Smartfit Escola de Ginástica e Dança S.A. ($SMFT3)

Good morning, everyone. Welcome to Smart Fit conference call to announce the results of the fourth quarter of 2025. Introducing myself, for those who don't know me yet, I am Matheus Nascimento, Investor Relations Manager. Before we start, a brief message for those who choose to follow the conference in English. Good morning, everyone. Welcome to Smart Fit's conference call to discuss the results of the fourth quarter of 2025. This call will be translated into English. [Operator Instructions] Today with us, we have Mr. Edgard Corona, Founder and Chairman; Diogo Corona, CEO; Jose Luis Rizzardo, CFO and IRO of Smart Fit. [Operator Instructions] As a reminder that the slide deck that will guide the presentation is available at the Investor Relations website of Smart Fit website at CVM and on webinar platform. Before proceeding, I would like to clarify that any statements made during this conference call regarding the company's business prospects operational and financial projections and goals, as well as information about the potential of the market in which it operates are beliefs and assumptions of the company's Executive Board based on information currently available. Forward-looking statements are not guarantee of performance because they involve risks, uncertainties and assumptions. Now, I would like to give the floor to our Founder and Chairman, Edgard Corona, who's going to start the presentation. Mr. Corona, please, you may proceed.

Thank you, Matheus. Good morning, everyone. It's a pleasure to have you here to announce the results of the fourth quarter of 2025. It's an important period for Smart Fit Group, which marked an advancement in our succession plan. So I took over as Chairman of the Board, Diogo took over as CEO; and Rizzardo is now the CFO, continuing the execution of the strategy and consolidation of the group's ecosystem while continuing to contribute daily to the main discussion, strategic definitions and projects of the company. This transition has been going on in a structured and planned manner with the rise of the company's executive officers is very experienced. They need to have continuity and long-term sustainable value generation. I would like to start by the highlights that points and shows another quarter of solid results. In operational highlights, we ended the quarter with 2,084 clubs in operation in 16 countries, representing a growth of 20% compared to 4Q '24. Along 2025, we added 341 new units, the highest number of openings in the company's history in line with our expansion guidance. This performance reinforces the scalability of our business model and marked the entry of a new geographical footprint. From the financial standpoint, we're going to share the results on the next slide. But the main message is clear. We continue to combine accelerated expansion, consistent growth and strong cash generation to reinforce the solidity and scalability of our business model. We are very happy with the results we have achieved so far, and we are confident with the opportunities ahead. We remain focused on expanding access to fitness and continue to transform the industry where we operate. Now continuing, I would like to turn it over to Diogo, our CEO, our new CEO to continue the presentation.

