Smartfit (SMFT3) Company presentation summary

Market leadership and growth

• Holds the largest fitness network in Latin America with 2,113 clubs across 16 countries, growing 20% year-over-year, and a member base of 5.6 million as of 1Q26, up 6% from the previous year.

• Achieved record expansion in 2025 with 337 new clubs, including entry into Morocco, and continued strong growth into 2026 with guidance for 330-350 new clubs.

• Maintains a highly scalable and diversified model, with 63% of net revenue from outside Brazil and a presence in major Latin American cities.

• Market share is ~10x larger than the second player in Latin America, benefiting from a fragmented and underpenetrated market.

• Consistent expansion strategy supported by disciplined capital allocation and strong relationships with real estate partners.

Financial performance and profitability

• Net revenue reached R$7.7 billion in 1Q26 LTM, with a 21% CAGR since 2019, and EBITDA of R$2.5 billion at a 32% margin.

• 1Q26 net revenue was R$2.1 billion, up 25% year-over-year, with record EBITDA of R$672 million and a margin of 32%.

• Cash gross margin before pre-operating costs expanded to 52.7% in 1Q26, with mature clubs maintaining a 52% margin.

• Strong operating cash generation, with a cash position of R$4.6 billion and financial leverage at 1.14x net debt/EBITDA.

• High conversion of EBITDA to cash (95%) and recurring net income growth of 47% year-over-year in 1Q26.

Business model and ecosystem

• Operates a multi-brand ecosystem including Smart Fit, Bio Ritmo, Nation, and studios, with 89% of net revenue from owned clubs.

• Asset-light models such as TotalPass (B2B2C aggregator) and Studios drive additional revenue and market reach.

• TotalPass surpassed 2.1 million end users, gaining significant market share in Brazil and maintaining leadership in Mexico.

• Digitalization is a key pillar, with 79% of sales via digital channels and a growing digital member base.

• Black Card membership offers network effects and unique benefits, with penetration rising to 74% in 2023.