Magazine Luiza (MGLU3) Q2 2026 earnings summary

Executive summary

• Entered a new strategic cycle focused on consolidating AI-driven omnichannel leadership, expanding physical and online reach, and accelerating monetization of service platforms, including Magalog, Magalu Cloud, MagaluPay, and Magalu Ads, with partnerships such as Amazon and AliExpress.

• Strong double-digit growth in physical stores, with 10.3% year-over-year growth and 9.7% same-store sales growth, alongside significant market share gains and new store formats.

• Online growth strategy shifted to third-party partnerships, prioritizing profitability over market share, with e-commerce sales declining 11.9% but TV category showing resilience.

• Service platforms (financial, logistics, ads, cloud) delivered robust results, with MagaluPay, Magalog, and Magalu Ads showing strong growth and new client wins.

• Maintained a broad retail presence with 1,246 stores and 21 distribution centers across Brazil.

Financial highlights

• Gross revenue reached R$11.1 billion in 2Q26, with a 2.2% year-over-year decrease, mainly due to a challenging economic context.

• Gross margin improved to 30.6%, among the highest for a second quarter.

• Adjusted EBITDA was R$708.8 million (8.0% margin), stable year-over-year.

• Adjusted net loss was R$50.4 million; reported net loss was R$72.5 million, impacted by high interest rates and financial expenses.

• Strong cash position of R$5.8 billion and net cash of R$0.8 billion at quarter-end.

Outlook and guidance

• Expecting online growth to resume in the second half, especially Q4, driven by third-party platform partnerships and the rollout of the Prime badge on Amazon.

• Confident in continued high single-digit growth in physical stores and further market share gains.

• Anticipate improved profitability and cash generation as inventory and receivables are optimized and interest rates decline.

• Service platforms expected to ramp up, with Magalog and Magalu Cloud expanding client base and capabilities.

• Management is closely monitoring Brazilian tax reform, with 2026 as a transition year and no immediate financial impact.