as you know, some IPO proceeds back in July 2025, and 96% of this IPO was committed to be used in the expansion plan.
All right. I think if you can include maybe the refurbishment CapEx and the maintenance CapEx, maybe that is what the question intended. That apart from the CapEx for new gyms.
Yes.
What is the total refurbishment CapEx and maintenance CapEx?
It is what I wanted to say. The refurbishment CapEx, compared to the total CapEx that we will incur in 2026, is not considered to be significant. A few millions- in addition, a few millions less doesn't really make a big difference. What you have to see is the number of clubs that we are going to open, multiplied by what we mentioned here, the total cost per club. You can add, because we are planning to refurbish three clubs fully and another three clubs partially. If we assume something like SAR 4 million per club, SAR 4 million-SAR 5 million per club for a full refurbishment, then you are adding something like SAR 15 million. With the partial refurbishment, something like SAR 17 million maximum.
All right. Our next question comes from the line of Mr. Abdul Aziz. Mr. Abdul Aziz asks, "Can you explain the reasons behind the decline in gross margins on a Q-on- Q basis, despite there being no new gym openings during the quarter?"
We answered this question before. We said that the decrease in the gross margin is mainly coming from AlUla project, which was there in Q4 2024, but was not there in Q4 2025.
Thank you. There is a follow-up question from Mr. Yash. Mr. Yash, I have unmuted your line. Please unmute yourself locally and go ahead with your question.
Thank you for the opportunity. I just had one question. What was the revenue per center for the non-LFL gyms in FY 2024 and FY 2025?
You're talking about Body Masters or Body Motions or total?
Total.
Okay. Here, you're talking about old clubs, or you're talking about the new identity clubs?
If you can give a breakup of both, that would be better.
Okay. Can you, Abrar, put this slide up? Yes. Here, you can see in this slide that the new identity clubs, okay. Here, I'm comparing between the new clubs and the old clubs for 2025. If you want to compare 2025 to 2024, we'll have to go back to the early slides. Let me just check it for you. You're talking number of members or revenues? Revenue, huh?
Revenue per center.
Okay. Revenue per center. We have SAR 155 million. Sorry. What again, Abdullah?
[Audio distortion]
Let me just look at it. We don't have it here. You can simply divide the SAR 376 million.
Divided by the-
No, you have to remove the AlUla.
Yeah. You have to.
Okay. Yash, we don't have it now ready, but if you want, we can provide you with the exact number after the call.
Okay, sure. That would be helpful. Thank you so much.
No problem.
Thank you, management, and thank you, Yash, for the questions. I will now be moving back to the Q&A chat box. Mr. [Huzeifa Ali Khan] asks, "Can we expect going forward the gross margins to decline for the company due to new opening and increased depreciation as we have seen for the other peer companies?"
As I said, we don't have a huge number of clubs opening. This is number one. Number two, we are trying with our pre-opening sales strategy to reduce as much as possible the period where the club is not making profits. Given that, we don't believe, or we don't expect that the gross margin will go down. It may happen for a quarter, for two quarters. Overall, when we look at the full year, I believe that the momentum should continue growing. We believe [Non-English content] that the gross margin should not be affected. It should continue growing despite the number of clubs that we are expanding with.
Thank you, management. Since we don't have any raised hands or further questions in the chat box, and we are nearing the end time of the call, I would wait for a couple of seconds to see if there are any new questions. Once again, you can raise your hand using the hand icon button at the bottom of your screen, or you can drop your questions onto the Q&A chat box. All right. I believe that marked the last question for our call. On behalf of AlJazira Capital, we thank the management of Sport Clubs sincerely and our esteemed guests for taking their time for the call. Mr. Wael, the floor is yours for any closing remarks.
Thank you, Fahad. Thank you again everyone for your time, your questions, and your continued confidence in Sport Clubs Company, and we look forward to updating you on our continued progress in the coming quarters [Non-English content].
Thanks everyone. The meeting is now over. You may exit the call.
Thank you.