Earnings Call: Q4 2025

Mar 25, 2026

Summary

Q4 returned to a positive net result as efficiency gains lifted adjusted EBITDA, while consolidated GMV and revenue declined YoY. 2026 priorities center on sustainable growth, inventory expansion, and cash generation.

Good morning, ladies and gentlemen. Welcome to the Enjoei earnings conference call to discuss the results of the fourth quarter 2025. This conference is being recorded, and the replay can be accessed on the IR site for 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 the 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. Present at this conference, we have Ana Luiza McLaren, the Chairman of the Board, Tiê Lima, CEO, and Leandro Mota Marchesi, CFO and IRO. I would now like to turn over the floor to Tiê Lima, who will begin the presentation. You may proceed, Mr. Lima. Good morning, everybody, and thank you for your attendance. We ended 2025 with strides in the profitability of our operation, the main strategic goal for the year. It was a period marked with disciplinary decisions, rigorous choices. We decided to focus on operational efficiency and results. Although this meant leaving aside growth for the short term, this discipline begins to appear in our results, especially in the fourth quarter, when we reinforced that trajectory of efficiency and focus on profitability. We reached a balance with positive results of half a million compared to losses of 3.2 million in the fourth quarter 2024. Although it is still premature to deal with this as a recurrent trajectory for net revenue, it is an important framework in our cost structure and capital allocation. Other indicators also point to this trajectory of efficiency. Net revenues for the quarter grew 8.5%, while gross profit per item advanced 7%. We expanded our net take rate by 0.5 percentage points, reaching 18.3%, and one more semester of reduction of expenses with advertising. Because of this selective approach where we prioritize profitability, we had a consolidated GMV of 394.1 million, a reduction of 7.9% vis-à-vis the fourth quarter 2024, and a net revenue of BRL 64.6 million, a drop of 5.3% for the same period. Adjusted EBITDA was a record BRL 15.4 million, with cash generation of BRL 11.6 million, and we ended with BRL 210.4 million. When we look at our business units, the Enjoei platform continues to be the main driver of growth and profitability expansion. We had a growth of 2.5 percentage point growth in net take rate and an increase of 12.2% in net revenue, reaching BRL 48.3 million. Gross profit was BRL 26.5 million, an increase of 17.4%, with a margin expansion of 2.4 percentage points. These results were driven by logistic optimization and a better monetization of our active base. That is to say that the company is at the right time to begin to expand, selecting its inventory. 2025 was a year of repositioning in our business model to converge to the same structural pillars of Enjoei: scale, recurrence, and sustainability. We created a new visual identity to work with the creative community, and we have assessed the elasticity of the business in a very competitive business. The conclusion was clear. The growth model of Elo7 is more open to the outside conditions vis-à-vis the past, and we are now working with a single inventory. That is why in 2026, our guideline will be operational sustainability, recurring traffic, reduction of incentives, and cash generation, guaranteeing that each transaction will contribute to the value of the company. We also had the evolution of our strategy of financial verticalization. We concluded the first cycle of our own payment solution. This consolidation brought about significant gains with rates that are significantly higher and a more usable flow of receivables. These gains begin to impact our figures in the Enjoei platform. The net result advanced 70.8 points, BRL 4.1 million vis-à-vis the same period last year. This performance was given thrust by two main levers, a structural reduction in prepayment costs and greater autonomy in cash management. As a summary, this solution not only strengthens our margins, but also brings us a relevant strategic edge for the entire financial cycle of the company, allowing us to be more resilient in coming quarters. When we look about physical expansion, we ended 2025 with seven operational units between owned companies and franchise companies. This brought about important learning for us. In the first quarter of 2026, we continued to expand our footprint in the state of São Paulo with the stores of Santos and Sorocaba. Our offline system has 12 contracted units, nine are active, two under implementation, and one in site selection. What is more important than the pace of expansion is the clarity of our guidelines for 2026, where we prioritize the performance and maturation over accelerated expansion. We want to strengthen our differentiators for our partners, ensuring that each unit will advance with more profitability and scalability. For Elo7, we want to be aligned with a structural model of Enjoei and efficiency and scalability. Franchises to focus on maximizing profitability per store with an increase of productivity per unit. For Enjoei to accelerate the growth of inventory, increasing the number of sellers and a quality of the products available. We have an update in our app that is available for the entire base, Upload Mágico. This new version allows us to integrate everything in the center of our operations. We have automated the listing creation with a reduction of over 30% in listing time per item and of course, the number of products listed by seller. By simplifying this and eliminating entrance barriers, the app is more efficient, intuitive, opening up more space for greater priority. With this, I conclude my presentation and turn the floor to Marchesi, our CFO and IRO, who will speak about more financial results of the company. Thank you all