Lojas Quero-Quero (LJQQ3) Q2 2026 earnings summary

Executive summary

• Operations evolved consistently with expectations despite a challenging macroeconomic environment and high cost of capital.

• Same-store sales grew 6.7% in 2Q26, with total revenue up 9.7% year-over-year, reflecting gradual operational recovery and strategic focus on customer value and credit quality.

• Opened 3 new stores in 2Q26, ending the quarter with 576 stores across five states, and continued investment in leadership development and operational efficiency.

• Digital sales accounted for 23% of total sales, reflecting a strong omnichannel approach.

• Business model integrates retail, financial services, and a proprietary credit card platform, with mapped potential to expand to over 900 cities.

Financial highlights

• Gross revenue reached R$834.5 million (+9.7% YoY) in Q2 2026; net operating revenue was R$726.3 million (+8.8% YoY).

• EBITDA was R$32.6 million (+12.6% YoY); adjusted EBITDA was R$2.1 million (-28.0% YoY).

• Net loss was R$51.2 million in 2Q26, with an adjusted net loss of R$30.3 million after excluding non-recurring items.

• Gross margin over net revenue was 29.7% (down 2.6p.p. YoY); net margin was -7.0%.

• Financial services and credit card revenues posted double-digit growth, with VerdeCard net interest-bearing portfolio up 15.1% YoY.

Outlook and guidance

• Management expects gradual and consistent operational improvement throughout 2026, focusing on cash flow generation, credit portfolio quality, and disciplined capital allocation.

• Store opening guidance for 2026 is up to 10 new stores; 5 were opened in the first half.

• Cash generation is expected to improve in the second half, following historical seasonality.

• Margins are expected to remain stable with some volatility; same-store sales could strengthen if current trends persist.