Fitness Champs Holdings Limited (Nasdaq: FCHL) reported a first‑half fiscal 2025 loss of S$0.25 million (US$0.20 million) on December 29, 2025, after a net profit of S$0.18 million a year earlier. Total revenue fell 2.9% to S$2.16 million (US$1.64 million) from S$2.23 million in the same period last year, driven by a 2.9% decline in swim‑fee revenue as enrollment slipped. Gross profit contracted to S$0.62 million (US$0.49 million), shrinking the gross‑profit margin to 28.86% from 34.86% a year earlier.
The revenue dip was largely a result of lower enrollment in the company’s core swimming programs, which account for roughly 80% of total revenue. At the same time, operating expenses rose 61% to S$0.97 million (US$0.76 million) as coach compensation increased 6.1% following a salary adjustment effective January 1, 2025, and marketing spend grew to support the planned Dubai expansion. The combination of a 2.9% revenue decline and a 61% rise in operating costs explains the swing from a modest profit to a loss.
Segment analysis shows that swim‑fee revenue, the largest contributor, fell 2.9%, while merchandise sales remained flat. The company’s management noted that the decline in swim‑fee revenue is linked to a broader slowdown in local demand for children’s swimming lessons, a trend that has been observed across the Singapore market. The flat merchandise performance suggests that ancillary revenue streams are not yet compensating for the core‑business weakness.
Chief Executive Officer Joyce Lee said the company remains “focused on disciplined cost management while investing in coaching talent and brand positioning to support our international expansion.” She added that the Dubai launch, slated for January 2026, will be financed in part by the proceeds of the September 2025 IPO and that the company is monitoring the Nasdaq minimum bid‑price compliance issue that arose in November 2025. The IPO raised US$8.0 million, but the company’s debt‑to‑equity ratio has risen, raising concerns about short‑term liquidity.
The company’s cash and cash equivalents increased to S$0.47 million (US$0.37 million) at June 30, 2025, up from S$0.31 million at the end of 2024, providing a modest buffer as it navigates the current profitability squeeze. Management emphasized that the short‑term loss is a strategic trade‑off to accelerate growth in new markets, and that the company is monitoring the impact of the Nasdaq compliance notice on its capital‑raising flexibility.
The results underscore a challenging period for Fitness Champs, with margin compression and a net loss highlighting the pressure of higher labor and marketing costs against a backdrop of declining enrollment. The company’s focus on international expansion and investment in coaching talent signals a long‑term growth strategy, but the current financial performance will be closely watched by investors and regulators alike.
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