SMFT3 after 2Q26: club expansion drives record EBITDA while TotalPass mix and capex lift adjusted net debt
How to read Smart Fit’s second-quarter package — R$2.18bn net revenue (+22%), record R$712m EBITDA (32.7% margin), R$204m recurring net income (+8%), 2,170 clubs (+19%), TotalPass at 2.2m members (+70%), 74% EBITDA-to-cash conversion in the quarter, R$463m expansion capex, and adjusted net debt at R$4.61bn (1.20x LTM EBITDA).
SMFT3 after 2Q26: club expansion drives record EBITDA while TotalPass mix and capex lift adjusted net debt
On 5 August 2026, Smartfit Escola de Ginástica e Dança S.A. (B3: SMFT3) reported 2Q26 results for the period ended 30 June 2026. Net revenue reached R$ 2.18 billion (+22% year on year), EBITDA hit a quarterly record of R$ 712 million (+24%, margin 32.7%, +0.5 percentage points), and recurring net income was R$ 204 million (+8%). The network ended the quarter with 2,170 clubs across 16 countries (+19% versus 2Q25), while the “Others” revenue bucket — dominated by TotalPass Brazil, royalties, and digital brands — grew 47% and reached 11% of consolidated revenue.
Smart Fit is a useful case study in multi-segment fitness: headline growth can look uniform, but B2C membership counts, aggregator traffic, and owned-club unit economics move in different directions. Management also presents several indicators excluding IFRS 16 lease effects on club and office rents; those cash-based metrics are the company’s main operating lens in the release, not identical to IFRS profit lines in the filed statements.
Consolidated snapshot
Figures below follow Smart Fit’s 2Q26 earnings release (5 August 2026), using the company’s cash gross profit and EBITDA definitions that exclude IFRS 16 on commercial leases unless noted:
| Metric (2Q26) | Result | vs 2Q25 |
|---|---|---|
| Clubs | 2,170 | +19% |
| Net revenue | R$ 2,177 m | +22% |
| Cash gross profit | R$ 1,131 m | +24% |
| Cash gross margin | 51.9% | +1.1 pp |
| EBITDA | R$ 712 m | +24% |
| EBITDA margin | 32.7% | +0.5 pp |
| EBITDA before pre-operating costs | R$ 740 m | +23% |
| Recurring net income | R$ 204 m | +8% |
| Recurring net margin | 9.4% | −1.2 pp |
| Reported net income | R$ 178 m | −4% |
| Operating cash flow | R$ 530 m | 74% of EBITDA |
| Expansion capex | R$ 463 m | — |
| Adjusted net debt | R$ 4,614 m | +9.9% vs Mar-26 |
| Adj. net debt / LTM EBITDA (debenture definition) | 1.20x | vs 1.14x in Mar-26 |
In 1H26, net revenue totaled R$ 4.28 billion (+23%), and EBITDA R$ 1.38 billion (+26%).
Network expansion and guidance
Smart Fit added 57 net clubs in 2Q26 (43 owned, 14 franchised) and 352 over the last twelve months — the largest twelve-month club addition in its history, per the release. Geographic mix was unchanged year on year: Brazil 47%, Mexico 23%, other countries 30%.
| Network (end Jun-26) | Count | Comment |
|---|---|---|
| Total clubs | 2,170 | +19% YoY |
| Owned | 1,746 (80%) | +20% YoY |
| Franchised | 424 (20%) | +18% YoY |
| Smart Fit brand | 2,126 | +19% YoY |
| Mature owned Smart Fit clubs | 1,127 | 66% of owned base |
Management reiterated 2026 guidance for 330–350 openings, with roughly 80% owned. As of end-July 2026, the company cited 98 year-to-date net additions, 134 clubs under construction, and more than 200 signed agreements for openings in 2026–2027. Expansion capex in 2Q26 was R$ 463 million; total investment activities consumed R$ 634 million, mostly new units.
On 3 August 2026, Smart Fit completed the acquisition of 60% of Evolve Participações, per press coverage of the release — a corporate action that sits beside organic rollouts in any full-year ownership analysis.
Revenue drivers: owned clubs and the “Others” segment
Net revenue growth was led by:
| Revenue lens (2Q26) | Growth vs 2Q25 | Share / note |
|---|---|---|
| Smart Fit owned clubs | +19% | Ticket +10%, average member base +8% (company) |
| “Others” segment | +47% | 11% of net revenue (+2 pp YoY) |
The “Others” line bundles royalties from franchises (ex-Mexico), TotalPass Brazil, Queima Diária, BeOn Studios in Brazil, and FitMaster / TotalPass Mexico in Mexico. Cash gross profit in Others reached R$ 194.5 million (+79%), with 84.7% cash gross margin before pre-operating costs (+15.1 pp YoY), helped by TotalPass Brazil scale and Mexican aggregators.
At the Smart Fit club level, cash gross profit before pre-operating costs was R$ 921.9 million (+16%), but margin slipped to 49.0% (−1.3 pp YoY) as newer units and regional mix weighed on unit economics:
| Smart Fit cash gross margin (before pre-op, 2Q26) | Margin | YoY change |
|---|---|---|
| Brazil | 45.4% | −3.5 pp |
| Mexico | 42.8% | −3.6 pp |
| Other countries | 56.3% | +2.1 pp |
Mature owned Smart Fit clubs held 51% cash gross margin for the thirteenth consecutive quarter, with annualized cash gross profit per mature club at R$ 2.4 million (versus R$ 2.5 million in 2Q25 and 1Q26). 2024 vintage units ran at 55% margin; 2025 vintage units at 48% margin and R$ 1.7 million annualized profit per unit — still ramping, with many 4Q25 openings.
