Allied Tecnologia (ALLD3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$1,197.1 million in Q1 2025, down 15.6% year-over-year, mainly due to a 62.6% drop in international sales, while Brazil operations grew 3.8% over Q1 2024.

• Gross profit was R$146.4 million, with a gross margin of 12.2%, up 0.4 percentage points year-over-year, reflecting a focus on profitability amid lower demand.

• Net income was R$15.1 million, down 69.9% year-over-year, with adjusted EBITDA at R$50.5 million and margin of 4.2%.

• Brazil distribution outperformed the market, with smartphone sales up 20% in value and market share rising by 1.1 percentage points to 9.1%.

• Trocafy, the refurbished device platform, saw revenue triple year-over-year, highlighting growth in the reconditioned segment.

Financial highlights

• Consolidated net revenue was R$1,197.1 million (-15.6% YoY); Brazil: R$1,041.8 million (+3.8% YoY); International: R$155.4 million (-62.6% YoY).

• Gross profit: R$146.4 million (-12.8% YoY); gross margin: 12.2% (+0.4 p.p. YoY).

• Adjusted EBITDA: R$50.5 million (-14.3% YoY); margin: 4.2% (+0.1 p.p. YoY).

• Net income: R$15.1 million (-69.9% YoY); net margin: 1.3% (-2.2 p.p. YoY).

• Net debt reduced by 31% YoY to R$140.4 million (0.7x LTM EBITDA); cash position at R$338.1 million.

Outlook and guidance

• Strategic focus on profitability, cost control, and market share expansion in Brazil, with continued investment in refurbished products and B2C/B2B partnerships.

• Expectation of stable prices in international operations after adaptation to new US tariffs.

• Inventory and working capital expected to normalize in the next two quarters, with a focus on efficiency and profitability.