Grupo Mateus (GMAT3) Q2 2025 earnings summary

Executive summary

• Net revenue reached BRL 8.8 billion in Q2 2025, up 14.9% year-over-year, with 1H25 net revenue at BRL 17.1 billion (+13.9%), outpacing sector growth in Brazil and the Northeast.

• EBITDA hit a record BRL 705 million in Q2 2025, with margin at 8.0%, up 0.6 p.p. year-over-year, reflecting strong operational discipline.

• Net income for Q2 2025 was BRL 349 million (+6.7% vs 2Q24), with a semester total of BRL 668 million (+17.6% year-over-year).

• Opened 4 new cash and carry stores and closed 10 Electronics & Furniture stores in Q2 2025, ending with 271 stores and over 16 under construction.

• Wholesale (B2B) and Cash and Carry segments were key growth drivers, while Electronics & Furniture faced declines.

Financial highlights

• Gross margin improved by 0.6 p.p. to 23.0% in Q2 2025, with gross profit up 18.1% year-over-year.

• Operating expenses grew 14.2% but were diluted by 0.1 p.p. as a percentage of net revenue.

• Net margin was 4.0% in Q2 2025 and 3.9% in 1H25.

• Net debt reached BRL 1.1 billion as of June 2025, mainly due to expansion and acquisitions.

• Cash conversion cycle improved to 72 days, two days better than both last year and the previous quarter.

Outlook and guidance

• Expectation to generate cash in Q3 and Q4 2025, reversing the cash consumption seen in Q2.

• Targeting a cash conversion cycle of 70 days by year-end, with ongoing working capital optimization.

• Anticipate further efficiency gains and synergies from Novum integration, with consolidated results to be reported next quarter.

• Continued focus on store expansion and market share gains in the Northeast and Pará regions.

• Strategic priority remains on margin improvement and efficient asset allocation.