Smartfit (SMFT3) Q4 2025 earnings summary

Executive summary

• Achieved record expansion in 2025 with 341 new clubs, surpassing 2,084 units across 16 countries, including entry into Morocco and accelerated growth in Argentina, reinforcing leadership in Latin America.

• Leadership transition completed: Edgard Corona became Chair, Diogo Corona appointed CEO, and José Luís Rizzardo as CFO, ensuring continuity and long-term value generation.

• Integrated ecosystem spans fitness clubs, studios, and wellness aggregator, with strategic repositioning of Bio Ritmo, expansion of Studios (BeOn), and integration of Velocity and Aera Pilates enhancing premium and boutique segments.

• TotalPass consolidated as a leading wellness aggregator, reaching 40,000 partner clubs and 1.7 million users in Brazil and Mexico.

• Member base exceeded 5.2 million (+8% YoY), driven by network expansion and higher average ticket prices.

Financial highlights

• Net revenue for Q4 2025 grew 26% year-over-year to R$1.95 billion; full-year net revenue reached R$7.2 billion, up 30%.

• Adjusted EBITDA for Q4 2025 reached R$610 million (up 25%), with a margin of 31.3%; full-year Adjusted EBITDA was R$2.3 billion, up 30%.

• Recurring net income for 2025 was R$741 million, a 28% increase, with a net margin of 10.2%.

• Cash gross profit in 4Q25 was R$972 million (+26% YoY), with a margin of 49.9%.

• Operating cash flow conversion remained high at 97% of EBITDA.

Outlook and guidance

• 2026 expansion guidance: 300–350 new net clubs, ~80% company-owned, representing 16–17% network growth.

• CapEx per unit in 2026 expected to remain stable versus 2025, excluding FX volatility.

• Effective tax rate for 2026 projected between 15%-20%.

• SG&A expected to rise in absolute terms but grow below net revenue, driven by investments in TotalPass.

• Ongoing investments in people, marketing, technology, and product innovation to reinforce leadership and drive long-term profitability.