Locaweb Serviços de Internet (LWSA3) Q2 2026 earnings summary

Executive summary

• Net operating revenue grew 8.2% year-over-year to R$375.2 million in 2Q26, with Commerce segment up 12.4% and Platform Subscription revenue up 14.0%, driven by subscriber growth and ARPU expansion.

• Adjusted EBITDA reached a record R$102.5 million (+35.1% vs. 2Q25), with margin at 27.3%, the highest in 24 quarters.

• Free cash flow for 1H26 was R$137.2 million (+51.4% vs. 1H25), with an 18.6% FCF margin.

• Adjusted net income for the quarter was R$65.7 million, up 48.7% year-over-year.

• Commerce segment outperformed the market, growing 12.4% vs. 6.8% for Brazilian e-commerce.

Financial highlights

• Ecosystem GMV grew 15.2% year-over-year in 2Q26 to R$20.3 billion; Payments TPV increased 13.0% to R$2.3 billion.

• Consolidated gross profit rose 5.3% year-over-year to R$186.5 million; gross margin expanded 1.9 p.p. to 49.7%.

• Adjusted EBITDA margin improved to 27.3% (up 5.4 p.p. year-over-year); Commerce segment margin at 27.7%.

• Cash and cash equivalents ended at R$314.5 million (+13.4% vs. 2Q25); net cash position maintained.

• Shareholder return in the last 12 months totaled R$199.3 million via dividends, capital reduction, and share buyback.

Outlook and guidance

• Continued focus on growing the subscriber base, ARPU expansion, and reinvesting in scalable, profitable products.

• Margin improvements expected to be sustainable, with ongoing portfolio optimization and efficiency gains from AI and automation.

• No formal margin guidance, but historical levels around 27% are seen as achievable sooner than expected.

• Strategic repositioning of Bling to a complete business platform aims to expand addressable market, focusing on middle-market clients with higher ARPU.

• Macroeconomic headwinds in retail and e-commerce expected to persist into Q3, but customer base growth remains strong.