Good evening, everyone, welcome to Sport Clubs Company's first quarter 2026 earnings call. I am Asmar Shams from BSF Capital, I will be your host for today. Representing the company are its CEO, Mr. Wael El Merhabi, the finance director, Mr. Abdullah Al Tahan, and IR manager, Miss Abrar Al Masmari. I'll now hand over to management to commence their presentation, after which we will open the floor for Q&As. Management, over to you. Thank you, Asmar. Ladies and gentlemen, good afternoon. I'd like to welcome you first to this earnings call to present and discuss the results for Q1 2026. I will start with a quick presentation highlighting the positive results achieved in the first quarter of this year, which marked a very good start for the year. Let's start with our operational highlights for the period. This section will cover key initiatives, execution milestones, and operational improvements that supported our positive performance during this quarter. Let me begin with a performance snapshot, which reflects the resilience of our business model and the strengths of our operating platform. During the quarter, we delivered revenue growth of 4.5%, given that Q1 2025 includes SAR 16.9 million of revenues coming from Body Experts, which is the sports solution sector, versus only SAR 1.1 million in Q1 of this year. Taking out the effect of Body Experts from both quarters, we would be talking about revenue growth of 30% coming from our subscriptions and PT revenues, which is our core business. Our gross profit margin reached 25.3% versus 20.9% in Q1 2025. This significant growth is mainly due to the increase in revenues coming from both club subscriptions and PT services. The net income margin grew from 4.1% in Q1 2025 to 5.1% in Q1 2026, showing continuous profitability progress. Again, removing the effect of Body Experts in Q1 of both quarters, we would be comparing 4.1% in Q1 2026 versus a negative margin in Q1 2025. Similarly, the EBITDA margin improved as well to reach 36.5%. Overall, we are pleased with the strong start of 2026, we believe that these results reinforce the long-term fundamentals and sustainability of the business. Moving to our operational performance, the first quarter clearly demonstrates continued expansion in both scale and member engagement. Over the last 12 months, we added five new clubs, bringing our total network to 59 locations. This expansion strengthens our geographic presence and increases accessibility to our brands across key markets. Our member base reached 146,000 members as of the end of March 2026. This represents strong year-on-year growth of 26%, it reflects both healthy new member acquisition and improving retention across the network. The member activity levels also remain very encouraging with total visits reaching 2.5 million during the quarter, which is up by 14.5% year-over-year. The retention as well improved to 63%, which is a growth of 5% year-on-year, which proves that our investment in member experience in coaching quality and the facility standards is delivering positive results. Finally, the personal training sessions increased significantly to 81,000 sessions, growing more than 54% year-over-year. This highlights the increasing demand for premium fitness services and supports higher revenue per member across the business. Expansion remains one of the key pillars of our long-term growth strategy, and we continue to execute with discipline and clear visibility across our development pipeline. As shown on this slide, by end of Q1, we had 16 new clubs in progress. Of these, 12 clubs were already under construction, while four were in the design phase or awaiting the necessary licenses. From a brand perspective, the pipeline is balanced between Body Masters and Body Motions. Those clubs are expected to open within the next 14 months, in addition to three existing clubs that are scheduled for full refurbishment during 2026. It is important to mention here that in April 2026, which is last month, we successfully opened two additional clubs in Jeddah, which as well exceeded our expectations, in terms of results. Bringing our operational network to 61 clubs today and reducing the active pipeline to 14 clubs. One of our three clubs planned for refurbishment has already started the refurbishment. That was in early April last month, and is expected to be reopened in a couple of months, Inshallah. In addition to all that, we have a number of new locations which are today under negotiations, and I could say imminent signing, and they are expected to be secured, Inshallah, and added to the pipeline very soon, Inshallah. We believe our expansion strategy continues to position the company for a sustainable long-term growth. This slide highlights the positive impact of our brand evolution and network optimization strategy. Starting with membership growth, our average Q1 member base increased from around 117,000 members in Q1 2025 to almost 138,000 in Q1 2026. At the same time, we are not only growing total membership, but also improving the club productivity. The average members per club increased from 2.1 thousand to 2.3 thousand members per club, which is reflecting stronger utilization and healthier occupancy levels across the network. It is important to note here that the average members per club for the new Identity clubs with which we are expanding is way higher than this, and we will show it in the last slide of this presentation, which indicates that the more we open new clubs, the higher the average member per club will reach. We already talked about the growth in the total visits, which indicates that our members are using today our