Betterware (BWMX) Q3 2025 earnings summary

Executive summary

• Net revenue grew 1.4% year-over-year in Q3 2025, with EBITDA up 22% and margin expanding 362 basis points to 21.4%.

• Profitability and cash flow improved across all business units, despite soft consumer demand in Mexico and the U.S.

• Jafra Mexico led growth with a 7.9% revenue increase and 31% EBITDA growth, while Betterware Mexico's revenue declined 5.3% but profitability improved.

• Jafra US stabilized after previous declines, achieving its best month in three years and 30% year-over-year revenue growth in September.

• International expansion continued, with Betterware Ecuador and Guatemala showing strong growth and plans to launch in Colombia in early 2026.

Financial highlights

• Q3 2025 net revenue: $3,377M MXN (+1.4% YoY); EBITDA: $722M MXN (+22% YoY); net income: $314M MXN (+71% YoY).

• Gross margin expanded to 68.5% (+158 bps YoY); EBITDA margin rose to 21.4% (+362 bps YoY).

• Free cash flow reached $554M MXN (+32.6% YoY), representing 77% conversion of EBITDA.

• Net debt/EBITDA improved to 1.80x from 1.97x in Q2 2025, with a target of 1.6x by year-end.

• Board approved MXN 200 million dividend, marking the 23rd consecutive quarterly dividend.

Outlook and guidance

• Management expects full-year 2025 revenue and EBITDA growth in the 1–5% range.

• Inventory targeted to close 2025 at MXN 2,100 million, down from MXN 2,500 million at the start of the year.

• Plans to launch Betterware in Colombia in early 2026 to expand Latin American presence.

• Strategic focus on five pillars: Mexican market leadership, regional expansion, new brands/categories, digital transformation, and financial discipline.

• Ecuador operations projected to reach $80M revenue by FY 2026, with 21% month-over-month growth.