Smart Fit’s Best Business Is the One Without Gyms

By The Rio Times | Created at 2026-09-09 16:56:20 | Updated at 2026-10-05 05:59:29 3 weeks ago

BRAZIL · COMPANIES

Key Facts

—The growth TotalPass reached 2.2 million users across Brazil and Mexico in the second quarter, up 70 percent.
—The revenue Segment revenue of 230 million reais, up 47 percent, with gross profit up 79 percent to 195 million.
—The margin 84.7 percent gross margin, against a group that mostly runs gyms.
—The weight Eleven percent of consolidated revenue but 17 percent of consolidated gross profit.
—The share Thirty-five percent of active monthly users in Brazil, up eight points. Seventy-nine percent market share in Mexico.
—The market reaction Smart Fit shares fell 7.82 percent on results day, the worst in the Ibovespa that session.

Smart Fit’s fastest-growing business does not own a single treadmill. It is also the reason the shares fell.

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TotalPass, Smart Fit’s corporate wellness platform, reached 2.2 million users in the second quarter, up 70 percent. It now supplies 17 percent of the group’s gross profit.

What TotalPass Is

TotalPass is a corporate benefits platform. Companies buy it for their employees, who then get access to a network of partner gyms rather than only to Smart Fit’s own.

It is the asset-light layer on top of a business that otherwise owns and operates gyms. It competes directly with Wellhub, formerly Gympass.

The partner network covers more than 34,000 gyms in Brazil across 2,000 cities, or about 44,000 establishments including Smart Fit’s own.

It sits inside the group’s Others reporting segment.

The Numbers

Second-quarter segment revenue reached 230 million reais, up 47 percent. Gross profit rose 79 percent to 195 million, at a gross margin of 84.7 percent.

That is 11 percent of consolidated revenue and 17 percent of consolidated gross profit.

Users reached 2.2 million across Brazil and Mexico, up 70 percent. In Brazil the platform holds 35 percent of active monthly users, eight points more than a year earlier. In Mexico it holds 79 percent market share.

Jose Luis Rizzardo, the group’s chief financial officer, said TotalPass is always a pleasant surprise, both in the speed at which things happen and in their magnitude.

A widely circulated report putting TotalPass at 15 percent of gross profit describes the first quarter. The second-quarter figure is 17 percent.

Live Market IntelligenceBrazil — Live Market BoardInside: market breadth, the sector heatmap, currencies & rates, the Latin America scoreboard and the full instrument board.

Rio Times · Live Market Intelligence

Brazil — Live Market Board

B3 · São Paulo
Sep 9, 2026 · 13:40

Ibovespa · benchmark

185,529.61
-0.98%

L 167,142day rangeH 168,310

+21.85% over 12 months

Market breadth · 15 names

47% advancing

7 ▲ advancing8 declining ▼

Currencies, rates & key inputs

Sector heatmap · average move today

Mining

+1.16%

VALE3, CSNA3, GGBR4

Industrials

+0.20%

WEGE3, RENT3

Financials

-0.10%

ITUB4, BBDC4, BBAS3, B3SA3

Energy

-0.12%

PETR4, PRIO3

Consumer Staples

-0.80%

ABEV3

Consumer Disc.

