Good morning, ladies and gentlemen. Welcome to LWSA's Q1 2026 earnings conference. Joining us today are CEO, Mr. Rafael Chamas, and CFO and IRO, Mr. Andre Kubota. For the Q&A session, we will also be joined by the company's senior management team. This event is being streamed via Zoom webinar with simultaneous interpretation into English and will be available for replay at ri.lwsa.tech. The slide deck for this presentation can be downloaded from the Results center under the Financial Information tab on that same website. All figures are stated in Brazilian reais and have been calculated in accordance with Brazilian accounting standards as defined by the Brazilian Accounting Pronouncements Committee.
Before we begin, please note that any statement made during this presentation regarding LWSA's business prospects, operational and financial forecasts, or future growth estimates is merely a projection, and as such, is based solely on its management's outlook for the business. This outlook relies heavily on market conditions, the performance of the Brazilian economy, the industry, and international markets, and therefore may change without prior notice. Unless stated otherwise, all variations and rounded out figures presented here have been calculated in thousands of Brazilian reais. The following business performance presentation includes both accounting and non-accounting data, such as organic and pro forma operating and financial results, as well as projections based on the company's management's expectations. The non-accounting data have not been reviewed by independent auditors.
For the question and answer session, we kindly ask that you use the Q&A button at the bottom of your Zoom screen to submit your question. When doing so, please remember to state your name and the name of your company. As standard practice, your name will be announced so you can ask your question live, and a prompt to activate your microphone will appear on your screen. I will now turn over to Mr. Rafael Chamas, who will begin the presentation, followed by Mr. Andre Kubota. Mr. Chamas, you may proceed.
Good morning, everyone, and thank you for joining our Q1 2026 earnings conference. I'd like to start the presentation with a few highlights, after which I will talk about some significant developments we've had with regards to our deliverables to our customers. I'll turn over to our [CEO], who will dive a little bit deeper into our results. These were very consistent results, which has been now common to our deliverables. We continue to grow our top line. We had 10% growth. That's because we had slightly better operations.
Our commerce operation grew 14.3%. We'll talk about this later. With two components, very significant components at that, we had great customer base growth with a very significant net addition of customers, also significant increase in subscriptions. Another very important point is something I believe we've been delivering consistently over the course of the last six or seven quarters, which is continued profitability growth. We've had 28% year-over-year with a 25% margin growth by close to four percentage points, which has been significantly converted in great cash generation.
This quarter, we've had BRL 86 million in operational cash flow, which is very significant when you think about that versus the revenue with a 22.2% margin. Very significant. We've also been very disciplined in how we allocate our capital, and we will show you how that has been developing over time. Over the last 12 months, we have shared over BRL 200 million in our cash with our shareholders. We've been very disciplined. Here we have a few operational highlights. Our quarter ended with a BRL 20.3 billion GMV, up 11.5%. Our TPV, which is also very important for monetization because of our operations in payments, up 10.1%. In the past slide, I talked about a significant net addition to our customer base.
That led us to end the quarter with 211,000 subscribers, up 7.7%, which is very significant. I'd like to highlight that versus December, we've had close to 7,000 customers added to our base. Last year, our average addition per quarter was 3,000 customers. In addition to significant improvement in our profitability, we're also able to grow our customer base with both attraction and a good churn rate. We talked about our revenue, and when we talk about the pricing, especially of SaaS services with companies that are well exposed and the risks that's totally connected to something that's not our case. This is very interesting. In addition to greater base, we also had an increase in subscriptions by close to 19%.
We end this quarter with over BRL 46 million in revenue. I talked about profitability. Our EBITDA has also grown significantly to close to or to over 28%, and a free cash flow of BRL 80.6 million that gives us a 22.2% margin, which is the largest we've had since we've listed the company. Moving over to the next slide. In our previous slide, in December, I talked a lot about how we fit into our own logic, especially given the data that's specific to our operations. Here we have three concrete examples of relevant deliverables we have for our customers. Something that's intrinsic to our product without the need for charges for specific modules, since AI is part of how we serve our customers via our products.
