Earnings Call: Q1 2026

May 8, 2026

Summary

Q1 revenue, EBITDA, and net income declined amid macro and payroll-credit pressures, while Inter Seguros and Omni1 grew strongly. Net debt fell, and BRL 100.5 million in dividends was approved.

Good morning, everybody. Welcome to the Wiz call video conference regarding the results for the first quarter of 2026. For simultaneous translation, the tool is available via the globe icon labeled Interpretation, located at the bottom center of your screen. When selecting it, choose your preferred language, either Portuguese or English. For English listeners, there is an option to mute the original Portuguese audio. Just click on Mute Original Audio. After presenting the results, we will begin our Q&A session. To participate, simply send the question via the Q&A icon on the platform. Then it will be answered by the Wiz Co representatives with us. If your question is not answered during this video conference, the Investors Relations team will contact you later to address your concerns. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding Wiz's business, prospects, projections, operational and financial goals, constitutes beliefs and assumptions of the company's management and board, as well as information currently available to Wiz. Future considerations are not guarantees of performance if they involve risks, uncertainties, and premises, as they refer to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand the general conditions, industry scenarios, and other operating factors may affect Wiz's future results and could lead to results that differ materially from those expressed in such forward-looking statements. Now introducing the Wiz Co team present with us today. We have Mr. Lucas Neves, CEO and President, Investors Relations Director, and Mr. João Rezende, Investors Relations Manager. Now I will give the floor to Mr. Lucas Neves who will begin the presentation. Please, Lucas, you may go ahead. Welcome and good morning, ladies and gentlemen. We begin 2026 in a landscape that demands discipline and pragmatism. Precisely the two traits that best describe Wiz's performance in recent years. High interest rates and uncertainties in the macroeconomic environment are making Brazil's business scenario more challenging. At the same time, this combination of factors is nothing new, and we count on a solid foundation to navigate the turbulent waters. What's more, we believe that cycles of great volatility are inherent to the market, and the best-prepared companies, such as Wiz, can seize opportunities to create room for growth and strengthening. It was this readiness built on a track record of consistent results over the past few years that allowed us to significantly reduce our net debt to BRL 209 million in the first quarter of 2026, a decrease of BRL 178.7 million compared to the same period last year. This progress enabled the approval at the annual general meeting held in April 28th, a dividend payment of BRL 100.5 million in dividends divided between interim and additional dividends to be paid by December 31st, 2026. The amount is 2.5 times higher than what was paid in 2025. We know that the Brazilian business environment may experience fluctuations throughout this year. However, our financial strength and clear strategic planning will serve as tools to help us deliver satisfactory results throughout 2026. That is exactly what we will do without losing sight of our focus on delivery, ensuring that our actions always go hand-in-hand with the creation of long-term value. I would like to thank Wiz's who, relying on consistency and discipline, have ensured important deliverables that are steering Wiz decisively towards the future we want to build. I am also grateful to our customers, partners, and shareholders. Finally, I would like to personally thank Mr. Antônio Cássio dos Santos, former chairman of our board of directors, and Mr. Miguel Lingg Dos Santos, former member of our board, for their many years of dedication to our company. Both of them played a major role in the transformation Wiz has undergone in recent years and were key players in positioning us effectively towards the future we want to achieve. Now, I will begin the financial presentation with slide number 3, where I will discuss the main events and highlights, operation and strategic highlights for the period. Well, regarding the annual general meeting, I mentioned the early approval of BRL 100.5 million in dividends for the 2025 fiscal year. There were also changes to Wiz's governance structure. on April 28, 2026, the new members of the company's board of directors were elected. Previously composed of six standing members, the board will now have five directors and advisors. Two of them will be independent. Marcus Vinícius de Oliveira, who serves as Wiz's CEO until March 19 this year, will take the role of chairman of the board. I would like to highlight the performance of Inter Seguros with the first quarter of 2026, which was memorable, underscoring the unit's consistency in delivering strong results. Gross revenue reached for the first time the level of BRL 86.3 million, a figure 5.5% higher than the same period last year. EBITDA reached BRL 47 million, an 8.5% increase compared to Q1 2025. Net income was BRL 31.7 million, a 9.5% increase compared to Q1 2025, the best figure in the unit's history. To wrap up the slide, I would like to highlight the strong part of the year of the Omni1 unit. This unit achieved a gross revenue of BRL 46.1 million in the first quarter of the year, a 44.6% increase compared to the same quarter last year, and a 56.8% increase in EBITDA, closing the quarter in BRL 21.6 million. They show operations robust growth, with service sales totaling BRL 31.2 million for the quarter, 54.7% higher than Q1 2025. Moving on to slide 4, these are the financial highlights of the first quarter of 2026. We reported BRL 237.3 million in net revenue, a decrease