Smartfit (SMFT3) Q4 2025 earnings summary

Executive summary

• Achieved record expansion in 2025 with 341 new clubs, reaching over 2,080 units across 16 countries, including entry into Morocco and accelerated growth in Argentina, reinforcing leadership in Latin America.

• Net revenue grew 30% year-over-year to R$7.2 billion, driven by network expansion, higher average ticket, and strong performance in business units like TotalPass.

• Adjusted EBITDA reached R$2.3 billion in 2025, up 30% over 2024, with a margin of 31.7%.

• Recurring net income rose 28% to R$741 million, with a recurring net margin of 10.2%.

• Leadership transition completed: new CEO and CFO appointed, with Edgard Corona as Chair, ensuring continuity and long-term value generation.

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 (+30% YoY).

• Cash gross profit in Q4 2025 was R$972 million (+26% YoY), with a margin of 49.9%.

• Adjusted EBITDA in Q4 2025 reached R$610 million (+25% YoY), with a margin of 31.3%; full-year margin was 31.7%.

• Recurring net income in Q4 2025 was R$235 million (+19% YoY), with a margin of 12%.

• Operating cash flow conversion was strong at 97% of EBITDA.

Outlook and guidance

• 2026 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 increase in absolute terms but grow below net revenue in 2026.

• Continued focus on disciplined capital allocation, international growth, and operational excellence.