Good morning, everyone, and welcome to the earnings call for Smart Fit for the earnings of the second quarter of 2026. For those of you who don't know me, I'm Matheus Nascimento, I'm the Investor Relations Manager.

Before we begin, a message for those that need to listen to the conference in English. Good morning, everyone.

The participants will be listening to the earnings call during this session, and after, we'll begin with the 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 that possible statements that could be made during this earnings call related to business perspectives in the company, projections, and 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 involve risks and uncertainties and assumptions. Now, I want to pass the word on to our CEO, Diogo Corona.

He's going to begin the presentation. Diogo, please, you may proceed.

Thank you, Matheus. Good morning, everyone.

In the second quarter, we continued with our growth strategy, keeping up a strong expansion pace of the network, and profitability, and consistency that continues to support our investment plan. Before we get into financial details, I want to highlight some points.

We ended the quarter with 2,170 gyms and clubs, and a base that's higher than 5.3 million students. If we consider this, our system services about 8 million customers.

Financially, we went through another growth in our revenue, levered by the expansion of our network, evolution of our average ticket, and a greater contribution of our asset-light businesses. At the same time, we kept healthy levels of profitability, strong EBITDA conversion in operational cash, and a capital structure that's really comfortable.

In sequence, we're going to quickly talk about the company's evolution ever since the IPO, before we begin covering the earnings in the quarter. In July, we completed five years ever since our IPO at Smart Fit.

During this period, we expanded our platform significantly. Besides consolidating our leadership in the clubs and fitness clubs sector, we diversified our sources of revenue and expanded our performance in new business verticals.

Ever since 2019, we practically tripled our net revenue, expanding our profitability, strengthening cash generation, and we were able to keep discipline in our cash management. Today, we have a more diversified business in our geographies and among different areas, which expands our growth potential and reduces our reliance on any specific markets.

This evolution also strengthened our financial position and expanding our platform. Our next slide demonstrates how these different businesses reinforce our competitive advantages that have synergies among each other.

Our strategy has evolved from an operation that is focused exclusively on clubs and fitness clubs, and we went to a whole platform of fitness and well-being. Today, we have over 2,220 clubs, and a Studios platform with the Bio Ritmo, over 310 rooms in full expansion, and one of the main well-being players in Latin America, connecting approximately 47,000 units, including the Smart Fit group brands with millions of users.

Each of these verticals, sustained by strong brands, expands our addressable market and adds on to the others, strengthening our value proposition to customers, corporate partners, and franchisees. This integration creates additional opportunities for growth and strengthens our capacity to capture value in different segments in the market.

With this, now I want to move on to our operational agenda for the quarter, starting off with the evolution of our clubs platform. Besides the growth in the traditional business, we've also been observing a consistent evolution in the TotalPass, reinforcing our relevance in this ecosystem.

In Brazil, we expanded significantly with our participation in the market and our market share. We have about 35% active users from corporate well-being platforms already using TotalPass, an 8 percentage point gain compared to the same period last year.

We also kept our leadership in downloads at our stores and clubs for the six months consecutively, reinforcing and reflecting the strength of our brand and attractiveness of our platform. In Mexico, we're still market leaders with approximately 80% share among active users and about 75% of the downloads in the segment.

At the end of the quarter, our customer base, B2C, went over 2.2 million users, with a growth of 70% compared to the previous year. This performance is still going to continue to be sustained by three main pillars: investments in branding, expansion of our commercial network along with the HR teams in companies, and an increase in the perception of benefits for employees.

As a consequence, TotalPass continues to expand its contribution to the group, representing a more relevant part of the gross profit and reinforcing our strategy to build this integrated ecosystem for fitness and well-being. On the next slide, we ended the quarter with 2,170 clubs under operation, distributed among 16 countries, after we opened up 57 net units in this period.

In the past 12 months, we added 352 clubs, keeping up a pace that is really consistent for expansion and reinforcing our leadership in Latin America. An important point is that this expansion continues to be quite diversified among different geographies.

Brazil represents about half of the chain, while Mexico and the other countries continue to increase their share in new openings, reflecting the broad opportunity for growth in this region. Today, approximately two-thirds of our clubs are already considered mature, even after this expansion period that was quite accelerated.

This characteristic is specifically important because it demonstrates our capacity to combine growth and profitability as new units mature and start contributing at a growing pace for the company's cash generation. With this, I'm wrapping up my presentation, and I'll pass the floor on to our CFO and Investor Relations Director, José Luís Rizzardo, as he'll cover the financial results in this quarter.

Thank you so much, Diogo. We ended the second quarter of 2026 with 5.6 million customers at our clubs, representing 8% growth in regards to the same period last year.

