Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT6)

Q2 2026 Smartfit Escola de Ginastica e Danca SA Earnings Call (English, Portuguese) Transcript

Aug 6, 2026 / 02:00 PM GMT

Transcript

Key Points

Positve

Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT3) reported a 22% year-over-year increase in net revenue, reaching R$2.2 billion in Q2 2026, with a record EBITDA of R$712 million and a margin expansion to 32.7%.
The company's asset-light businesses, particularly Total Pass Brazil, are scaling rapidly, with the 'others' segment growing 47% and achieving a gross margin of 84.7%, now representing 17% of gross profit.
Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT3) continues to expand its network aggressively, adding 57 net new clubs in the quarter and 352 in the last 12 months, reaching 2,170 clubs across 16 countries.
The company maintains a strong cash generation profile, with a 92% EBITDA-to-cash conversion over the last 12 months, and a comfortable capital structure with diversified funding across geographies.
Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT3) is gaining market share in the corporate wellbeing aggregator space, with Total Pass Brazil reaching 35% active user share, an 8 percentage point increase year-over-year, and a 70% growth in B2C users to 2.2 million.

Negative

Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT3) experienced a sequential decline in its customer base in Q2 2026, reflecting seasonality in mature units in Brazil, Mexico, and other countries.
The company's net income growth was only 8% year-over-year, as strong EBITDA growth was partially offset by higher financial expenses and an increased effective tax rate, particularly from international subsidiaries.
Operational cash generation in the quarter was impacted by working capital consumption, with EBITDA conversion dropping to 74% in Q2 2026 from 92% in the last 12 months, partly due to the growing weight of Total Pass.
The competitive environment in the aggregator market remains intense, with competitors like Total Pass investing heavily in marketing, price reductions, and exclusive partnerships, which could pressure margins and market share.
Smartfit Escola DE Ginastica E Danca SA (BSP:SMFT3) is facing higher maintenance CapEx, which reached 7% of net revenue, as the network matures and requires more investment in equipment and refurbishments, potentially impacting future cash flows.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SMFT3.SA - Smartfit Escola de Ginastica e Danca SA
Q2 2026 Smartfit Escola de Ginastica e Danca SA Earnings Call (English, Portuguese)
Aug 06, 2026 / 02:00PM GMT

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Presentation
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The participants will be listening to the earnings call during this session and after we'll begin with a Q&A session with more information provided. The earnings call and the information about the release are on our website and on the CVM platform. Before we proceed, I would like to clarify the possible statements that could be made during this earnings call related to business perspectives in the company, projections.

Target, the financial targets, as well as information in the market represent the assumptions of the company's management as well as information that's currently available to the company. These statements are not a guarantee of performance. They

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