Earnings Call: Q1 2026

May 13, 2026

Summary

Enjoei grew GMV 12% and revenue 18.8% YoY, while Elo7’s contraction weighed on consolidated gross profit and adjusted EBITDA. Management is discontinuing Elo7 and focusing investment on Enjoei growth, Free Mode and AI-enabled inventory expansion.

Good morning, ladies and gentlemen. Welcome to the Enjoei earnings conference call to discuss the results for the first quarter 2026. This conference is being recorded, and the replay can be accessed on the IR site of the company. The presentation is also available for download. Please be advised that all participants will be in listen-only mode during the presentation. Ensuing this, we will go on to a Q&A session when further instructions will be provided. Before proceeding, please bear in mind that the forward-looking statements made herein are based on beliefs and assumptions of the company management and on information currently available to the company. Such statements involve risks and uncertainties as they refer to future events and therefore depend on circumstances that may or may not occur. At this conference today, we have Ana Luiza McLaren, the Chairman of the Board, Tiê Lima, CEO, and Leandro Marchesi, CFO and IRO. I would now like to turn the floor over to Tiê Lima, who will begin the presentation. You have the floor, Tiê. You may proceed. Good morning, everyone, and thank you for joining our first quarter 2026 earnings conference call. We started the year on a very positive note in our core business, delivering another quarter of strong growth for the Enjoei platform while maintaining a consistent track record of operational strength. We executed very solidly, reinforcing our conviction in the strength of the company's core investment thesis. It is precisely the success of this core operation that allows us to maintain rigorous capital allocation discipline. Our vision remains very clear to focus our energy, talent, and investment on initiatives that maximize value efficiently and sustainably. Now reflecting the combination of growth and management discipline, slide 2 presents the consolidated results for the first quarter 2026, still impacted by Elo7's performance. We achieved consolidated GMV of BRL 417.3 million, representing 4.6% growth compared to the first quarter 2025. Net revenue had an increase of 3.1% on year-on-year basis. Consolidated gross profit totaled BRL 33.6 million, a slight reduction of 2.9% in this first quarter due to the impact of Elo7. It is worthwhile highlighting the consolidated net financial income that increased 4.4 million reais, a growth of 274% year-on-year, showing the growing maturity of our platform. Additionally, we had significant gains in our economics. With every item transacted, we had an increase of 7.4% in revenue vis-à-vis the same period last year. Consolidated take rate stood at 24.5%, an increase of 0.3 percentage points. We ended the quarter with a robust cash position of 190 million reais. On slide 3, it becomes quite clear that the consolidated result reflects different trajectories on our platforms. On the Enjoei side, we got to a GMV of BRL 350 million, a result that reinforces the success of our strategy focused on recurrence. Net revenue reached BRL 48.7 million, representing 18.8% growth vis-à-vis the first quarter 2025. Gross profit also continued to improve consistently, reaching BRL 25.3 million in the quarter, up 17.8%, with a 52% gross margin. At Elo7, however, we continued to see a loss of scale year-on-year. GMV declined 23.6% to BRL 66.8 million. Net revenue fell 33.5%, and gross profit decreased 36.5%, ending the quarter at BRL 8.3 million. This performance gap between the platforms brings us to slide 4. Based on a strategic decision aimed at reinforcing our capital allocation discipline, we chose to redirect even greater focus towards our core business. The competitive landscape has undergone a significant transformation with growing demand concentration on large-scale platforms. While Enjoei experienced less pressure, Elo7 has faced meaningful operational challenges, limiting fixed cost absorption and making further investment in the platform unfeasible. Since the acquisition, Elo7 net revenue declined BRL 27.3 million in the fourth quarter 2023 to BRL 13 million in the first quarter 2026, a 52.4% reduction. When we compare the two platforms, this divergence becomes ever more clear. While Enjoei grew BRL 17.7 million to BRL 25.3 million in this quarter, an increase of 41.3%, Elo7's gross profit declined BRL 15.15 million to BRL 8.3 million over the same period, a 46.5% decrease. This dynamic reinforces that our core business delivers superior returns with lower capital and technology requirements. Therefore, to maximize value, the discontinuation of Elo7 will help to reduce operational complexity and preserve path, strengthening a more efficient and sustainable business model over the medium and long term. We remain committed to all of our stakeholders. We have structured a transition fully focused on ensuring user support. I would also like to express our institutional recognition and gratitude to all employees, sellers, and customers that were part of the Elo7 journey. On slide number five, we have launched a new Free Mode listing mode. This new model offers sellers full exemption for commissions and fees. The objective is to attract higher ticket items, accelerating