Here we have three practical cases of how we use AI and more specifically agentic AI in our operations, and how we use it in our management system, how we have a conversational agent which allows for a completely conversational operation across the entire platform. In the second case, our agent-personalized storefront, which is already something that's robust and powerful for customers. This is the first e-commerce platform that allows this in Brazil. Finally, how we've optimized our platform to deliver it end-to-end to our customers. Something that's fully contextualized and fully available to our customers from end to end. Now we will have a video that we would like to show you about Bling.
It's time to bring AI-powered momentum to your Bling. Meet Bling's new AI assistant, conversational intelligence designed to streamline your business. With it, you can stop jumping from screen to screen and manage your entire operation in a single place. Need to upload a product list? Just drag your spreadsheet into the chat, and it maps everything instantly. Wanna know which product performed best over the last 15 days? Just ask, and the assistant delivers insights while interacting directly with your browser. When it's time to sell, the ads agent takes over. It generates high-performing product descriptions and automatically fills out the entire product information sheet with a single click. For a flawless storefront, the image agent removes backgrounds from your photos, all within Bling. Less time spent on operations, more time focused on growing your business.
As you could see with the video, through AI, we can deliver a lot of productivity and efficiency to our clients. I talked about this in Q4, this makes it very clear. What's great about AI is that it changes the interface. It provides tools, it improves the experience, it enables a smoother onboarding. We saw that we have a very complex case with uploading catalogs and inventory. We do not have that in the video, we can have a fully automated replenishment in a conversational way. The entire experience, the entire interface is made easier. In order for that to be native and safe, that's where our greatest strength is. We have all the domains in our hands. The domains for inventory, store catalog, and physical logistics for services, financial services, all of that is tied together and integrated, which allows us to have those very robust tools in-house.
In the next slide, I show you the evolution we've had in agentic AI. Wake was the first Brazilian platform to allow a fully customized storefront, which means using AI design tools, and we have several of them that show major evolution. Anything that our clients do using any of these tools, our agents themselves can tap into those tools and bring all of this that was built natively to the customer storefront. Obviously, the storefront is composed of several different design items, not just when it comes to layout. These agents were built so that we could bring a lot more agility to our clients when it comes to customizing their storefronts, especially when it comes to campaigns and visuals.
The agents interpret all of that via those tools and natively bring all of that into production for our store owners. This provides great operational gains and obviously great efficiency and speed in the operation at large. Now moving to the last case I have, which is LLM-optimized platforms. Our purpose is to bring our customers to all available sales channels and optimize their exposure. AI has an increasingly significant role in that. All our clients are obviously integrated to every LLM. New clients also by definition. And for example, we have a Mother's Day sale. We already have a client that shows in searches and LLMs with photos, which allows easier and faster conversion. With that, we make all of our clients' products available throughout the internet and maximize their sales. With that, I now turn over to our CFO, Andre Kubota.
Good morning, Rafa. Good morning, everyone. Thank you for joining us for our conference today. Moving over to our next slide, we'll talk a little bit about the financials in Q1 2026. In consolidated terms, our revenue grew by 10% to BRL 362.8 million, and commerce grew by 14.3% to BRL 262 million. It's important to highlight that our subscription revenue has grown even more, up 18.9% year-over-year. Our BeOnline SaaS unit essentially remained at the same level as last year at BRL 100.7 million.
Now over to the next slide, our EBITDA grew significantly by 28.4% year-over-year to BRL 91 million, which provided us a robust 25.1% margin, which essentially reflects three major factors: significant operational efficiency with operational leverage that's substantial and diluted fixed costs which optimize our products and services, allowing us to focus more on our products or on products with which are more profitable and providing greater returns to our shareholders in commerce. We also had the best percentage or the best margin in percentage points with 24.8% in the quarter in commerce and BeOnline SaaS. Even though there was a decline versus last year, I can show you later that we have a substantial margin at 25.8% versus the previous quarter.
Now, to give you a slightly more long-term view, looking at the best quarters, we have a better margin with our EBITDA and also great margins for this half of the year. We came to 25.1% with BRL 91 million in the quarter. The following slides show the commerce unit with a similar development. This is the best level we've had on record for the first quarter, with BRL 64.9 million and a 24.8% margin. With BeOnline SaaS, we give you an overview of the last few quarters, showing you that despite variations between quarters, when we look at the last 12 months, our margin has remained steady at around 25% since Q4 2024. Another very positive highlight is strong cash generation and the conversion of EBITDA into cash.
