Earnings Call: Q2 2026

Aug 14, 2026

Summary

Q2 gross income was BRL 82.3M, EBITDA BRL 48.7M and net income BRL 23.3M, while H1 EBITDA reached BRL 80M. Credit and Dotz Pay grew, with disciplined origination and near-term FIDC 3 provision pressure shaping the outlook.

Good morning, ladies and gentlemen. Welcome to Dotz earnings conference call for the second quarter of 2026. This video conference is being recorded and the replay can be accessed at the company's website at ri.dotz.com.br. The presentation will also be available for download. All participants will be in listen-only mode during the presentation, and following that, there will be a Q&A session when further instructions will be given. Before proceeding, I would like to stress that forward-looking statements are based on beliefs and assumptions of Dotz' management and on information currently available to the company. Such statements may involve risks and uncertainties since they refer to future events and therefore depend on circumstances that may or may not occur. It is necessary to take into account events related to the macroeconomic environment, industry, and other factors which may cause results to differ materially from those expressed in such forward-looking statements. Present at today's video conference are Mr. Otavio Araujo, CEO, and Mr. Gustavo Freitas, CFO and Investor Relations Officer. I would now like to turn the floor over to Mr. Otavio Araujo, who will start the presentation. Mr. Araujo, you may go on. Thank you, Samantha. Good morning, everyone. It's a great pleasure to be here once again to talk about the earnings of the second quarter of 2026 of Dotz. Once again, I have Gustavo with me. Good morning, Guga, and the RI team who worked so hard to cause this conversation to be really productive. Thank you all. We had a technical issue with the audio of the second video, but I would like to say that the videos are available on our social media channels, and next call, we'll play them again. Moving on to the next slide on the presentation, we remain focused on our three pillars to grow the Techfin business. It's not growing at any cost, rather growing with discipline in credit and without letting go of profitability. Origination grew more than 10% compared to the second quarter of last year with the net equity of FIDCs growing BRL 366.4 million in the second quarter. In the loyalty consolidation, we're focused on scaling the profitability of the business and consolidating our competitive differentiation points. Basically, the Dotz loyalty programs that's been on for more than 25 years. We've delivered important figures this quarter, reaching almost 30,000 transactions and involving 14,000 customers in the product. Finally, we remain focused on generating results, and Gustavo will give more details about that in the financial section of the call. We delivered almost BRL 50 million in EBITDA in this quarter, more than 80% compared to the first half of 2025, and BRL 23 million in net income. That certainly represents a change in the performance levels. Moving on to operational performance on slide five, I'll talk about the credit origination. As I said, we grew 10% compared to the first half of 2025, and we see a seasonal effect in the second quarter of 2026 that's similar to what we saw last year with a small drop compared to first quarter. Growth is important, but credit discipline and profitability are certainly more important than growth, especially now that we are participating in the full credit cycle with the change to FIDC 3, which we'll talk more about later. Considering the worsening of the delinquency rates of the market as a whole, which is not news to anyone that is keeping informed about the credit market. Here at Dotz, we have a full structure to deal with risks, and we are focused on delivering growth, but with profitability as we have been doing in recent years. On slide 6, we see the development of net equities of the FIDCs in a consolidated manner. We saw the transition to FIDC. In the beginning, it was a single quota that we want a rate. Now the share changed to the financial revenue of the subordinated one. That is important so that we can take a greater share of the credit market, as Gustavo will talk more about soon. Anyhow, we can see a certain stability in the net equity of FIDCs through the quarters, which is also reflected in the portfolio. This shows that we keep an eye on growth, but the other eye is focused on maintaining performance. Having said that, there are still several opportunities to improve origination and personal credit with increase in sales channels, acceleration of CRM campaigns, and I am very excited about the prospect looking forward. Still talking about opportunities on the next slide, now focused on our loyalty ecosystem. We continue to evolve our proposal for customers, increasing their purchasing power, as well as our proposal to our partners, which has been to increase their results. Now highly focused on bringing cross-selling to Techfin with the financial products that we call Buy Now, Pay Later. The value proposition involves mixing points, Dotz points from partner loyalty programs, as well as credit in the solution we call Dotz Pay. Based on this solution that is fully integrated into the purchase journey of retailers, customers can see many offerings, Pix, credit, consumer credit, and other products that we launch. As I said before, we have had some very interesting figures. The growth of TPV, which