Earnings Call: Q3 2025

Nov 17, 2025

Summary

Q3 delivered a third consecutive positive operating result, alongside lower costs and a major balance-sheet reset through debenture conversion. Restructuring reduced GMV and revenue, while 2026 plans prioritize growth, new customers and productivity.

Good afternoon, everyone. Welcome to another Infracommerce quarterly earnings conference call. For those who would like to follow this call in English, please press the translation button. My name is Bruno Vasques, CFO and IRO, and I will host this earning call together with our Global CEO, Mariano Oriozabala. Before we begin, I would like to highlight that both the slide deck, which will guide our discussion, and the audited financial statements are already available on our IR website. This presentation and the management's remarks may contain forward-looking statements based on current and reasonable assumptions. However, it's important to note that such statements are not guarantees of future results. Various factors, including risks and uncertainties, may cause the prospective circumstances and the events discussed herein not to occur. As a consequence, the company's future results may differ materially from those expressed in such forward-looking statements. Finally, we recommend that the indicators discussed here not be analyzed in isolation. Please see the complete financial statements available on our website. The third quarter represented an important milestone in Infracommerce's recent transformation journey. From an operational perspective, we stabilized the group's operating result. Regarding capital structure, we completed the capitalization of approximately 65% of the outstanding convertible debentures, profoundly transforming the company's balance sheet. Okay, let's get started with details of our operating results. As in Q2, we measure operational performance by accounting EBITDA adjusted for rental expenses, CapEx expenditures, both technological and structural, and adding back expenses with receivables financing, which are accounted for as financial expenses. Finally, we exclude the effects of non-cash impairment charges. Thus, the accounting EBITDA, after adjustments, more accurately and transparently reflects the company's operating cash generation capacity. All calculations are shown in the earnings release and can be directly reconciled with the financial statements. That said, we highlight the consolidation of operational stability. We reported a positive year-to-date operating result of BRL 2.4 million, reversing a cash burn of BRL 204.5 million recorded in the first nine months of 2024. We resized the organizational and logistical structure, optimized systems and processes, and captured efficiency gains and synergies in all geographies where we operate. Total expenses and costs in the quarter amounted to BRL 160 million, with a significant reduction of 46% year-over-year and 14% reduction quarter-on-quarter. The accounting loss attributed to Infracommerce of BRL 77.8 million in the quarter is largely impacted by financial expenses from convertible instruments, which totaled BRL 52.8 million in the period. These instruments, both the principal amount and the accrued recognized interest, will be settled through the capitalization of the balances over the life cycle of the respective instruments, therefore, with no cash outflow. Also, with no cash effect, the company recognized total depreciation and amortization expenses of BRL 17.6 million in the period. It's worth noting that this amount is significantly higher than the new investment policy as CapEx for the period totaled BRL 5.2 million. Q3 2025 marks the strengthening of the company's capital structure and liquidity indicators. Adjusted net debt, excluding the balances of convertible financial instruments that will have no cash effect upon settlement, is positive at BRL 1 million. The shareholders' equity balance at the end of the quarter reached BRL 338.3 million, reversing the negative equity balance of -BRL 201.4 million in Q2 2025. This important transformation stems from the conversion of approximately 65% of the balance of mandatorily convertible debentures during the quarter. Equally important, net working capital at the end of the quarter was BRL 300 million, reversing the negative balance of BRL 466 million on December 31, 2024. This highlights the capitalization of financial and operational liabilities and the optimization of the working capital through efficiency gains in the billing cycle. Significant improvements in service levels, operational indicators, liquidity ratios, and capital structure consolidate Infracommerce as a solid partner to provide complete digital solutions from platforms and data to logistics and payments in Brazil, Argentina, Mexico, Chile, and other Latin American countries. I will now turn the floor over to our Global CEO, Mariano Oriozabala. Thank you, Bruno, for presenting the numbers. In Q3 2025, we continued to advance consistently in the execution of our transformation plan. We delivered a positive operating result for the third consecutive quarter, reaffirming that Infracommerce has reached a new level of stability and predictability. Our focus this quarter was on consolidating the efficiency achieved throughout the year, strengthening our financial governance, and ensuring the execution of key high-volume events in all countries where we operate. Operations in Brazil remain balanced, while other