Lojas Quero-Quero (LJQQ3) Q4 2025 earnings summary

Executive summary

• Gross revenue grew 3.8% year-over-year to R$3,172.3 million in 2025, with 21 new stores opened, ending the year with 586 stores across 497 cities; 27 stores renovated.

• Digital and phygital sales reached a record 28% of total sales in Q4, up 3 percentage points year-over-year.

• Same-store sales declined 1.8% for the year and 2% in Q4, but improved sequentially during the quarter.

• Credit portfolio expanded 18% year-over-year, with VerdeCard delinquency stable at 11.1%.

• Net income turned negative, with a net loss of R$161.9 million in 2025, compared to near break-even in 2024.

Financial highlights

• Net operating revenue increased 4.6% year-over-year to R$2,788.4 million.

• Adjusted EBITDA for 2025 was R$34.9 million (1.1% margin), down 62.9% year-over-year, impacted by operational deleveraging and higher costs.

• Gross margin over net revenue was 32.4% in 2025, down 2.4 p.p. from 2024.

• Adjusted net loss was R$95.2 million in 2025, compared to a loss of R$18.1 million in 2024.

• Net financial expenses rose 38.1% to R$167.0 million, driven by higher Selic rates.

Outlook and guidance

• Management expects interest rate reductions in 2026, which could boost sales and credit demand.

• Expansion of the personal income tax exemption and absence of extreme weather events are expected to benefit the core agricultural regions.

• Focus remains on cash flow, operational efficiency, and market share gains.

• Expansion pace will remain cautious, with new store openings tied to cash generation and market improvement.

• Early 2026 shows a more positive sales trend, with January year-over-year growth and optimism for continued recovery.