Lojas Quero-Quero (LJQQ3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 3% year-over-year in Q2 2025 to BRL 761 million, with 6 new stores opened, totaling 579 stores and 382,000 sq. m. of sales area across 491 cities.

• Same-store sales declined 3.5% in Q2 2025 due to a high comparison base from 2024 flood recovery in Rio Grande do Sul.

• Financial services and credit card segments posted strong revenue growth, offsetting retail softness.

• Maintained strong cost discipline and continued expansion in small towns, with 85% of stores in towns under 100,000 inhabitants.

• Adjusted net loss was BRL 29.6 million in Q2 2025, with an adjusted net margin of -4.4%.

Financial highlights

• Gross profit for Q2 was BRL 216 million, with gross margin at 32.7%, down from 33.7% in Q2 2024.

• Adjusted EBITDA was BRL 2.9 million in Q2 2025, with an adjusted EBITDA margin of 0.4%, down 1.5 p.p. year-over-year.

• Retail sales grew 7% year-to-date, surpassing BRL 1 billion.

• Financial services revenue increased 14% in Q2 and 13% year-to-date.

• Credit portfolio grew 18% year-over-year, with VerdeCard overdue portfolio at 11.7%, below the prior year.

Outlook and guidance

• Expect improved financial services margins after Q3 as funding cost adjustments take effect.

• Anticipate stronger results in Q3 and Q4, with August being a key sales month due to company anniversary promotions.

• Plan to continue store expansion, focusing on cash flow and maintaining debt levels aligned with previous years.

• Strategic focus remains on market share gains, credit excellence, operational efficiency, digital/phygital sales, and high-performance culture.

• Cautions on forward-looking statements due to economic and industry uncertainties.