Thank you, Edgard. So before going to operational details, it's worth taking a step back and looking at the portfolio of brands that comprise Smart Fit ecosystem that supports the strategy we have been building over the last few years. Today, we operate with an integrated platform combining fitness clubs, specialized studios and the aggregator, creating a unique ecosystem in the fitness industry as the main pillar in the fitness club segment is Smart Fit, our main brand and growth driver focused on democratizing access to high-end fitness on large scale. Smart Fit's own clubs accounted for 89% of the group's consolidated net revenue in 2025. Complementing the proposal in the fitness club segment, we have Bio Ritmo, a brand that originated Smart Fit Group and that will be 30 years old in 2026, position high-end segment, offering a more complete wellness experience with premium services. In the Studios segment, we combined different modalities and specialized brands in an essentially franchise model now consolidated under the corporate brand BeOn, which expanded our presence in more personalized and community-orientated training experiences. Finally, we have TotalPass, our wellness aggregator, which connects companies, users and a wide network of fitness clubs. This integrated portfolio allows us to act on different consumer profiles, modalities and moments of the wellness journey, reinforcing our position as a comprehensive platform in this industry. On Slide #4, it shows an overview of Smart Fit Group's main operational highlights in 2025 for our most relevant business. I will give more detail as we move on in the presentation. So starting on the Health Club business unit, our main business, 2025, another record of openings with 341 new fitness clubs in line with our previous plan. This pace of expansion allowed us to exceed the number of 2,000 Smart Fit fitness clubs ending the year with 2,084 units in 16 countries, considering all our brands consolidating our position as the largest fitness chain in Latin America and one of the largest in the world. Among the main highlights in the period, it's the entry in Morocco, which represents the beginning of our expansion in a new continent and the accelerated growth in Argentina, market where we see relevant potential for growth. Looking ahead, yesterday, we announced our expansion guidance for 2026, which includes between 300 and 350 new net clubs, approximately 80% of our own units. This guidance reflects the continuing of our strong pace of expansion supported by a robust pipeline of projects, discipline in capital allocation and good returns and ample room for structural growth in the fitness sector and in the markets where we operate. Now specifically about the brand Smart Fit, the main driver for the group's growth. We continue to improve our products and experience offered to our customers. In 2025, we expanded investments in modernizing and expanding our equipment portfolio, always in line with the leading global trends in this industry. These investments reinforce the strength of our value proposition, which combines high-quality infrastructure, affordable prices and a strong and recognized brand, which allows us to democratize high-end fitness. At the same time, we continue to see great potential for geographic expansion, supported by positive structural trends such as increased awareness on health and well-being and the growing demand for physical activity in different markets. Now moving to Bio Ritmo, our high-end brand. In 2025, we started a new strategic cycle for Bio Ritmo, with a brand repositioning, product redesign and the improvement of our customer experience in the high-end fitness and wellness segment. We carried out a relevant evolution of the product with equipment updates, evolution of the architectural project and improvement of the customer experience. This movement is in line with the global trends in our industry, where consumers seek increasingly integrated wellness experience combining training, recovery services and socialization. With this strategic repositioning, good return of our business unit, we resumed the expansion of the brand with 6 new units opened in 2025, including our entry into new countries, Chile and Peru. These advances reinforce Bio Ritmo's role within the group as a premium wellness brand, complementing Smart Fit's scale and accessibility, and this is important to the ecosystem. Another important pillar of our strategy is the Studios platform now consolidated on the corporate brand launched in early 2026 called BeOn. Asset-light business vertical based essentially on the growth through franchise. Also in 2025, we reached the mark of 100 units for the Velocity brand, consolidating the network as one of the main reference in indoor cycling segment in Brazil. The year was also important from the operational point of view, with relevant advances in integration of processes and systems after the acquisition of Velocity, thereby enabling a more efficient standardized structure prepared to scale. Overall, our network had 180 units, which translates in more than 270 rooms. We also continue to expand our portfolio of modalities, including the relaunch of our Pilates product under the brand Aera Pilates, with a proposal strongly