Members, seasonality, and TotalPass
The release separates direct (B2C) club members from TotalPass users. That split matters because aggregator growth can reduce reported B2C counts while still lifting traffic and revenue.
| Member / platform metric (2Q26) | Level | vs 2Q25 |
|---|---|---|
| B2C club members (ex-TotalPass) | 5.58 m | +8% |
| Brazil B2C members | 2.25 m | −2% |
| Mexico B2C members | 1.26 m | +13% |
| Other countries B2C | 2.08 m | +18% |
| TotalPass Brazil + Mexico members | 2.2 m | +70% |
| TotalPass partner gyms (Brazil) | ~37k | +44% |
| TotalPass partner gyms (Mexico) | >10k | +40% |
Versus 1Q26, the consolidated B2C base was flat, which management attributed to seasonality at mature clubs (typical 1Q → 2Q dip) and TotalPass penetration in Brazil. In Brazil, the company linked the 2% year-on-year B2C decline to higher TotalPass check-in utilization, which supports club revenue but shifts mix away from the direct membership statistic.
For TotalPass Brazil, the release cites Sensor Tower estimates for monthly active users: 35% share in Brazil at 30 June 2026 versus 27% a year earlier (+8 pp). Mexico share was 79%, stable year on year. Sensor Tower figures are third-party estimates, not audited operating data.
BeOn Studios ended with 311 rooms (+39% YoY) and 192 units (+34 units YoY, 89% franchised).
Why recurring profit grew slower than EBITDA
Recurring net income (+8%) trailed EBITDA (+24%) for familiar below-the-line reasons:
| Below-EBITDA item (2Q26) | Educational note |
|---|---|
| Financial result | +75% YoY on a reported basis; release cites liability management (prepayment of 7th and 9th debenture series in Brazil and Mexico debt) and tougher comparison after R$ 10.8 m financial income from tax-credit restatement in 2Q25 |
| Income tax / CSLL | Effective rate up as more subsidiaries become profitable |
| Depreciation | R$ 295.6 m (+24% YoY), consistent with a larger owned footprint |
Reported net income (R$ 178.3 million, −4% YoY) sits below recurring profit because of acquisition remeasurements and the debenture prepayment charges the company strips out of its recurring line.
Cash flow, capex, and leverage
| Cash / debt (2Q26) | Amount | Comment |
|---|---|---|
| Operating cash flow | R$ 529.5 m | 74% EBITDA conversion (vs 92% LTM) |
| Working capital | (R$ 119.1) m | Taxes (R$ 78.1 m), suppliers (R$ 59.4 m) |
| Investment activities | (R$ 633.5) m | Expansion capex R$ 462.8 m |
| Cash and financial investments | R$ 2,627 m | — |
| Gross debt | R$ 7,217 m | 84% long-term |
| Adjusted net debt | R$ 4,614 m | +R$ 417 m in the quarter |
| Net debt / LTM EBITDA (ex real-estate IFRS16) | 1.78x | vs 1.71x in 1Q26 |
Management framed 1.20x adjusted net debt to LTM EBITDA under debenture covenant definitions as manageable given predictable cash generation and long-dated debt. The ratio rose sequentially because expansion investments outpaced LTM EBITDA growth in the quarter, even as LTM operational cash generation reached R$ 2.37 billion at 92% conversion.
Selling, general, and administrative expenses were R$ 404.6 million (+25%), 18.6% of revenue (+0.5 pp), with G&A rising faster on TotalPass and new businesses while selling expenses fell to 7.4% of revenue (−0.3 pp) on Smart Fit marketing efficiency.
Limits of this reading
- Cash gross profit and EBITDA in the release exclude IFRS 16 on club/office leases; filed IFRS statements will not match these subtotals without adjustment.
- TotalPass market-share statistics rely on Sensor Tower methodology disclosed in the release.
- B2C member tables exclude aggregator users; club demand analysis should combine attendance commentary, not only headline member counts.
- Evolve, Velocity, and other deals add non-recurring lines — use recurring net income for run-rate comparisons.
- This note does not model debenture amortization schedules or lease liabilities; see CVM-filed ITR footnotes for covenant and maturity detail.
Where to view in the explorer
Sources
- Smartfit Escola de Ginástica e Dança S.A. — 2Q26 earnings release (reference 30 Jun 2026), 5 August 2026
- Smart Fit — earnings conference call materials, 6 August 2026
- Press coverage (Reuters, UOL, InfoMoney), 5 August 2026 — Evolve closing and headline reconciliation
- CVM disclosure chain for Smart Fit (ITR / release archive)
- SMFT3 on the explorer — filings and company page
Disclaimer
This article is for informational and educational purposes only. It is not investment advice. Cash-based metrics and recurring profit definitions follow Smart Fit’s release; when in doubt, official CVM filings prevail. Refer to those documents and, if needed, a licensed professional.
Trabaja con filings vía API
¿Necesitas acceso programático a DFP, ITR, FRE y más? Usa la API de apicvm.