-2.63%

AZZA3

Latin America scoreboard

IndexLastTodayStrength

IbovespaBrazil
185,529.61
-0.98%

S&P/BMV IPCMexico
65,073.88
+0.01%

S&P IPSAChile
11,314.82
-0.87%

S&P MERVALArgentina
3,066,324
-0.31%

MSCI COLCAPColombia
2,578.60
+0.36%

BVL S&P PerúPeru
60,246.14
+0.52%

Full instrument board

Instrument Last Change YoY Prev. High Low Volume

IBOV	185,529.61	-0.98%	+21.85%	187,366.84	168,310	167,142	—
USD/BRL	5.16	+0.01%	-5.13%	5.16	5.18	5.14	—
SELIC	14.00%		—	—	—	—	—
PETR4	41.64	-0.05%	+35.19%	41.66	41.97	41.15	41,499,400
VALE3	72.97	+0.83%	+30.75%	72.37	73.54	72.66	17,658,000
ITUB4	38.60	-1.03%	+4.57%	39.00	39.34	38.39	29,487,800
BBDC4	16.85	+0.36%	+3.50%	16.79	16.90	16.67	19,416,900
BBAS3	19.37	+0.47%	+0.73%	19.28	19.44	19.16	11,069,200
B3SA3	14.26	-0.21%	+12.73%	14.29	14.47	14.11	33,037,800
ABEV3	14.89	-0.80%	+21.91%	15.01	15.07	14.81	16,453,100
WEGE3	47.59	+0.49%	+29.99%	47.36	48.08	47.36	3,364,600
PRIO3	59.14	-0.19%	+50.67%	59.25	59.81	58.74	3,325,600
SUZB3	41.33	+2.35%	-23.55%	40.38	41.48	40.35	3,914,900
RENT3	34.68	-0.09%	+0.84%	34.71	34.96	34.35	7,979,100
AZZA3	15.89	-2.63%	-53.76%	16.32	16.42	15.82	1,330,300
CSNA3	4.30	+0.47%	-42.65%	4.28	4.41	4.26	10,076,100
GGBR4	24.69	+2.19%	+51.38%	24.16	24.85	24.18	7,047,600
ENEV3	24.21	-1.38%	+70.49%	24.55	24.64	23.99	9,297,000

Largest moves today

AZZA3
15.89
-2.63%

SUZB3
41.33
+2.35%

GGBR4
24.69
+2.19%

ENEV3
24.21
-1.38%

ITUB4
38.60
-1.03%

IBOV
185,529.61
-0.98%

VALE3
72.97
+0.83%

ABEV3
14.89
-0.80%

The session read

The Ibovespa eased 0.98%, with breadth negative — 7 of 15 names higher. Materials led, while Consumer Disc. lagged.

From The Rio Times

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Why the Shares Fell Anyway

Group revenue reached 2.18 billion reais in the quarter, up 22 percent, with earnings before interest, tax, depreciation and amortisation up 24 percent to 712 million.

Below that line it was weaker. Reported net profit was 156 million reais, about 30 percent below one bank’s estimate, and cash generation came in at 530 million against 694 million expected. Net debt stood at 4.6 billion reais and leverage at 1.20 times.

The shares fell 7.82 percent to 18.38 reais on 6 August, the largest drop in the Ibovespa that session and the second most traded stock on the exchange.

Morgan Stanley called it a good quarter, messy below the earnings line. Joao Pedro Soares of Citibank said results were mixed but that the bank remains constructive on the growth trajectory.

XP called it a strong positive surprise, with margin expansion beating forecasts in a seasonally weak quarter.

The Group Around It

Smart Fit ended the quarter with 2,170 gyms, up 19 percent, of which 1,746 are company-owned. Mature-unit gross margin was 51 percent.

Guidance is for 330 to 350 new gyms in 2026, with 98 opened by mid-year.

The company attributes revenue growth mainly to a 10 percent increase in the average ticket at company-owned gyms and an 8 percent rise in the average student base.

Edgard Gomes Corona, founder and chairman, has said the sector suffers oversupply, with many entrants extremely leveraged. He calls TotalPass a strategic lever and says Smart Fit pays partner gyms better than rivals do.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

What is TotalPass?

Smart Fit’s corporate wellness platform. Companies buy it as an employee benefit and staff access a network of partner gyms, not only Smart Fit’s own.

How fast is it growing?

Users reached 2.2 million in the second quarter, up 70 percent, with segment revenue up 47 percent and gross profit up 79 percent.

Why did the shares fall?

Weak cash generation and below-the-line items. Reported net profit came in about 30 percent under one bank’s estimate, and the shares fell 7.82 percent on results day.