conversion within the platform. We designed a monetized conversion cycle. Listings have a limited duration, and after that, migrate to the Classic or Boosted modes. We continue to preserve the balance of the ecosystem through the service fee charged to buyers and the option of protected shipping offering for sellers. We have made progress in margin control, restricting the use of Megafone coupons and cash back for these items. Now, as the solution matures, we expect to reduce meaningful friction in the seller journey, increasing profitability and improving control over the company's financial cycle. The new approach, AI-powered upload feature, launched in March, also works on reducing friction. All of this generates a direct commercial impact, increasing inventory density, enhancing the efficiency of our marketing campaigns, and expanding our operational gains. I will now hand things over to Leandro, who will provide a deeper look in our operational and financial performance. Thank you. Good morning. As highlighted, innovations such as Free Mode and AI-powered upload demonstrate how we are structuring the company to accelerate inventory expansion. On slide six, we can see how the commercial initiatives already underway in the first quarter strongly boosted our results. These initiatives focused on loyalty and recurrence, combined with the agility of AI and upload, proved highly successful. On the Enjoei platform, we reached a record GMV of BRL 350.5 million in the quarter, a 12% growth compared to the first quarter of 2025. As a result, we're extracting greater value from our qualified user base. This is reflected in net revenue per user, which increased 28.1% vis-à-vis the first quarter 2025, driving net revenue up 18.8% to BRL 48.7 million. Gross profit also improved during the period, reaching BRL 25.3 million, an increase of 17.8% in the same comparison. On slide seven, we see the performance of the Elo7 platform, whose indicators once again reinforce the decision to discontinue the business. In the quarter, the operation's GMV declined 23.6% to BRL 66.8 million. Operating at this lower volume with a net take rate of 21.8%, the direct consequence was a 33.5% decline in net revenue that ended at BRL 13 million. Gross profit, in turn, decreased 36.5%, reaching BRL 8.3 million, making it ever more difficult to absorb operating costs as a result of the loss of scale. Moving on to slide eight, we begin our analysis of the consolidated results. Net revenue totaled BRL 62.6 million in the quarter, representing 3.1% growth vis-à-vis the first quarter of last year. It is worth highlighting Enjoei's ability to drive consolidated growth with more than 30% contraction in the other platform. This again supports improved user recurrence. In the line of cost of services rendered and product sort, we observed an increase in the share of net revenue rising from 43.5% in the first quarter 2025 to 46.4% in this quarter. The main driver beside this movement was Elo7's revenue decline. We did observe some operational charges, such as higher freight costs and the opening of physical stores. On slide nine, you see the evolution of gross profit and G&A expenses, excluding the stock option compensation plan. Consolidated gross profit totaled BRL 33.6 million, representing a slight decline of 2.9% compared to the first quarter of 2025 and 5.8% versus the previous quarter, both impacted by Elo7's loss of scale. On the other hand, we maintain strict discipline in managing G&A expenses. Excluding stock option plan expenses, the dilution was 0.8 percentage points, even with higher data consumption and new software licenses during the quarter compared to the previous quarter. In addition to the Elo7 impact, the seasonal effect of year-end collective vacations in the fourth quarter 2025 explains the 2.4 percentage point increase in this ratio as a percentage of net revenue. Consolidated advertising and marketing expenses represented 19.7% of net revenue, a slight increase of 0.6 percentage points compared with the previous quarter and the same period last year. For the Enjoei platform, the metric remained stable, reaching 14.5% in the quarter. The impact on the consolidated figure came from Elo7's revenue decline in gross billings. The quarter showed a 0.9 percentage point reduction versus the previous quarter, driven by reduced investment in Elo7 compared to the first quarter 2025. The 1.6 percentage point increase reflects a gradual acceleration of investments in the Enjoei platform with a favorable return indicator for a more qualified user base. On slide 11, we present the evolution of EBITDA and our cash position. Consolidated adjusted EBITDA ended the quarter at negative BRL 3.7 million, primarily impacted by Elo7 operation. The result also reflected the absence of positive equity income contribution generated in the first quarter 2025. On the right hand, we present the evolution of cash flow during the quarter. Our liquidity remains very strong, with a period-ending cash position at BRL 190 million. Operating activity showed a net cash outflow of BRL 15 million, resulting from BRL 29.2 million in cash consumption by Enjoei's platform proprietary sub-acquiring operation, partially offset by BRL 14.1 million generated by remaining operating activities. While the structure of payment solution provides greater autonomy in receivables management, it