It's important to remember that this does not include the users of the aggregators, which have access to the clubs, and they continue to gain relevance. In our sequential comparison, the base remained stable, reflecting the seasonality of our mature units in Brazil, partially offset by the growth observed in Mexico and in other countries.

At the same time, our net revenue on average, annualized per club, reached R$4.5 million, which was really stable in comparison to the second quarter of '25, amidst the accelerated expansion of this network and a greater weight from the units under maturity. This stability reinforces the capacity the company has to combine growth of customer base, evolution of the tickets, and discipline in managing revenue per unit.

Moving on to our financial results, our net revenue reached R$2.2 billion in the second quarter of 2026. That was a growth of 22% versus the second quarter of '25, and 4% in regards to the previous quarter.

The annual growth was levered by the increase of 19% of the revenue of our own clubs from the Smart Fit brand, and the expansion of 47% of the others line, reflecting the evolution of TotalPass Brazil. At our own clubs, the average ticket grew 10% versus the second quarter of '25, with an evolution in all of the regions where we're operating.

This performance reflects the combination of the adjustments and initiatives in revenue management that were implemented, as well as the greater volume of accesses with aggregators and the evolution of our plan mix. In the last 12 months, the net revenue went over R$8 billion, setting a new all-time high record for the company.

The gross cash profit added up to R$1.1 billion in the quarter, a growth of 24% in regards to the second quarter of '25, once again above the evolution of our revenue. As a result, the gross margin in cash reached an all-time high of 51.9% and expansion of 1.1 percentage points in the annual comparison.

This evolution was sustained by three main factors: maintenance of the profitability at the mature units, keeping these in solid levels; consistent maturity of the clubs that we opened in the last few years; and increase in the share from the others line that operate with margins that are structurally higher than the clubs business. If we exclude the pre-op costs related to new openings, the gross consolidated cash margin reached 52.8% in the second quarter of '26, with an expansion of 1 percentage point compared to the same period in the previous year.

In the Smart Fit clubs segment, the margin was 49%, reflecting the strong growth of expansion and greater weight from units that are still ramping up, especially in Brazil and in Mexico. At Bio Ritmo and other of our own units and brands, margins went up to 48.6%, an expansion of approximately 4.5 percentage points in the annual comparison.

The main highlight is still the others segment with a margin that reached 84.7%, which represents a 15 percentage point expansion versus the second quarter of '25, levered mainly by greater contribution from TotalPass Brazil. With this, others started representing 17% of our cash gross profit prior to pre-op costs, compared with 12% in the second quarter of '25, contributing to the expansion of the consolidated margin.

Moving to slide 12, where we look at the maturity levels, mature clubs represented a gross margin of 51%, second quarter of '26, with a gross cash profit annualized per unit that's mature of R$2.4 million. This is the 13th quarter consecutively where margins keep at structurally solid levels, demonstrating the resilience and predictability of our model.

The units also that were reopened in 2024 also had a very healthy performance, with a cash gross margin of 55% and a gross profit annualized per unit of approximately R$2.5 million. The vintage in 2025 represents an important evolution in margins in the first and second quarter, which is consistent with the expected maturity process.

Performance from different vintages reinforces the quality of the recent batches with a precise and assertive selection of the commercial spots, real estate, and our trust in the profitability of the investments we made. Expenses with sales, general expenses, administrative, and pre-op costs added up to R$405 million in the second quarter of '26, a growth of 25% versus the second quarter of '25.

As a percentage of the net revenue, the expenses represented 18.6%, an expansion of 0.5 percentage points in the annual comparison, plus a significant reduction in regards to the 19.5% registered in the first quarter of '26. This growth reflects the investments in structuring and development of the new business, besides the effect of the consolidation of TotalPass Mexico, which happened ever since the first quarter of '26.

Excluding this effect, the G&A would represent 10.3% of the net revenue. This dynamic demonstrates that investments in the new verticals coexist with the efficiency gains and leverage operationally in the clubs business.

As a result of the combination between growth in revenue, expansion of the gross margin, and discipline in managing expenses, the EBITDA reached R$712 million in the quarter, the greatest result in a quarter that we've ever registered. This value represents a growth of 24% compared to the second quarter of 2025, and 6% compared to the quarter before.

The EBITDA margin reached 32.7%, an expansion of 0.5 percentage points in the comparison annually, and 0.7 percentage points compared to the first quarter of '26. If we exclude the pre-op costs, the EBITDA would add up to R$740 million, with a margin of 34%.

In the last 12 months, the EBITDA reached approximately R$2.6 billion, with a margin of 32.2%. Our recurring net income reached R$204 million in the second quarter, a growth of 8% compared to the same period last year.