of 8.4% compared to the first quarter of 2025. Excluding net revenue from the Caixa runoff, revenue totaled BRL 190.9 million, a decrease of 9.6% compared to the same period last year. This quarter, we saw growth in insurance revenue, a 4.5% increase compared to last year, totaling BRL 157.6 million in revenue. Also worth noting is the parent company's adjusted net income, excluding non-recurring effects related to changes in senior management, reached BRL 59.3 million, a result that is 0.5% higher than the first quarter of 2025. Now, on slide 6, we come to the summary of consolidated results. In Q1 2026, we achieved an EBITDA of BRL 152 million, a 15.3% decrease from the Q1 2026 due to macroeconomic challenges faced by our units. Moving to consolidated net income, where we reported a decrease of 13.6% compared to the same period last year, totaling BRL 72.7 million. The parent company's net income attributable to controlling shareholders reached BRL 39.7 million in the period, 14.6% lower than Q1 2026. On slide number seven, we observe the effects considered for our adjusted perspective. In this quarter, we made EBITDA adjustments totaling BRL 6.1 million, related to non-recurring severance costs associated with changes in senior management. These adjustments are expected to generate an estimated annualized savings of BRL 5.2 million over the next 12 months, resulting from the reduction of the board directors from six to five members and the impact of eliminating non-compete clauses in this structure. In net income with adjustment for depreciation, amortization, and impairment totaling BRL 21.6 million in the period, with expenses related to the amortization of intangible assets recognized with the acquisition of BRB Seguros, Promotiva, and other units. For income tax and social contributions, the amounts presented refer to tax effects of adjustments made in the D&A and impairment and financial results lines. Therefore, we ended the quarter with an adjusted net income of BRL 102.8 million, a result that is 5.1% lower compared to Q1 2026. Moving on to slide eight, we assess the composition of the parent company's earnings. In the first quarter of 2026, the parent company recorded BRL 67.2 million in EBITDA and BRL 73.3 million in EBITDA after adjusting for non-recurring effects related to changes in senior management, 11.1% lower compared to Q1 2025. This result was primarily impacted by the macroeconomic challenges faced during the quarter by the company's various business units, as reflected in the equity method item, or MEP. In Q1 2026, Wiz Controladora reported BRL 44.5 million in EBITDA, a result that was 18.1% or BRL 9.8 million lower than the report in Q1 2025. In net income, the holding company reported BRL 39.8 million in Q1 2026 and BRL 59.3 million on an adjusted basis, accounting for a 0.5% decrease compared to Q1 2025. Moving on to slide 10, we begin the presentation of unaudited results by segment. The reconciliation of segment results and consolidated results can be found in the earnings release. In the first quarter of the year, 80% of net revenue came from our current operations. The business units consolidated by Wiz in the insurance segment accounted for 66% of our current earnings. We continue to see strong trend towards diversification of earnings. This performance was only possible due to our focus on delivering the company's strategic goals. Moving on to slide 11, we continue to present operational performance of our segments. The first quarter of the year was marked by a still challenging environment for the Brazilian insurance market. The political and economic environment, with high interest rates and pressure on household income, impacted the production of mass market products. In this context, our business units recorded BRL 195 million in premiums written for the period, a decrease of 8.3% compared to Q1 2025. In net commission revenue, we registered BRL 157.6 million in the insurance segment, 4.5% higher than the same period of the previous year, with notable contributions from the units BRB Seguros, which added BRL 55.9 million, BMG Corretora with BRL 37.7 million, and Wiz Corporate with BRL 31.4 million. In terms of EBITDA, the segment recorded BRL 114.8 million, 8.8% lower than Q1 2025. Also noteworthy is the performance of Inter Seguros, with BRL 86.3 million in gross revenue, BRL 11.6 million of equity income into Wiz for the period. Now, in slide 12, we present units involved in the distribution of consortiums and credit, Promotiva and Wiz Parceiros. We achieved BRL 33.3 million in net revenue excluding commissions and credit consortium segments, a decrease of 18.1% compared to the same period last year, reflecting structural changes in payroll loan operations throughout the quarter. Our business units generated BRL 3.3 billion in Q1 2026, 7.5% lower than the same period of 2025. On slide 13, we present the Caixa Network runoff operation. In the first quarter of 2026, the Caixa Network runoff had results of revenue backlog related to sales made through February 14, 2021. During the quarter, this line added BRL 42.9 million in EBITDA to the company, a result that is 5.6% lower than the first quarter of 2025 due to a 3.3% reduction in revenue from the operation. On slide 14, let me highlight key points regarding the corporate segment's results and EBITDA. In Q1 2026, corporate general and administrative expenses totaled BRL 16 million, BRL 2.3 million higher than the first quarter of 2025 due to seasonal variations in expenses during the quarter compared to the prior year period. As for the below EBITDA, the results of -BRL 11.1 million presented under financial results in Q1 2026, an improvement of BRL 10 million compared to the first quarter of 2025, mainly explained by the reduction in present value adjustment of AVP expenses and a positive effect of BRL 2.9 million from foreign exchange variations on contracted derivative financial