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 and digital platforms.

• Membership base grew to 5.6 million, a 6% increase year-over-year, excluding aggregator users.

• Network expanded to 2,113 clubs across 16 countries, with 354 new units added in the last 12 months and 29 in Q1 2026.

• TotalPass surpassed 2.1 million users, expanded its partner network to 44,000 establishments, and drove significant market share gains in Brazil and Mexico.

Financial highlights

• Adjusted EBITDA reached R$672 million, up 29% year-over-year, with a margin of 32%.

• Recurring net income was R$207 million, a 47% increase year-over-year, with a net margin of 9.8%.

• Cash gross profit totaled R$1.1 billion, up 28% year-over-year, with a record cash gross margin of 51.8%.

• CapEx for Q1 2026 was R$566 million, up 28% year-over-year, mainly driven by expansion investments.

• Operating cash generation was R$635 million, with 95% EBITDA-to-cash conversion.

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 stable versus 2025, with ongoing focus on efficiency.

• Maintenance CapEx as a percentage of net revenue for mature units expected to rise in 2026 due to investments in equipment.

• Plans to intensify maintenance investments throughout 2026.