Sequoia Logística e Transportes (SEQL3) Q1 2026 earnings summary

Executive summary

• Achieved 7.8 million deliveries in March 2026, the best monthly performance in recent years, serving 1,559 cities and maintaining ~60% market share in private banking logistics.

• Completed a major restructuring phase, shifting focus to core banking logistics and B2B growth, and discontinued the loss-making B2C e-commerce segment.

• Maintained leadership in banking objects logistics, supported by long-term relationships with major banks and fintechs.

• Achieved positive adjusted EBITDA and operating cash generation after a period of losses.

• Company faces significant financial distress, with negative equity of R$254.6 million and accumulated losses of R$2.5 billion.

Financial highlights

• Net revenue for Q1 2026 was R$127.8 million, down 16.8% year-over-year.

• Gross profit increased 53.3% to R$9.2 million; adjusted EBITDA rose 143.6% to R$15.6 million, reversing a negative R$35.8 million in Q1 2025.

• Gross margin improved to 7.2% from 3.9% year-over-year; adjusted EBITDA margin rose to 12.2% from -23.3%.

• Generated R$10.2 million in positive operating cash flow (ex-legacy), despite a net loss of R$77.1 million mainly due to financial expenses, depreciation, and legal provisions.

• Cash and equivalents at quarter-end were R$30.9 million, down from R$56.6 million at year-end 2025.

Outlook and guidance

• Focus on innovation, technology, and portfolio optimization to drive revenue growth, with positive net cash generation expected by year-end 2026.

• Sale of remaining B2C assets for R$37.5–38 million in 2Q26 to further strengthen cash position.

• Continued management of liabilities and disciplined cash management; liquidity remains a concern and future depends on successful execution of the recovery plan.