Earnings Call: Q4 2025

May 5, 2026

Summary

Restructuring cut FY25 costs 39% and improved adjusted operating cash performance to -BRL 2.3m from BRL 208m cash burn in 2024. Positive net worth and working capital support a 2026 focus on profitable growth, AI-enabled productivity and cash generation.

Good morning, everyone. We would like to welcome everyone. For those who would like to follow this call in English, please the interpretation button. My name is Bruno Vasques, and I am the CFO and IRO, and I will host this earnings call together with our global CEO, Mariano Oriozabala. Before moving forward, I would like to inform that both this material, which will serve as the basis for our discussion, as well as the audited financial statements, can be found on our investor relations website. This presentation and the management's remarks may contain forward-looking statements based on reasonable and current assumptions. However, it's important to point out that such forward-looking statements are no guarantee of future events. Several factors, including risks and uncertainties, may cause events and forward-looking statements discussed in this document not to materialize. Therefore, the company's future results may materially be different from those expressed in such forward-looking statements. Lastly, we would like to recommend that the indicators herein expressed should not be analyzed in an isolated manner. To that end, please refer to the complete financial statements found in our website. 2025 represented an important hallmark of Infracommerce's transformation trajectory. The Group executed consistently and diligently a comprehensive restructuring plan of a financial, corporate, and operating nature with the following purposes: realign its capital structure and liquidity indicators to optimize its operational performance and promote the recurring and sustainable generation of positive operating results and cash flows. Throughout 2025, we measured the operating performance by the accounting EBITDA after rental expenses, CapEx expenditure, both technological and structural, and added expenses with advances of customer receivables accounted for as financial expenses. Lastly, we excluded the impairment write-offs. Therefore, the reported EBITDA with those elements reflect, in a more assertive and transparent manner, the company's capacity to generate operating cash. All calculations are demonstrated in our earnings release, and they can be directly reconciled with our financial statements. Having said that, we outline the consolidation of the operation stability with this indicator, reaching the amount of minus BRL 2.3 million in 2025, reversing a cash burn of BRL 208 million in 2024. It's important to note that the company reported BRL 13.7 million of expenses of termination costs in the last quarter of 2025, related to the consolidation of the Group organizational structure in Latin America and new initiatives of productivity gains, especially the use of artificial intelligence. Throughout the year, we resized the organizational and logistic structure. We optimized the systems, processes, and captured gains in efficiency and synergy in all geographical areas where we operate. The expenses and total costs in the quarter amounted to BRL 212 million, with a significant reduction of 26% when compared to the same period of the previous year. In annual terms, we ended 2025 with BRL 750 million of total cost and expenses, with a reduction of 39% or BRL 486 million over the previous year. The net worth at the end of the period stood at BRL 195 million, reversing the uncovered net worth of BRL 101 million at the end of the fourth quarter of 2024. This important turnaround is a result of the conversion of approximately 65% of the balance of the mandatory convertible debentures throughout the year, in addition to the result reported in the period. The analytical breakdown of the result of the period of negative BRL 342 million provides evidence of the element recognized in the results with no cash effect and the other liquidity indicators. The year's result has the following impacts: financial expenses with convertible instruments, BRL 187 million. It is important to mention that the balance of these instruments, both the principal and the recognized accrued interests, will be settled with a capitalization in the instrument cycles as an option or in the maturity date as a compulsory event. Provision of reduction of recoverable amounts, impairment BRL 71 million. The current dependence of cash generation in the operations expressed in Argentinian pesos, associated with the high capital cost of Argentina, shows the need to recognize the reduction of recoverable amounts in intangible assets in the cash-generating unit of the remaining Latin American countries, except for Brazil, which was duly addressed in 2024. Depreciation and amortization, BRL 75 million. The CapEx incurred in 2025 was BRL 20 million, in which 17.3% were lower with expenses in amortization and depreciations in the period. Therefore, 97.7% of the accounting result come from the three elements previously mentioned, which have no cash effect and are, to a large extent, related to the transformation agenda necessary and implemented. The fourth quarter of 2025 consolidates the strengthening of the capital structure and the liquidity indicators of the company. The adjusted net debt, except that the balance of the convertible instruments, which will have no cash effect upon its liquidation, is positive at BRL 11.7 million. This important transformation is as a result of the conversion of approximately 65% of the balance of the mandatory convertible debentures throughout the year. The balance of the mandatory convertible instruments stood at BRL 323 million at the end of 2025. Equally important is the net working capital reported at the end of the year at BRL 230 million, reversing the negative balance of BRL 526 million on December 31, 2024. We highlight the capitalization of financial and operational liabilities and the optimization of the working capital with efficiency gains in the billing cycle. The significant improvement in service levels, operational indicators, liquidity ratios, and the capital structure consolidates Infracommerce as the ideal business partner to provide the complete digital solutions from data platform, logistics, and payments in Brazil, Argentina, Mexico, Chile, among other countries in Latin America. I would now like to turn the floor over to Mariano, who will share his views of 2025 and the strategic direction for 2026. Thank you, Bruno. Good morning, everyone. 