Q2 2026 Lwsa SA Earnings Call Transcript
Key Points
- Record-breaking adjusted EBITDA of BRL76 million in Q2 2026, up 35% year-over-year, with the highest margin (27.3%) in the last 24 quarters.
- Strong cash generation: BRL137.2 million free cash flow in H1 2026, up 51% year-over-year, with a free cash flow margin of 18%.
- Subscriber base grew to a record 216,000 active subscribers, adding nearly 5,000 net new customers in the quarter, up 9% year-over-year.
- AI-driven initiatives are delivering tangible results, such as a 72% reduction in average time to launch a store and a 22% increase in first-sale conversion within 60 days.
- Strategic repositioning of Bling as a unified business platform expands its addressable market and enhances cross-selling opportunities, with no additional capital investment required.
- Net operating revenue growth slowed to 8.2% year-over-year, impacted by a challenging retail environment and a slight decline in BeOnline revenue.
- ARPU (average revenue per user) is under pressure due to the addition of lower-ticket customers, which may temper near-term revenue growth.
- The World Cup in July negatively impacted sales GMV for most retail segments, except sports-related stores, creating a headwind for Q3.
- BeOnline business continues to decline in revenue as the company optimizes its portfolio, though margins improved, indicating ongoing transition costs.
- Credit product launch is still in a conservative pilot phase, with no concrete figures on portfolio origination or delinquency, and full integration is not expected until year-end.
Good morning, ladies and gentlemen. Welcome to LWSA's Q2 2026 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 members of 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 today's presentation can 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 statements made during this presentation regarding LWSA's business prospects, operational and financial forecasts, or future growth estimates are projections and as such are based solely on management's current outlook for the business.
This outlook is highly dependent on market conditions, the performance of the Brazilian economy, the
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