Technos (TECN3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$121.9 million in 2Q25, up 22.5% year-over-year, driven by higher sales volume (+5.1%) and average price (+17.9%).

• Gross profit increased 24.1% to R$67.9 million, with gross margin improving by 0.7 percentage points to 55.7%.

• Adjusted EBITDA rose 25.5% to a record R$32.1 million, marking 19 consecutive quarters of growth and a margin of 26.3%.

• Net income declined 4.9% year-over-year to R$19.1 million, mainly due to non-cash FX hedge adjustments.

Financial highlights

• Gross revenue for the quarter was R$143.0 million, up 23.9% from 2Q24, with broad-based gains across brands and channels.

• Sales volume grew 5.1% to 609,500 units, and average price increased 17.9% to R$235 per unit in 2Q25.

• Adjusted EBITDA margin improved to 26.3% in 2Q25 from 21.1% in 2Q24.

• Net margin declined to 15.7% from 20.2% in 2Q24.

• Working capital increased 32.7% year-over-year to R$305.7 million, mainly from higher accounts receivable and inventory.

Outlook and guidance

• Strategy focuses on efficient growth, market share gains in traditional watches, and expansion in smartwatches.

• Continued investment in distribution channels and operational efficiency expected to support future gains.