facilities more frequently and integrating fitness more consistently into their lifestyles. Perhaps most importantly is to mention again the personal training sessions, which grew significantly from 52.5 thousand to almost 81,000 sessions year-over-year. This is a very strong indicator that our new PT program, which was launched back in Q1 of last year, started to show its big expected success. Alhamdulillah. This slide illustrates the consistent expansion of our active member base over the past several quarters and highlights the strength of demand across all of our brands. As you can see, the average active members grew from 160.6 thousand in the first quarter of 2025 to almost 138,000 in the first quarter of 2026, which is representing a growth of approximately 18% year-over-year. Most importantly, as of the end of Q1 2026, the total members reached 146.3 thousand members versus only 116.1 thousand by end of Q1 2025. This, of course, demonstrates that our membership pipeline and the acquisition trends remain healthy, heading into a positive growth for the remainder of 2026. This slide shows the evolution of our subscription mix, and it reflects how members are adapting to our offerings. In Q1 2026, we focused more on offers of shorter duration packages, which represented 77% of the sold subscriptions, compared to 54.5% in the same period last year. It is important to mention here that this shift is largely intentional, and it aligns with our strategy to attract a broader customer base through more flexible membership options, especially that our retention rate is improving. I will leave you now with my colleague, Abdullah, to give you a brief about the financial performance. Thank you, Wael. [Foreign language], and welcome everyone. The first slide, we can see the company's strong financial results during Q1 2026. Revenue increased by 4.5% to SAR 86.1 million, while gross profit grew by 26.7%, and operating profit increased by 15.2%. Net income increased by 29.2% to SAR 4.4 million, while EBITDA increased by 11.4% to SAR 31.4 million. Earnings per share also increased by 17.5% compared to Q1 2025. Here in this slide, we can see the company's strong financial position and the improvement in its capital structure. The assets increased to SAR 951.5 million by the end of Q1 2026. While the company maintained a balanced equity and liability structure, with equity representing around 28.6% of total equity and liabilities in both quarters. The company maintained healthy profitability levels, with return on equity reaching around 19% during the last 12 months. We can see here debt to equity improved to nearly 51%, showing a stronger financial position and lower debt levels compared to previous years, which will support the company in obtaining more bank facilities to fund future expansion. In this slide, we can see the continued improvement in our revenue mix and profitability during Q1 2026. Total revenues increased by 4.5% to SAR 86.1 million, mainly supported by strong growth in subscription revenues, which increased by around 21% to SAR 73.2 million. This growth was mainly driven by Body Masters premium and Body Motions. PT and other services showed strong growth of 137%, reflecting higher member engagement and increased use of services across all clubs. Gross profit increased by more than 27% to reach SAR 21.9 million, mainly driven by the strong performance of Body Masters premium and Body Motions, despite the decline in Body Experts revenue. This slide shows a strong growth in deferred revenue, which increased by around 34%. This reflects strong membership sales. This is very important indicator, actually, if not the most important for the company's future results and revenues. More than 56% of the deferred revenues are expected to be recognized during Q2 2026, and more than 90% should be recognized during this year. Cash generated from operating activities increased to SAR 29.2 million, compared to SAR 12.4 million in Q1 2025, which reflects strong operating performance of the company during the quarter. During the quarter, the company invested heavily in expansion and refurbishment projects. In terms of financing, the company paid back a net of SAR 12.2 million. Net cash was negative during Q1 2026. This was mainly driven by strategic growth investment and financing obligations, while the underlying operational cash performance remained strong. I will hand it over to Wael to continue with the remaining slides. Thank you. Thank you, Abdullah. In this section, as I am doing in every earnings call, I'll walk you through what I consider the most important slides of this presentation, showing how the new identity clubs are performing across key financial and operational metrics. You will see how the expansion with the new identity clubs is the real game changer that will take the company, Inshallah, to completely new dimensions of success, which you must have already, I think, started seeing quarter after quarter. This slide clearly demonstrates that our new identity and club transformation strategy is delivering tangible financial and operational results across the network. The numbers are, let's say, very similar to the excellent ones we showed in Q4. This time with even a slight improvement. Starting with the revenue per club performance, the impact has been particularly strong with Body Masters locations operating under the new identity, where average revenue per club increased from SAR 4.4 million to SAR 11.5 million. Body Motions clubs also delivered healthy improvement, with revenue per club increasing by more than 27%. The same trend is visible at the EBITDA level. Body