Locaweb Serviços de Internet (LWSA3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 10% year-over-year to BRL 362.8 million, driven by strong commerce and subscription performance, ecosystem evolution, and client base expansion.

• Commerce net revenue increased 14.3% year-over-year to BRL 262.1 million, supported by customer expansion and higher ARPU.

• Adjusted EBITDA rose 28.4% year-over-year to BRL 91 million, with margin improving by 3.6 percentage points to 25.1%.

• Free cash flow reached BRL 80.6 million, representing a 22.2% margin and reversing a negative result in 1Q25.

• Over BRL 200 million returned to shareholders in the last 12 months via dividends, capital reduction, and share buybacks.

Financial highlights

• Ecosystem GMV grew 11.5% year-over-year to BRL 20.3 billion; TPV increased 10.1% to BRL 2.2 billion.

• Platform subscribers rose 7.7% to 211,000, with subscription net revenue up 18.9% to BRL 145.6 million.

• BeOnline/SaaS segment net revenue stable at BRL 100.7 million; EBITDA margin around 25%.

• Consolidated gross profit was BRL 175.5 million (+8.0% YoY), with gross margin up 1.8 p.p. to 48.4%.

• Adjusted net income was BRL 54 million (+55% YoY), with margin up 4.9 p.p. to 14.9%.

Outlook and guidance

• Management expects continued customer base growth, stable churn, and strong net subscriber additions, with full normalization of a key Commerce Enterprise client by early 3Q26.

• Medium-term focus on expanding BeOnline and cloud offerings, with innovation and AI integration prioritized.

• Continued focus on ecosystem product penetration, especially payments and logistics, to sustain double-digit growth.