geared towards customer experience and soon with our recovery product. In addition, initiatives such as the Race Run Club and video sessions reinforce the studio's position as a space for community and engagement, expanding connection with our members. The consolidation under the corporate brand Beyond aims to strengthen the integration between brands, franchisees and partners, marking a new phase of development for the segment. Now moving to Slide TotalPass, which has been consolidating itself as one of the main avenues of growth and which expands and strengthens the value proposition of Smart Fit Group. TotalPass operates in a B2B2C asset-light model, connecting companies, employees and a wide network of partner clubs. In this business model, revenue generation occurs in 2 different stages of the chain. First, companies hire the service and pay a fee per employee, which we call HR fee. Then employees have the option to join the benefit choosing one of the monthly plans available in the platform from then on, end users start to use the network of partner fitness clubs. And each time they visit, there is a transfer to the club in line with the platform's use model. The structure created is a highly scalable model, with low capital requirements while expanding the company's addressable market, addressing new sources of revenue in addition to the traditional B2C model. In addition, the strength of TotalPass brands and the capillarity of our network represent important competitive differentials, which reinforce TotalPass growth potential in the markets in which we operate. Finally, I would like to highlight the evolution of TotalPass. In Brazil, we continue to expand consistently the network's capillarity. We end 2025 with more than 32,000 partner health clubs, a growth of 52% compared to 2024 in addition to a presence in approximately 1,900 cities. In our own ecosystem, TotalPass also plays an important role in generating demand and increase the use of clubs. In Brazil, for example, TotalPass users account for about 15% of the total attendance of Smart Fit clubs along the year versus 11% last year. This growth of the network, combined with the strengthening of the brand has been directly reflected in the gain in market share. According to data from Sensor Tower, the market share of monthly active users in Brazil grew from 17% in 2023 to 29% in 2025, reinforcing the growing relevance of the platform in the market. We have also had a significant growth in building the TotalPass brand with relevant awareness and positioning initiatives. Among them, we highlight the first major brand campaign focused on end users in addition to the opening of World TotalPass in Sao Paulo space dedicated to health and well-being that reinforces the brand's presence and positioning. In Mexico, the advance is also consistent. The network already has more than 8,000 partner clubs, a growth of 46% compared to 2024, maintaining a clear leadership in user participation, with approximately 80% market share in the country. As a result of the set of initiatives, we ended the period with about 1.7 million end users, representing a growth of 62% compared to the previous year. These advancements reinforce TotalPass's role as an important growth driver and an increasingly strategic component in our system. The aggregator complements and expands the growth, strengthening our presence in the corporate segment and creating avenues of growth for the company. We also noted a relevant growth in the number of companies that buy the product to offer the benefit to their employees driven by a competitive value proposition and robust network of partners. In addition to direct contribution to the business, TotalPass strengthens the ecosystem integration, expands the company's reach to new users and reinforces our position as a complete fitness and wellness platform. In summary, 2025 was a year of strong operational execution and strategic evolution for Smart Fit Group. We continue to expand our network of fitness clubs, strengthening the development of other verticals of the ecosystem and consolidating our leadership in the industry. Looking ahead to 2026, we remain confident in long-term growth opportunities and in our ability to continue executing, with discipline and consistency. We talked a lot about the evolution of our physical footprint in previous slides. But here is a geographical diversity of this segment. Today, Brazil accounts for 47% of our total base, whereas Mexico and other countries already add up 53%. If we look only at Smart Fit own clubs, Brazil represents 41% of the total base. In addition, another relevant point is the maintenance of our growth base. Currently, 57% of our own clubs are mature units, which corresponds to 950 fitness units. In other words, we still have more 40% of the other units that are not yet mature and as this occurs, we are going to have even higher levels of profitability and generation of operating cash. We continue to focus on a disciplined, efficient and sustainable expansion, with an operation that combines scale, with operational intelligence that can be observed in our productivity indicators. With that, I now turn it over to Rizzardo, who is going to present the financial highlights of the quarter and the year.