Masters new identity clubs generated EBITDA per club of SAR 7.2 million compared to only SAR 2 million under the classic identity. Body Motions also continued to improve profitability with EBITDA growth of more than 36%. At the net income level, performance improvement remains very significant. Net income per club for Body Masters' new identity locations increased to SAR 5.8 million per club, while Body Motions achieved strong growth as well, of more than 75% of growth. Operationally, the transformation is also driving stronger utilization. Active members per club more than doubled within the Body Masters new identity locations, reaching 4,800 members per club. Body Motions clubs also showed continued member growth and stronger engagement. These results reinforce our confidence that the new identity is not simply a cosmetic transformation, but a strategic upgrade that is improving members' perception, increasing club productivity, and is materially enhancing the financial returns across the platform. As I previously mentioned, the new identity clubs in our portfolio represent today 23 clubs out of 62 clubs in total. I mean here after having opened, of course, the two new clubs in Jeddah in April, and which results during the first months of opening, Alhamdulillah, exceeded our expectations big time. Just imagine how the picture will be when the majority of the clubs in our portfolio are of the new identity. Especially that we're going aggressive with the expansion, in addition to the refurbishment of a number of the old identity clubs. Not only we are opening new clubs with the new identity, but also we are accelerating this by refurbishing old clubs, which are generating the same results of the new identity clubs, and you will see how in the next slide. This slide provides further evidence that our refurbishment and rebranding strategy is generating very strong returns, even within existing clubs that were already operating prior to the refurbishment. What is particularly important here is that these results are based on the same clubs, allowing us to see very clearly, purely the impact of refurbishment, the impact of the upgraded design, the enhanced member experience, and the refreshed branding. For example, if we take club 1, the active members increased from approximately 2,100 members back in March 2025 to 6,000 members by March 2026, representing a growth of more than 186%. We're talking about the same club before refurbishment and after refurbishment. Similarly, club 2, it achieved member growth of over 54%, increasing from 1,200 to 1,900 active members over the same period. These are very significant improvements and clearly demonstrate that upgrading existing assets can materially improve utilization and club productivity. Based on the success we have seen so far with this refurbishment plan, we decided to fully refurbish another three additional clubs during 2026. One of which is already under refurbishment, and the other two are planned to be refurbished, Inshallah, in Q3 and Q4 of this year. This concludes our presentation, and we are now open for your questions. Thank you, management, for the presentation. Participants, the floor is now open for Q&As. Please use the raise hand icon if you wish to ask a question. We would request you to limit questions to two, after which you may get back in the queue for follow-ups. You can also use the chat box to type your questions. There's a question in the chat box from Moza Al-Hajri. Do you have any figures or estimates on your market penetration or market share? For the market penetration, market share, unfortunately, we do not have real accurate studies being issued on a regular basis. We cannot rely on any accurate number. What we know is today we are the second-largest player in the market. We are expanding in a fast pace that makes us able, Inshallah, to maintain this position and grow it in terms of market share. We do not have accurate figures. The last figure we got was at the time of the IPO, which appeared in the prospectus, which showed, if I'm not mistaken, a market share of something like 7% or 10%, something like this. As I said, we cannot rely on this because this is outdated information. It should be updated on a regular basis with some specialized studies, which we lack, unfortunately, today in the industry. We'll take the next question from the line of Khalid Al-Subaie. Khalid, please unmute yourself and go ahead. Hello, am I audible? Yes, we can hear you. management presentation. I have one question regarding Al Aarid branch. Can you share some light on how many members do we have as of Q1 on Al Aarid? How many what? Branch. Members. I cannot disclose this for sensitive areas, as it's a bit sensitive. However, what I can do is to tell you that Al Aarid is one of the best clubs in terms of performance. Since the day it opened, Alhamdulillah, it is maintaining a very good performance in terms of all KPIs, whether we're talking about revenues, whether we're talking about number of visits, number of active members, PT services. It is one of the top performance in our portfolio, whether we're talking about male gym or even female gym. A very clear- Afwan? It's very clear Al Aarid branch is a very successful. We can't really. center that we have. My second question is how would we mitigate the risk of Al Aarid player Hello? Yes. We can hear you. [Foreign language] Am I audible? Yes. It's very clear that the branch is very successful. However, how can we mitigate the risk of one of the players entering the same area, which could take some The voice is a bit disconnecting, but I got the overall general idea