Grupo Casas Bahia (BHIA3) Q3 2025 earnings summary

Executive summary

• Achieved eight consecutive quarters of EBITDA margin and operational improvement, reaching 8.5% in Q3'25, with consistent profitability growth and execution of the Transformation Plan.

• GMV grew 8.5% year-over-year to R$10.5 billion, driven by both brick-and-mortar and e-commerce channels.

• Strategic partnership with Mercado Livre launched to expand digital presence, logistics, and credit solutions, already contributing to incremental sales and margin improvements.

• Transformation Plan since August 2023 continues to yield advances in capital structure, operational cash generation, and cost discipline.

• Early conversion of R$1.6 billion in debentures reduced corporate debt and resulted in a new controlling shareholder with 85.5% equity interest.

Financial highlights

• Net revenue for Q3'25 was R$6.87 billion, up 7.3% year-over-year; consolidated gross revenue reached R$24.7 billion, up 7.7%.

• Gross profit reached R$2.06 billion with a 30% margin, though gross margin declined 1.6 p.p. due to channel mix.

• Adjusted EBITDA for Q3'25 was R$587 million (margin 8.5%), up 19.6% year-over-year.

• Free cash flow reached R$488 million in Q3'25 and R$1.6 billion over the last 12 months; liquidity at quarter-end was R$3.0 billion.

• EBIT margin increased to 4.1% from 2.8% YoY; net loss for the nine-month period was R$1.46 billion, with a net margin of -7.0%.

Outlook and guidance

• Focus on sustained growth, profitability, and operational efficiency through digital expansion, credit solutions, and Transformation Plan execution.

• Ready for strong Q4 seasonality and Black Friday 2025, with well-supplied stores, integrated marketing, and omnichannel strategy.

• AI-driven pricing system fully implemented online and to be rolled out in physical stores to improve margins and competitiveness.

• Conservative approach to credit and capital allocation, with readiness to accelerate growth when macro conditions improve.