Locaweb Serviços de Internet (LWSA3) Q2 2026 earnings summary

Executive summary

• Net operating revenue grew 8.2% year-over-year to R$375.2 million in 2Q26, with Commerce segment up 12.4% to R$276.0 million and Platform Subscription revenue up 14.0%.

• Adjusted EBITDA reached a record R$102.5 million (+35.1% vs. 2Q25), with margin at 27.3%, the highest in 24 quarters.

• Free cash flow for 1H26 was R$137.2 million (+51.4% vs. 1H25), with an 18.6% FCF margin.

• Adjusted net income for the quarter was R$65.7 million, up 48.7% year-over-year.

• Commerce segment outperformed the market, growing 12.4% vs. 6.8% for Brazilian e-commerce.

Financial highlights

• Ecosystem GMV reached R$20.3 billion, up 15.2% year-over-year; TPV grew 13% to R$2.3 billion.

• Adjusted EBITDA margin improved to 27.3% (up 5.4 p.p. year-over-year).

• Free cash flow margin for 1H26 was 18.6%; net cash position at quarter-end was R$314.5 million (+13.4% year-over-year).

• Shareholder returns in the last 12 months totaled nearly R$200 million via dividends, capital reduction, and share buybacks.

• Gross margin ex-D&A was 56.8%, up 3.4 p.p. year-over-year.

Outlook and guidance

• Continued focus on growing subscriber base, ARPU expansion, and reinvesting in scalable, profitable products.

• Margin improvements expected to be sustainable, with ongoing portfolio optimization and efficiency gains from AI and automation.

• Strategic repositioning of Bling to a complete business platform aims to expand addressable market, focusing on middle-market clients with higher ARPU.

• Accelerated store launches and first sales are expected to drive higher retention and LTV in the SMB base.

• No formal margin guidance, but historical levels around 27% seen as achievable sooner than expected.