of the question. This is something that nobody can stop. We cannot stop this. We cannot stop any competitors from entering in an area where we are operating. Same applies on the competitors when we are entering an area where the competitor is operating. However, what makes us confident is the offering that we are having in our clubs. We believe that we are providing the best value for money, one of the best services for the subscription price that we are asking for. At the same time, even if we lose some of the members for another competitor, by the way, there are some competitors today operating in the area. We are not alone. We have, I think, two or three competitors already in the area. We witnessed, by the way, the same thing with some other new Identity clubs in other areas where one of the most important competitors opened just next to us. Alhamdulillah, our numbers did not get impacted at all because we're confident about our offering. As I said, even if it goes down a little bit, we are compensating this by our fast expansion, in other areas, whether in Riyadh or outside Riyadh. Very clear. My last question, I remember during the IPO that we were having some old centers that are not profitable. Can we get some update on it? Is it turned profitable or are we going to refurbish these centers? Thank you so much. Yes, of course. When we talk about 62 clubs, you cannot have all the clubs profitable. However, the number of clubs which are not profitable is very small. We took some initiatives, and we were able to reduce the losses significantly. At the same time, as you said, we have a plan to refurbish a number of the old clubs. This year, we have three. Next year, we'll be having something like three or more. We believe that in the coming couple of years, we should not be having any club which is making losses. By the way, even this small number of clubs making losses, most of them at the level of the EBITDA is positive. Thank you, management. We'll take the next question from the line of Dua Al Fada. Dua, please unmute yourself and go ahead. Salam Alaikum. Am I audible? I have a question on the sport solutions segment. It has been very cyclical in terms of top line and bottom line. Can you explain it, please? That's true. It is cyclical, and it will remain cyclical. Actually, Body Experts is a sector where we provide turnkey fitness solutions mainly to government and semi-government sectors. Of course, we offer as well for private sector. The thing is that back in 2025, the first two quarters and the last two quarter of 2024, we got Abnormally a larger scale project compared to the other project that we used to have in the Body Experts. This is something that we knew that it's not something which is repetitive. We are doing our best. We always try to secure similar project or a little bit smaller, it is not something easy. As I said, when we budgeted in our five-year plan and in the business guidance, the revenues from Body Experts, we mentioned clearly that what we got as a big project in 2024 and 2025 is not something that is sustainable. It will not remain as the numbers will not be the same. Now, this being said, removing the whole effect of this big project, which improved our numbers in Q1 2025 big time, despite that, we were able, this Q, without the positive numbers from this big project, to be able to beat Q1 revenues and profitability of last year. I remember you have certain projects like with RCU, KAF, and another government entity with specific terms. Yes. These are still there. They are running. As I said, when comparing them to the big projects that we got in 2024 and 2025, we can say that this is not the same scale. You see? We got one big off last year. We hope to be able to secure something similar this year or next year, but it is not something which is guaranteed. It is not something which is budgeted. Okay, clear. If I may ask on the EBITDA margin of the new gyms, if I'm not mistaken, the EBITDA margin is around 63%, which is extremely high. Yes. Are those numbers right? They are 100% right. Is this driven mainly? If you allow me, Anna, I asked this question to myself before you asked it because, as you said, these numbers are not easy to believe. We as a management team, we were really surprised, positively surprised with these numbers. We thought at the beginning that this is something temporary and then it will fade, it will go down. It's been now maybe more than a year we are witnessing the same numbers. With every new club, with the new identity, we are receiving or witnessing very similar numbers. Even with the refurbished clubs as well, we are witnessing very similar numbers. That's why we are very optimistic that with these new clubs that are going, which are on the pipeline and which are going to open within the next 12 months or 14 months, we believe that the whole picture, in terms of profitability, will really be completely different from what you are seeing today. If I may ask, can we attribute this to also the subscription mix? Because the three months is now at 77%, which offers way much higher margins than the other subscriptions. Is this sustainable? Yes, it is sustainable. As I said, we were able to make the members adapt to our offerings. As I said, we moved to shorter durations because of the higher retention that we are having. Because our retention is improving, it is for our benefit to be selling on shorter duration, as you said, because we will be making more margin. When we sell at a longer duration, usually this is because we're afraid of not having a good rate of renewal. Because we have a continuously improving retention