Thank you very much, Diogo. On this slide, you can see our year-on-year growth in our membership and revenue per club. In the fourth quarter of 2025, our membership ended at 5.2 million, an increase of 8% compared to the same period last year. Of those members, approximately 2.2 million are in Brazil, 1.1 million in Mexico and 1.9 million in other countries. It's worth noting that aggregator subscribers, including those from TotalPass are not included in these membership numbers, but their access and check-ins have been gaining share every quarter, complementing what Diogo said, to reinforce in Brazil, they accounted for 15% of the total average attendance in 2025 versus 11% in the previous years. We believe that our robust membership is a direct consequence of our assertive expansion strategy, the maturity of our units and the continuous efforts to attract and retain customers. In the same period, the average annualized net revenue per owned club reached BRL 4.3 million, representing a growth of 3% compared to 4Q 2024, mainly driven by the increase in the average ticket, reflecting the price transfers made in recent years and several initiatives implemented to sustainably optimize revenue per club. As a reminder, this growth was negatively impacted by the higher concentration of openings at the end of the period when compared to the year before. Following the presentation, I would like to now go into the financial results, starting with the evolution of net revenue, which in 4Q 2025 showed again a solid growth of 26% compared to the fourth quarter of 2024. This was the 18th consecutive quarter of revenue growth. Net revenue reached BRL 1.9 billion, mainly due to the expansion in the average membership in Smart Fit own clubs and increase in the average ticket with a growth in all regions of operation. It's also worth mentioning the contribution of the others line with a strong growth of 80% compared to the same period of the previous year with emphasis on the robust performance of TotalPass in Brazil in addition to the consolidation of Fitmaster since the second quarter of 2025. Looking to the year as a whole, 2025 brought important milestones. For the first time, we exceeded the mark of BRL 7 billion in net revenue, with a strong growth of 30% compared to 2024. This performance reflects the continuity of our expansion strategy, the strengthening of the brand ecosystem and the increasing diversification of our revenue sources. Finally, it's worth highlighting the evolution of our international presence. As Smart Fit's operations abroad continue to gain share in the consolidated numbers, with other countries and Mexico region together, representing 63% of the revenue of company-owned clubs, 2 percentage points above 2024. In summary, we continue to combine membership growth, average ticket evolution, revenue diversification, sustaining a consistent growth of expansion and value generation. Now moving to the next slide, we can see that gross cash income totaled BRL 972 million, an increase of 26% compared to Q4 '25, in line with the growth in net revenue in the period. The gross cash margin reached 49.9% in 4Q 2025, a slight decrease of 0.2 percentage points compared to the same period of the previous year, mainly reflecting the increase in expenses related to the opening of new units and the growth in the cost of units in the ramp-up process. In 2025, gross cash income totaled approximately BRL 3.6 billion, an increase of 30%, resulting in a gross cash margin of 50.3%, an increase of 0.2 percentage points compared to the previous year. It's also worth noting that the gross cash margin before preoperating costs, those related to openings reached 51.8% in the fourth quarter of 2025, with an expansion of 0.3 percentage points compared to the same period of the previous year. In the same metric in 2025, gross cash income totaled BRL 3.7 billion, an increase of 31% versus 2025, resulting in a margin of 51.4%, a solid expansion of 0.5 percentage points compared to the previous year. Now going a little bit deeper in detail into the detail of this analysis, which in our view reflects the robustness of our business model, we move to the next slide. So here, you can see the analysis of gross cash margin before preoperating costs per business segment. This analysis isolates the effect of preoperational costs, providing a clearer understanding of the profitability of existing clubs even considering the effect of maturation. From this perspective, consolidated gross cash margin reached 51.4% in 2025, an expansion of 0.5 percentage points, thereby showing the robustness and consistency of our business model. In 2025, Smart Fit's Clubs gross cash profit before preoperating costs grew 28% as compared to 2024, and with an expansion of 0.6 percentage points and the margin, which totaled 50.1%, reflecting the higher profitability in the other countries region. It's worth noting that the gross margin mature units in Brazil reached 48.5% above the level of 2024. When we look by segment, we see the stability in the margins of the Smart Fit brand, our core business. The margin of Bio Ritmo and others was impacted by the opening of new units, we are still undergoing ramp-up and momentarily have lower margins. This was offset by the solid performance in the other segment, which maintained a significantly higher margin level, even though impacted in terms of percentage margin by the consolidation of Fitmaster as compared to the previous year. Within this context, it's important to highlight the positive effect of the change in the mix with the other segment gaining share in the gross profit before pre-op costs going from 7% to 10%. In summary, the company once again demonstrates its ability to deliver solid results despite a context of strong expansion and maturation of the club base also driven by the contribution of new business units. Now moving to the next slide, you can see that for the 11th consecutive quarter, the mature units have presented a consistent level of 52% in addition to the annualized gross profit per club in the quarter of BRL 2.5 million, a growth of 1% compared to 4Q 2024, reflecting the resilience of the business model and the intense efforts in the operational efficiency pillar. Another important highlight was the number of units opened in 2023 that showed a gross margin of 52% with a performance above the level of mature units for the fourth consecutive quarter. Gross cash income per annualized unit reached BRL 2.3 million in 4Q '25, an increase of 2% compared to the previous quarter. It's also worth highlighting the solid maturation trajectory of the 2024 vintage units, which achieved a gross cash profit of BRL 2.4 million and a gross cash margin of 55% in Q4 with a margin expansion compared to the previous quarter. Solid performance of the company's own units in the 2024 vintage units is a result of the combination of strong revenue growth, reflecting the expansion intelligence and strength of the Smart Fit brand with a structurally lower occupancy cost than mature units, resulting in a profitability level of more than -- higher than that of mature units. We monitor the performance of this unit on a daily basis and remain confident that they will provide good results once they reach maturity. As Diogo said before about the continuity of the pace of openings for 2026, the good level of the margin of mature units, the excellent ramp-up of the margins of the new units give us a lot of confidence that we are on the right path to consolidate another consistent result with accurate choices of commercial points, strong cost management, pricing and sales intelligence in addition to high quality of the services provided. On the next slide, you can see ROIC. I would like to once again show to you the solid return on the capital invested generated by our mature units in 2025, keeping the same analysis methodology that we used last year. As you can see here, the average return on invested capital for these units was 28% in 2025, already