is the sum of points and credits used by customers, more than 53% compared to the first quarter of 2026, and almost double compared to the second quarter of 2025. Credit accounts for 56% of total TPV, which means that they are using almost 40% of points when making purchases. That is very interesting because this is the real benefits of what the loyalty programs can bring. Customers can pay 40% of their purchases for free. Even if they pay in installments and pay interest on those installments, they can use and see the effect of the points in those purchases. We had a very large growth, almost double, and the number when compared to last year, and the number of consumers using the product is also interesting, 14,000. As for future plans, there are two ways to grow the product. One is to grow the network itself. When we look at ABRAS Association data, their supermarkets account for more than BRL 400 million in GMV. Our focus now is to increase the penetration of the product in our current partners to show the relevance, scale, and profitability of it. Now I will turn the floor over to Gustavo, who will talk about the financial results. Very good to start talking about the results with the introduction of Otavio. As you see, on the left side, we see the second quarter and the first half of the year on the right. On the first quarter, we had BRL 82 million in gross income, SG&A of BRL 33 million, which led us to an EBITDA of BRL 48.7 million, almost BRL 33 million better than year-on-year. Net income of BRL 23.3 million, which is BRL 21 million higher year-on-year. When we look at the semester, the first half of the year, gross income of BRL 145 million, SG&A BRL 65 million, roundly. A bit higher than the first half of last year. But later I'll talk about the seasonality effect on SG&A, EBITDA of BRL 80 million, and a net income of BRL 30 million. It's very important to understand where these results come from, and that's what I'll do by showing the structure and growth of FIDCs. Here we see the development of FIDCs. On the left upper chart, we see origination. To the far left, on the first quarter of 2025, we only had FIDC one, then it keeps its origination. Origination was only between FIDC 2 and 3. That's an important change that happens gradually. In the second quarter, we had FIDC. In the fourth quarter, we created FIDC 3, and then we started to concentrate our originations on FIDC 3, attaining almost 95% in the second quarter of 2026 of originations in FIDC 3. This has important impacts in all the results, and it's important to understand them. I'll explain them on the next slide because I leave FIDC 3 in BRL 10 million of origination the fourth quarter to almost BRL 40 million in the second quarter of 2026. So what are the net equities of the FIDCs? Along the same lines, but at different speeds. Since the first quarter of 2025, I was concentrated on FIDC one. In the first quarter of 2026, FIDC has BRL 20 million in equity, and then the volume decreases. In FIDC, almost BRL 91 million in equity. There's one point that is detailed in our financial statements. In July, after the end of financial statements, after closing them on June 30, we acquired a portfolio of FIDC one and opened the FIDC four because we'll leave the FIDC portfolio there with no further originations. We'll leave it to maturity, and if we have a chance to sell the portfolio, we can do that. So this way, in June, there is no more equity from FIDC one. So how do we see the impact of this growth in origination that I mentioned here on the results of Dotz? It's clear on the next slide. Here, we have broken down by FIDC one and 3. As we saw on the previous slide, these two are the most important ones. On the left, we have origination by FIDC one and 3, then on the right, PDD by FIDC reflected on their corresponding books. You can see clearly the growing volume in FIDC one and FIDC 3 starting to show some figures in the first quarter of 2026 and then second quarter of 2026. When we look at the bottom at the portfolio by FIDC, we see that it is growing in origination. On the right, we see the percentage of PDD by portfolio and its development. FIDC had a percentage of PDD by portfolio around 23%-26% from 2024 until beginning of 2025. When we stopped the origination in that FIDCs, there is only the portfolio that would almost reach 100% because results have been paid to investors. The only result that remains there is of the portfolio. On the opposite, we had the gradual growth in percentage PDD of FIDC 3. In the fourth quarter, it was almost zero because it was at its very beginning. First quarter, 1%, second quarter, 12%, and it will attain a stability level in the next quarters given the natural development of the portfolio. In this chart, we can see this movement and the transition between FIDC one and 3. Consequently, that's reflected in our figures. On the next slide, we see gross income. If we look from the beginning of 2023, BRL 25.7 million in the quarter, and today, we've reached BRL 82.3 million and BRL 62.8 million in the first quarter of 2026 and BRL 82.3 million in the second quarter of 2026. We see a growth, but it's important to understand that the first quarter of 2026, there was a mismatch because we left the FIDC one and started creating FIDC 3. This impact will be offset naturally in following periods. When we look at the next slide in the growth of SG&A, if we look on the right by semester, you can see that we brought it to a next level. BRL 