instruments. Finally, in the first quarter of 2026, we recorded an effective tax rate of 36.7%, primarily due to non-deductible expenses for the purpose of calculating corporate income tax and CSLL, our social contribution net income, such as present value adjustments and capital losses. Now, we ended the quarter with consolidated cash balance of BRL 370.2 million. The cash flow of -BRL 35.1 million for the period is primarily due to the payment of interest on debentures and dividends to non-controlling shareholders. The consumption of BRL 54.8 million in working capital in the first quarter of 2026 is mainly the result of the spends on accounts receivable and a one-time adjustment in the transfer of premiums from two insurance companies to be offset in the second quarter. In financing, the cash flow of BRL 23.2 million for the quarter is primarily due to interest payments on the company's second debenture issue. During the quarter, BRL 47.5 million were also disbursed in dividends to non-controlling shareholders of our subsidiaries. With that, we conclude the presentation and shortly begin our Q&A session. Thank you very much. Now, let me call Mr. João Rezende, who will start the Q&A session. I remind you that please submit your question using the Q&A icon on the platform, and then your question will be answered by the Wiz Co representatives. Mr. João, the floor is yours. Thank you. Good morning, everyone. Before anything, welcome to our Q&A. Welcome to make any questions. We have some questions here already. Let me start with William Barranjard from Itaú BBA. We have two questions to Lucas, and he asks about the new project, Desenrola, from changes in INSS and the impacts of Promotiva and Facílio business. Do you understand that initially this could generate a boost in revenue considering that excluding payroll cards, the margin will rise? William, thank you for your question. Super important in terms of businesses. We have two points. The margin for the next few years is for clients not to borrow so much money. The government is extending grace periods and time. So we decrease the potential of loans, and on the other hand, we create more room for growth. The fact that the government is not incentivizing payroll credits. Now we can sell a higher margin on this loan. So we do see an opportunity moving forward. In the past calls, our banking correspondent has worked with a little lower level in competitiveness. We're not as competitive in this product, in this banking corresponding channel, which represented 25% of Promotiva, but is now below that in the past few quarters. That due to this decrease in origination, we had this change from the conjecture standpoint. We are not so good in terms of INSS rates. It has been reduced in origination, but in the long run, this changing in INSS will be good for Promotiva. But it's important to say that there is a negative impact on BMG, a bank that would work with consignado payroll. It was a leader in the market in that segment. So there must be an increase in Promotiva, but also a reduction in BMG. Thank you, Rubens. That's great. That's great, Lucas. Thank you. There is another question from William Barranjard. Just a second. We have another question from William Barranjard. He wanted to ask about the expensive one-offs. Could you explain when we should start seeing the savings from this movement? Should they be expected from the second quarter on? It's a simple question. While the savings we had in terms of salaries and non-compete clauses, this appropriation is monthly. There is a savings in 12 months of BRL 5 million, and we must have one divided by 12. So we should capture 25% in the quarter, in the second quarter of this savings made in 2026. This will be an important point for us to achieve. We mentioned this in our previous call to deleverage with balance sheet. There was a positive highlight and also cost economies and cost savings will be two important drivers for our results this year. Thank you very much. Another question from Evandro Medeiros from Thinklass. He asked that the parent company has BRL 30.8 million in cash and equivalents and BRL 8 million in financial instruments in BRB. Is there any risks associated with this positions? Hello, Evandro. We have received dividends from BRB on the last day of March, and then we transferred this application to the bank we work with traditionally, which is another bank. So it's in the balance of the first quarter, but just for one day because it was the last day of the quarter, and then we transferred this money from the controlling company. Another question from Evandro. If possible, could you explore a little bit about the BMG Corretora's performance in this quarter? Evandro, that's an important point, and William has already mentioned it in his question. There was structural changes in our credit concession for retirees through INSS. There were changes in that. It's worse now than previous years, but it's too early for us to manage the impact because every week we have news. Last week, for example, there was a change in the payroll credit. Two weeks ago, there was a ceiling of private payroll loans. We believe this will be a hard year in terms of insurance and loans for the bank. I would like to tell you that as the card has less appetite, the focus of the bank will change to other credit lines, and we have to adapt our insurance strategy to this new credit line. At first, we think that the speed of changes would be slower, and then we would be able to offset a decrease of credit cards with other products. I think it'll be faster. The change will be faster. BMG will face a harder year in 2026, but anyway, we are excited about that because we will revisit the strategy of insurance products for the bank throughout this year. There's another question from Alexandre Assafi from Quarenta Clube. He asks: Which are the factors that could leverage the results of the companies in the next