Allied Tecnologia S.A. (ALLD3) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was R$1,159.4 million, down 3.1% year-over-year, mainly due to a 50.5% decline in international operations, partially offset by 3.9% growth in Brazil, especially in Online and Distribution channels.

• Gross profit increased 7.9% year-over-year to R$158.0 million, with gross margin expanding 1.4 p.p. to 13.6%, driven by a more profitable channel mix and higher contribution from Brazil.

• Recurring EBITDA rose 16.1% year-over-year to R$58.6 million, with margin up 0.8 p.p. to 5.1%, reflecting operating improvements and cost discipline.

• Recurring net income surged 63.9% year-over-year to R$24.7 million, supported by improved operating and financial results.

• Maintained strong liquidity with R$290.4 million in cash and net debt at R$141.8 million (0.6x LTM EBITDA).

Financial highlights

• Net revenue: R$1,159.4 million (-3.1% YoY); Brazil: R$1,082.6 million (+3.9% YoY); International: R$76.8 million (-50.5% YoY).

• Gross profit: R$158.0 million (+7.9% YoY); gross margin: 13.6% (+1.4 p.p. YoY).

• Recurring EBITDA: R$58.6 million (+16.1% YoY); margin: 5.1% (+0.8 p.p. YoY).

• Recurring net income: R$24.7 million (+63.9% YoY); net margin: 2.1% (+0.9 p.p. YoY).

• Operating cash flow: -R$28.2 million, reflecting seasonal cash consumption and shareholder remuneration.

Outlook and guidance

• Focus on sustainable growth through expansion of the refurbished products vertical (Trocafy), B2C partnerships, and B2B portfolio.

• Strategic initiatives aim to reinforce diversification, profitability, and recurring revenue.

• Management continues to monitor the impact of Brazil's ongoing tax reform, with no current financial statement impact but ongoing scenario analysis.

• Expects strong demand in Brazil, especially with World Cup-related sales and government stimulus.

• Miami supply constraints are expected to ease, with normalization underway.