incorporated into the analysis that theoretical expense and SG&A, income tax and social contribution over net profit allocated to these units. It's also worth mentioning that this analysis already incorporate vintage units 2022 compared to those that we presented last year. This group of units still has an ROIC of approximately 15%, a level that we expect to reach higher levels as these units advance in their maturation process. When we look at the different vintage of mature units, we see that gross cash profit levels are quite consistent. So the main difference between vintage units is mainly associated to a time issue related to investment cycle and asset depreciation. As our fitness clubs become more mature, the level of reinvestment required for the maintenance of those assets to continue delivering the same level of profitability and keeping their differentiated value proposition is above the level of book depreciation of those clubs, mainly due to the difference between the initial investments in civil construction versus the need for maintenance over time. This effect is evident when we compare maintenance CapEx between the different vintage units. In more recent vintage units with 3 to 8 years of operation, the maintenance CapEx accounts for 5% of net revenue, while depreciation is up close to 13%. In older clubs that are older than 13 years, maintenance CapEx goes up to 9% of net revenue impacted by the expansion in work area above the level necessary for maintenance. Without that effect, the maintenance CapEx of those units is very close to the book depreciation of these units. As a consequence of all of this, over time, the fixed asset base of the units become smaller, while NOPAT remains at very solid levels. So it naturally contributes to the increase in the return on invested capital for more mature units. Finally, it's worth mentioning that these levels of return do not consider potential additional gains from SG&A leverage nor returns from other fronts of our ecosystem, such as franchises or business units that are still in a maturity phase such as TotalPass itself. That already has a very positive result. Now talking about expenses. You can see the expenses for the fourth quarter of 2025 and for the year as a whole, focusing on sales, general and administrative expenses. So SG&A totaled BRL 357 million in the quarter, equivalent to 18.3% of the net revenue, stable in relation to the same period of the previous year. General and administrative expenses totaled BRL 202 million in the quarter, representing 10.4% of the net revenue in the period. This performance reflects mainly the impact of high investments in structuring new businesses, especially those related to TotalPass in addition to the effect of the consolidation of Fitmaster partially offset by the operating leverage of the company. It's also worth mentioning pre-operating expenses, which totaled BRL 22.2 million in Q4 '25 versus BRL 11.6 million in the same period of the previous year, reflecting a higher volume of opening of owned clubs in the quarter. Now you can see the evolution of our EBITDA, which in the fourth quarter of 2025 exceeded the historic mark of BRL 600 million, totaling BRL 610 million, a solid growth of 25% over the fourth quarter of 2024. EBITDA margin for the quarter was 31.3%, stable compared to the year before. In 2025, we reached a record EBITDA level of BRL 2.3 billion, a strong growth of 30% compared to 2024 with a margin of 31.7%. Finally, considering the adjusted EBITDA before preoperating expenses also at a record level, reached the expressive mark of BRL 669 million in the fourth quarter of 2025, with a margin of 34.3%, an increase of 0.6 percentage points versus 4Q '24. On the slide on net income, recurring net income totaled BRL 738 million in 2025, representing a strong growth of 30% compared to 2024 and a net margin of 10.2% with an expansion of 0.5 percentage points in the period. This performance mainly reflects the operating leverage of our business model, driven by consistent profitability of mature units and the solid ramp-up of the clubs that we opened in recent years. In addition, it's worth highlighting the greater contribution of other businesses, which also supported the evolution of our along the year. Considering recurring net income, we closed 2025 with BRL 741 million, a growth of 28% compared to 2024, with a recurring net margin also of 10.2%, mainly reflecting the 30% growth in adjusted EBITDA in the period. In the fourth quarter, recurring net income was BRL 234.6 million, up 19% from Q4 '24, recurring net margin of 12%. The result reflects, on one hand, the positive impact of a higher declaration on interest on equity in the quarter. And on the other, the increase in tax expenses related to higher results of operations outside Brazil due to worldwide taxation. Now I would like to go to the next slide to talk about our investments and the impact in the variation of the net debt. In 2025, the company's adjusted net debt increased BRL 993 million, reflecting the investments made in the period focused on expanding the fitness club network, which were partially offset by the solid operating cash generation. The generation of operating cash was positive by BRL 2.2 million, driven by EBITDA for the period with a high conversion rate, reaching an expressive mark of 97% CapEx activities totaled BRL 2.5 million, especially due to the CapEx related to the opening of new units. In addition, other activities accounted for an increase of BRL 686 million in adjusted net debt, considering debt service, and also exchange rate variation in addition to the distribution or payout of interest on equity. We continue to move forward with our growth plan, which resulted in expansion of CapEx of BRL 1.9 billion, an increase of 25% compared to 2024. 275 units of the Smart Fit brand were inaugurated in the period, an increase of 14% compared to 242 units in 2024. In this context, CapEx per Smart Fit unit was BRL 6.3 million. Moreover, maintenance CapEx was BRL 346 million in the year, a share of 7.1% of the net revenue of mature units in line with the strategy of continuously offering a high standard experience to customers. It's worth mentioning that this CapEx also includes investment in the program to expand the supply of equipment and even the expansion of floor area in certain units along with energy efficiency projects. Moving to the next slide of the financial section as demonstrated on the previous slide, we continue to intensify our expansion plan, investments and payout of dividends, maintaining discipline with leverage due to the company's growth and operating cash generation. So the adjusted net debt over EBITDA LTM, excluding IFRS 16 related to real estate lease ended 4Q '25 at 1.78x versus 1.76x in 4Q 2024. We consider this ratio to be healthy, especially due to the high predictability of the company's results and a very long debt maturity profile. Moreover, the adjusted net debt EBITDA ratio in 4Q '25 annualized, excluding IFRS 16 effects related to real estate lease is 1.65x. It's important to mention that during the year, we continue to -- our efforts in liability management with emphasis on the issuance of the first 10-year series in the company's history as part of 1 of the 3 series of the 13th issuance. The transaction was completed at the lowest all-in cost in recent years and evidence of financial discipline, access to capital at competitive cost and availability and the ability to optimize the capital structure despite the challenging macroeconomic scenario. Finally, the company finances its expansion needs locally. The net debt distributed in different geographies provides us flexibility to invest considering local capital costs. And in some cases, we continue to have lower interest rates. Now I would like to close the presentation by thanking everybody that have contributed to our results and all our investors. Now I would like to give it over to Matheus, who's going to coordinate the Q&A session.

