Q1 2026 Totvs SA Earnings Call (English, Portuguese) Transcript
Key Points
- Totvs SA (TTVSY) reported a consolidated net revenue of BRL 1.6 billion, marking a 16% year-over-year growth and a 6% quarter-over-quarter increase.
- The company's SaaS revenue accelerated, showing a 24% growth compared to the previous quarter's 23%, indicating strong demand and execution excellence.
- Adjusted EBITDA grew by 24% year-over-year and 11% quarter-over-quarter, reaching BRL 455 million, with an EBITDA margin of 28.5%, a record high.
- The integration of Linx is progressing well, with Linx contributing BRL 1.2 billion in revenue and BRL 200 million in EBITDA, enhancing Totvs SA's leadership in Brazilian retail.
- Totvs SA's AI initiatives are contributing to both revenue growth and cost efficiency, with AI being integrated into various operations such as customer support and sales processes.
- The integration of Linx has required significant accounting adjustments, including reductions in intangible assets and increased provisions for expected losses.
- Despite the positive performance, the credit market remains challenging, impacting the Techfin segment's growth potential.
- The retention rate for RD Station slightly decreased to 94.6%, indicating potential challenges in maintaining customer loyalty.
- The fiscal benefits from the Linx acquisition are not expected to materialize in 2026, delaying potential financial advantages.
- The company's expansion into Infrastructure as a Service (IaaS) is still in its early stages, with no significant market size estimates yet available.
©© -
Good morning. Welcome to the earnings video conference on first quarter 2026. I'm Sérgio Sério. Here with me we have our CIO, Maia, CFO, to present our quarter highlights, and by the end, we will have a Q&A session. Before starting, it's important to remind that forecast on TOTVS' performance are based on current assumptions. There are risks, uncertainties, and many factors can change the company's results that may differ from the expectations presented here. Now, I give the floor for Dennis on the slide three that will start the presentation.
Okay. Thank you, Sérgio. Welcome. Good morning, everyone. Well, TOTVS' performance on this quarter, as in the previous one and during the full year of 2025, reinforced a practical contradiction when we have an imbalance between expectations and reality.
Since February the 2nd, our future has been fitted in the same bin of the software market. I mean, with Rudolf
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
