Grupo Casas Bahia (BHIA3) Q2 2025 earnings summary

Executive summary

• Achieved seventh consecutive quarter of EBITDA margin improvement, reaching 8.3% in Q2 2025, with significant operational and financial progress, including a BRL 1.6 billion debt-to-equity conversion and a 40% reduction in net debt, strengthening capital structure and governance.

• Mapa Capital, via Domus Participações, now holds 85.5% of shares, reinforcing governance and management stability.

• GMV grew 7.6% year-over-year to R$10.5 billion, with gains across all channels, including 16.2% growth in marketplace (3P) GMV and market share increases in all categories.

• Free cash flow reached R$173 million in Q2 2025, up 88% year-over-year, and liquidity improved to R$3.0 billion.

• Buy Now, Pay Later (BNPL) portfolio reached R$6.2 billion, with 12% growth and stable NPL rates below market averages.

Financial highlights

• Net revenue for Q2 2025 was R$6.87 billion, up 6% year-over-year; gross profit R$2.07 billion (+3.8% y/y); gross margin 30.1%, slightly down due to sales mix.

• Adjusted EBITDA reached R$572 million, up 26.5% year-over-year, with margin rising to 8.3%.

• EBIT margin rose to 4.1%, a 232% year-over-year increase; adjusted net loss for Q2 2025 was R$423 million.

• SG&A expenses decreased by up to 2.9% year-over-year, improving to 22.8% of net revenue.

• Free cash flow improved to R$173 million, with lowest Q2 legal disbursements in 6 years.

Outlook and guidance

• Transformation Plan remains on track, focusing on operational efficiency, AI-driven dynamic pricing, digitalization, and profitable growth in core categories.

• Expect continued gradual growth in physical stores, margin gains in digital channels, and further BNPL penetration.

• Targeting 90% renewable energy use by year-end 2025 across all operations.

• Conservative approach to credit expansion until macroeconomic conditions improve.