TOTVS (TOTS3) Q1 2026 earnings summary

Executive summary

• Net revenue reached BRL 1.6 billion, up 16% year-over-year, with SaaS revenue accelerating to 24% growth and recurring revenue at BRL 1.5 billion (+19% y/y).

• Adjusted EBITDA rose 24% year-over-year to BRL 455 million, with a record margin of 28.5%.

• Adjusted net income was BRL 252 million, with EPS up over 21% year-over-year.

• Linx acquisition consolidated leadership in Brazilian retail, with integration progressing rapidly and expected to drive further synergies.

• AI and cloud initiatives, including the launch of IaaS and proprietary platform LYNN, are driving operational efficiency and expanding addressable markets.

Financial highlights

• SaaS revenue grew 24% year-over-year, outpacing the previous quarter's 23%.

• Recurring revenue now represents over 91% of total revenue, up 230 bps year-over-year.

• Management segment EBITDA margin reached a record 30.2%, surpassing the 30% threshold for the first time.

• RD Station ARR advanced 22% year-over-year and 7% sequentially, with SaaS revenue up 21%.

• Techfin credit production reached BRL 3.3 billion, with net funding revenue up 11% year-over-year.

Outlook and guidance

• Margin expansion is expected to continue, driven by recurring revenue growth and operational leverage.

• AI-driven transformation and cloud universalization are expected to further enhance operational efficiency and customer value, especially in the SMB segment.

• Linx integration is expected to drive convergence in margins and operational performance with the management segment.

• IaaS launch is seen as a significant opportunity to universalize T-Cloud and expand market reach.

• No changes anticipated in strong sales momentum or customer demand.