Allied Tecnologia S.A. (ALLD3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 6.3% year-over-year in 2Q25, reaching R$1,392.9 million, driven by 13% growth in Brazil Distribution and 23% in Digital Retail, with Trocafy tripling sales versus 2Q24.

• Net income for 2Q25 was R$15.9 million, stable year-over-year, with adjusted EBITDA of R$53.8 million (3.9% margin) and LTM adjusted EBITDA of R$205 million.

• Major cash inflow from sale of tax credits (Lei do Bem), with R$890 million in credits recognized and over R$300 million net cash received.

• Strategic focus on digital channels, B2B/B2C partnerships, and geographic expansion, including international distribution up 96% sequentially.

• Sale of 12 Paraná stores for R$18 million to streamline operations and focus on core regions.

Financial highlights

• Q2 revenue up 6.3% year-over-year; Brazil Distribution up 12.8%, International Distribution rebounded to R$305 million.

• Adjusted Net Income: R$16 million in 2Q25, up 2.1% year-over-year; Adjusted EBITDA: R$53.8 million, margin 3.9%.

• Gross profit for 2Q25 was R$149.5 million, gross margin 10.7% (-1.5 p.p. year-over-year); retail channels maintained higher margins (23.8%).

• Dividend yield projected at 24.8% for the year, with R$69.7 million Interest on Equity to be paid in August 2025.

• Cash and equivalents at R$237 million at quarter-end; net debt at R$217 million, net debt/EBITDA at 1.1x.

Outlook and guidance

• Strategic plan emphasizes international and portfolio expansion, new product categories, and expertise in operating strategic programs.

• Focus on growth and profitability through refurbished products (Trocafy), international expansion, and strategic B2C/B2B partnerships.

• Continued investment in digital retail and software sales.

• Key sales periods expected in H2: Black Friday and new iPhone launches.

• Management expects to utilize tax credits from a favorable court decision over a five-year period.