This is the highest level on record for the last few years when it comes to cash generation, and this is after our investments in the CapEx we built to reinvest in the company's growth. Over the last 12 months, we've invested BRL 317.4 million with an operational cash flow margin of 21.9%. Much of that cash we generated is still being used to return to our shareholders, whether that's via purchase or buybacks or dividends, and our capital has reached virtually BRL 200 million. With that, we turn over to the operator and open the floor for questions.
A quick reminder, if you'd like to ask a question, please submit it using the Q&A icon at the bottom of your screen. As per standard procedure, your name will be announced till you may ask your question live. Our first question is by Mr. Lucca Brendim with Bank of America. Please, sir, you may proceed.
Good morning, everyone. Thank you for taking my questions. My first question, looking into the cases that you showed in terms of deploying AI solutions, especially going into the storefront Figma, which you've started rolling out, I just wanted to understand a little bit more about what's included in that offering and that solution. Has that been rolled out to all your customers, or is that something that's taking place slowly? I don't know if you've come to the end of what you have to offer, or do you plan to move that even forward? What does that bring in terms of monetization?
Is that something that will be charged extra to customers? My second question, if you could please add some color in terms of how much of that is sustainable and what we should expect in the next few quarters, and how can we think about the situation in general moving forward? If you could also add some color to, you know, from this growth that we've seen, how much of that came from the efficiencies that came from AI? These were my questions.
Thank you. Hi, Lucca. This is Ale from Wake. I'd like to start by taking the question that has to do with my side, especially the AI features, starting with the storefront feature. This is one that will be available to all our customers. We started with a small customer base.
This does not involve any additional charge. What we've been doing is to fill our solution with AI agents that will make our customers' lives easier, not only in terms of operations. Today our customers have a significant requirement in terms of the flexibility with the layout, in terms of how it can respond to the brand itself and business conditions that they provide to their customers. You saw both Shoulder, which is a fashion brand, as well as Yamaha, which is an automotive brand. These are completely different clients with a completely different layout and completely different business rules. What we wanted to show is that our platform is robust enough to cater to any customization that's required, regardless of the industry.
These agents provide great flexibility when it comes to layout, and they can incorporate those items to the platform in a much faster and more efficient way. What we see in terms of time to revenue, meaning deployment within or across the stores has been a lot quicker, which is not only a competitive advantage, but in terms of the business, this allows us to become or make these stores profitable a lot quicker. In terms of layout, when it comes to create new versions or run A/B tests, is much more efficient. We can add a lot more items to our clients' storefronts. We've also been developing a host of other things that will make the solution even more robust for customers.
What we've been doing now, for example, is a number of agents that will combine store performance data to specific features to the platform. In the very short term, we expect to have, for example, prices which are dynamically changed based on the customer's purchase history, and also promotions targeted exclusively to specific types of customers. We have also an inventory allocation and also a number of other features which traditionally we've seen in the market. What we're trying to do is to make the operation in these major accounts a lot more profitable. What we want is to have those features empower our customers via AI agents to improve their performance and profitability. With that, I'd like to turn over to Kubota, who will talk a little bit more about the financials of that.
Good morning. Thank you, Lucca, for joining our conference call. With regards to our margins, we've been doing very extensive work to improve the profitability of these features. There are a few factors that have led us to expand our margins over this quarter, and we have been talking about one of them for some time, and that's the essence of our business. Even though our gross margin is high because of our fast growth, we also want to accelerate that growth, and that involves a strong dilution in our costs. We are seeing our margins expand by a few percentage points. The second point, which was AI, something that we've talked about, and to your point, I think that, yes, we are seeing gains already.