rate, because our renewal rate is getting higher and higher, we were encouraged to go for shorter duration and make the exposure is for a broader member base. Okay, clear. Thank you, management. We'll take a couple of questions from the chat box. Abdulrahman Al-Obaikan is asking, "How long is a club closed when being refurbished? Are you only refurbishing larger format clubs or also the smaller, older formats as well? Let me start with the second part of the question. Regardless whether we're talking about small format or big format, the refurbishment is made for a club, whether it's small or big, a club where we see a big potential if being refurbished. Mainly this applies on big formats, but one of the two clubs that we presented in the presentation was for a small club, small format, and still this one, which is club two, was able to make a growth of 54%. Regarding the part one of the question, usually when we go for full refurbishment, in order to convert an old club into a new identity club, like we did with the slide that shows Club One, it usually takes between three months to four months of closure. For example, the one which is going through refurbishment now, which is in Riyadh, it closed early April, and we expect to open it in the coming months or beginning of the months after, which makes about three months and a half. It's important here, by the way, sorry, if you allow me, it's important here to say that we usually have always plans for the members of those clubs that go through refurbishment, because we don't leave them without a club. We always try to find solutions for them. We open for them any club close by. Usually, we have two, three, four clubs close by for them to be able to continue their working out. In case we do not have that, we freeze their subscription, and we try to compensate them in a way or another in order not to lose them. We've done this many times during the previous refurbishments, and it proved to be a successful plan, alhamdulillah. Thank you, Mr. Wael. There's a question from Alpha Capital: Could you please provide a breakdown of the club portfolio by new model, old model, and refurbished clubs in terms of number of clubs? Yes. I just mentioned it when presenting. Today we have, after having opened Jeddah male and female in April, we have 61 clubs. We have, out of the 61 clubs, yeah, 23 clubs which are of the new format. 23 out of 61. refurbished. Sorry, refurbished and new identity clubs, we have today 23 out of 61. Thank you, Mr. Wael. Participants, as a reminder, you can use the raise hand function to ask questions or type your questions in the chat box. While we await for the questions, there is one question from my side. It pertains particularly to competition in the market, specifically Leejam. At the time of the IPO, there was a general consensus that, or expectation that Leejam might slow down on its expansion strategy, given they had expanded rapidly over the last couple of years and were seeing pressure in their margins. From their latest guidance, they are continuing to expand even this year, around 25 centers are planned. How does that impact your own business plan in terms of new sites and expansions? Are you more selective given that Leejam is not slowing down, or are you maybe speeding up the newer sites in order to get a first mover's advantage? Just want to get some insight on how does Leejam's continued rapid expansion affects your business plan. Okay. I said it, I will say it again. Today, we are very, very confident with the offering of our new identity. Regardless what the competition is doing, we have a very clear plan of fast and aggressive expansion. We are making sure that this expansion is very well studied. We make sure that we do not go into a wrong location. Every new location is well studied. This is from one side. From the other side, let me say one thing. The market is huge. The market is growing very fast. The awareness for fitness in the Saudi market is increasing big time. I believe that the market can absorb easily Body Masters and Body Motions in addition to all competitors today in the market. The pie is big. Whoever opens more will get more of the pie, on condition, of course, that is coming to the market with the right offering, which we are sure about that, alhamdulillah, because we are not talking theory here. We tried. We came with the new identity in many locations, in many cities, and all of them, they proved success as I've shown in the last slide I presented, or the one before the last slide. alhamdulillah, the numbers that we are witnessing with the new identity, whether in Riyadh, in Jeddah, in Dammam, they are all showing that this offering is very successful. We are very confident. We are not really looking at competition when we are going to open in a location. As long as the location is well studied and we are sure that it is the right place to be, whether there is competition or not. Clear. Thank you. With no further questions, we have reached the end of the call. Participants, if there are any pending queries, you can still ask or contact the IR department directly after the call finishes. I would thank all the participants for attending the call and the management for their time and their insights. I will now hand over back to Mr. Wael for any closing remarks. Thank you. Thank you, Asmar. Thank you, everyone. Thank you for your questions and your continued confidence in Sport Clubs Company. We look forward to updating you on our continued progress in the coming quarters, inshallah. This concludes the call. You may disconnect now. Have a good evening, and thank you. Thank you.