units in Latin America continue to show positive margins and cash discipline. From a financial standpoint, the company took an important step in its capital structure. Approximately 65% of the debentures were converted into shares, strengthening the balance sheet and demonstrating the confidence of creditors and investors in the recovery trajectory and the execution of the plan. The year 2025 marked a cycle of deep restructuring, operational reorganization, cost control, and automation and artificial intelligence initiatives have created a more efficient and scalable foundation for the future. With the turnaround plan in its final phase, expected to be completed by December 31, 2025, the company is preparing to begin a new chapter in 2026 focused on growth, acquiring new customers, and achieving additional productivity gains. We thank our employees and partners for their commitment and resilience throughout this process. We will continue with the same focus on discipline, building a solid and efficient Infracommerce that is fully prepared to keep evolving. Thank you very much. Now we are going to start the question and answer session. Please use the Q&A tool to send your questions to us. Please wait while we collect the questions. We received two questions that deal with the same topic. The first sent by Dr. Leandro Carlos Guerra Batista. Good afternoon. Net revenue and GMV have been dropping quarter after quarter. What is the concrete, measurable plan with defined deadlines to resume growth in 2026? What are the indicators that you have been using internally to make sure that the business resumes growth without depending on cutting costs? José Henrique Miranda Pereira asked why GMV and net revenue decreased compared to the first and second quarter of 2025. I turn the floor over to Bruno. Thank you for your questions. Let me give you some background information from the perspective of our restructuring plan. The restructuring plan predicted gains in efficiency, productivity, and a cleaning of our customer base. A visible impact on the balance sheets comes from the implementation of this lever. On one hand, we can see the reduction of GMV and net revenue, and on the other hand, we see substantial operational margin gains. The company's priority was on retaining our current customer base that is aligned with our value proposition and then increase productivity and the service levels agreed upon with our customers. This stage has been finalized in this last quarter of this year, where we actively prospected new customers and new businesses, and the company is prepared and has solid foundations to resume its commercial critical mass to help the brands in their digitalization journeys in the geographies where we operate. [Foreign language] We have a new question from Mr. José Henrique Miranda Pereira about the headcount. There has been a 10% decrease against the first and second quarters of 2025. Have there been any important client leaving? Thank you for your question. No, we did not have any substantial change in our customer base. In addition to what we already explained to the market, those with the removal of non-profitable customers. The decrease in headcount is associated with gains of productivity, efficiency and the use of artificial intelligence, and whose implementation plans we have already discussed here. [Foreign language] We received another question from Mr. Leandro Carlos Guerra Batista. After three quarters of positive EBITDA, what's your take on the level of revenue that you need for your operations to generate net income? Thank you for your question, Leandro. The restructuring plan went through a key pillar, which was the company's deleverage and improvement in liquidity levels. Q3 represented an important milestone in this sense, because two thirds of the debentures were converted into capital. This is reflected in the improvement in our capital structure, with a positive balance in equity and also net working capital. However, it's important to note that one third of the convertible debentures are still to be converted within the instruments cycle. So these are convertible debentures with interest expenses that are added to the debenture balance, and they will be mandatorily converted throughout the cycle of the instrument. Having said that, there is still significant amount of non-cash financial expenses that will be recognized in the company's balance sheets throughout the cycle of the instruments, depending on whether we exercise the conversion of the debentures during that period of time. [Foreign language] As there are no further questions, we wrap up the Q&A session and now I turn the floor over to Bruno for his final remarks. [Foreign language] Thank you all for joining us in another earnings conference call. This quarter marked an important transformation in our liquidity indexes and capital structure that we started 12 months ago in our restructuring journey. It's important to highlight that the management has always made efforts to analyze with diligence all of the alternatives to be able to equalize the company's capital structure and have a solid operational base. That's what we have today, with a customer base that is aligned with our purpose, high service levels and prepared to help brands throughout Latin America in their digital journey. Thank you very much. [Foreign language] Infracommerce's third quarter 2025 earnings conference call is now completed. Thank you all for joining