Smart Fit (B3: SMFT3), Latin America’s largest gym chain, reported Q1 2026 recurring net income of R$207 million ($41M), up 47 percent year-on-year, with revenue surpassing R$2 billion for the first time in a single quarter at R$2.102 billion ($416M), up 25 percent, according to the company’s CVM filing released Wednesday May 6.
Adjusted EBITDA reached R$671.8 million ($133M), a 29 percent increase with a 32 percent margin, while the chain crossed 2,113 gyms across 16 countries after adding a record 354 locations over 12 months.
TotalPass, the corporate fitness benefit platform, reached 2.1 million active users in Brazil and Mexico with 34,000 partner gyms, representing 34 percent market share of monthly active users in Brazil, according to the company’s disclosures.
Key Points
What Smart Fit Did in Q1 2026
Smart Fit is Latin America’s largest gym chain and one of the world’s fastest-growing fitness companies, founded in 2009 by Brazilian entrepreneur Edgard Corona and listed on B3 since 2021. The group operates multiple brands: Smart Fit (high-volume, low-cost gyms), Bio Ritmo (premium), Nation CT (CrossFit), Race Bootcamp, Jab House, Velocity (cycling studios), and Vydia (yoga) — plus digital platforms TotalPass (corporate benefit) and Queima Diária (online fitness). The company employs over 20,000 people across 16 countries spanning Latin America, Europe (Portugal, Spain), and Africa (Morocco, entered Q4 2025). Smart Fit Q1 2026 results are covered by The Rio Times as part of its Latin American financial news reporting on B3-listed consumer companies.
The revenue milestone tells the story. Breaking R$2 billion in a single quarter — driven by 20 percent growth in owned-gym revenue and a doubling of the “Others” segment (TotalPass, franchises, studios) — demonstrates that Smart Fit has evolved from a gym operator into a fitness ecosystem. “The strong average ticket growth in the period reflects multiple initiatives to sustainably optimise revenue per gym,” the company stated in its earnings release, citing price adjustments, commercial initiatives, and higher TotalPass penetration driving visits to owned locations.
The geographic breakdown shows Brazil as the Q1 star, with EBITDA margin expanding 3.4 percentage points year-on-year driven by TotalPass performance, according to XP Investimentos. Other Latin American markets delivered solid results with margins up 1.5 percentage points. Mexico was the weak spot, with EBITDA margin declining 4.1 percentage points on flat revenue per gym and higher labour costs, per XP’s analysis. The Fitmaster/TotalPass Mexico consolidation added approximately R$28 million in incremental revenue in Q1, according to management commentary cited by XP.
Why Smart Fit’s Q1 Result Matters
TotalPass is emerging as the strategic asset that could redefine Smart Fit’s valuation. The corporate fitness benefit platform — which allows companies to offer employees access to a network of 34,000+ partner gyms (including Smart Fit locations) — grew users 47 percent year-on-year in Brazil and captured 34 percent market share of monthly active users, up 9 percentage points. In Mexico, TotalPass holds 81 percent market share with 9,000+ partner gyms. XP Investimentos noted that “TotalPass surpassed member growth of regular plans in Brazil, leading to increased penetration above the level observed in the past 3 years.” The platform now represents 15 percent of total visits at owned Smart Fit gyms in Brazil, up from 13 percent a year ago, according to the filing.
For international investors, Smart Fit represents a rare Latin American consumer-growth story with several structural advantages: gym penetration in the region is approximately 4–5 percent of the population versus 20+ percent in the US, providing a multi-decade growth runway; the low-cost model (subscriptions of US$15–25/month) is counter-cyclical in an economic slowdown; the company-owned model (80% of new openings) provides operational control; and the TotalPass ecosystem creates a network effect that competitors cannot easily replicate. Itaú BBA maintains a Buy with a R$33 target (approximately 60 percent upside), projecting R$969 million in net income for 2026 and 11 percent free cash flow yield for shareholders in 2027, according to their December 2025 research note.