for your attention. Thank you, Tiago. Good morning. I am about to close my first 100 days at Enjoei, convinced that I am looking at a company with exceptional products. My priority is simple, that we allocate capital where it will give us greater return, and that our cash flow will continue on with its expansion. Well, 2025 has already guaranteed this with BRL 20.3 in terms of cash generation for the year. I will now speak about the figures for the quarter. On slide 7, you will see the performance of the Enjoei platform that maintained its performance. Growth accompanied by profitability expansion. We had a reduction of 4.1% in GMV that totaled BRL 312.5 million. There's an improvement in the conversion of GMV and gross margin with an increase of 2.2 percentage points in take rate reaching 17.3%. Net revenue grew 12.2% in the same comparison base, reaching BRL 48.3 million. This evolution was also seen in gross profit with an advance of 17.4%, with a margin of 2.4 percentage points totaling BRL 26.5 million and a gross margin of BRL 54.8 million for the quarter. This combination of revenue growth and expansion of profitability reinforces our confidence in the preparation of the platform so that it can continue to grow. On the next slide, we see the results of the Elo7 platform. It has gone through strategic review, a change of brand, and a search for a new market fit. We're testing new traffic models and incentives. The efficiency measures prepared in the second half led to an increase of 27% in checkout and 27.5% in GMV, in line with what was observed in the same quarter of 2024. This is the goal of the company for 2026, to look for the best incentives in media and the best economic health in this company, similar to what Enjoei had in 2025. For the quarter, GMV generated a net revenue of BRL 15.1 million and gross profit of BRL 8.9 million with a gross margin of 59.1%. We now go on to the consolidated results on slide nine, where you see a combination of the different moments of Enjoei and Elo7. Consolidated net revenue totaled BRL 64.6 for the quarter, a reduction of 5.3% vis-a-vis 2024. Despite this, we had a growth of 5.6% per user. For the last 12 months, revenues were stable vis-a-vis the previous year and a growth of 35.7% compared to 2023, totaling BRL 264 million. This is because of the strategy that we have in our base of users, a scalability in the platform of Elo7. The cost of goods sold and services rendered vis-a-vis net revenue had a slight increase compared to the previous quarter, going on to 44.8% compared to 43.6%, because of a better share of freight in the period. On slide 10, consolidated gross profit was impacted and totaled BRL 35.7 million for the quarter, a reduction of 9.8% vis-a-vis the previous quarter and 6.6% compared to the year 2024. Gross profit reached a margin of 55.7%, in line with 2024. Regarding 2023, we have a relevant gain of profitability with an expansion of 5.9 points for gross margin and a growth of 51.8% in gross profit. In terms of SG&A, excluding the option plan, we ended the quarter with 32.8% of net revenue, a reduction of 0.7 percentage points compared to the fourth quarter of 2024. For the full year, we had 0.8 percentage points improvement, reinforcing the company's discipline in terms of administrative expenses. On slide 11, you'll see advertising costs and the combination of investments with freight and others. We continue to be very selective when adding customers to our platform. And we would like to assess the elasticity of our commercial policies. Advertising expenses represented 19.1% of net revenue in the fourth quarter of 2025, at 17.4% in the third quarter of 2025, with a gain of 2.2% in the annual figure. In advertising and incentives compared to gross billings, we had an improvement of 5.3 percentage points, reflecting a consistent management oriented to efficiency. We now go on to the last slide. We had a record EBITDA of BRL 15.4 million in 2025, with a 3% growth vis-a-vis the previous year. This indicator was stable compared to the last quarter of 2024. When we analyze the performance of the Enjoei platform, we observe an adjusted EBITDA of BRL 6.5 million with an increase of BRL 5.1 million and margin expansion of 10.3 percentage points in the same comparison. This result shows the good performance of the Enjoei platform, bringing together efficiency and incentives and advertising costs, besides a control of operating costs. In terms of cash flow, the generation was BRL 11.6 million for the full year 2025, closing the year with a robust position of BRL 210.4 million. Operational activities generated BRL 23.2 million, with a gain in profitability and a better balance of our operational accounts. Cash flow and investment was positively impacted by the sale of Cresci e Perdi. As a counterpart, there was a consumption of cash with investments in technology and financial disbursements due to leasing obligations. A liquid consumption of BRL 8.5 million in these activities. We had the payment of BRL 3.2 million relating to leasing obligations. We close the year with that feeling of having made strides and confidence. We want to focus on leveraging the Enjoei platform by diversifying the inventory and maintaining a discipline in capital. We are focused on efficiency and the constant generation of results, creating a more resilient, scalable platform committed with value creation for shareholders. I would like to end my presentation here by thanking all of you for your attention. We will now open for questions and answers. This is for investors and analysts. Should you wish to pose a question, please write in your name, company, and question in the Q&A icon. The first question comes from Matheus Soares from Market Makers. "Good morning, Tiê, and all the team from Enjoei. Congratulations for the work and your profit for the quarter. What can we expect for GMV for 2026? How are you going to speed