Smartfit (SMFT3) Q4 2024 earnings summary

Executive summary

• Added a record 305 clubs in 2024, reaching 1,743 units (+21% vs. 4Q23), with 5.2 million members at year-end across 15 countries.

• Net revenue surpassed R$1.5 billion in 4Q24 (+36% vs. 4Q23), with annual net revenue at R$5.6 billion (+31% YoY).

• Achieved record adjusted EBITDA of R$487 million in 4Q24 (+47% vs. 4Q23), with margin expanding to 31.6%.

• Recurring net income for 2024 was R$578 million, with a recurring net margin of 10.4%.

• Member base reached 5.2 million in 4Q24 (+17% vs. 4Q23), with 4.8 million in clubs.

Financial highlights

• Cash gross margin was 50.1% in 4Q24, stable YoY, with mature clubs maintaining 52% margin for the 8th straight quarter.

• Operating cash flow reached R$1.6 billion in 2024 (+6% YoY), with EBITDA-to-cash conversion at 89%.

• Capex for expansion was R$1.4 billion in 2024 (+33% YoY), with total capex at R$1.84 billion (+38% YoY).

• Adjusted net debt/EBITDA LTM was 1.16x at 4Q24, with net debt at R$2.9 billion.

• Cash balance at year-end was R$2.95 billion; gross debt R$5.95 billion, 87% long-term.

Outlook and guidance

• 2025 guidance targets 340–360 new club openings (+15% vs. 2024), supported by strong financial position and favorable market demand.

• Entered 2025 with strong member intake: 295,000 added in January, reaching 5.5 million members.

• Studio segment to expand primarily via franchises, following successful Velocity acquisition.