Thank you, Rizzardo. Now we are going to start the question-and-answer session. [Operator Instructions] Our first question comes from Rodrigo Gastim from Itau BBA.

I have 2 questions to ask. One of the most relevant points in your performance is the evolution of TotalPass. So if we look at check-ins and revenue, you can see that the average discount is way better year-on-year, almost 30% in '24 to an average of 20% in 2025. This is something that we have been talking a lot with investors, and it should be even better. So can you give us an update of your strategy to help us think of this convergence and this growth in revenue and frequency in TotalPass and where you are in terms of closing the gap of economics considering both check-ins and revenue along 2026? And the second question, some people asked about CapEx. So there's a significant change in CapEx among 2025. So how much of that is an impact of exchange rate? How much is something natural? And what do you think about CapEx per unit for 2026? If you could break down per country, it would be very nice.

Rodrigo, this is Diogo. So I'm going to answer the first question and Ze will answer the other. The first question about TotalPass. In fact, TotalPass has been gaining market share and in Smart Fit, we have been growing -- it has been growing a lot. So we focused on that on the slides. We are expecting it to keep on increasing share, both at Smart Fit and in the market, too. So the initiative is evolving very well. And as we grow, close the financial gap that we used to have. So we closed very much the gap in 2025, as we showed you, and we expect to close it even further in 2026. This is a major challenge to grow, gain market share and close the gap, everything at the same time, and we are expecting it to close that gap very much in 2026.

Now about expansion CapEx per unit. So when we break down the growth year-on-year basis, you can divide the 2 effects, almost 50-50. So half of the growth is related to inflation in different countries and the other BRL 50 is related to an exchange rate. So when we convert it back to BRL and the impact of conversion to dollars because a lot of the equipment we buy are priced in dollars. So the CapEx per unit is that we are constantly evolving. So our products, our clubs have been evolving. So there is a season of clubs in the 2025 cohort with slightly more pieces of equipment, especially body building and then we had in vintage units to meet demand from the consumer market.

This is super clear. Just a follow-up. So this is something that we have been talking about efficiencies in CapEx per unit. So I think that you mentioned Mexico. So how much can you capture of that in 2026?

Well, FX because we can't control this. Thinking of what you can control, considering the efficiencies for the openings in 2026. Now when we think of the main efficiencies, so what we said last year, the main efficiency we had last year in terms of CapEx came from Mexico. So especially in civil construction of our units in Mexico and CapEx per unit in Mexico per square meter went down by more than 20% as we disclosed in the call for the third quarter '25. However, CapEx per unit in Mexico is slightly smaller than what we see in the reduction per square meter because vintage units last year, they have an average higher footage than other vintage units. So we're going to start '26 on an adjusted basis, CapEx per unit, capturing most of the efficiency in different countries. That said, when we think of CapEx per unit for the year and taking out FX from the equation, which is a significant variable but very uncertain, and we have started the year with a war with more volatility than we expected, you shouldn't see any change in level of CapEx per unit if you compare '26 to the average of 2025.

Our next question comes from BTG by Luiz Guanais.

We have 2 questions to ask. The first still about TotalPass. Could you say the share both in Smart Fit and third-party clubs and how this is likely to evolve during the year, and you mentioned that in the release for the fourth quarter. And also, about gain in efficiency and investments. When we look at the gross margin in Mexico, so how can we think about the drivers along this year? So we've been seeing over the quarters, so the price transfer. So you're trying to gain efficiency. At the same time, there are some more recent investments in operations. So I would like to understand how we expect that evolving along 2026.

This is Diogo. First, I'll answer about TotalPass. So as to TotalPass, what we expect this year is to keep about 30% of the check-ins to our own network and 70% external. So we see that the expansion in our own network is at a strong pace of expansion. So 330 to 350, but we have also accelerated the credentialing of other clubs, and we are getting to the level with almost everybody in the platform, but we expect to keep it at about 80% in our own exclusive network. So when I when he says 30%, 30% includes Smart Fit, Bio Ritmo and also the other brands of the group. And obviously, considering TotalPass membership and the plans they are enrolled in and capillarity and size of the brands, most of that is in Smart Fit. Now moving to Mexico. We've been seeing good signs in Mexico over the recent months. So most of it I mentioned in the previous slide. So higher efficiency with CapEx units versus what we used to spend before. So vintage units from 2025, even though very new, the ramp-up has been performing very well in the region. So the group is very compliant with a very good value proposition, Mexican consumers. Important piece of news is that it takes a while for us to see the effect in the company's revenues is a significant increase in the penetration in the black plan in Mexico and also with some adjustments in some units, changing the local pricing of the Smart Fit plans. Now when we look at the prospects for the year in Mexico, we are excited with what we are going to find and what lies ahead of us in terms of our value proposition, and we don't expect it to be too different from what we've been delivering in terms of results over the past few years.

Our next question comes from Julia Rizzo from Morgan Stanley.

I have 2 questions. about Fitmaster and other M&As. So aside from studios, do you have any kind of CapEx for the brand to upgrade them to Smart Fit style? How do you see that? Do you do that? Do you not do that? And how could that impact our -- the expected CapEx in 2026. When you talk about the profitability of mature units, could you give us some more detail so that we could take out the effect of mix and FX rate. So what was the growth of gross profit of Brazilian units in Brazil and in Mexico. So the gross profit per mature unit grew 1% year-on-year.

