Oi (OIBR4) Q2 2025 earnings summary

Executive summary

• The quarter marked the first full period under a new operating model, emphasizing revenue growth at Oi Soluções and subsidiaries, with a strategic shift toward technology and digital solutions, and significant product launches and contract wins.

• Proposed amendments to the Judicial Reorganization Plan (JRP) aim to generate short-term liquidity and strengthen long-term sustainability, including renegotiation with creditors, new payment methodologies, and asset sales.

• Interim financial statements reflect ongoing judicial reorganization, negative equity, and material uncertainties about going concern status.

• Major asset sales (ClientCo, Pay TV, towers) were completed, but some transactions did not generate cash, impacting liquidity.

• Subsidiaries Serede and Tahto also filed for judicial reorganization.

Significant events and developments

• Amendment to the reorganization plan proposes new payment terms for creditors, use of real estate sale proceeds, and appeal bonds to settle obligations.

• Sale of ClientCo, TVCo, and selected towers completed; further asset sales (e.g., V.tal UPI) prioritized.

• Launch of new security products and major cloud contracts in Oi Soluções.

• Approval of the PRJ, capital increase, and new governance structure implemented.

• Migration from concession to license regime for fixed-line telephony completed.

Financial highlights

• Consolidated revenue for Q2 2025 was R$684 million, down 17.7% year-over-year, mainly due to asset sales and legacy declines.

• Subsidiaries contributed 39% of revenue, growing 66.8% YoY; Oi Soluções accounted for 50% of revenue, with cloud revenue up 11% YoY and UC&C up 22% YoY.

• Routine EBITDA was negative R$98 million, showing sequential improvement; margin at -14.3% for Brazil.

• CapEx totaled R$41 million, a 70% decrease YoY, now fully directed to digital operations.

• Net loss for the quarter was R$835 million, compared to a profit of R$15,061 million in 2Q24 due to one-off gains last year.