Smart Fit Q1 2026 Quarterly Snapshot
| Indicator | Q1 2026 | Chg YoY |
|---|---|---|
| Net Revenue | R$2.102B ($416M) — record | +25% |
| Recurring Net Income | R$207M ($41M) | +47% |
| Adj. EBITDA | Margin | R$671.8M ($133M) | 32% | +29% | +1pp |
| Gym Count | Countries | 2,113 | 16 | +20% (+354 in 12M) |
| Members | 5.6M | +6% |
| TotalPass Users (BR+MX) | 2.1M | 34K partner gyms BR | Partner gyms +47% |
| Op Cash Generation | Conversion | R$635M ($126M) | 95% | — |
| Leverage (ND/EBITDA) | 1.71x | Healthy |
| Capital Return (Q1) | R$50M buyback + R$111M div/JCP | — |
How Smart Fit’s Result Reframes the LATAM Consumer Story
Smart Fit is one of very few B3-listed companies that can claim genuine multi-country consumer scale. With 2,113 locations across Brazil, Mexico, Colombia, Chile, Peru, Argentina, Panama, Dominican Republic, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Paraguay, Portugal, Spain, and Morocco, the company has more physical points of presence in Latin America than most retail banks. The 330–350 new-gym guidance for 2026 would push the network above 2,400 by year-end — approaching the scale at which network effects in the TotalPass ecosystem become self-reinforcing.
The mature gym economics validate the model’s long-term profitability. XP Investimentos reported that mature gyms generate 52 percent margins, with the 2024 vintage already at 56 percent — reflecting “more assertive expansion combined with lower occupancy costs,” according to their analysis. The company mentioned plans to accelerate maintenance capex to improve equipment quality (particularly strength-training equipment), a signal that management is investing in retention and member satisfaction rather than purely chasing new openings. The 1.71x leverage ratio provides ample headroom for continued expansion without equity dilution.
What Happens Next for Smart Fit
TotalPass monetisation: Corporate clients currently represent 10–15 percent of TotalPass revenue but could reach 30 percent, according to Itaú BBA’s projections. As penetration grows and the platform adds wellness services beyond gym access, the unit could justify standalone valuation.
Mexico margin recovery: The 4.1 percentage point EBITDA margin decline in Mexico — driven by stable revenue per gym against rising labour costs — is the near-term watchpoint. Management has reduced capex per square metre by approximately 20 percent to protect returns, per Itaú BBA.
Africa expansion: Morocco entry in Q4 2025 marks Smart Fit’s first non-Americas continent. The scalability of the low-cost model in African markets — where gym penetration is even lower than in Latin America — could open a multi-decade growth chapter if the unit economics prove out.
Frequently Asked Questions
How many gyms does Smart Fit operate?
Smart Fit operated 2,113 gyms across 16 countries at the end of Q1 2026, up 20 percent year-on-year after adding a record 354 locations over 12 months. Brazil alone reached 1,000 locations, making Smart Fit the first gym chain to achieve that milestone in the country. The company guides for 330 to 350 new openings in 2026, approximately 80 percent company-owned.
What is TotalPass and why is it growing so fast?
TotalPass is a corporate fitness benefit platform that allows companies to offer employees access to a network of partner gyms. In Brazil, TotalPass has 34,000 partner gyms (up 47 percent year-on-year), 2.1 million active users across Brazil and Mexico, and 34 percent market share of monthly active users in Brazil. The platform drives additional traffic into Smart Fit owned gyms and generates recurring B2B subscription revenue.
What is the analyst view on Smart Fit stock?
Itaú BBA has a Buy recommendation with a R$33 target, implying approximately 60 percent upside, projecting R$969 million in net income for 2026. BTG Pactual also has Buy with a R$30 target. XP described the results as “solid” with Brazil as the margin highlight. Analysts consider Smart Fit one of the strongest consumer growth stories in Latin American equities, though Mexico margins and TotalPass investment costs are near-term risks.
Updated: 2026-05-07T09:00:00-03:00 by Rio Times Editorial Desk
Smart Fit Q1 2026 | SMFT3 earnings results | Latin America gym fitness chain | TotalPass | Latin American financial news | The Rio Times