Empreendimentos Pague Menos (PGMN3) Q2 2026 earnings summary

Executive summary

• Achieved record profitability in 2Q26, with EBITDA margin at 6.5% and net income up 22.2% year-over-year, driven by strong same-store sales, operational leverage, and strategic execution.

• Same-store sales grew 8.0%, outpacing inflation by 3x, and market share increased to 6.7%, marking the 11th consecutive quarter of above-market growth.

• Digital channel sales exceeded R$1 billion, up 40.6% year-over-year, now representing 24.1% of total sales, with active client base reaching 22.6 million.

• Recognized as one of the top 10 retail companies to work for in Brazil, emphasizing a people-centric culture and community engagement.

Financial highlights

• Gross revenue grew 9.3% year-over-year in Q2 2026 to R$4.34 billion, with a three-year CAGR of 14%.

• Adjusted EBITDA rose 15.4% year-over-year to R$281.7 million, with margin at 6.5%.

• Net income increased 22.2% year-over-year in Q2, with EPS at R$0.51.

• Operating cash flow reached R$188.8 million for the quarter and R$573.4 million over the last 12 months, up 3x year-over-year.

Outlook and guidance

• Store openings expected to accelerate as deleveraging continues, with investments in logistics and technology supporting future growth.

• Expecting normalization of gross margin pressures and inventory build-up from new distribution center by end of 3Q26.

• Strategic focus on market share growth, private label expansion, and continued digital channel improvements.