Terra Santa Propriedades Agrícolas (LAND3) Q3 2025 earnings summary

Executive summary

• Net revenue grew 22.9% year-over-year in Q3 2025, reaching R$22.1 million, driven by higher soybean volumes after contract renegotiation with SLC Agrícola S.A. in May 2025.

• General and administrative expenses fell by R$923 thousand in the quarter and R$3.3 million in the nine-month period, reflecting ongoing cost reduction efforts.

• Despite operational improvements, a net loss of R$3.6 million was recorded in the nine months due to a provision for impairment of PIS/COFINS tax credits.

• Net debt decreased 51.2% to R$44.2 million as of September 30, 2025, with Net Debt/Adjusted EBITDA at 0.74x, well below covenant limits.

• Revenue is recognized annually, with contracts reviewed every three years to optimize efficiency and asset value.

Financial highlights

• Consolidated net revenue for 9M25 was R$73.9 million, up from R$52.1 million in 9M24.

• Gross profit in Q3 2025 was R$21.1 million, up 25.6% year-over-year, with a gross margin of 95.5%.

• Adjusted EBITDA in Q3 2025 was R$12.6 million, up 23.4% year-over-year; 9M25 Adjusted EBITDA was R$51.9 million, up 65.6%.

• Q3 2025 net loss was R$18.3 million, versus net income of R$7.4 million in Q3 2024, mainly due to a R$38 million provision for PIS/COFINS credits.

• Net loss for 9M25 was R$3.6 million, compared to net income of R$13.1 million in 9M24.

Outlook and guidance

• Management expects to maintain financial solidity and sustainable leverage, with Net Debt/EBITDA well below covenant limits.

• 33% of the 2025/26 soybean crop volume fixed at an average price of R$112.46/sc as of September 2025; remaining volume to be fixed by February 2026.

• Hedging strategies in place for 57% of 2025/26 and 10% of 2026/27 crops in USD, and 65% of 2025/26 crop in CBOT soybean prices.

• Revenue recognition remains annual, with contract reviews every three years to optimize operational efficiency and asset value.