In the second half of last year, many AI tools were already being used, including tools that we use internally. Our service has already reached a substantial level of automated interactions based on AI, which has really helped us in our service headcount without dropping our NPS. We're still one of the best brands when it comes to NPS actually being acknowledged and awarded in different fora when it comes to our customer service. In addition to our AI features, since last year, we have been massively rolling out tools across our units, especially in product engineering and development, but also in operational support departments as well. That's something we've already started doing last year. We're now also transitioning a few of our operations with additional tools as well.
I think that's been our focus at this stage. We have in our roadmap a lot of these deployments to improve our products, we're also focusing on efficiency via automation of a host of operational tasks. We've automated a lot of that to provide more efficiency and to have better governance of those processes. I think that when it comes to AI, our focus has not been on those areas at first. Lastly, in structural terms, we've been looking to streamline our portfolio as well. That's something we've been doing for a long time. We've been trying to focus on the customer journey increasingly more.
We've divested from major operations in the past, but there's also a number of products and services that over time we have been either streamlining or discontinuing features that we've replaced over time. All of that allows us to increase our profitability, and significantly so, and also focus a lot more on products and services that add more value and provide greater profitability to our customers. That's essentially where we stand. I don't know if that answers your questions, but I'd like to thank you for them anyway.
No, it's very clear. Thank you so much.
Our next question comes from Mr. Leonardo Olmos with UBS. Please, you may proceed.
Good morning, everyone. Congratulations on the extremely consistent performance. I just wanted to hear a little bit more when it comes to Wake about the specific impact on a client that's on the enterprise e-commerce and in terms of their sales pipeline. If you could update us a little bit more when it comes to those larger Wake customers, that would be great. The second question, which might touch on that, but also on smaller clients as well, if you could add a little more color about Locaweb Cloud. We always ask about that because there's a main competitor of yours that's doing really well on cloud. We wanted to hear from you if you have any updates on your cloud service and whether you think it could be an interesting proposition for your customer. Thank you.
Thank you, Leonardo, for your question. I will start answering and then turn it over to Higor so that he can take your second part of your question. Well, first of all, looking at the results we've had historically with customers that migrate to Wake, the extremely positive part of that is these are our greatest sellers. We've had a very substantial return in terms of performance, and that includes sales performance as well. We have several cases that we've made public. The latest one was that of Shoulder, which saw substantial increment, actually two-digit increment, 30% year-over-year, actually. They've had very positive results, including better inventory allocation and better visibility of their inventory in brick-and-mortar stores, faster order approvals.
We've had great results for those customers which have migrated, not only in terms of performance, but also in terms of their flexibility to serve their customers in many different aspects. Looking into the future, our pipeline is very substantial with brands that are signing with us with very important rollouts that are about to come in the next few months. We're also looking at a number of other ones that will build our host of iconic rosters in Brazilian retail even more. Thinking about our average ticket, what I can tell you is that from the start of our operations, we've essentially increased by fivefold the average ticket we had with our brands. Our new contracts are coming in with a much higher average ticket, which reflects the magnitude of the customers we've been signing with.
Obviously, our business is talking about medium and large companies, which adds to the reputational aspects. We started with retailers that were larger and that added confidence, and we are now at a pace where we want to increase that ticket and bring larger and larger clients to that operation. Higor?
Leo, thank you so much for your question. Let me just add a little bit more color about Locaweb Cloud. Before that, I just wanted to recap very quickly. Locaweb Cloud is a product that's just moved out of soft launch. We started rolling out in April, and after several months of tests, we've run internal tests as well. This is a new product with which is actually in the early stages of its roadmap.
It's been bringing in very positive surprises in terms of feedback and in terms of how the customers have used the product in a very advanced way. This has made us really happy. The feedback has been spectacular. We've been seeing our customers use that precisely for a lot more advanced workloads than what we expected and what we typically see with traditional Locaweb customers. Now, let me explain a little bit better what I mean by that. A traditional Locaweb client is one which uses a virtual private server. This is a client that uses VPS or a simpler workload. Locaweb Cloud clients obviously also use that type of application and workload, but they can also adopt that for a more advanced use, so they can connect with outside LLMs or use autoscale or use external APIs.
