Earnings Call: Q3 2025

Nov 14, 2025

Summary

Techfin origination and billings grew strongly, while Q3 gross margin reached 67% and EBITDA increased 136% YoY. Nine-month EBITDA rose to nearly BRL 41 million as the net loss narrowed to BRL 2.3 million.

Good morning, ladies and gentlemen. Welcome to Dotz video conference call. We will discuss the results for the third quarter 2025. This video conference call is being recorded, and the replay will be available on the company's website, ri.dotz.com.br. The presentation is also available for download there. All participants will be in attendee mode during the company's presentation. After that, we will open the Q&A session when further instructions will be provided. Before we proceed, we would like to remind you that any forward-looking statements made during this conference are based on the beliefs and assumptions of Dotz management and on information currently available to the company. Such statements involve risks and uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur. It is important to note that macroeconomic conditions, industry factors, and other factors may cause actual results to differ materially from those expressed in such forward-looking statements. Joining us today are Mr. Otavio Araujo, CEO, and Mr. Gustavo Freitas, CFO and IRO. Now I would like to turn it over to Mr. Otavio Araujo, who will begin the presentation. Please, Mr. Araujo. You may proceed. Good morning, everyone. I would like to start by thanking you all who have set aside part of your busy schedule to join us for this Q3 2025 earnings release call. We are very happy with the results we are going to share with you this morning. Gustavo and I will show you that we are on the track we have planned regarding results. We will also share some news that took place over the last quarter. Once again, thank you for joining us. Slide number 3. This is a summary of what happened in Q3 2025. Our growth has been constant and predictable in Techfin. We see an increased growth of credit origination from 36% in the 33%, actually, in 2024. You see this increase today origination of nearly 50% over the same period. That led us to billings increasing by 33% comparing this quarter against Q3 2024. That led to increased profitability or returns of our clients, more than 165 of CDI. As for our loyalty consolidation, we launched a program together with Americanas, which is called the Cliente A, covering more than 1,500 stores nationwide. As for our results, we increased and expanded our gross margin 67%, a consequence also of Techfin share within our business. Gustavo will share more about that. EBITDA over the last 12 months, BRL 51.8 million. You can see great improvement because in the first nine months of 2023, we had -32 of EBITDA and now BRL 49 million EBITDA. We are very happy with the progress we have achieved. Gustavo will provide us further details about this. Now let me talk to you about our operational performance on slide number 5. As I mentioned, we see we kept increasing our credit origination. If we go over the quarters from 2024 to 2025, nearly 50%, and also nearly 50% when we go over the first nine months of 2025, year-over-year. Certainly, that reflects FIDC's equity. Next slide. As for Techfin billings, we also see a strong growth predictably and constantly. You can see our growth of 33% year-over-year, and that also proves the relevance of Techfin in our business. In the quarter, 43%, but the first 9 months, approximately 46% from 36% we saw in the first 9 months of 2024, a strong growth in Techfin, particularly the most mature product, IP. As for cross-selling, we also see growth in cross-selling. In the beginning of this year, we launched a partnership with Zurich, with a product with a great value to our customers as well as to our partner. It is a protection against potential losses and for Dotz, it is an excellent monetization tool, and also to keep the strong performance of our portfolio. We have sold more than 50,000 insurance policies, 68% cross-selling in personal loans. That is related to total contracts in September 2025. As for our roadmap, we also wanted to take this product to some other segments such as Pix, for example. Slide number 8, loyalty performance. As for Dotz Pay, we see an increase by 15% compared to the second quarter of 2025. We saw an increase in average ticket and also the launch of new stores with a new partner. Over the year, we saw an increase by 50% of the ticket, and we doubled the number of contracts vis-à-vis last year. Most importantly, we saw an increase in our customers' frequency usage, which means that 63% of our customers reused that in the next months, proving the greater value added to our customers. As for loyalty, we are also improving. We rolled it out to another partner, and we also have this 30-day interest rate free in Dotz Pay. Now we are also introducing Dotz Pay at some other partners. We also want to increase our customers' purchasing power. You will see that in the next quarters, we will also connect some other loyalty programs to Dotz Pay, some novelties, and also expand our credit offer to retail customers. As for bank loyalty, we launched the Ourocard Universe at the beginning of this quarter, and there was an approval of an additional 18.6 million. We have more than 10 million Banco do Brasil customers every month, with campaigns that promote the benefits