Valid Soluções (VLID3) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered the highest revenue and EBITDA of the year, with new businesses growing 30% year-over-year and representing 15-16% of total revenue and up to 26% of EBITDA.

• ID and mobile verticals showed strong year-over-year growth, while the pay vertical returned to positive margins after structural adjustments.

• Adjusted/recurring net income reached R$67M in Q3 2025, the highest of the year, despite a 13% year-over-year decline.

• The company is executing a strategy to shift its revenue matrix toward high-growth, resilient digital government and onboarding solutions.

• Interim financial statements for the nine months ended September 30, 2025, were reviewed by EY, with no material modifications required.

Financial highlights

• Q3 2025 net revenue ranged from R$540M to R$580M (up 10% sequentially, down 6-7% year-over-year); YTD net revenue was R$1.5B (-3% YoY).

• Q3 2025 EBITDA ranged from R$115M to R$157M (up 26% sequentially, down 13% YoY); YTD EBITDA was R$311M (-18% YoY).

• Year-to-date net income was R$180M, with EPS between R$2.24 and R$2.30.

• Operating cash flow for Q3: R$122M, with 106-107% EBITDA conversion; YTD cash conversion rate: 85-89%.

• Dividend yield for 2025 distributions: 12%, with total announced dividends of R$202M.

Outlook and guidance

• On track to reach BRL 350M in new business revenue and over BRL 100M in EBITDA for the year.

• Digital government and onboarding expected to expand, with new integrated identity platform revenues anticipated in 2026.

• Continued investments in technology, innovation, and operational excellence, with a focus on long-term growth and shareholder remuneration.

• Management continues to focus on business lines and geographies with higher competitiveness and differentiation.

• New Businesses expected to continue as main growth driver, with annualized 3Q25 revenue indicating a 54% YoY increase.