Vivara Participações (VIVA3) Q4 2025 earnings summary

Executive summary

• Achieved record gross revenue growth of 17.5% YoY in 4Q25 and 16.2% YoY for 2025, driven by strong digital sales, same store sales increases, and continued expansion of the Life brand with a robust pipeline for 2026.

• Opened 41 new stores in 2025, mainly Life, with plans to accelerate to 55–65 new stores in 2026, focusing on locations already served by Vivara to leverage synergies.

• Inventory optimization initiatives reduced inventory days by 35, freeing R$89.6 million, improving working capital, and supporting strong operating cash generation.

• Adjusted EBITDA margin expanded by 0.5 p.p. to 27.8% in 4Q25; adjusted net income rose 28.5% YoY in 4Q25 with a margin of 24.9%.

• Maintained a significant gold stock buffer, providing flexibility in price positioning and production planning, with eight months of gold inventory and plans to reduce this by half over time.

Financial highlights

• Gross margin stabilized in Q1 2026 compared to the same quarter last year, following deliberate discounting in Q4 2025 to optimize stock and drive sales.

• Gross revenue reached R$3,801.3 million in 2025, with a CAGR of 18.2% over four years.

• Digital sales grew nearly 50% YoY for Life brand and 19.5% overall in 2025, with digital channel accounting for 17.5% of 4Q25 sales.

• Operating cash generation reached R$367.7 million in 2025, reducing net debt by 58.4% to 0.2x Net Debt/Adjusted EBITDA.

• Marketing expenses stabilized at around 4.5% of net revenue, with increased investment in branding and digital channels.

Outlook and guidance

• Guidance for 2026 is 55–65 new store openings, mainly Life stores, with about half in the Southeast region.

• Expect continued price adjustments throughout 2026, especially in response to commodity price movements, with sufficient inventory buffer to manage pass-through timing.

• Focus on maintaining sustainable growth, maximizing returns, and preserving profitability through internalization, product engineering, and operational efficiency.

• Continued inventory optimization and selective refurbishments planned.