Solid growth of our EBITDA was partially offset by the increase of financial expenses and a greater effective income tax rate and social contributions in this period. It's worth mentioning that the recurring earnings exclude the non-recurring effects related to acquisitions and financial expenses associated to liability management initiatives that we performed during this quarter.

In the last 12 months, the net income that was recurring reached R$822 million, with a net margin of 10.2%. Now moving on to the evolution of our debt and investments, our adjusted net debt increased R$417 million in the quarter.

Operational cash generation added up to R$529 million, which is equivalent to a conversion of 74% of the EBITDA in this period, reflecting the impact in our working capital and in our taxes. In the last 12 months, cash generation reached R$2.4 billion, with a conversion of 92% into EBITDA, reinforcing the high capacity of cash generation in the business.

In the quarter, the activities for investments consumed R$633 million, reflecting mainly the expansion of the network. The total CapEx added up to R$625 million, a growth of 37% versus the second quarter of '25, among which R$463 million were intended to expansion.

This growth represents the payments related to the units we opened in the first semester, the clubs that are currently under construction, and the evolution of our brand mix within a pipeline. Our maintenance CapEx reached R$152 million, reflecting the strategy to preserve the quality standard at the units, expanding the equipment offered, and keep up with the growth of the mature club base.

Besides this, the other activities added up to R$313 million to the net debt adjusted in this quarter. Amidst the acceleration of investments and continuity of the strong pace in expansion, leverage remains at healthy levels that are compatible with the cash generation profile of the company.

Our capital structure remains diversified among different geographies, with approximately 44% of the net debt in Brazil, 25% in Mexico, and 31% in other countries. This diversification really reflects our strategy to fund locally with a relevant part of our investments, searching for more efficiency, speed, and adherence among cash generation and our debt levels in each operation.

We were able to keep up an amortization profile that was really balanced and distributed throughout the next years, preserving financial flexibility so we can really sustain our growth. We are still quite comfortable with our capital structure, and we're confident in our capacity to fund our expansion in a very disciplined manner, combining cash generation operationally as well as access to different credit markets and efficient management of our debt.

With this, I'm wrapping up this financial presentation. I'll pass the word to Matheus once again as he coordinates our Q&A session.

Thank you so much, Rizzardo. Now, we're going to start off with our Q&A session.

If you do have any questions, please select the Q&A icon at the bottom part of your screen to send them in writing. We're going to collect all of these questions, and we'll answer as we receive them.

Please wait for a second while we collect questions. Our first question comes from Luiz Guanais, the BTG Pactual analyst.

Guanais, please, you may proceed.

Good morning, everyone. Good morning team.

I think we have two questions on our side. The first one is exploring a little bit of the TotalPass topic.

I wanted to hear from you guys about which expansion phase you believe you're in, and at the same time, while we see an improvement in profitability when we look at the gross margins, but as you mentioned, we still have big investments to expand our platform and gain market share. Still in TotalPass, if you could talk about the initiatives that are more recent to gain share, not only in regards to the payouts, but also what you charge from companies, that would be really interesting.

Also about the CapEx, a second question here. Sorry, we Rizzardo of the P&L, and I would like to know a little bit more about what we can expect, looking ahead.

Thank you very much.

Guanais, before we move on to Diogo, first, it cut off here.

About the CapEx, if you could talk about a summary of how or what we could expect in the maintenance CapEx evolving over the next quarters. This was a line that you guys mentioned was a factor that really increased in the second quarter.

I wanted to understand the dynamics looking up ahead.

Hi, Guanais, this is Diogo. How's it going?

Good morning.

Good morning, Diogo.

At the moment, TotalPass is really going through a lot of growth, the focus is still growth, growing and gaining share from one quarter to another. We grew about almost 100%, and the growth continues to keep up at a really accelerated pace, this is our main focus.

Our focus is not to bring in margins, but to grow. We've been investing a lot.

Remember, Brazil is a continent, there are differences from region to region, and you need to invest in your products, and that depends on many different factors, including the network you service, and the brands you have, and your efforts also for sales, and local brands. We always simplify Brazil as a single reality, but we know that we have to get into more granularity from region to region.

We've finally reached a scenario that's more sophisticated, right? We need to understand this game.

This is our moment. We're at a very strong growth pace, and the company has been prepared more and more for this game.

I'm really optimistic with this initiative, right? In regards to the product, it's a scale-based business, right, where your G&A will be diluted as you gain scale, right?

You have more scale for negotiations, and you can also have greater leverage to reduce or dilute your G&A, right? This is going to help us a lot as well as we have more financially solid results.

I think it's all very favorable. We're going to grow, and this is also going to help us with our financial aspects as well.

I think it's important to mention we're not providing crazy subsidies for market share gains, etc. Sometimes if you're coming in later on for an aggregator market that's kind of dominated, you have to subsidize things, and you have sometimes even a negative contribution margin, but we're not at this stage.

