Smartfit (SMFT3) Q3 2026 earnings summary

Executive summary

• 3Q26 net revenue was R$2,348.7M, up 29% YoY; adjusted EBITDA reached a record R$762.8M, up 30%, and recurring net income was R$247.7M, up 40%.

• The network reached 2,259 clubs across 17 countries, adding 89 clubs in Q3 and 392 over 12 months.

• The ecosystem included 336 BEON Studios, a partner network of up to 50,000 facilities and more than 8 million customers across clubs, studios and aggregators.

• LTM operating cash generation was R$2,423.3M, with 88% EBITDA-to-cash conversion.

Financial highlights

• Q3 net revenue was R$2,348.7M, up 29% YoY and 8% QoQ; LTM revenue reached R$8,576M.

• Cash gross profit was R$1,205.4M, up 33% YoY; cash gross margin was 51.3%, up 1.7 p.p.

• Adjusted EBITDA was R$762.8M, up 30% YoY, with a 32.5% margin; excluding pre-opening costs, it was R$797.8M at a 34.0% margin.

• Recurring net income was R$247.7M, up 40% YoY, with a 10.5% margin; LTM recurring net income was R$892.8M.

• 9M revenue reached R$6,627.9M and net profit R$540.2M; Q3 net profit was R$212.2M, while 9M net finance costs were R$940.4M.

Outlook and guidance

• FY26 guidance remained 330–350 club openings; by October-end, 197 additions were recorded YTD, 159 clubs were under construction and 140+ contracts were signed for 2026–27 openings.

• About 80% of FY26 openings were expected to be owned clubs; opening pace may be adjusted for performance and market conditions.

• 2027 pricing decisions remained under review through market-by-market tests; Brazil’s tax reform complicates price setting.

• Management expected 2026 effective tax near 20%, with lower Q4 visibility due to universal-base taxation and country-level calculations.

• Expansion remained selective, with potential for a larger Brazil franchise share, geographic diversification and tests in new markets.