Smart Fit 2Q26 – Conference Call Highlights

Research evidence excerpt

J P M O R G A N

Latin America Equity Research

06 August 2026

Smart Fit

2Q26 – Conference Call Highlights

Overweight

SMFT3.SA, SMFT3 BZ

Price (05 Aug 26):R$19.94

LatAm Retail & Healthcare

Smart Fit (SMFT3, OW rated) hosted its 2Q26 call with its founder, top

management, and the IR team. See the main highlights below.

TotalPass. TP is still in a growth/share gain phase and management prefers

investing in scale rather than prioritizing margin expansion. Importantly, this

is being done without heavy subsidies/negative contribution tactics. SFMT

once again emphasized the importance of seasonality in TP results (1Q/3Q

weaker; 2Q/4Q stronger) and mentioned that there was no relevant specific

pricing/pass-through adjustment in the quarter. In terms of competition, it is

aggressive, and TP is battling against well-capitalized competitors that are

spending heavily on marketing.

Joseph Giordano AC

(55-11) 4950-3020

Banco J.P. Morgan S.A.

Nicolas Larrain

(55-11) 4950-3472

Banco J.P. Morgan S.A.

Guilherme A. Vilela, CFA

(55-11) 4950-3059

Banco J.P. Morgan S.A.

Black Plan Pricing. Recent Black plan price moves were described as limitedsample tests to map demand elasticity and balance volume/revenue/

competition, monitored daily and not pre-committed to roll out across all units.

Giovanni Vescovi

Others line in Brazil. Management said “Others” mixes businesses with

different seasonal drivers—2Q vs. 1Q is favorable for TotalPass Brazil but

unfavorable for TotalPass Mexico and Fitmaster (opposite frequency

dynamics). Also, Studios have lower frequency in 2Q vs. 1Q

Froylan Mendez

Capex. Maintenance CapEx is running ~7–8% of net revenue, with quarterly

lumpiness (1Q lean, 2Q catch-up) as the footprint ages. They also pointed to

incremental spend on gym expansions and equipment reinforcement (Smart

Fit and higher-end brands), including Bio product redesign.

Other P&L lines. Management pointed to a ~15–20% effective tax rate for the

year, with better visibility closer to 4Q fiscal close given cross-country

complexity. They also said marketing investment typically steps down in 2Q

vs. 1Q, and 2026 branding is lower than 2025’s heavier push.

(55-11) 4950-2901

Banco J.P. Morgan S.A.

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