to customers and to our partner. Next slide. Let us talk about the B2C strategy and how we can accelerating improving our customers' purchasing power. We are also adding new features to support our customers. We have just launched Pix installments. Besides buy now, pay later, we are also adding this feature, which will support our customer, giving them credit for any type of payment using Pix, using our digital account. We have just launched this product, and for the next quarters, we will also provide you with updates regarding the performance of this product. Most importantly is to show you that we have advanced with Dotz Pay in retail, but we are also adding other features supporting our customers on their day-to-day lives. Finally, for operational performance, we are very proud to share that we have launched a strategic partnership with Americanas, with their new loyalty program called Cliente A. This is a nationwide partnership, offline and online. It is available to more than 40 million customers from our partner and over 1,500 stores. We have smart missions, promotion and seasonal campaigns, payment with points and buy now, pay later credit, and also with the solution that we are offering. Dotz Pay at our partner, Americanas. We will also add more color in the future. Now let me turn it over to Gustavo. He will talk to us about our financial results. Thank you very much, Otavio. You provided us with a great summary of our financial performance. On the first page, we have a summary of this quarter. We saw an increase in our Techfin operation and also expansion in number of stores. On the left side, we can see credit origination, almost 440 million, with a 48% growth in the first 9 months. We also achieved, you can see almost 83 million and a great growth. As for this quarter, we have also issued debentures raising a total of BRL 75.7 million, of which BRL 15.5 million issued in this quarter. And part of this amount was used to strengthen our funding for Techfin origination. Dotz contributed BRL 12.5 million to Techfin. This quarter, we also issued BRL 30 million in commercial notes and that took place in August. On the right side of the slide, you can see the gross profit of BRL 122.7 million for the first 9 months, a 32% increase for the same period last year. SG&A, you can see almost BRL 82 million. Very stable compared to the first 9 months of 2024. This means that we are very disciplined. When we go over the expenses in the first 9 months, we still saw an increase of our EBITDA by 254%. Almost BRL 41 million of EBITDA. And as for our net profit, it was a negative of BRL 2.3 million. But when we compare to the first 9 months of 2024, we saw an increase of nearly 14%. Very sound numbers proving our growth. On page 13, we can see a chart. Quarter over quarter, you can see the net revenue before redemption costs, and you can see it is very stable compared to the second quarter of 2025 and year-over-year, an increase by 25%. Gross profit also very stable compared to the previous quarter, and 33% increase year-over-year. And you can see here the numbers, how we are keeping the numbers stable. SG&A, I have already mentioned that. Compared to the previous quarter, we are stable above 1%, and compared to the third quarter of 2024, you can see that we have improved that. And as for our EBITDA, a relevant growth compared to Q3 2024, 136% up, and a drop by 9% compared to the second quarter of 2025. Next slide. Slide 14. We can see the same information, but for the first 9 months. You can see what happened with our SG&A, 1% for the first 9 months of 2025 compared to 2024, which supports our EBITDA growth of BRL 29 million for the first months of 2025 compared to the same period last year. On page 15, we see also the gross profit evolution quarter per quarter, both margin as well as gross profit. We moved from 43% of margin, BRL 27 million of gross profit. If we go over this quarter, 2025, that is a number 67% of gross margin and a gross profit of BRL 33.4 million. You can see consistently growing quarter after quarter. That is the result of our continuous hard work and different segments that are providing this result. Next slide. You can see SG&A. We can clearly see our focus on managing expenses. When we compare the first nine months of this year against last year, it is virtually the same, but the difference is by 1%. If we check what happened in 2023, the chart clearly shows us how that has been changing, and we are diligently managing our expenses. Page 17. EBITDA evolution. First quarter of 2023, 15.9, and then you can see 9.8 later on. Till last quarter, 14.4. As I mentioned, 9% below the previous quarter, but that still does not have any impact on our growth. When we compare to the third quarter of 2024, we see a major change, 136% up. As for net profit, we do not see that sharp increase, but you can see what we had in 2023, 2024, and for the first nine months of 2025 against the first nine months of 2024. We had the BRL -16 million last year to BRL -2.3 million, so almost 14% up. Once again, a consistent result, and this is what we have been showing quarter after quarter. Now I would like to turn it over to Otavio for his closing remarks and to give us a summary once again of this quarter. Thank you, Gustavo. Thank you for the presentation and for being a partner in delivering these results together with our team. I am very happy to say