Smart Fit (SMFT3) Stock Soars 7% After Stellar Q2 2025 Earnings: Is It Time to Buy?

• Why Is Smart Fit’s Stock on Fire?
• Breaking Down the Key Metrics
• What Are the Analysts Saying?
• The Mexico Question
• Bottom Line: Buy, Hold, or Sell?
• Smart Fit Q2 2025: Your Questions Answered

Smart Fit (SMFT3) just dropped a bombshell with its Q2 2025 earnings, and the market is loving it—shares skyrocketed over 7% in early trading. With recurring net profit hitting R$189 million (up 32% YoY) and EBITDA reaching R$576 million, the fitness giant is flexing its muscles. But here’s the real question: Should you jump in now, or is this a pump-and-dump? Let’s break it down.

Why Is Smart Fit’s Stock on Fire?

The numbers don’t lie: Smart Fit’s Q2 2025 results crushed expectations. Revenue hit R$1.8 billion (up 32% YoY), while membership growth climbed 11%. Even with a slight EBITDA margin dip to 32.1%, analysts are buzzing about the company’s pricing power and aggressive expansion. "This isn’t just a post-pandemic bounce—it’s a full-blown growth story," notes the BTCC research team. Trading at R$23.15 by midday, SMFT3 was one of the Ibovespa’s top performers.

Breaking Down the Key Metrics

Here’s where things get juicy:

• Brazilian Operations: Margins hit record highs, offsetting softer performance in Mexico.
• LatAm Expansion: Revenue from "Other Countries" surged 45%—proof that diversification works.
• Membership Magic: Average ticket prices rose, and retention rates stayed strong despite new competitors like TotalPass.

Source: TradingView (Financial Data)

What Are the Analysts Saying?

Safra and Santander doubled down on their "Outperform" ratings, with price targets of R$32 and R$30 respectively. XP Investimentos echoed the sentiment, calling the results "a relief for worried investors." The consensus? Smart Fit’s hybrid model (corporate wellness via TotalPass + traditional gyms) is paying off big time.

The Mexico Question

While Mexico’s 11% growth lagged behind other regions, analysts aren’t sweating it. "The market there is cyclical," explains a BTCC strategist. "New unit openings were delayed, but maturing locations should boost margins by 2026."

Bottom Line: Buy, Hold, or Sell?

With a 12-month upside of ~30% based on consensus targets, Smart Fit looks like a solid play—if you believe in the LatAm fitness boom. Just remember: no stock goes up forever. Keep an eye on those Mexico numbers next quarter.