CVC Brasil Operadora e Agência de Viagens (CVCB3) Q1 2025 earnings summary

Executive summary

• Confirmed bookings rose 30% year-over-year to R$4.1 billion, with robust growth across B2C (+9%), B2B (+22%), and Argentina (+102%) segments; all business units expanded strongly.

• Opened 39 new stores in Q1 2025 (25 in Brazil, 14 in Argentina), surpassing pre-pandemic levels and reaching 1,523 total stores.

• Phygital sales model penetration reached 44% of B2C sales, driving higher conversion rates and average ticket values.

• Largest convention in company history aligned teams and partners for ambitious 2025 sales goals, with over 2,000 participants.

• Net loss reduced to R$7.4 million in Q1 2025, a 78% improvement year-over-year, approaching economic breakeven.

Financial highlights

• Net revenue increased 14.1% year-over-year to R$375.7 million, driven by higher sales in B2B and Argentina.

• Adjusted EBITDA grew 21.4% to R$104.7 million, with margin up 1.7 p.p. to 28.9%, nearing pre-pandemic averages.

• Adjusted net profit (cash profit) was R$24 million, nearly six times higher than Q1 2024.

• Net debt reduced to R$358.3 million (from R$490.3 million in 1Q24), leverage down to 0.9x EBITDA from 1.9x.

• Free cash flow consumption in Q1 was R$73.6 million, higher than Q1 2024 due to seasonality but lower than Q1 2023.

Outlook and guidance

• Continued growth expected in all business units, though not at Q1's magnitude, with focus on healthy take rates, cost reductions, and technology transformation.

• Franchise expansion into lower-density cities and continued investment in technology are key priorities for 2025.

• Argentina's economic recovery and new franchise openings signal positive momentum, with growth normalizing but above historical averages.