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Valid Soluções (VLID3) investor relations material

Valid Soluções Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Net revenue for 2Q25 was R$490–501 million, down 5% year-over-year, with EBITDA at R$92–104 million, a 29% decrease year-over-year.

  • New businesses grew 50% year-over-year, now contributing 17% of total revenue and 38% of EBITDA, with annualized revenue surpassing R$320 million.

  • Net income for 2Q25 was R$55 million, with EPS at R$0.70 for the quarter and R$1.63 for 6M25.

  • Mobile segment showed strong recovery, offsetting declines in Pay and supporting investments in new business ID.

  • R$75 million in interest on equity/dividends paid YTD, with an additional R$61 million distribution announced.

Financial highlights

  • EBITDA margin for 2Q25 was 18.7–19%, down from 24.9–25% in 2Q24.

  • 6M25 EBITDA was R$196 million, a 20% decrease year-over-year.

  • Net cash position at quarter-end was R$49 million; net debt/EBITDA at -0.1x.

  • Operating cash flow conversion remained strong, with 70–73% EBITDA-to-cash for the quarter/semester.

  • Gross margin for 2Q25 was 32.3%, down from 36.6% in 2Q24.

Outlook and guidance

  • Management expects continued strong growth in new businesses, especially in digital government and onboarding.

  • ID vertical is projected to maintain double-digit growth, offsetting declines in traditional document issuance.

  • Focus on expanding new business revenue, digital portfolio, and operational efficiency.

  • CapEx is expected to rise to 5% of revenue to support technology and talent investments.

  • R$85 million allocated for acquisitions in 2025, supporting organic and inorganic growth.

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Frequently asked questions

Valid Soluções S.A. is a Brazil-based company that provides secure identification and digital solutions. The company operates in segments including ID and printing solutions, digital certification, and payment and mobile solutions. It offers products such as ID cards, driver's licenses, smart cards, SIM cards, and digital identification systems, serving both public and private sector clients. Valid also supports digital transformation initiatives through authentication and data security technologies. The company is headquartered in Rio de Janeiro, Brazil, and its shares are listed on the B3.

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