Many other sophisticated services that the cloud itself can deliver. We're seeing customers adopt that type of use, say, with two availability zones and more advanced computational resources and so on and so forth. We're very happy to see the type of quality this product is delivering for these end customers. I have Williams on my side, and Tray is a major client of this product, or a major customer of this product, and we're also seeing Tray use this product to scale. What I can share with you today is this has really motivated us to advancing our roadmap and expediting it.
Initially, we had a build-up plan, and we're now discussing pushing it forward as we see a growing demand for features, also outstanding feedback from customers, and as you said it yourself, we are seeing a huge market for it. There's a unique window of opportunity here, and we have all that it takes to make the most of that window, and we will do our best to navigate that opportunity. That's being structured. It's part of our plans, and yes, we're working on it. Oh, that's outstanding. A lot of positive stuff.
Thank you so much. Have a great day.
Our next question comes from Mr. Luís Chagas with XP. Please, sir, go ahead.
Good morning, everyone. Thank you for taking my questions, and congratulations again on your results. We have a couple questions. The first of them also on margins. You talked a little bit about your G&A expenses, which have gone down year-over-year because of the reduced headcount. I just wanted to understand whether that reduction has come to its end, or is there anything that we should expect for the next few quarters in? Second, you talked a little bit about your operational dynamics in March and February, which was a bit more challenging. I just wanted to hear a little bit how that worked in April in terms of GMV and monetization.
Hi, Luís. I'm going to take your first question. Talking a little bit more about your margin, I think that from a headcount perspective, the headcount streamlining we've had took place over the last year, quarter-over-quarter.
A lot of those cuts took place last year, and a chunk of that has to do with the divestments that we had. That's about half of that gain and the other half came from greater efficiency that goes back to all the elements I mentioned earlier in terms of service and operational efficiency and so on. Obviously, there's an acceleration plan, growth acceleration plan in place. We do not foresee any additional reduction. Quite the contrary, in fact. We might have slight increases over time, but we don't expect any change in the current dynamics or margin dynamics or anything that we've been sharing with you over time in terms of profitability. I don't know if Rafa has anything to add. I will turn to him for any additional comments.
Thank you, Luís. Thank you for your comments. To your point about April, I think we can separate that or split that into different parts. As you saw, performance has been largely driven by subscriptions and that has been a very significant indicator of the health of our operations. I think we're still doing great. We did great in April with a net increase in subscribers. Churn curves have been under control and monetization as well, as you saw. We're always thinking about pricing and all of that helps. Now, the second part is we're also talking about the transactional GMV. Seeing as this was a month with a lot of holidays, of course, that's a challenge for that period. We don't see any change in terms of trends to what we've seen in the first quarter. That's likely to be the tone for the last other part of the year.
Thank you so much. Very clear.
Our next question comes from Miss Maria Infantozzi with Itaú.
Good morning, everyone. Thank you for the opportunity. I just wanted to hear a little bit more how you're seeing the BeOnline trends. We saw impacts on your top line. What do you expect from that BU? What's your prospects for the next few months, and how are you seeing the cloud business so far, and how do you expect it to continue to perform?
Hi, Maria. This is Higor again. Thank you for your question. Now, let me add a bit more color to what our BeOnline portfolio looks like. On our BeOnline operations, we have a few more products that have to do with our online presence. When I say online presence, we're talking about domain, we're talking about hosting operations, we're talking about products that have a more intrinsic connection to websites. This is a portfolio that is a bit slower to grow. It's a bit more consolidated, so to speak. When we compare to our peers, say, in the United States., we notice that this is a portfolio that has been consolidating over several years. This is a space where Locaweb has been very well established. This is a market leader, and its market share is solid. Not only that, but we also have great capacity in terms of our ecosystem and our supply, which is very strong.
We have a very strong customer base. This is a game where we're talking about what we offer the clients with a great cost effectiveness for them. When we look at our portfolio from a solidity and margin perspective, it's still really healthy. Now, our strategy at this point is we wanna continue to serve our customers well. We're very concerned about our NPS, about our customer service, about our ability to retain that customer in the long term. Obviously, we wanna serve them with another, more updated elements as well. This is a customer base that's very AI-friendly, for example. It's one where we can maybe deploy more modern products. With that in mind, just a few weeks ago, we've launched an AI website, an AI-powered website generator.
