Smartfit (SMFT3) Q1 2026 earnings summary

Executive summary

• Achieved record net revenue of R$2.1 billion in Q1 2026, up 25% year-over-year and 8% sequentially, driven by network expansion, recurring plans, and digital platforms.

• Membership base grew to 5.6 million, a 6% increase year-over-year, excluding aggregator users, with strong contributions from new club openings and favorable seasonality.

• Added 354 clubs over the last 12 months, reaching 2,113 units across 16 countries, reinforcing leadership in Latin America.

• TotalPass, the B2B aggregator, surpassed 2 million members and expanded its partner network to 44,000 establishments, driving significant market share gains in Brazil and Mexico.

• International operations gained relevance, with Mexico and other countries accounting for 63% of owned gym revenue.

Financial highlights

• Net revenue: R$2,102 million (+25% YoY, +8% QoQ); cash gross profit: R$1,089 million (+28% YoY), with a record cash gross margin of 51.8%.

• Adjusted EBITDA reached R$672 million (+29% YoY), with a margin of 32%.

• Recurring net income was R$207 million (+47% YoY), with a recurring net margin of 9.8%.

• Operating cash generation was R$635 million, with a 95% EBITDA conversion rate.

• Net profit attributable to owners was R$172 million, a 42.8% increase year-over-year.

Outlook and guidance

• Confirms 2026 guidance of 330–350 new club openings, with ~80% expected to be owned clubs.

• CapEx per unit for 2026 expected to remain stable versus 2025, with ongoing focus on efficiency and intensified maintenance investments.

• Expansion supported by mature club performance, disciplined capital allocation, robust financial position, and favorable market conditions.