Allied Tecnologia (ALLD3) Q2 2026 earnings summary

Executive summary

• Net revenue reached R$1,458.3 million in 2Q26, up 4.7% year-over-year, marking the highest second quarter since 2023, driven by strong performance in Brazil Distribution (+8.6%) and Physical Retail (+11.7%).

• Gross profit rose 14.0% to R$170.5 million, with margin expanding 1.0 p.p. to 11.7%, reflecting a more profitable channel mix and commercial discipline.

• EBITDA increased 37.0% to R$73.8 million, with margin at 5.1% (+1.2 p.p.), and net income more than doubled to R$36.6 million (+130.8% y/y), supported by operational efficiency and disciplined cost control.

• Strong operating cash generation resulted in free cash flow of R$123.6 million in 2Q26 and a cash position of R$348.8 million at quarter-end.

• Strategic partnerships and new exclusive distribution agreements with Targus, Jamf, Starlink, and Meta expanded the product portfolio and strengthened B2B and retail channels.

Financial highlights

• Consolidated net revenue: R$1,458.3 million in 2Q26 (+4.7% y/y); gross profit: R$170.5 million (+14.0% y/y); gross margin: 11.7% (+1.0 p.p. y/y).

• EBITDA: R$73.8 million (+37.0% y/y); EBITDA margin: 5.1% (+1.2 p.p. y/y).

• Net income: R$36.6 million (+130.8% y/y); net margin: 2.5% (+1.4 p.p. y/y).

• Free cash flow: R$123.6 million in 2Q26; FCF yield (LTM): 55.2%; cash position: R$348.8 million; net debt: R$43.5 million (0.2x LTM EBITDA).

• ROIC (LTM): 20.4%, exceeding Brazil's Selic rate by 6.1 p.p., highest since 1Q22.

Outlook and guidance

• Management expects continued strong performance in the second semester, with key events like Black Friday and major product launches, while remaining cautious due to domestic economic uncertainties and sector challenges.

• Strategic focus on growth initiatives with high return on capital, leveraging logistics, credit discipline, and operational structure.

• Continued focus on profitability growth, cash generation, and leveraging new partnerships and refurbished device sales.