Grupo Casas Bahia (BHIA3) Q2 2025 earnings summary

Executive summary

• Achieved seven consecutive quarters of EBITDA margin improvement, reaching 8.3% in Q2 2025, with a 40% reduction in net debt following a BRL 1.6 billion debt-to-equity conversion, strengthening capital structure and governance.

• GMV grew 7.6% year-over-year, driven by gains across all channels, with market share increases in both physical stores and e-commerce.

• Free cash flow reached BRL 173 million in Q2 2025, up 88% year-over-year, and liquidity improved by BRL 500 million.

• Buy Now, Pay Later (BNPL) portfolio reached BRL 6.2 billion, with stable NPL rates below market averages despite macroeconomic headwinds.

• Transformation Plan focused on digitalization, operational efficiency, and core category growth continues to drive performance.

Financial highlights

• Net revenue for Q2 2025 was BRL 6.87 billion, up 6% year-over-year; gross profit was BRL 2.07 billion, with a margin of 30.1%.

• Adjusted EBITDA reached BRL 572 million, up 26.5% year-over-year, with margin at 8.3%.

• Free cash flow improved to BRL 173 million, with lowest Q2 legal disbursements in six years.

• SG&A expenses reduced by almost 3% nominally, improving to 22.8% of net revenue.

• Adjusted net loss for Q2 2025 was BRL 423 million, a 10.1% improvement year-over-year.

Outlook and guidance

• Continued focus on operational efficiency, AI-driven dynamic pricing, digitalization, and profitable growth in core categories.

• Gradual growth expected in physical stores, with digital channels gaining margin and BNPL penetration.

• Conservative approach to credit expansion and risk management until macroeconomic conditions improve.

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