Smartfit (SMFT3) Q3 2025 earnings summary

Executive summary

• Achieved 17% year-over-year growth in club network, reaching 1,867 units across 16 countries, with 276 clubs added in the last 12 months and entry into a new country.

• Member base exceeded 5.2 million, up 8% year-over-year, with annualized average net revenue per owned club rising 4% due to higher membership and ticket prices.

• Net revenue grew 28% year-over-year to R$1.8 billion, driven by network expansion, a 12% increase in average member base, and a 10% rise in average ticket.

• Record EBITDA of R$586 million, up 33% year-over-year, with margin expansion to 32.1%.

• Recurring net income grew 43% year-over-year to R$177 million, with a net margin of 9.7%.

Financial highlights

• Net revenue: R$1,824 million (+28% YoY, +2% QoQ).

• Cash gross margin before pre-operating costs reached 50.8% in 3Q25, up 0.3p.p. from 3Q24.

• EBITDA: R$586 million (+33% YoY), EBITDA margin at 32.1% (+1.0p.p. YoY).

• Recurring net income: R$177 million (+43% YoY), recurring net margin at 9.7%.

• Operating cash flow reached R$605 million, converting 103% of EBITDA to cash.

Outlook and guidance

• Confident in 2025 guidance of 340-360 new club openings, with 80% expected to be owned clubs, supported by strong execution and favorable market conditions.

• 252 units under construction, supporting accelerated expansion.

• Expansion pace acceleration rationale includes consistent mature unit performance and increasing demand for fitness services.