Grupo Casas Bahia (BHIA3) Q1 2026 earnings summary

Executive summary

• Achieved record free cash flow of R$852 million in Q1'26, up R$1.2 billion year-over-year, and significant deleveraging with net debt reduced by R$2.7 billion (68%) to 0.5x leverage.

• Online GMV grew 14.6% year-over-year, with total GMV reaching R$11.2 billion (+5.0% y/y) and 1P online GMV up 27.4%.

• Adjusted EBITDA was R$597 million (+4.7% y/y), with an 8.1% margin.

• Net loss widened to R$1.1 billion, mainly due to higher financial expenses from increased interest rates.

• Partnerships with Amazon and Shopee, and expansion of omni-channel, retail media, and AI-driven productivity initiatives to drive future growth.

Financial highlights

• Net revenue reached R$7.4 billion, up 6.1% year-over-year, with gross profit at R$2.2 billion and gross margin at 30.3%.

• Free cash flow improved by R$851 million, reversing a cash consumption of R$(322) million in Q1'25.

• Net financial expenses increased 27% to R$1.2 billion, reflecting higher CDI rates.

• SG&A/revenue improved by 0.1 p.p. year-over-year, with SG&A expenses at 23.0% of net revenue.

• Take rate increased from 12.7% to 13.0% year-over-year.

Outlook and guidance

• Expect continued digital growth to outpace physical stores, with focus on credit expansion, buy now pay later products, and leveraging AI for operational efficiency.

• Full impact of new capital structure expected in 2027, with significant improvements in financial expenses and profitability anticipated in the second half of 2026.

• Inventory build-up in Q1'26 positions the company to capture sales opportunities in Q2'26, especially around the FIFA World Cup.

• Strategy includes monetization of assets, optimization of inventory turnover, and extension of supplier terms.