We've also been using AI, allowing the customer to buy and use new domains. This is a customer base where we can create and innovate powered by AI, but it's also a customer base that when we look at the TAM, it's somewhat consolidated. However, when we talk about cloud services or other types of markets, and by that I mean agentic AI features or task execution, meaning automated or automation in general, this is a market where we see great opportunities for Locaweb and for the entire BeOnline solution to really position itself. We're talking about as a first launch with Locaweb Cloud to position the company in what we call an infrastructure player. When we think about other global players in infrastructure, Locaweb has great potential to play that game.
In general terms, this was already a good player in Brazil. Now with AI, that takes the solution to a new level when it comes to attention-seeking. We already have attributes that allow the client to run this type of application, meaning easy connectivity, price, predictability. We rolled out this type of product precisely with eyes to that type of customer and to that type of facility that we can provide. We've been trying to place Locaweb and our entire BeOnline offerings in that more consolidated space. There's another space within BeOnline where we address productivity for customers. By customers, we mean the entrepreneurs and developers, and this is another space we are operating in and where we should deploy more efforts or greater efforts.
By that, I mean we'll try to help these entrepreneurs and these developers to better serve their customers with more productivity and better applications, so that they can run their tasks, their everyday tasks more quickly and more effectively. These are a few of the products we have in mind for BeOnline. These are things that we still have sort of in the back burner, but which at some point we will begin to explore and to roll out to the market at large. Just to sum up, this is a space that we look to very fondly, and we're still trying to bring more innovation. There's also another part that we're trying to structure and to roll out. We see a lot of great opportunity for us to start playing in different positions. This is definitely a space that we plan to put more efforts into.
Amazing. Just following up on that, do you understand that this can be a reality for the second half of the year, or are we thinking more medium term?
I think this is more of a medium-term prospect, Maria. We're always concerned about rolling out products that will add value. One thing that's always been on our minds is to place our products really well. For example, Locaweb Cloud is a product that we spent close to 17 months developing.
We're a lot more concerned about serving our over 300,000 clients on our BeOnline unit well and to actually create an ecosystem that will not fracture this great reputation that we've built in the market to the benefit of short-term gains. What we want is to maintain good profitability for that market while we can maintain and cultivate the reputation that we have built over time. With that in mind, what we're thinking is to have all of those things in the market in the medium term.
That was perfectly clear. Thank you.
Our next question comes from Mr. Silvio Dória with Safra.
Good morning, everyone. Thank you for taking our questions. You've mentioned the number of new customers joining your base. Were these customers already part of your full GMV for the quarter, or should we expect part of that effect to pop up in coming quarters? My next question is specifically to Scarpa. If he could talk a little bit about the financial services, how they've been doing, what your prospects are for the year, the expected take rate developments for the year. Anything like that would be really helpful.
Good morning. This is Ale with Wake. Thank you for your questions. Well, we are now ramping up. We have several clients going up and growing, so we expect that to show in our GMV in the next few months. This is a natural process for the customers that are adopting the platform and their growth. We do expect to see some additional GMV for the next few months, yes.
Hi, Silvio. This is Marcelo Scarpa speaking. Thank you so much for participating in our conference. Well, I'll start talking about our financial services. I think that we have been in an operation that's very traction. We are now seeing the lowest chargeback rates on record, this is a very healthy operation. We're also seeing a difference in product mix, we are seeing a number of larger customers working with Wake, these are customers that work with a different installment payments dynamic. We are also seeing that in the take rates. We're also seeing a strong profitability and financial stability, especially when we think about financial expenses going from zero to five TPV in the year. A very strained payment operation, also very robust.
When we think about our credit, financial and credit operations on the digital account, this is a very complex regulatory environment. When you think about Brazil, there are a lot of complexities that we need to balance here. We are in a very significant journey when it comes to our product roadmap, and we're seeing accounts being activated every month. It's still a positive scenario and with a great room for growth. I'm seeing our digital accounts accelerating in a very impressive way. This is also an important source of credit modeling. This is something that we started working on in the first quarter of the year in a very conservative way.