We haven't had to do this. We're gaining share with a very healthy gain, and we're quite excited.

You won't always see this share gain leap. Sometimes you have a share gain leap, and then you mess with some strategies that helps you have another leap.

It's not always going to be linear, right? In the second quarter, this leap was a little smaller, but we have a lot of strategies we can work on to keep up with this growth.

Guanais, this is Rizzardo on the maintenance CapEx. When we look at that line and compare the last 12 months, we can see the maintenance CapEx operating very close to 7% of the company's net revenue, and a little bit above this level, which is really in line with what we've been discussing in the last earnings calls for the company.

As the network and our footprint becomes more mature, and you have an average age that's higher, naturally you're going to have to have recurring maintenance of this network, considering the nominal level of the maintenance CapEx and percentage of the revenue that's closer to this range of 7% to 8%. You could have some seasonality in the expenses with the maintenance CapEx throughout the year, but you can't necessarily do everything you need and want to do at that specific month.

The first quarter was pretty lean when you consider the maintenance CapEx. In the second quarter, we were able to do more than what we had in our pipeline.

Besides the recurring maintenance, we've been investing a lot on the expansion of some gyms and reinforcing some weight lifting equipment as well, thinking about the Smart Fit brand and also our high-end brands as we redesign the Bio Ritmo product. Part of the CapEx maintenance investments for the company throughout the year will also be related to these other brands so we can readjust this product.

That's great. Thank you so much, Diogo, Rizzardo.

Our next question is from Rodrigo Gastim, the analyst from Itaú BBA.

The first one is about TotalPass. I wanted to understand the schedule for these transfers to the partnering gyms.

You did this throughout the second quarter, and I wanted to understand this a little more. When we look at the volume of clubs and the schedule for this impact in your P&L, when we see this in our earnings, how should we look at this?

What's the best way to consider this, right? That's the first question about the TotalPass.

Then the second question is we recently just saw an adjustment in your Black plan in Brazil and in Mexico, especially in Mexico. Then I think it's really important to understand if you could share a little more details about this and understand if it's a one-off adjustment when it comes to your dynamic pricing strategy in more premium regions where you have lower competition and there would be more space for this.

This was a relevant adjustment in our trackers. It represented more than 10%.

Or if it's something that you guys think could eventually be applicable to all units, I wanted to understand this strategy from the pricing and which indicator you monitor to gain more comfort and be sure that the returns on this strategy are working well when it comes to competition and share, etc. Those are the two questions.

This is Diogo here, and first on the TotalPass, it's important to have a seasonality dynamic that are going to be more accentuated, and the more TotalPass gains share, right? This is really significant for us to look at.

TotalPass is a business that is completely sensitive to seasonality, and when you consider Brazil, TotalPass is greater in Brazil. The first quarter is a pretty bad quarter for seasonality, and then consequently that would be the opposite for Smart Fit.

Generally this is positive for TotalPass, but pretty bad for Smart Fit. That's kind of contrary, right?

The more we get shares of TotalPass and aggregators and the margins for Smart Fit gross margins, as it's mature, we'll have more seasonality, right? That's going to be an important point.

Then the second quarter is a pretty good quarter, and the fourth quarter is also good, right? Then the first and third are pretty bad when you consider the breakage, and when you consider their copayments and transfers.

On renegotiation, we've been doing this. There's nothing very specific.

I think it's more seasonality based, right? This is a live agenda.

We're always adjusting this and looking who's out of this range. We adjust the products, we adjust the offering, compare with our competitors, and so it's overall live agenda.

There's never been something very strong specifically in the second quarter. What we had were a few evolutions.

If you compare, I mentioned the first and third quarters are worse seasonalities, but we evolved a lot in these negotiations and the offerings of our prices ever since the beginning of the first year all the way here. It's going to be a live agenda, and we'll have incremental adjustments.

We wanted to keep you at ease about this change. It's more of a test.

We really believed it's going to work. We see that there were very few stores we actually worked on.

We have the statistics and the data to trust that it makes sense, right? We really want to be very convicted on the demand price curve, and a great way to do so is sometimes you have to have some tests.

For example, in Brazil, we had an increase that was very relevant, very strong. Sometimes you do this for a small store pool, and you can test this sensitivity, right, to pricing.

What we would like at the end is we like to balance things. Maximizing our revenue and considering competition as well, if we should do this where there are not that many competitors you can lose.

It's a model we always look at. We always have to consider competitors.

Even if we see this is one of the main variables here, right? In a way that it makes sense, right, and that can be easy to explain and really makes sense, if you can balance out these three points and if it makes sense to customers.

