B3 - Brasil, Bolsa, Balcão (B3SA3) Q1 2025 earnings summary

Executive summary

• Total revenues reached R$2.7 billion in 1Q25, up 7.7% year-over-year, driven by growth in Derivatives, Fixed Income and Credit, and Securities Lending, offsetting a decline in Equities revenues.

• Net income rose 16.5% to R$1.1 billion, with EPS up 24.5% to R$0.21, reflecting share buybacks.

• Recurring EBITDA grew 5.5% year-over-year to R$1,660.2 million, with a margin of 69.5%.

• New revenue segmentation was implemented to better align with growth strategy.

• Active capital return strategy with R$786.5 million distributed to shareholders in 1Q25, including buybacks and interest on capital.

Financial highlights

• Net revenues were R$2,388.0 million, up 7.5% year-over-year.

• Expenses fell 10.6% year-over-year, mainly due to the end of Cetip goodwill amortization; adjusted expenses rose 8.5% due to higher personnel and data processing costs.

• Financial result was R$15.6 million, down 65.6% year-over-year, impacted by FX and higher debt.

• Gross indebtedness was 2.2x recurring LTM EBITDA, with gross debt at R$14.9 billion.

• Cash and financial investments stood at R$17.1 billion at quarter-end.

Outlook and guidance

• Management highlights ongoing strategy to diversify revenues, expand in adjacent areas, and invest in technology and product innovation.

• New product launches in indices options and fixed income indices to drive future growth.

• Expense growth is tracking within guidance, with inflationary pressures being managed.

• Revenue-linked expenses, especially incentives for Bitcoin Futures, are expected to remain within guidance for the year.

• Management sees more upside than downside risk for trading volumes based on recent trends.