We're still testing the waters with the public and conversion rates. We're very excited about the first crops and the first cohorts that we're working with. We are investing heavily on modeling with our internal information and the ecosystem. We have a wealth of data that we can use to model for credit. We are really leaning into how we can use all of that information to provide a more robust credit model. One thing we're working very hard this quarter is to see some evolution in our journey that's embedded into our ecosystems platforms. We can see in the future scaling up this product in a very substantial way across our platform. This is essentially what we have, and we're very excited about how we can monetize all of that in our financial services. You know, hold tight. We'll be talking about that in our next few conferences.
Thank you so much.
Our next question comes from Ms. Victoria Antonello with JP Morgan. Please, you can proceed.
Good morning, everyone. Thank you for taking my question. In your release, you mentioned a very interesting data about the [Xuberis] ecosystem GMV. We saw 15.9% growth year-over-year. Looking at the chart that you have provided, we also see a downward trend in the next few months. We also see the GMV still below what it was expected to reach at around 30%. What do you have to say about how this market is behaving, and how do you see it performing moving forward?
Hi, Victoria. Thank you for your question. This is William speaking. I wanted to add some color, especially for the SMBs, which are the most significant part of the ecosystem. When we look at these products, they have a very inherent relationship with these marketplaces. You mentioned a few, but we have a lot of integration. In addition to Shopee and Mercado Libre, we have several other marketplaces which are growing and leading this trend. When we look at the consolidated figure, we see lower growth than that being reported by those leading companies. We're seeing our business grow at the same pace as they're growing, so it's doing really well and is really healthy. We see that in a few quarters, we can actually outperform them, adding customers which are growing better because they're outpacing these platforms.
We are seeing the quality of our products with very gentle eyes. We are seeing the marketplace integration with Bling and Tray, and we've been able to keep up and often, as I said, outperform the market. However, when we look at that in consolidated terms, the number is a little bit lower. The important thing is that GMV is part of the entire packaging of our pricing. The better the client performs, the more direct and positive impact we have in growth and ARPU. The client often has to move to higher plans and to pay a little bit more according to the volume of their sales, and that has a very positive impact for us, which has to do with our LTV and the retention of those clients.
Clients which are selling well in marketplaces, they become more active, and they become more loyal. In addition to paying more, these are clients that will not fall into the mortality rates. It's very significant that we have these clients which are performing well in terms of GMV. Of course, there are fluctuations quarter-over-quarter, but we're seeing these figures in a very positive light.
Thank you so much.
Our next question comes from Mr. Gustavo Farias with UBS. Please, you may proceed.
Good morning, everyone. Thank you for taking my question, which is actually a follow-up on financial services. I just wanted to understand something. If you could talk a little bit about the TPV, the TPV growth that we saw in the quarter after some slowdown that we saw versus previous quarter. Is there any maybe seasonal effect that we should be looking to? Thank you.
Hi, Gustavo. Good morning. This is Marcelo Scarpa. Thank you for your question. Of course, there is a seasonal aspect when we look at the first quarter of this year, but we're actually seeing our TPV outgrow our own store GMV even. It's no source of concern for us. As I said, this is an operation that's very much thriving and that's in line with our preserved profitability. I don't know if you have anything to add, Rafa.
No, that's precisely it. I just wanted to add that transactional monetization is an important part of our revenue. As you saw, our subscription rate is growing at 19%, which shows the health of our operations and the complexity that our e-commerce has gained.
Of course, we talked a little bit about marketplaces, but we also mentioned the case of our integration with AI agents. Of course, managing this environment is complex and increasingly more so. The transactional part is a very important channel to monetize. As Scarpa mentioned, we are looking at other ways to monetize TPV and GMV transactions. Of course, the core is obviously in growing our subscription rates, which is what will allow us to grow our TPV and our financial services in a way that keeps up with how our customers are growing.
Thank you, everyone. With no further questions, the Q&A session is now closed. I will now return the conference to our CEO, Mr. Rafael Chamas, for his closing remarks.
Well, I'd like to thank all of you once again for joining our conference and wish everyone a great day. See you next time.
This concludes LWSA's Q1 2026 earnings conference. On behalf of the company, we would like to thank you for joining us and wish you a great day.