Valid Soluções (VLID3) Q2 2025 earnings summary

Executive summary

• Consolidated net revenue for Q2 2025 was R$490–501 million, down 5% year-over-year, with new businesses growing 50% YoY and now representing 17% of total revenue and up to 38% of EBITDA.

• EBITDA for Q2 2025 was R$92–104 million, down 29% year-over-year, mainly due to Pay segment weakness; net income for the semester was R$128 million, with EPS of R$1.63.

• Mobile segment showed strong recovery, growing 37% YoY and offsetting declines in Pay, while new businesses achieved an ARR of R$324 million.

• Net income for Q2 2025 was R$55 million, impacted by non-cash FX variations and tax credits.

• R$75–80 million paid in shareholder distributions YTD, with additional distributions and share buybacks ongoing.

Financial highlights

• 2Q25 net revenue: R$490–501 million (-5% YoY); 1H25 net revenue: R$990.8–991 million (-1.2% YoY).

• 2Q25 EBITDA: R$92–104 million (18.7–19% margin, -29% YoY); 1H25 EBITDA: R$196 million (20% margin, -20% YoY).

• Net cash position at quarter-end was R$49 million, with leverage at -0.1x LTM EBITDA.

• Operating cash flow conversion remained strong, with 70–73% EBITDA-to-cash for 1H25.

• Gross margin for 2Q25 was 32.3%, down from 36.6% in 2Q24.

Outlook and guidance

• Management expects continued strong growth in new businesses, especially in digital government, onboarding, and digital portfolio expansion.

• Mobile segment is expected to remain a positive contributor, leveraging international demand and eSIM expansion.

• Pay segment faces a challenging outlook, with no expected volume growth and continued margin pressure; focus is on efficiency and digital transformation.

• R$85 million allocated for acquisitions in 2025 to support organic and inorganic growth.

• Pipeline for new contracts in digital government and mobile OEM is robust, with anticipated revenue spikes as deals close.