quarters that could offset the losses in BMG, for example? Lucas, could I introduce this a little bit? Well, Alexandre, we are a diversified business. We have 10 businesses connected to Squirrel. Some of them can oscillate, while others will have a more positive performance. In the previous quarter, Inter Seguros and Omni have great performances, and they have been growing in our business with great performance in insurance. They sell insurance products. We do have business that have gone through good performance. They can offset possible losses. Last year, let me remind you that we made our homework. We deleveraged the company, adjusted our structure, so we were more and more efficient, and that this allows us to work with this oscillating scenario, with a momentum that allows us to go through these moments. Now, with this positive wind moving the company ahead, with the new products we've been thinking about developing, not only for BMG and also many other business and efficiency, more and more, working strongly in the business of Wiz. The credit that is generated in each of these channels, and we have been prepared to go through any turbulence any of this channel may undergo. Just let me give you some figures. We must have a reduction in our corporate costs. We made our homework, and we are more efficient now, and the impact of these changes in the board will generate important savings. Another point is that we will go through an important change, maybe the main impact year-on-year here on our financial expenses. We have de-leveraged the company strongly in the past two years, and we are in a scenario of interest rate drop. I don't know how fast this will go, this interest rate decrease will go. We have election year, we have war on Iran, but you have to consider that for the market. The market is expecting interest rate reduction. When we decrease your debt, this coupled with this decrease, we'll have more scale economy to decrease our expenses. The third point is that we have several business, the corporate, our corporate insurance business. In interest rates, we have partners, Wiz Parceiros, that are increasing Inter with consistent performance as well as Omni, good results too. On one hand, our business power is highly diversified. We have been scaling many of them. The sum of this diversified model protects us. This may be a harder year for many of our units connected to INSS payroll loans. But with other units with good performance, deleverage and cost of administrative costs, these measures will defend our company. As interest rates decrease, this will also help us, not only in terms of administrative expenses, but we have more origination from banking partners. Leonardo Holman, investor. He asks about this. We have touched about that. He says that investment did not perform well this quarter. What could you attribute it to this result apart from the highlights? Well, João, I believe that, first of all, stemming from what I said before, we cannot generalize. We had a historic quarter for Inter and for Omni, so the reduction in our equity equivalence comes from a scenario in which we have some business included in the payroll market for retired people. We suffered. There were changes in rules. The government changed some of the rules in the first quarter. Some of the modalities were canceled by the government. They canceled some of these lines, and some changes hurt our progress. BMG, Parceiros, and Promotiva, especially. So three units suffered this impact. There was a deceleration of our performance. However, when we look at the bigger picture, the 2025 year was very strong, and when you look at the market, there's a deceleration of INSS affected the market as a whole. As interest rate decrease, people will take more and more credit. So part of this effect, negative effect, will be offset by a select change in interest rate, and maybe not in the short term as we expected, but as banks increase their participation in private payroll loans, which is a very important credit line, almost all banks are betting on that, are believing in that. This will be a priority line for 2026. As this line will scale and as banks will improve our penetration in insurance, this will offset the INSS decrease. Well, let me tell you that in this quarter, I look very specifically to the premium that was issued in total insurance. There was a reduction of 8%, approximately. But this is connected to specific units that are connected to the systems we just mentioned. BRB, we increased 7%, Wiz Corporate 3%, Omni advances in premiums too, a lot. So when we look at our business, we have worked precisely as those portfolios that are well-diversified and are ready to face difficult times, in one and another line, because we have some lines that have good performance and can offset the scenario. There's another question here from Alexandre Passos. He says that the press talks about BRB and the scenario of possible federalization of BRB, this bank. He asks, "What will be the impact for Wiz in such case?" Well, Alexandre, thank you for your question. There are some important points here to talk about BRB. As you've seen in this quarter's results, our daily business in our bank and the main insurance products, they follow a normal route. We have some growth. In our routine, in our portfolio, we have some level of normalcy. When we talk about the financial health of this bank and what we see in the press, we are very careful about that. This is important for Wiz. This makes us think about possible scenarios. We are confident that the bank will find a solution, will find a way out. We have an operation of insurance in this bank, but we are still confident that the bank will be able to find a positive outcome for this capital management. This change should not reduce the results. With that, we wrap up our Q&A session. We remain available to address any of your concerns. We hope you have a wonderful day.