You don't want to lose share towards competitors, right? We really have this fresh in our minds, and it's something we're testing.

It's quite recent. It's not something we defined we would do in all of them.

Just to add on here, Diogo in both of his answers, Gastim, Rizzardo as well. We've already operated in other geographies with two different prices, Black, and Mexico is an option.

An example of this, we've been operating in the beginning of 2023 and 2024, as Diogo mentioned this really well. This is a test that we're going to monitor daily so we can make decisions without any kind of timing issues, right, here.

When we move on to your question on others, which is the earnings line that you can see, it's important to highlight that that line, obviously, you have other business units that are really significant, and not necessarily will they follow the seasonality of TotalPass Brazil. Three examples here I want to share with you in this sense.

Comparing the first quarter of '26 and the second quarter of '26, right, the seasonality in this comparison is more favorable to TotalPass Brazil. However, it's unfavorable to TotalPass Mexico and Fit Dance, because then basically you have the opposite of what's going on in Brazil.

You have the second quarter, which tends to have quarters with higher frequency than what you have in the first quarter. Sequentially these business units are a little more constant and sensitive to frequency, and they should lead to worse results.

You have the Bio Ritmo Studios, and you can see that revenue is a lot more connected to frequency, and that also impacts the royalties and receivables. Of course, when you consider periods with lower frequency in use, you would have this seasonality that you're going to then capture on the way back with periods where you have greater usage.

So...

Thank you very much, Diogo, for the answers.

Our next question is from João Soares, Citibank. Hey,

good morning, everyone, and thanks for the opportunity here. First question I wanted to ask you is about TotalPass.

We've seen the numbers, and we had this sequential spike, and the numbers they measure there, of course, they're not in line with their actual numbers, but you can see it went from 4 million to 4.5 million, and you can see I want to show if there's some engagement evolution. It's quite clear here with this roadmap to gain share, and it's really interesting if you could talk about this perspective here as well.

Sorry about that, but three items on the P&L really called our attention for the COGS in LatAm and sales expenses, they were below what we expected. There's this issue with dynamic, and we want to understand what's sustainable here, and the run rate that would be considered sustainable, of course.

Hi, João, this is Diogo here. First question, and then Zé can take the second one.

About July, there are two points here, right? If you compare July and June, actually the growth was a lot stronger, actually.

June was a month that seasonally worse. There was a World Cup, and it was a shorter month for TotalPass, right?

Then in July, we went back to growing. There's a seasonal point as well, but besides this, we also gained share.

I think that's a reflex of our work in the day-to-day. Our products have been better.

We're really focusing on products, and it's become a lot better known. You need to have good products.

You have to have people knowing this product. If not, they're not going to buy it, right?

Our work for brand awareness and improving the product as well, right? Today, we can see our product in many regions, and our vision is a lot higher than our competitors.

We've been focusing on making this product better, and it's really related, of course, to the partners, etc. We've been focusing on making this product better in all regions in Brazil.

I think we're being compensated by this, right? Every time the market share grows, that's the result of our work, and we're at this full-time kind of agenda, right?

Really making this product the best possible, and in our view, that's already superior, right, compared to our competitors, right? There really is this situation where you have the switching costs, etc.

There's a point for this, but today we can really diagnose our product as superior, and we just think it's a matter of time for us to be present in this market. We're not going to stop or be satisfied with 31%, right?

That's not our end game. I think it was a pretty good month.

We know there's a lot to do. We were still an underdog here.

They're incumbents, and we're the underdogs. There's a lot to be done, right?

I think that's a reflex of our work, right? Then

João, just to add on, Diogo brought in a lot of structural, strategic points, and it's also really important to give you some context, right, to mention when it comes to monthly active users. We know that today it's a pretty good proxy, right, so that you can monitor this growth.

Eventually, and you can have this movement, right, from one month to another that won't necessarily reflect what we observe internally. That's not the case with July, right?

That ends up being the only metric that's public where you can monitor this evolution for the active users, right? When we talk about July and we think about the second quarter of '26 versus the first quarter of '26, we see that the base for TotalPass in Brazil grew more and nominally more when it comes to the amount of users in the second quarter of '26 than what it grew in the second quarter of '25 compared to the first quarter of '25, right?

Even with the World Cup effect, right, with more difficult set seasonality and also going from a much bigger base, right? If you consider that and you have a bigger base, that's always a challenge, right?

Once again, I think it's another point that really reinforces what Matheus and Diogo have mentioned to you as well. When you head to the other questions, and talk about the taxes, and I think you answered part of that in your question.

We have more subsidiaries that weren't profitable before, and we have this pretty good problem, let's say, if we place it out in this way. In the past, we were able to operate as well with less IR/CSLL, income tax and social contributions.