does require working capital investment, especially at the stage of maturity the operation was in during the quarter. Cash flow from investing activities primarily reflected spending on technology teams for the platform development, totaling a net cash outflow of BRL 4.4 million in the quarter. Financing cash flow was impacted by the payment of BRL 0.9 million related to lease obligations. Finally, this quarter marks a decisive cycle of structural rationalization driven by the decision to discontinue the Elo7 platform to fully focus our resources on the Enjoei platform to drive the next phase innovations such as Free Mode and AI-powered upload will guarantee the expansion and continuous diversification of inventory. With these levers already in motion, our strategy for 2026 is focused on accelerating the growth of the Enjoei platform while maintaining discipline in capital allocation, consolidating a more resilient, scalable ecosystem committed to generating shareholder value. Thank you all very much for the attention. We will now open the floor for questions and answers. We will now begin the Q&A session for investors and analysts. Should you wish to pose a question live, please click on the raise hand icon. Once your question has been answered, you can withdraw by lowering your hand. Our first question comes from Mr. Pedro Caravina from XP. You may proceed, sir. Good morning, Tiê and Leandro. Thank you for taking my question. We have two questions here. First, if you could once again speak about the Free Mode and the perspective of monetization of this innovation. This will pressure your take rate in the short term, but there is a trade-off, as you mentioned, an expansion of inventory going forward. If you could give us clear outlooks of when you will monetize this new base of clients coming in and speak a bit more about this innovation. A second question, I think it relates to the first question. Which are the main levers that you foresee in greater detail, perhaps, to revert that scenario of a more pressured EBITDA? Of course, thinking about your core business without the participation of Elo7. I think it would be interesting to explore that. Well, thank you. Thank you very much. Thank you for the question. This is Leandro. I'll begin with the Free Mode innovation. First of all, how do we bring about return on revenues for this announcement? The buyer pays for a service fee. This is a model that has existed for some time already, and this type of announcement has certain limitations. There's less incentive in the transaction. Incentives for freight, for example. Less incentives that lead to lower profitability, and we have limited the number of announcements per customer vis-a-vis the previous model. And there's a migration of these announcements or ads. Most of these will be temporary. Which is the rationale underlying this? It was an initial barrier in the entry into the system. Well, the person's reference is not to pay anything. It's a mental incentive when it comes to the CAC. Through time, this, of course, will increase. Our idea is to bring in more sellers and offset the cost allocated to the beginning. That base of clients is the client base of the Enjoei platform, and it will allow us to increase the inventory. First of all, it will have zero cost and will also be managed by AI. This is our thesis. This is where growth should come from. We are, of course, focusing on growth and the cost. We want to eliminate that important barrier in the contracting of new clients. I think that answers the first question regarding the Free Mode. When you speak about the levers, we want to unhamper the growth of base clients. If we grow the LTV, if it is supported by our current base that is based on our work for the previous years, we will have the opportunity for growth, an interesting opportunity for growth for Enjoei. We have efficiency that will allow us to increase the pace. We have a well-established base of our more profitable users, and besides investment, by increasing the pace here, we can have a faster payback on that card. This is an important lever. Other levers, we have operational levers by simplifying the strategic part with a focus on the Enjoei platform. We have a CapEx with growing revenues, and we will have a greater capacity to generate more movement for all of our initiatives. These are the two initiatives that we mentioned where we have placed 50% of our CapEx for a growth that will be two-fold faster. We are going to bring in new users as our main metric and, of course, focus on inventory. This is a positive outlook for Enjoei. Thank you for the question. Thank you. Our next question comes from Mr. Leonardo Otero from Arbor Capital. Good morning and congratulations for the results of the Enjoei platform. In 2024, you announced a plan of opening 300 franchises until 2027. Could we hear an update on that initiative? Any information would be important, payback, GMV versus the payback period projected with the discontinuation of Elo7. Is that goal of 300 units unaltered, or is it presently being reviewed? Thank you again for the question. I am going to begin with the goal of 300 stores as a whole. What I can say is that we have a more realistic vision of the term, and we have a certain optimism for the long run. I do not know if it will be 300 stores. This has already been reviewed. The second question