Smart Fit (SMFT3) Posts R$ 255.3 Million Q3 Net Income on Higher Revenue

Smart Fit reported to Brazil's securities regulator, the CVM, on the evening of November 4, 2026, a net income of R$ 255.3 million for the third quarter on net revenue of R$ 2,348.7 million. For SMFT3 shareholders, the figures are solid; the lingering question is what debt is doing behind this pace of growth.

What Happened: Did Smart Fit Release Q3 2026 Earnings?

Yes. Smart Fit (ticker: SMFT3) filed its Q3 2026 earnings release with the CVM on November 4, 2026, at 7:18 PM. If you landed here because you couldn't find the ticker or wondered if the stock had "vanished," this is an earnings filing: none of the excerpts we analyzed mention any suspension, delisting, or ticker change. What the market has to digest is the balance sheet and income statement.

The foundation of this growth, according to the company, is its gym network: 2,259 locations across 17 countries, compared to 1,867 in Q3 2025 (a 21% increase) and 2,170 in Q2 2026. The company reported a record 392 units opened over 12 months: 349 under the Smart Fit brand, 30 under Evolve, and 13 under Bio Ritmo and others. Evolve entered the count following the acquisition completed in August 2026. BeOn studios closed the quarter with 336 rooms, 41% more than a year earlier.

Where Did Revenue Growth Come From?

Revenue advanced 29% over Q3 2025 and 8% over Q2 2026. According to the release, three fronts drove the gains: Smart Fit company-operated gyms (+26%), the "Other" line (+50%), and "Bio Ritmo and others" (+40%). The "Other" category encompasses franchise royalties, TotalPass, Queima Diária, BeOn Studios, and, in Mexico, FitMaster and TotalPass México. This represents the side of the business that does not rely on opening another physical location.

The further down you look in the table, the larger the increase. Why is net income growing faster than revenue?

Why Did Net Income Grow Faster Than Revenue?

In part, because margins rose and the business mix shifted. Cash gross profit margin reached 51.3%, compared to 49.6% in Q3 2025. The company attributes this to three factors: the "Other" segment now accounts for 17% of cash gross profit (up from 10%), mature gyms operate with a cash gross margin of 50%, and units opened in recent years continue to mature.

Meanwhile, the adjusted EBITDA margin barely moved: 32.5%, compared to 32.1% a year earlier. EBITDA grew 30% and recurring net income rose 40%, meaning the divergence occurs below the EBITDA line, in figures that the earnings release excerpt available to us does not detail. In the interest of full candor, compared to Q2 2026, the cash gross margin receded from 51.9% to 51.3%, and the EBITDA margin dipped from 32.7% to 32.5%. The 8% revenue advance for the quarter stemmed from volume rather than margin expansion.

The net income of R$ 255.3 million exceeds recurring net income of R$ 247.7 million. The release excludes non-recurring acquisition effects from recurring income, and a R$ 9.7 million gain from the revaluation of its stake in TotalPass México from adjusted EBITDA. Non-recurring financial expenses, tied to debt prepayments, totaled R$ 0.8 million in Q3 2026 (after taxes), compared to R$ 21.1 million in Q2 2026. Over a 12-month period, Smart Fit reported an adjusted EBITDA of R$ 2.8 billion, operating cash generation of R$ 2.4 billion (an 88% conversion rate), and recurring net income of R$ 893 million.

Such growth is positive. But who is paying for it?

What About the Debt? That Is Where the Picture Demands Caution

The release shows a final adjusted net debt of R$ 4,991.5 million. The transcribed line in the excerpt we have also shows 3,397.9 and 4,613.7 without column labels. If the order follows the other tables (Q3 2026, Q3 2025, and Q2 2026), debt climbed roughly 47% over 12 months and 8% in the quarter, versus 29% for revenue. Treat this as a probable reading rather than a confirmed figure: full leverage data resides in another section of the document.

The broader context helps clarify the movement. The company closed the acquisition of Evolve in August, announced the purchase of up to 20% of Buddha Wellness Group Brasil with an option for an additional 10%—as we detailed in our analysis of Smart Fit's entry into Buddha Spa—and opened 392 gyms in a year. At the same time, it managed its liabilities: the release cites the prepayment of commercial notes from the 7th and 9th issuances and the exchange of the 8th. Growing through acquisitions and store openings consumes cash, and the central question is whether EBITDA keeps pace with debt.

What Weighs in Favor and Against the Investment Thesis

• Revenue and net income growing faster than the gym network, with cash gross margins improving over a year earlier.
• Operating cash generation of R$ 2.4 billion over 12 months, with an 88% EBITDA conversion rate.
• Diversification: the "Other" line now accounts for 17% of cash gross profit, up from 10% in Q3 2025.
• Adjusted net debt of R$ 4,991.5 million, which appears to be growing faster than revenue if the column reading is correct.
• The maturation pace of gyms opened over the past 12 months: 392 new units still need to reach the margins of mature locations.
• Inflation and unit maintenance costs, listed as risks, alongside slightly lower margins compared to Q2 2026.

What Does This Change for SMFT3 Shareholders?