Allied Tecnologia (ALLD3) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q26 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.

• Profitability improved significantly, with recurring EBITDA up 16.1% to R$58.6 million and recurring net income up 63.9% to R$24.7 million, supported by gross margin expansion and disciplined cost control.

• Online retail and refurbished device initiatives (Trocafy) showed robust growth, with Trocafy expanding sales channels, partnerships, and market share.

• The company maintained strong liquidity, ending the quarter with R$290.4 million in cash and net debt at R$141.8 million (0.6x LTM EBITDA).

• Interim financials were reviewed by Deloitte with no material modifications required.

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); basic EPS: R$0.2578.

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

Outlook and guidance

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

• Management continues to monitor the impact of Brazil's ongoing tax reform and sector challenges, with ongoing scenario analysis.

• Strategic initiatives aim to reinforce diversification, profitability, and recurring revenue, leveraging logistics and financial discipline.