Each subsidiary depending on each country of course has different fixed fiscal rules, and in the quarter the main impact of the growth in income tax is concentrated in the international subsidiaries and also in the others segment, right? When we think about the full year, this discourse won't really change, right?

It's difficult to set this rate because we have the complexity going on in the fourth quarter where we can only have the visibility in countries that's of course a lot closer to the end of the year, but it should be at about 15% to 20% with a lot going on throughout the year, and we'll have more visibility about this in the fourth quarter post-closing, right, fiscal closing. If you look at the marketing line, in the second quarter versus the first quarter, it's normally smaller at a nominal investment that we perform in marketing considering the seasonality of the business.

Internally, besides the seasonal issues, we've been trying to really be more sharp in our investments that we perform in marketing at the different business units throughout the year. Also when we look at the annual comparison, '26 has less investments in branding, if you remember this was one of the biggest points in the first quarter of 2025 where we really accelerated on this line, investing in TotalPass, Bio Ritmo, and Smart Fit.

Now this is not that strong in 2026 as it was in 2025. In regards to LatAm, is there any other point that you also consider was better in this point, this aspect?

I think others LatAm is a combination of everything we've been doing. There's nothing structural that changed in the countries.

We can still see the mature units performing well. You could have margins up or down depending on the aging of the stores in that quarter and the composition of the countries, but structurally there's nothing different among others.

I'm sorry about that, I forgot your question.

Thank you, guys.

Our next question is coming from Lucas Esteves at Santander. We have two topics here we would like to cover with you.

First, the EBITDA conversion into operational cash generation, and that dropped to 74% in the quarter versus 92% last 12 months, and then that was mainly due to working capital consumption. How much of this do you guys consider purely seasonal, and how much can remain structurally higher, providing growth in TotalPass and the expansion pace as TotalPass gains share in consolidated revenue?

How do you view this structural impact, right, in the working capital? Is there a relevant difference between the cash cycle of TotalPass and that we should incorporate in our estimates here?

You also highlighted that the margins of the mature gyms remains quite resilient, but we look at the net profit and we can see that it went from 2.5 million to 2.4 million. How can this reflect greater pressure also of the revenue per unit versus a strategic density in the network with greater penetration of TotalPass?

How do you imagine this evolving from now on? Thank you.

Rizzardo here. Thank you, Lucas, for your questions.

Now, if we just purely think about the simple dynamic in the business for aggregators and the clubs business, they're really similar. When you look at this from the clubs business and the receivables, they're basically credit card receivables that a recurring basis, and you'll have this of about 30 days, and in these countries it's a lot smaller when you consider a rearrangement in payment means.

When you look at the costs and expenses, nothing very different when you consider this from a days perspective, right? You'll have the utilities, water, payroll, lease, etc.

That's going to be really close to this level, right? That's why we've always mentioned that when you look at a base, normally you have in a fiscal year the working capital should be almost neutral, but of course that's going to depend on the specific quarter you're discussing, and you could have a bit more consumption or a bit more cash generation coming from the working capital.

The same perspective can be applied if you look at an aggregator and you see the recurring business of this aggregator. The aggregator comes in, they'll have two revenue sources, and so with the employees, and the cycle is pretty much the same as you can see when you see the main cost line for the aggregator, which is the actual payout to the clubs.

This is done in a 30-day cycle, nothing very different than the cycle of the actual student, right? With all of this you'll have complexity, right, when you consider this from a P&L level, and you see the days considering the revenue and the costs.

That's why, because you account for the revenue, you'll have a revenue basis, and also a cost base that's smaller, right, because you're looking at this in the revenue line, right? When you think about days working capital, you'll have the impact where the increase of penetration of this aggregator should lead to an increment in working capital days.

Once again, from the current levels, everything should be more consistent, and one-off increments in the business in our working capital line for the company. Then when you think about the gross profits of the mature units, you have different mobile parts and a geographic mix that can really explain for this.

When you look at this, you can see that with the increase of the relevance of TotalPass in Brazil and in Mexico, you'll have a little more seasonality in the clubs business, not necessarily the earnings for the full country. Of course the aggregator should offset the positive month is sometimes a little more challenging for the business of the clubs kind of business as well.

I want to remind you that most of our expansion is providing basically more density, and so as a company strategy, once the company made the decision for cannibalizing part of the results, of course thinking about the cluster results, but then individually by unit, you can also have impacts. In the second quarter this year, you also had an impact when it comes to Brazil level and Mexico, which is made up of holidays and World Cup.

On our estimates, it's about 1% of the base of customers from both countries. There's an impact of the second quarter as well, plus Brazil that comes from this.

If you consider the sequential comparison, the second quarter of '26 versus the second quarter of '25, there's better usage of the fiscal credits that kind of explains part of this.

