B3 - Brasil, Bolsa, Balcão (B3SA3) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 saw total revenues reach R$2,951.7 million, up 10.6% year-over-year, with strong growth across all segments and a diversified business model, despite a significant one-off negative tax impact of approximately BRL 1 billion related to deferred taxes on goodwill amortization.

• Recurring net income for 4Q25 was R$1,464.3 million, a 21.9% increase year-over-year, and recurring EPS rose nearly 30% to R$0.29.

• Recurring EBITDA for 4Q25 was R$1,829.7 million, up 14.5% year-over-year, with a margin of 69%.

• Diversified business model with strong growth in non-equities segments, supported by operational improvements and new product offerings.

• Excluding extraordinary tax and non-recurring IOC effects, net income would have reached BRL 1.4 billion, up 22% year-over-year.

Financial highlights

• Distributed BRL 1.5 billion in non-recurring IOC, partially offsetting the deferred tax impact; BRL 4 billion in IOC remains to be distributed in coming years.

• Adjusted expenses increased 4.7% year-over-year, in line with inflation.

• Cash and financial investments at year-end totaled R$17,913 million, with gross indebtedness at 2.1x recurring LTM EBITDA.

• Adjusted net cash from operating activities in 2025 was R$7,386 million, with R$3,269 million returned to shareholders via dividends and buybacks.

• ADTV in equities reached BRL 26.2 billion, up 2% from 4Q24 and 20% from 3Q25; January and February 2026 continued the positive volume trend, driven by international investors.

Outlook and guidance

• Management expects continued positive trends in ADTV and volumes into 2026, with optimism for further growth in derivatives due to new product launches, potential market volatility from elections, and possible interest rate cuts.

• Double-digit growth is anticipated in non-cyclical business lines, such as data, technology, and OTC, supported by recurring revenues and new product launches.

• 2026 guidance: adjusted expenses of R$2.4–2.6 billion, CAPEX of R$260–350 million, revenue-linked expenses of R$510–660 million.

• Financial leverage target maintained at up to 2.2x gross debt/EBITDA; payout ratio guidance of 90–130%.

• Social Contribution tax rate will increase by 3% from April 2026, with another 3% hike in 2028; prior IOC benefits will help offset the short-term impact.