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, digital platforms, and strong performance in owned clubs and the “Others” segment.

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

• Network expanded to 2,113 clubs across 16 countries, with 354 added in the last 12 months and 29 net new units in Q1, reinforcing leadership in Latin America.

• TotalPass surpassed 2.1 million users, expanded its partner network to 44,000 establishments, and drove 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 reached R$2,102 million (+25% YoY, +8% QoQ), with cash gross profit of R$1,089 million (+28% YoY), and a record cash gross margin of 51.8%.

• Adjusted EBITDA hit a record 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 totaled R$635 million, with a 95% conversion rate from adjusted EBITDA.

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 in line with 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.