Grupo Multi (MLAS3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$929.7 million in 2Q25, up 21.7% from 1Q25 and 5.1% year-over-year, driven by recurring operations and product line growth.

• Gross margin improved to 24.9%, a 1.2 percentage point increase from 1Q25 and 2.9 p.p. higher than 2Q24, reflecting operational efficiency and structural adjustments.

• EBITDA was R$30.8 million, up 460.2% from 1Q25 and 3.6% from 2Q24, with margin at 3.3% (4% excluding one-off restructuring costs).

• Net income for Q2 was R$19.8 million, reversing a loss of R$52.2 million in 2Q24 and a BRL 64 million loss in Q1.

• Operational cash flow generation reached R$64.9 million, with cash and equivalents rising to R$498.9 million and net debt reduced by R$58.4 million.

Financial highlights

• Net revenue: R$929.7 million (+21.7% vs. 1Q25, +5.1% vs. 2Q24).

• Gross profit: R$231.1 million (+27.5% vs. 1Q25, +19.0% vs. 2Q24).

• EBITDA: R$30.8 million (+460.2% vs. 1Q25, +3.6% vs. 2Q24).

• Net income: R$19.8 million, reversing a loss of R$52.2 million in 2Q24.

• Operating cash flow: R$64.9 million; cash and equivalents at R$498.9 million; net debt at R$157.9 million.

Outlook and guidance

• Management expects further gross margin and EBITDA margin improvement in the second half, targeting EBITDA margin above 4% and approaching 5%.

• Focus on maintaining expense discipline, optimizing working capital, and reducing inventory days.

• Plans to re-profile debt and structure a Receivables Investment Fund (FIDC).

• Corporate segment growth and online direct-to-consumer sales are expected to offset retail headwinds from high interest rates.

• Continued focus on value creation, efficiency gains, and capital allocation.