Thank you.

We shouldn't expect any relevant improvements, right, but nothing actual throughout the year, right? If you think about this from a direction perspective, you can see TotalPass gaining more relevance, and it's going to of course have more weight.

You could have some variation in days of cash flow, but I don't think in the short term it'll be something relevant.

Just wanted to add on to Zé about the answer on the evolution of the gross profit per mature unit. You also have this currency component that can explain possible movements from one quarter to another.

As in this block of other countries you have this basket of issues, and you can't necessarily track the weight and relevance of each of these, and that becomes a component as well. Within this minimal variation from one quarter to another, you also have a currency component that can justify part of this explanation.

That's clear.

Our next question is from Pedro Pinto. He's an analyst from Bradesco BBI.

Hi, guys, thanks for the opportunity to hop in with a question here. My question is about ongoing work for revenue management that you're working on.

We've already explored the Black plan a little earlier with two price ranges in Brazil and in Mexico, but maybe a pilot of this plan of TP2+, and I wanted to explore some of these points with you. I don't know, first of all, with the budget debates in-house, if you guys think that these initiatives can mitigate the gross margin pressure in Brazil and Mexico, if we could quantify anything you're looking at in this sense, if it's a hard number here that these initiatives could help with, that's the first point I would like to discuss with you.

The second one is about the positioning or the stance, if you have an intention to increase the price gap. What you see these gyms that are Black, R$200, and TP2 at R$120.

Of course here it's an equation with a lot of moving parts, but if there is any number like how many TP students you would need to be able to keep the contribution margins in the company, I don't know if this is a good number we should discuss here, but I wanted to provide some more quantification on this. Any kind of quantitative insight can help us here.

Hi, Pedro, this is Diogo. If anyone wants to add on, I'm going to talk about TP2+.

It's an evolution of this supply that provides greater possibility for pricing, and we think that from TP2 to TP3, from R$120 to R$200, that would be an important leap, right, when it comes from a percentage perspective. Sometimes you had gyms that were too cheap or too expensive.

When you have more options, you have more efficiency in pricing and allocation of this gym and plans. This is actually a movement we were already talking about.

It's really unrelated to the price increase we had in some Smart stores, but that's something we had already been designing so we could have more possibilities, improve pricing for TotalPass, right? That's one of the points for the TP2+ at R$149.

We'll have this important R$30 leap and then R$50, right? You can have better pricing for the gyms, right?

We've always worked on a from and to in our plans. Yes, there could be stores that are TP2+ Smart, and there's a from and to prices.

We always look at this gap of what's on the counter versus aggregators. If you look at this, this from and to always exists, and it's important to keep this in mind.

What we see is when you increase the amount of price possibilities at Smart, we still have stores that we still haven't adjusted prices to, right? You can have this kind of scenario where you have a greater range of prices, right?

You have stores that are really cheap and other stores that are really expensive, if you consider the comparative price of Smart. We can see this standard deviation growing, and the TotalPass provides more possibility to be more assertive in pricing and give us more opportunities and options, right?

TotalPass kind of has this dilemma. The more of a plan, the greater you price this, but then you also increase complexity, right?

Today we have TP5+, TP2+, and these were the plans that kind of fit in between 2 and 3, 1 and 2, and 5 and 6, and so this is an evolution, right, of this offering, and it's going to be better for everyone.

That's great. Thanks, guys.

Is there some way we could maybe think about this migration of members and this pricing gap, right? I don't know if this peak in the economics maybe at this moment would make sense to think about this, but I don't know if there's any numbers or insights that would be great, although the rationale's quite clear here, and thank you so much for your answer.

I think when you consider this rationale, there's nothing new here. What we've seen is obviously the revenue for customers between different channels kind of gets closer and closer, right?

The direction we're following is the same, and throughout the next quarters, we'll probably start bringing in some more up-to-date data, considering the averages in the year, but I want to remind you that we've already seen these discounts slow down quite a bit, and so that continues to close throughout this year.

Thank you so much, Diogo and Rizzardo.

Now, our next question comes from Nicolas Larrea at JPMorgan.

Thank you, Matheus. Thank you, Diogo and Zé.

Thanks for taking our question. I wanted to go back anyways on some of our aggregators in Brazil.

I also wanted to understand about the competitive environment. You mentioned in the opening remarks that the game is still gaining scale, and I want to understand how you're seeing competitors kind of react to this initiative.

The second question is if you could help us kind of break this down, looking at the improvements we've seen in the growth of TotalPass Brazil and how much of this is related to greater volumes. We can see this and maybe year-over-year, as you prefer, of course.

Thank you.

Thank you. I think he's reacting and it's a well-capitalized competitor, and so there's a network effect.