up the top line for the company without impacting the rest of the company?" Thank you for the question, Matheus. It's a highly important question, and I think it will take me some time to answer this so that I can work with some clarifications for this year in 2027. Well, you're following up on our revenues on Elo7, but I would like to offer you more clarity in what this means for our development. If we step back to answer about Elo7, which was the trajectory up to present in the company, we initially went through a revision of the commercial model of the company, the categories that made more sense for us, and we decided that this was a good business. We paid BRL 26 million for the company. This is something we had in cash. Then we reevaluated the business and decided it was positive for the company as a whole. More important than that, we wanted to understand the dynamic of GMV and how this would have sustainability, scalability, a better growth of inventory, more traffic, more recurrence. Throughout the year, we carried out surveys to ensure that this at Elo7 would be more aligned with Enjoei, but this is more sensitive to the external scenario. We have advertising in Enjoei, but Elo7 is more sensitive to all of these impacts. We see that Elo7 is moving away from the growth trajectory that we deem to be positive. When we look at the outlook of Elo7 as a whole, we have a guideline for the year to ensure the business is sustainable. We have brought about a community of sellers into the platform. We have to take care of these clients, but now looking towards the sustainability of the business so that we can have better control. You will have visibility of the next steps of Elo7 beginning in the second quarter, and we hope to have an advance in GMV. On the other hand, we have Enjoei. This year, as you saw in the presentation, and last year, we began to work with making the active base more profitable. Organic traffic, a recurring base, and the ticket per user always growing. What is our goal going forward? It will become the main catalyzer, a growth through inventory. How are we going to do this? By facilitating the process of listing products. We have the Magic Upload through AI, and it will allow sellers to create more competitive advertisements that we will create in a few days. So there will be several products being announced that will allow for this growth in scale, and Enjoei will preserve its path towards growth. Elo7, we do not foresee that it will have an enormous expansion. This is when we look at the top line. I think this gives you greater visibility of what we consider for this year. All of these issues of accelerating the top line for Enjoei, this will not impact cash generation in any way. We have enormous stringency in terms of cash generation, and it will continue to be consistent. Should you wish to pose a question, please write in your name, your company, and the question in the Q&A icon. Please wait while we pool for questions. Our next question comes from Mr. Matheus Soares from Market Makers. Which are the learnings that you can share with us with the brick-and-mortar stores? Are you still enthusiastic about that front? Thank you for the question, Matheus. Yes, we are still enthusiastic with our network of franchisees. We see total devotion to what a franchise means in the brick-and-mortar stores. Of course, this is a strategic path that is very efficient for the business and efficient in terms of service to our customers. We want to put more products in the platform, creating services through our brand. What we have observed in Enjoei is that it should have the same look and feel in the platform. There has to be a recurrent inventory that is being renovated at each of these stores, and this will allow each store to have a greater number of customers, and they will not have to depend on advertising. I think all the stores are heading in that same direction, and we have seen our customers ever more demanding to have integrated solutions on the platform, how to ensure that the system can become better before they have to expand. Well, they are in a unique place in this platform with a customer base, and we can create a solution for franchisees in a unique way once again. We are not going to do this at a very fast pace. It is not the moment for this. We have more work to do in-house, but we truly are very satisfied with the results of our brick-and-mortar stores. We are increasing the number of franchises. They have a more efficient operational management. We have truly been very satisfied with the results, and we're going to continue with this before changing our position. The question and answer session ends here. We would like to turn the floor over to Tiê Lima for the company's closing remarks. Thank you, everybody, for attending our call today. We have several challenges, as you saw in 2025, but we have a great thing to do in 2026. We want to expand on the best thing that we have is Enjoei and our Enjoei franchise network. This is a good universe to explore, and we're at a very positive moment in the company. We have to manage the company to optimize it to have strategic cycles so that they comply with our expectations. This is where we would like to be. All of the investments that we made were positive and have allowed us as a return, a financial recovery. This is how we resume our potential, and we have a great deal of potential going forward. I would like to recommend to everybody that they download the app or they update it. It's truly a good app. It's somewhat addictive, and you will see the novelties we will present to Enjoei in the coming quarters. We hope to give you more visibility in the coming quarters about this strategic division that we're going through. Once again, thank you very much for your attendance. The Enjoei conference call ends here. We would like to thank all of you for your attendance. Have a very good day.