By Brazil Stock Guide – Smart Fit (SMFT3) reported net profit of R$241.5 million in the fourth quarter of 2025, a 23% increase from a year earlier, as revenue growth and operating leverage from rapid gym expansion continued to support margins across its Latin American operations.
The company posted net revenue of R$1.95 billion in the quarter, up 26% year over year and 7% from the third quarter, reflecting higher membership pricing, expansion of its gym network and stronger contribution from adjacent businesses such as TotalPass and digital services.
Operating profitability also strengthened. Adjusted EBITDA reached R$609.8 million in 4Q25, a 25% increase from the same period of 2024, with an EBITDA margin of 31.3%, remaining broadly stable despite higher operating expenses tied to expansion.
The revenue increase was driven by a combination of higher membership pricing and expansion of the gym network. Average ticket prices rose across all regions, supported by price adjustments implemented over the past year and growing penetration of the “Black” premium membership plan, which now represents about 70% of Smart Fit’s owned-gym client base.
The company also benefited from rising corporate wellness demand. TotalPass — the group’s B2B wellness platform — continues to grow rapidly and increasingly contributes to traffic and revenue inside Smart Fit gyms.
Gross profit generation remained strong despite continued expansion. Cash gross profit totaled R$972 million in the quarter, up 26% year over year, resulting in a cash gross margin of 49.9%.
Operating expenses increased as the company accelerated openings and investments in marketing, technology and staff. Selling expenses reached R$132.8 million, while general and administrative expenses totaled R$202.1 million, bringing total SG&A to R$362.3 million.
Despite these increases, operating leverage supported EBITDA growth. For the full year, adjusted EBITDA reached R$2.29 billion, representing 30% growth versus 2024, with an EBITDA margin of 31.7%.
Net revenue for the full year reached R$7.24 billion, also a 30% increase compared with 2024, while net profit totaled R$738 million, up 37% year over year.
Smart Fit’s expansion strategy remains the central growth driver. The company ended 2025 with 2,084 gyms in 16 countries, a 20% increase compared with the previous year. During the year, the company added 341 new gyms, the largest expansion in its history.
Beyond traditional gyms, Smart Fit is building a broader fitness ecosystem. TotalPass ended the year with 1.7 million corporate users and access to more than 40,000 fitness locations across Brazil and Mexico. Digital fitness products are also gaining traction, with the Queima Diária platform reaching 438,000 subscribers, while digital-only services totaled 455,000 users.
With strong profitability and continued expansion, Smart Fit is positioning itself as one of the largest integrated fitness platforms globally. Management signaled that expansion, digital platforms and corporate wellness will remain key pillars of growth as the company scales across emerging markets.
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