regarding the operational units, we have had a great deal of evolution in our own stores. We are focusing on the main indicators that we have in our store floor for products to come in and to sell those products rapidly, and that metric is improving constantly. This quarter was a positive quarter in GMV, as we shared with you. It was a month of growth, and we want all of our franchise stores to follow the same operational model that we are using in our own stores instead of working with their own system. When we look at our capital discipline, which is the core of the company, the short-term review of franchises in the short term will ensure that the stores have the best economics so that they can have proper expansion. What we are doing as a background is creating value for the store owner going forward. Our next question comes from Mr. Jonatas Fuentes from Folha de S.Paulo. The sellers were surprised with the news of discontinuation of Elo7, announced as a material fact. They had no alternative for their business. Which is the support, and what are you doing concretely to ensure the integral transaction, both on the part of the client as well as the seller? Thank you. A very good question. This decision that we took regarding Elo7, and I beg your license to answer the question as the creator of the system, founder. It was an enormous pleasure to have Enjoei under our management. We serviced hundreds, thousands of clients, and it was effective in several of the events that it participated in, marriages and others. I believe that we can transform those artisans into something that is very good. I took on Elo7 with a great deal of pleasure, believing that we could offer our best knowledge from Enjoei, and to grow in terms of what we deliver as a brand, as recurrent purchases. A growing business, regardless of the adverse events. Elo7 proved to be more prone and more complex from the viewpoint of sustaining all of this throughout the entire year. The GMV of Elo7 was not doing well, and with every cycle, Elo7 would lose more of its sustainability. For example, in vacation period and holiday period. It became unfeasible when we look at our CapEx versus revenues and others applied to Elo7. When we saw they were being deteriorated in the other business, we were left with no other alternative of what to do with that unit. Of course, from the viewpoint of outsiders, it could seem something that was unthinkable, but we did think about all the alternatives. We thought about the best way to do this, about different paths. At the end of the day, the decision had to be made very quickly because the deterioration cycle was offsetting the growth. We made the decision, we enforced it, and we are offering support to all of the buyers and sellers. The support, of course, was part of the decision. There's a specific date up to which this will extend if you have to carry out a more complex transaction. We are going to honor everything that we had included in the management of that company. Thank you very much. Our next question comes from Alexandre from A40 Investments. "Good morning. As an investor, I think that disinvestment in Cresci e Perdi were correct. Elo7 perhaps is below the potential that the market offers. What will happen there?" Thank you for the question. What we observed is that Enjoei is a platform that is growing. We see this not only in the first quarter, but we're also gaining traction that you will perceive in the coming quarters. Enjoei has the best unit indicators of performance to foster its growth. I think this is very clear for us. Regarding the other demands of Elo7 and Cresci e Perdi. Well, they didn't happen as we had anticipated, but our exit does not cause losses, because we had spoken about leaving when we worked with these groups. I think this is part of these initiatives, and nowadays we are thinking of aiding and abetting them, and we are going to make the most of Enjoei and continue forward based on our original strategy. Our next question comes from Mr. Matheus Soares from Market Makers. "Good morning. To take advantage of the announcement of CapEx reduction, how much money do you need to have in the cash to sustain the operation?" Hello, Matheus. Good morning. This is Leandro. Thank you for the question, Matheus. We are returning capital of BRL 41 million, and this represents what the company understood as being excessive capital in our capital structure. Now, the rest in our cash position is important at present so that we can make the most of this new phase of growth and expansion, and this will give us space to mature our payment solution, making the most of that important return we have on the cash that is invested or applied. Now, according to the company understanding, we are in a very adequate cash position to be able to face and foster the future growth that we want. We think we have a great potential, as we saw in this first quarter. The question and answer session ends here. We would like to return the floor to Tiê Lima for the company's closing remarks. A difficult but necessary chapter in the trajectory of Enjoei. It was a very difficult decision to make, but it has been made, and we have a new chapter to continue forward at Enjoei on our growth trajectory. Thank you very much. The Enjoei conference call ends here. We would like to thank all of you for your attendance, and we wish you an excellent day.