Q4 2025 Lwsa SA Earnings Call Transcript
Key Points
- Locaweb Servicos de Internet SA (BSP:LWSA3) reported a strong Q4 2025 with consistent results, showing improvement over Q3.
- The company achieved significant cash generation, ending 2025 with BRL224.8 million in free cash flow, nearly double-digit growth.
- There was a robust growth in Total Payment Volume (TPV) by 21%, reaching BRL2.5 billion, indicating regained strength.
- The subscriber base grew by 6.8%, ending the quarter with 206,300 new customers.
- Locaweb's EBITDA margin improved to 25.3%, with a notable increase in free cash flow by 80% to BRL63.6 million.
- Despite improvements, the company acknowledged challenges in accelerating results and transforming growth into cash.
- Q4 performance in some areas fell behind expectations, indicating room for improvement.
- The company faced execution challenges in 2024, which impacted its potential growth.
- There was a noted volatility in platform revenue, with slower growth in Q4 compared to Q3.
- The economic model for monetization showed some embedded specificity, which may limit flexibility.
Good morning, ladies and gentlemen. Welcome to LWSA's Q4 2025 earnings conference. Joining us today are CEO, Mr. Rafael Chamas; and CFO and IRO, Mr. Andre Kubota.
For the Q&A session, we will also be joined by the company's senior management team. This event is being streamed via Zoom webinar with simultaneous interpretation into English and will be available for replay at ri.lwsa.tech. The slide deck for this presentation can also be downloaded from the Results Center under the Financial Information tab on the same website.
All figures are stated in Brazilian reais and have been calculated in accordance with Brazilian accounting standards as defined by the Brazilian Accounting Pronouncements Committee.
Before we begin, please note that any statement made during this presentation regarding LWSA's business prospects, operational and financial forecasts, or future growth estimates is merely a projection and as such, is based solely on its management's outlook for the business.
This outlook relies heavily on market conditions, the performance of the Brazilian economy
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