80 million, BRL 54 million, BRL 53 million, and BRL 64 million. There were some one-off events last year and some extra investments in technology, but we are controlling expenses on a continuous manner. We are reducing expenses to improve gains, and that is reflected in our EBITDA. We can see the EBITDA growth. What's important is to analyze its development since 2023, 2024, 2025, reaching 2026. Even despite the revenue and then expenses reflected in the fund, we can see a natural development of this fund. It is very clear that it's at a different level, leading to a healthy growth in EBITDA. Consequently, on the next slide, we see the growth in net income. For example, we had a negative result on 2023, then first half of 2024 we zeroed, and then we reached BRL 1 million in the first quarter 2025, and reaching BRL 23 million now in the second quarter of 2026. It's a continuous growth in net income. It's very easy to see that our financial statements detail these points. On the note number 11, we detail as clearly as possible the effects of FIDCs in our financial statements. They have become much more significant in our results. Now I turn the floor to Otávio again, and I thank you all for your presence, and we're available for questions. Thank you, Gustavo. Just to wrap up, just to say that we continue focused on these three pillars as we've been doing in the last two to three years, focusing on the growing of credit in the Techfin pillar and then focusing on growth and also on performance of earnings. We have opportunity for growth, but always keeping the discipline and analyzing the environment which we're a part of. In terms of consolidation of loyalty, we want to escalate the business of Dotz Pay in a profitable way and having significant production and origination to create a more objective impact on our figures. All of that always aiming results, controlling expenses, and making investments so we can continue to deliver the results we've been delivering in recent quarters. Now let's go on to the Q&A session. We'll now start the Q&A session for investors and analysts. If you want to ask a question, please press raise hand. If your question has been answered, you may leave the queue by clicking on lower hand. You can also ask questions using the chat channel. We have a question related to what I mentioned about Dotz Pay. You mentioned about the focus on Dotz Pay to increase penetration right now and then increasing the network. What's the expected penetration and when should the focus go back again to increasing the network? I cannot give guidance about figures and penetration here, but the concept, so that everyone is on the same page, is the following. Dotz Pay is a mix of credits with Dotz points and points from partners' companies. We call the payment that customers make at the point of sale using these three resources as TPV. We are looking at the percentage of the TPV of Dotz Pay within the GMV, which is the general sales volume of the partner company, so that we can be relevant either for customers and for partners. For that, we use benchmarks of how much their corporate cards as well as other cards are impacted. This way, we can impact both consumers and the retailer partners. We already have a very interesting number of network, many billions of GMV in that product, 14,000 customers. As soon as we are more confident that our product is prepared to have that penetration, we'll go back to growing the network. The way of growing the network has to be well-prepared because we have integration with the checkout points that are very significant and important. The next question comes from Antonio Clapca from Metrica. "Good morning. My name is Antonio Paulo Clapca. I'm a shareholder. You mentioned this gap or mismatch between the recognition of revenues from FIDC 3 and the process of recognition of provision for doubtful debts. Should I come to the conclusion that maybe in coming quarters, due to the accelerated recognition in PDD, the quarterly results could be a bit weaker than this quarter, or am I wrong?" Thank you, Antonio, for your question, and thank you for your support as a shareholder of Dotz. I'll let Gustavo answer that question. Well, a perfect question. Yes, that's exactly right because since we have the recognition of a provision for the future losses of the fund and it is shown that these losses are happening, it is expected that the results will be affected by provisions in the fund in coming quarters. But that's a temporary thing. When you look at that on a one-point moment, once the volume is stabilized, the impact will not vary so much quarter on quarter. We show the slide that compares FIDC one and 3 and looking at the percentages. So your conclusion is right, and the figures show that. Thank you. Thank you for your question. The Q&A session has now ended. I would like to turn the floor over to Otávio Araujo for his final remarks. I would like to thank all those present in the conference call too, and thank you for your time as well. We're very proud of the results we're delivering. I would also like to thank the board of directors, shareholders, and especially Dotz team, because without our team, none of this would have been possible. And once again, we are very excited about the future, and we hope to see you all back in the next earnings conference call. Thank you very much. Have a good day. The earnings conference call of Dotz has now ended. We thank you all for attending, and have a good day.