Julia, thank you for the question. This is Rizzardo answering your question. Starting with the conversion CapEx, we should separate the different types of acquisitions that we've been making in the history of company. Fitmaster specifically is our B2B, B2C aggregator business focusing especially in studios in Mexico. So we were partners in the business and with the acquisition of 100% in Q2 '25, now it's consolidated into the company's bottom line, and it didn't require any additional investment. The impact, obviously, is an increase in the line of other businesses and also gross margin and EBITDA margin is different from the profile of other businesses of the company. Another type of acquisition of franchisees of Smart Fit that we selectively do. There is no CapEx in terms of brand conversion. So we might need when we buy a small competitor. So historically, this conversion has always been very cheap, except for some exceptions when the club was very poor, and we needed to upgrade them to reach Smart Fit standard. But you shouldn't be expecting anything relevant related to that in 2026. So as we announced to the market in the short term, these units are not going to be converted into Smart Fit brand, even though in the mid and long term, it wouldn't make sense for us to operate with different brands with a similar value proposition. Now going to your other question about gross margin and gross income of different regions. So on the release and here in the presentation, so the cash gross margin of mature units in Brazil has gone up in 2025 as compared to 2024. How much the cash gross profit growth of cash gross profit for Brazil own units is single digits, whereas as you should expect the gross margin and the gross profit of the units in Mexico dropped when we compare 2025 to 2024. And in other countries and regions, we can see so the cash gross profit per unit in local currency going up in the main countries between mid- to high single digits.

If I could follow up, in terms of increasing the cost per unit of your unit. So more or less, considering inflation, IGPM, so what are you budgeting for 2026?

So the company's consolidated numbers are not going to change much in terms of inflation. In some countries, we have some efficiency initiatives that will make the cost per unit grow slightly below the inflation, whereas in other countries, it will go above the inflation, such as Colombia, where the adjustment of the minimum wage increased 23% in the year, but there was also a price transfer in unit, and we hope that the net effect is that the margin doesn't change level in the unit in terms of cost per unit. So in that sense, the share of staff in our cost structure is 40%, so no matter that it went up by 23%. It's mitigated considering the mix of our cost structure. So we're not expecting that in Colombia specifically, cost will go up as much as that. And as Rizzardo said, we are seeking efficiency initiatives so that we can find mitigating factors and keep the plan for the year.

Our next question comes from Nicolas from JPMorgan.

So my first question is about Smart Fit, especially in Brazil. So you said in your presentation an improvement in NPS. Could you give us some color you could see how NPS has been going up comparing TotalPass and non-TotalPass members that go to Smart Fit clubs, considering that TotalPass have gained share as compared to last year? And the other question is related to others LatAm and Colombia has had a significant increase in the minimum wage, and I understand Colombia and Chile are quite relevant in others LatAm. So I'd like to understand how much capacity Smart Fit has to absorb that cost? And how do you see that along 2026?

Nicolas, this is Diogo. About NPS, our NPS is still very good for our clubs, so about 70%, which is considered very high. And about TotalPass customers, our numbers are very similar. We treat TotalPass customers or members as the usual member. It's just that they arrive through a different channel. And they also need to follow all our rules in CRM. We treat them very well. So they may switch more easily, the club more easily than those that are our customers directly. So this is as we do with our walk-in customers. So this -- the main indicator that they are happy is that they will keep on going to those units in our own network. So when you ask about the impact in Colombia, so we adjusted prices in Colombia at about COP 10,000, and this adjustment was slightly above what we want to have in terms of impact of the adjustment that was much smaller. But with this transfer in Colombia, we hope that there will be no change in the profitability of the business unit that, as you said, considering other countries, this is the most representative geography that we have today.

Our next question comes from Danni Eiger from XP.

The first one is about TotalPass. So I would like to confirm a number because the number I used to have, and I looked in Q4 2024 of TotalPass penetration in check-ins, it was 13%. And then you said twice 11%. I would just like to confirm whether it has confirmed. And there is an evolution of revenue per check-in because it had evolved and it's connected to the point that we mentioned in terms of expansion of the external network and other alternatives that you were able to make the use of clubs more efficient in terms of TotalPass and comparing TotalPass and walk-in customers and comparing check-in net revenue. And also in that regard, I would like to see how you understand the creation of value of TotalPass as part inside Smart Fit units. Just looking at the economics, so we have ROIC and how you see this effect as everything is in the group and things are combined and whether you have seen that as an incremental demand, sometimes there is some cannibalization, but which is net positive in terms of flow. And my second question is also related to ROIC. So vintage is in terms of profitability, especially in terms of gross margin. So what has driven this? Do you think that the new season is more within this new level to understand what to think in terms of profitability and marginal expansion?

So this is Rizzardo -- and getting the main questions. So TotalPass. So on average in 2025 is 15%. The average of 2024 is 11%, which is different from the number that was published before because there's a consistency in the basis considering the frauds that occur in the aggregator business and that we improve our internal controls, both in our own and third-party network. And this is one of the levers to improve the profitability of the aggregator itself. As we adjust the 11% by 15%, we also have an improvement in the gap between frequency and revenue per customer. Now moving to other questions. Vintage 2021, we have had good performances in all geographies. And I would highlight the vintage performance of 2024 in Brazil at the level of profitability per club as compared to the mature ones in Brazil, as you can see in the reference form has generated about 47% to 49%. So this vintage specifically in Brazil has much higher margins because it has a similar revenue per gym with an occupancy cost that is much lower than mature units. So TotalPass, TotalPass customers, our mid and long-term vision can be, as you are seeing and we'll continue to see in the gap between visits and revenues of TotalPass and Smart Fit. It should be indifferent for the company in terms of economics per member, whether they are company from channel A or B. What we have is sometimes some difference at the level of revenue per customer, with a lower cost of acquisition for customers that come through the aggregator than those that are walk-in customers.