2025 was a tough year. At the same time, it was the year when Infracommerce moved up to another level. Our capital structure was under pressure in the beginning of the year, and we had the clear need to make difficult decisions. We have a leaner, more efficient company with a positive net worth, positive working capital, and real capacity to generate cash. As previously mentioned, we did the job in three fronts at the same time: capital, operation, and client portfolio. Today, we operate in an efficient and integrated manner. We are one of the largest e-commerce platform in Latin America, present in many countries and providing services to global and regional brands in an integrated operation of technology, logistics, and digital channels. This scale was built throughout more than one decade and is, in our vision, what sets us apart from fragmented operations or of in-house initiatives. However, it only makes sense when accumulated knowledge and excellence in the deliveries are accompanied with efficiency. It is in this combination where our focus is. 2026 starts from a different place with a clear focus on capturing value, grow with profitability, increase productivity, and generate more cash from this existing foundation. Artificial intelligence plays a central role. For us, AI are tools and executions applied where necessary. Process automation, operation productivity, faster commercial operations, lower costs. The objective is simple, grow without growing the structure. I would like to thank our teams in all Latin America. Nothing that we did in 2025 would have been possible without the willingness to build, correct, and come back on the following day. Let me thank the business partners, the clients who have been with us along the way. We started 2026 stronger. We are going to maintain the same discipline with a focus on growing with quality and transform efficiency in concrete values. Thank you very much. Good morning, everyone. Ladies and gentlemen, we are now going to start the Q&A session. We kindly ask you to submit your questions using the platform. Click on Q&A option, please. Our first question comes from Jose Henrique Miranda Pereira. Thank you for your question. Good morning. Why the margins of the third quarter of 2025 dropped in relation to the first quarter of 2025 and the second quarter of 2025? Good morning, Mr. Jose Henrique, and all those attending this conference. I am going to describe the revenues very briefly. As you saw, there was a drop of BRL 170 million, excluding the advance of receivables, and these revenues comes from two macro movements. The first one is caused by the company at the end of the onerous contracts, and the second was the leaving of clients in an undesirable way. When the company signalized a crisis of liquidity, some clients, which were the core and very important to the company, decided to take different paths in relation to the digitalization way, or related to the digitalization or the transfers of other operators. But our billing cycle is very extensive because it may include the solution or even the leaving of the solution when they were. There was a drop with the leaving of some clients as a result of the decisions that were made in 2024 when the company had a financial tough decision, which was the beginning of the process for restructuring. This caused an impact of the number of businesses and the margins of the last two quarters. These are two important messages. When we look at the full year of 2025 against 2024, excluding the advance revenues, there is a decline of 2 percentage points. Even more important, the company with a financial stabilization, which was driven by the debt conversion and the positive net worth and the positive net working capital and improvement of the services. The company, once again, was valued by the current clients that showed a high level in the satisfaction as we saw in 2025, and the company started to be looked for and referred to by the basis so that we can help the new clients in the digitalization process, so the management understands that the process of having clients leaving at a moment that we faced in 2024 is already stabilized. Now the priority of the company is to grow with the maintenance of the structure, as Mariano mentioned. In other words, we want a leaner, a lighter structure, a fitter structure with high level of excellence in delivering the services. We are now prepared to welcome new clients, help them on their digital journey, maintaining the same structure that will enhance the resumption of the margins along the next period. We have our second question here from Clayton Turin. Thank you very much for your question. In which countries the operations can be considered profitable? Good morning, Clayton. I am going to answer your question, separating the information into two macro blocks. Brazil, where our headquarters are. This is where we consolidate all the operations and the other countries in Latin America, especially Argentina, Mexico, Chile, and Colombia, considering the commercial relevance. There is an explanatory note in our documents when we segregate the results. When we look from operating results, in Latin America, we had a positive result. In Brazil, we are getting close to the break-even point after the extremely negative results of the prior periods. Latin American operation has always been healthy from the financial perspective, and now with a new restructuring that has been completed at the end of 2025, it is even more leaner, lighter, fluid, and agile. In Brazil, the priority for 2025 was to look for operating stability so that we can grow on a solid foundation with excellence and profitability. Continuing with our Q&A session, we would like to ask those interested in asking questions to use the Q&A button on your platform. Ladies and gentlemen, considering that there are no further questions, I turn the floor back to the management for the final remarks. Thank everyone attending this call. The first step, and which is a fundamental step in the restructuring of the company, has been completed. Both the relation to the capital structure, which are indicators of the liquidity and from the operational viewpoint, we stabilize the service level and we enhance the result of the other countries where the company operates. We start 2026 in a new moment. A moment where we are going to be referred to by our current clients and potential new brands will look for us in order to expand their digitalization process in the region where they operate. With this, we end this event and the remaining questions will be answered by the IR area, and we wish you have a wonderful week. The fourth quarter results conference has come to an end. Thank you very much.