Positivo Tecnologia (POS3) Q1 2025 earnings summary

Executive summary

• Diversification initiatives advanced, with growth avenues now 46% of revenue and IT Services at 24%.

• B2B businesses represent 71% of total revenue in 1Q25.

• Corporate segment grew, especially in PCs, servers, and services; consumer segment gained share in PCs/tablets but faced smartphone headwinds.

• Major server contract for supercomputer project secured, with part of R$450 million revenue expected in 2025.

• Ecovadis Gold Seal achieved, ranking among the top 2% most sustainable companies globally.

Financial highlights

• Gross revenue for 1Q25 was R$851 million, down 27.7% year-over-year; net revenue R$715 million, down 28.1%.

• EBITDA R$53.2 million (margin 7.4%), down 54% year-over-year; net loss R$13 million vs. profit of R$64 million in 1Q24.

• Gross margin stable at 23.9% versus 1Q24.

• Operating cash flow negative at R$52 million.

• Leverage ratio at 2.5x (net debt/EBITDA LTM), up from 1.3x in 1Q24.

Outlook and guidance

• 2025 gross revenue guidance maintained at R$4.4–4.8 billion.

• Sequential improvement in revenue and EBITDA expected from 2Q25 as base normalizes.

• Corporate businesses forecast to maintain growth; gradual recovery in public sector deliveries expected.

• Additional upside possible from new public and international projects.

• Guidance excludes potential upsides from Windows 10 support end and pandemic fleet renewals.