They're really keeping their eyes open, and they're investing a lot of cash in their partners there that are exclusive, and so we believe it's a dispute. We're competing with a competitor that's really keeping up their eyes open, and so we've considered even better results are more gratifying, right?

They had important payments performed to big chains, and they've been funding competitors, they're really keeping their eyes open to everything that's going on. They're being very aggressive in prices and companies, and we can see that they lower prices significantly when we enter the markets, right?

They're being aggressive in all ends, right? The companies, at the clubs, and even with the marketing.

They've been working on these big advertisements and programs. They're really investing a lot of cash in marketing and really squeezing their prices quite a bit and adding a lot of cash into the exclusive chains.

These are the three points that they've been focusing on significantly, right? They're really being aggressive here.

Have we been. We're at a great dispute there.

In regards to more specifics, volumes, tickets, etc., we don't disclose this information. We don't break it down too much.

That's the numbers that you can see on others. Due to strategic decisions, we don't get into this level of detail about where each part comes from and the more strategic details of the finances in the group.

Thank you so much, Diogo.

Our next question comes from Laryssa Sumer, an XP analyst.

Hey, good morning, guys, and thank you for this opportunity. On our side, it would be great to hear from you guys if we could get an update on the competitive scenario on behalf of the clubs, including Smart and your vision as well from the TotalPass.

We understand the last few days were quite intense, and some players as well operating in a very leveraged manner. If we consider this quarter was a little weaker when it comes to seasonality, as you mentioned at Smart, they also depend more on aggregators.

This quarter that's a little weaker, do you guys think it was already sufficient to see this competition weakening a bit more? That would be great.

Thank you so much.

The competitive environment, we have to separate what's been going on. When we look at the competitive environment, we can see that it's a lot more standard than the competitive environment in Brazil.

We understand that the real estate issues and entering these markets is a lot more challenging, and Smart always has this value proposition that's a lot greater than our competitors. An example of this is we've seen this in some specific markets and geographies in other countries where a lot of competitors have filed for judicial recovery process, for bankruptcy, and have exited the market, and that's a pillar that really reinforces the value proposition of Smart Fit.

When you think about Brazil, a good club will always be a good club, right? A bad club will always be a bad club.

The point is, in a scenario that is a little more beneficial to the sector, bad clubs can occasionally have a good level of returns and results, while a good club will maybe have very good results. Then maybe in a more challenging environment, they'll have results that are a little worse than what it should be, right?

That's really difficult, right, to talk about what's going on with our competitors and what's going on with the market. Of course, we have one reading, and when you can see this, this mismatch we've been seeing for many quarters kind of last.

When you compare with the installed capacity, the curves should adjust at some moment, and who will suffer first will be the clubs that are not good and that were installed at moments that were a little more euphoric that provided cash at some moment. The aggregator, on the other hand, will provide a more seasonality dynamic for the business and a business that previously had really really low seasonality, and they could be more impacted, right?

When you look at this competitive environment in Brazil, Mexico, Chile, Colombia, and Peru, we continue to see the continuity of what was going on in the last quarters.

Very clear. Thank you so much.

Now,

our last question is from Bob Ford at Bank of America.

Hi there, Diogo, José, and Matheus. Thanks for taking my questions.

What level would you guys like to reduce the density of members in the existing clubs to accommodate TotalPass? How long will this take, and how do you imagine the margins will behave in this period?

How do you guys think about the growth rates of the clubs in Brazil, considering that TotalPass will continue to scale up? Thank you so much.

Bob, this is Rizzardo, and I'm getting your first questions, then I'll pass it on to Matheus. We don't have a specific number in our minds when we consider the density of members per club, because as I mentioned previously, for us it doesn't really matter and it should be indifferent if this customer comes from an aggregator or from a direct counter sale of a membership, right?

We're a lot more concerned and attentive to other metrics, actually, in the club and not only the members that come straight in from the counter, because we consider the share of members from aggregators growing even more, and

we believe we're going to gain market share within Smart Fit for everyone, and it doesn't really matter where this revenue comes from, right, for the club. When you think about our earnings rationally, if we could separate things, you'll have an offset of the earnings for clubs coming from the aggregator, it's an important way to look at the business, and maybe you should look at all of the gross profit coming from Brazil, including what comes from others, then doing this per club, right?

You'll see this as a healthy metric that's really important for the company, right? If you consider the growth rates for Brazil and in other countries in the long term, we have no guidance that differs from the annual guidance of the company when it comes to the pace and the expansion rhythm, but we've already shared previously, when we considered the white space slides and the opportunities in Latin America, where we continue to be quite confident that there's really a lot to grow in the 15 countries, and including Brazil.

I agree with you. Thank you so much.