Otello (OTEC) H2 2025 earnings summary

Executive summary

• Main business activity is financial asset management, with a 38.2% stake in Bemobi Mobile Tech S.A., a Brazilian digital payments company.

• 2H25 net income was $2,876 thousand, a significant turnaround from a loss of $7,198 thousand in 2H24, driven by Bemobi's profit contribution and reversal of prior impairment.

• Cash distributions of $10,949 thousand were received from Bemobi in 2H25.

• 6.3 million shares were bought back for $9,049 thousand, and 8.2 million treasury shares were cancelled during the half.

Financial highlights

• Adjusted EBITDA improved to $(1,022) thousand in 2H25 from $(1,816) thousand in 2H24, a 44% improvement.

• EBITDA was $(5,448) thousand in 2H25, down from $(1,816) thousand in 2H24, mainly due to $4,427 thousand in stock-based compensation.

• Net income for 2H25 was $2,876 thousand, compared to a loss of $7,198 thousand in 2H24.

• EPS for 2H25 was $0.04, up from $(0.08) in 2H24.

• Cash and cash equivalents at period end were $15,881 thousand, up from $10,454 thousand a year earlier.

Outlook and guidance

• Operational activities remain minimal; focus is on maximizing shareholder value through buybacks and engagement with Bemobi.

• Positive on Bemobi’s fundamentals, especially after pivoting to payment solutions.