Technos (TECN3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$86.7 million in 1Q25, up 26.1% year-over-year, with gross revenue up 28.3% and gross profit up 26.8%, driven by higher sales volume and average price increases.

• Adjusted EBITDA rose 22.0% to R$12.0 million, marking the 18th consecutive quarter of growth.

• Net income declined 23.6% year-over-year to R$4.5 million, mainly due to non-cash FX hedge impacts.

• Sales volume increased 24.7% to 487,400 units, and average price per unit rose 2.9% to R$209.

• Interim dividends of R$15.0 million were paid in January 2025, up 47% from the prior year; share buybacks totaled R$12.2 million.

Financial highlights

• Gross profit increased 26.8% to R$46.3 million, with gross margin up 0.3 p.p. to 53.4%.

• SG&A expenses rose 15.7% to R$36.9 million, but as a percentage of net revenue, fell to 42.6% from 46.4%.

• Net financial result dropped to R$0.2 million from R$5.1 million, mainly due to FX hedge impacts.

• Working capital increased 28.5% to R$278.0 million; days in working capital rose by 19 days to 345.

• Cash balance at quarter-end was R$89.0 million; net debt stood at R$12.3 million, with gross debt at R$101.3 million.

Outlook and guidance

• Management plans to drive growth in traditional and smartwatches, expand distribution channels, and maintain operational efficiency.

• Focus remains on market share gains and long-term operational and financial improvements.