Our next question comes from Joao Soares from Citibank.

Diogo, congratulations on your new positions. I'm going to try to be quick. The first one, just thinking about the dynamics. So an agreement has been signed at the beginning of the year for 10 exclusive relationships. Are you going to seek that? Can you sign that too? I would like to hear more about the dynamics. So you should say about the short term. Thinking about the transfer, any comments about competition? So if you could talk about that. And the last one is kind of quick. How does it impact the effective rate looking into the future?

Joao, this is Diogo. About the decision of carrying. So we have no restriction. But thinking of our platform, we think that our platform today is very competitive regardless of the brands and exclusive relationships that there may be, the volume capillarity is very high. We are in many different cities. The number of units is also very high. We have a coverage that is really a countrywide footprint. So we have our brands, our own network, and we are working intensely on brand. So Bio Ritmo brand expansion -- so it's an umbrella brand of studios and Velocity is increasingly more integrated, very consistent in terms of franchise. We focus on communities and experiences and Smart Fit is expanding with very high quality. If you look at margins, ROICs, everything going very well and expanding with very good efficiency. So we have this offer of partners, and this is recognized by the market. So we see the share increasing the total past brand and brand awareness going up. So all our work here, we are getting a feedback that it is working, and this is what matters more than any decision. And adding to that, considering a leaner cost structure, so there is a smaller company and the price per staff is much lower. So we are much more competitive considering our partners. So yes, we can make the operation profitable. And so this is better than the competitor. So it has an effect and everything that we have accomplished over the past few years, 6, 7 points. And if we keep that, it can be projected and we want even to exceed that. But if it's just 7% from 1 year to the other, we'll get to 38%, 39% of the market, generating competition, better clubs, really improving everything so that the fitness club ecosystem at TotalPass is kind of a blessing for everyone. About your other questions and trying to connect. And so we are very excited and confident for 2026. So the scenario that we have had so far doesn't change in our expectation and confidence for the year. Thinking about the TBU, it's kind of complex. We've been talking to you -- well, the worldwide taxation. So get the taxable and accountable for each one of the affiliates that we have outside Brazil overseas. So we should look at the accounting bottom line of each affiliate in Mexico, Chile, Peru in every country. So it's not one calculations per country, but each company that is headquartered outside Brazil. And here, you would discount anything that has a negative accounting. We only count a positive. And then we need to update any difference in rate between the countries and operations to 34% of Brazil. So we can -- we have much better visibility of the year's effective rate as we get to the end of the business year, where we have a more assured result for each one of the affiliates to know how much tax you're going to pay and how much you have already paid. Now thinking about the effective tax rate of 2026, you can work with a range between 15% to 20%. But of course, as we gain visibility along the year, once we learn more about it during the year, it may range within this range, which is the expected one.

Our next question is from Gustavo Fratini from the Bank of America.

So we would like to understand a little bit more about expenses. So this is quite positive. It's about 5% controlled. But how can we think along these lines in 2026? So it's slightly better because the membership base is going to grow and it's the same, slightly bigger. What about the G&A? I think there's a little bit more pressure considering investments in TotalPass, but how should we think about it for 2026, total investments in TotalPass?

So first, the investments we made in 2025. And as you said, accurately said, they are focused especially on structuring new businesses and considering new businesses, the most representative, of course, the TotalPass, and there is an impact in the company's SG&A with the acquisition of Fitmaster in the second half of 2025. So TotalPass has been positively exceeding our expectations in terms of size and speed of growth and considering its rate of growth and everything, it's more intensive in SG&A than the club business. So first, we need to invest in SG&A to then bring the contracts with the companies and users that have the co-pay and also to gradually improve their profitability. And there are a few things going on in the market that have made us invest a little bit more than we initially planned and considering not just TotalPass results that have been positively surprising us. Now when we look at 2026, the company should still see an increase in SG&A in terms of face value, in terms of money being invested in SG&A, but it should grow below the growth of net revenue of the company in 2026. If you could or have the information separating SG&A between the businesses that we have an operational leverage of SG&A that is big for the clubs, but we cannot see that in the consolidated numbers of the company because of investment in TotalPass because TotalPass SG&A as a percentage of revenue is much above what we see on the average in the consolidated numbers of the company.

We now end the question-and-answer session. We thank you very much for your attendance. Our Investor Relations team is available to you. Have a good Thursday. Thank you.