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, and 27 stores renovated.

• Same-store sales (SSS) declined 1.8% for the year and 2% in Q4, but showed sequential improvement, reflecting demand volatility and a more promotional retail environment.

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

• Adjusted EBITDA dropped 62.9% year-over-year to R$34.9 million, impacted by operational deleveraging and higher costs.

• Financial services and credit card segments outperformed, with credit card revenue up 16.5% and financial services revenue up 12% year-over-year.

Financial highlights

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

• Gross profit fell 2.6% to R$904.3 million, with gross margin over net revenue down 2.4 p.p. to 32.4%.

• EBITDA margin declined to 4.8% in 2025, down 3.0 p.p. year-over-year.

• Adjusted net loss was R$95.2 million, 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, with optimism for tax relief and a strong agricultural harvest.

• Expansion will remain cautious, with new store openings tied to improvements in cash generation and macroeconomic conditions.

• Focus remains on cash flow, operational efficiency, and disciplined credit practices.