that our priorities remain the same. Our focus, our goal are on the three pillars we have been mentioning since the end of last year to keep growing strongly, constantly, predictably, and with profitability. In our Techfin, our loyalty segment is also very important to us to grow the partner network with Dotz Pay, customer engagement on digital, and also to promote cross-selling with other products. Pix installments, as I mentioned, and also insurance. As for our results, to keep on promoting the growth of our business with profitability, rationalizing expenses, and also on investment so that we can keep seeing the same results regarding EBITDA and also on our bottom line. I would like to thank you all for having joined us, and now we are available to answer any questions you may have. We will now open for the Q&A session for investors and analysts. If you want to ask a question, please press Raise Hand at the bottom of the Zoom bar. If your question has been answered, just lower your hand. Please wait while we poll for your questions. We received a question from an investor. "Can you please add more color about the partnership with Americanas? What are your expectations regarding this partnership?" Of course, we are not going to give you a guidance about results. As I mentioned, we established a strategic partnership with Americanas, and we are very proud of this achievement. Over the last months and years, we have been preparing ourselves in order to provide a comprehensive product to partners such as Americanas. So we are providing an app, also payment at point of sales, cross-selling of products, missions and campaigns, everything in order to add value to our customers. We are very confident we can provide them with that. It is a nationwide partnership covering more than 1,500 on-site and offline businesses, and also thousands of customers benefiting from that. We see great potential in this partnership, and over the next quarters, we will provide you with more information about the performance of this partnership. Once again, if you have a question, please press Raise Hand. Please wait while we poll for your questions. We have a question from Cristiano. "Good morning. Congratulations for the results. When will we start to see results regarding FIDC investment? And what about the amount invested? Will it be BRL 9 million?" I will turn it over to Gustavo. Thank you, Cristiano. Without giving a guidance, results already have impact on our numbers. What we see today is an increased volume and the possibility of expanding our volume in Techfin. You mentioned BRL 9 million. We already have invested BRL 12.5 million, and that can increase depending on what we will see in the future. That has already been included in our financial statements. And of course, we are always looking for optimization, but you can see the numbers already in our financial statement. Great. Just to add, the strategy of having a new FIDC is to allow us to improve our performance regarding our credit portfolio, considering that with the other model, we keep 100% of results after paying the expenses of the funds and also capital costs. We have another question regarding Techfin and also the insurance. How does that add this vertical? Are you already benefiting from that? A great question. The concept of Techfin was always based on cross-selling and adding other products so that we can increase our monetization considering this vertical. This credit life insurance already present substantial results. We have sold more than 50,000 policies, and as we stack these customers, we believe that we will see substantial results. As important as that is the percentage of cross-selling we are being able to achieve. Just as I showed you, almost 70% of a reach regarding origination, also considering this credit life insurance, and that is thanks to our value proposition. Our customers are protected if any misfortune happens or if there is an income loss. For us, monetization is important just as the performance of our portfolio. Besides this insurance, we are also adding some other products for cross-selling. The customer that has a buy now, pay later, just as I showed you, I talked about Pix payment installments and also increase this offer outside point of sales using Pix, and also to provide them with the ability of benefiting from credit. As for Techfin strategy, the idea is really to add products, promote cross-selling, and improve the value to our customers. Once again, if you want to ask a question, please click on Raise Hand, and please wait while we poll for your questions. Once again, if you have a question, please Raise Hand. The question and answer session is now closed. We would like to turn the call back over to Mr. Otavio Araujo for his closing remarks. I would like to thank you all who have joined us. Once again, we are very proud of the results we have achieved this quarter. We are very confident that we will keep on presenting positive results, and I would like to also express my gratitude to Dotz team. It is a passionate team. The team believes in the purpose of our company. They believe in our future. Without the team, nothing that Gustavo and I mentioned would be doable. Once again, thank you very much. Have a great day and see you next quarter. Thank you. With that, we close Dotz video conference. Thank you all for your participation, and we wish you a very good day.