Earnings 2Q Release 25
Videoconference with simultaneous translation into English
August 07, 2025 - 10:00 a.m. (BRT)
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Highlights
Valid closes the quarter with consistent progress in New Businesses of 50% YoY. Year to date, Net Revenue closed at R$490M, with an EBITDA of R$92M, and Net Income of R$55M.
São Paulo, August 06, 2025 - Valid (B3: VLID3 - ON) presents today its results for the second quarter of 2025 (2Q25).
The following financial and operating information is presented on a consolidated basis, in Brazilian reais, under International Financial Reporting Standards (IFRS). Comparisons refer to the same periods in 2024, unless otherwise indicated.
Net Revenue
Valid's New Businesses continue growing consistently -compared to the same period in 2024, up by 50%, or 23% when excluding revenue from Vsoft, control acquired in 1Q25. Revenue from New Businesses already accounts for 17% of revenue.
In 2Q25, Net Revenue totaled R$490M, down by 5% from 2Q24.
Year to date, Valid reported Net Revenue of R$991M, a slight decrease of 1% compared to 1H24.
The revenue dynamics in 2Q25 remained similar to the figure posted in 1Q25, with growth of 12% and 37% in the ID and Digital Government and Connectivity Solutions segments, respectively, and a decline of 46% in the Pay
segment.
New Businesses continue to gain traction and contribute significantly to the consolidated profitability. With stronger
EBITDA
margins (42% EBITDA margin), these initiatives already account for 33% of Valid's total EBITDA, reinforcing the diversification strategy effectiveness and the sustainable growth potential of these fronts.
EBITDA reached R$92M in 2Q25, with a margin of 19%. The 29% decline compared to 2Q24 mainly reflects a high comparison base in the previous period, especially in the Pay segment, which had still benefited from a favorable scenario in Argentina.
Year to date, EBITDA was R$196M, with a margin of 20%, representing a 20% YoY decrease.
Net Income
Valid closes 2Q25 with a Net Income of R$55M, with a net margin of 11%.
Year to date, Valid posted a Net Income of R$128M, with a net
margin of 13%.
We ended the quarter with Net Cash of R$49M, representing
-0.1x LTM EBITDA.
Net Cash and Leverage
In the quarter, Valid posted lower operating cash flow generation due to a shift in the Company's revenue growth mix, with stronger growth in the Mobile segment, which has a longer cash conversion cycle compared to the ID and Pay segments. We also made higher CAPEX investments to support the expansion of New Businesses and increased our equity stake in invested companies.
On June 23, we carried out the early optional settlement of
the remaining R$4.6M from the 9th debenture issue.
In July, we secured financing of up to R$150M from FINEP. The funds will support innovation in Digital Government and
Subsequent Events
strengthen our capital structure, becoming the Company's
lowest-cost and longest-duration transaction.
In the same month, the debt of R$ 31 million with ABC Bank was settled, contributing to the reduction of total indebtedness..
Valid signed a Cease and Desist Agreement with CADE, related to conducts prior to 2019. The employees involved are no longer part of the company. The current management reinforces the commitment to business integrity and compliance. As a result of the agreement, the administrative proceeding has been suspended.
Comments from the Management
Dear Shareholders and employees,
We are pleased to share with you this report on Valid's operational results for the second
quarter of 2025.
Since mid-2024, we have emphasized that Valid has been undergoing a long and continuous transformation process - one that is reshaping its revenue and results matrix. This process is not unlike others the Company has experienced in its nearly 70-year history, including almost 20 years as a listed company.
We remain fully committed to this ongoing transformation and are reshaping Valid - from physical to digital, from one-off to transactional business - driven by meaningful growth in fronts such as Digital Government, Onboarding Solutions, and Mobile Solutions. This transformation is already evident in our results: New Businesses continue to gain scale, with healthier margins and more sustainable models. We believe this is just the beginning of a new value-creation cycle.
We invite you to visit our blog (BlogFuturoID) to learn more about our new solutions, products, and outlooks in the ID ecosystem!
As we navigate this transformation cycle, our legacy businesses in secure identification, payment methods, and connectivity solutions continue to be fundamental in reinforcing our relevance in key markets and serving as a financial foundation to drive the expansion of New Businesses.
As we expected, the Payment Methods segment has faced a more challenging environment in the locations where we operate. We are therefore working on two fronts:
improving operational efficiency by resizing and adjusting the structure of the banking card operations to the current scenario; and ii) exploring new business opportunities focused on diversification, recurrence, and scalability within this area.
We highlight Management's primary concern on capital allocation and use of resources, which is why we celebrate the recent financing secured from FINEP. This operation demonstrates how digital transformation agendas in governments across all levels are central to nations striving to be more efficient and advanced.
This quarter, we also invested in increasing our equity stake in companies already in our portfolio and viewed as strategic assets for Valid's future, such as VSoft. In addition, from an organic standpoint, we have invested to support growth in Digital Government and Mobile Solutions. We also acquired new equipment this quarter for our digital stamp business, following the recent announcement by the São Paulo State Treasury Department mandating watermarking in the State. Investments across all these fronts totaled R$37M in the period.
In a challenging fiscal and political environment, Valid stands out for its resilience, as a company with a global presence, a diversified client base, revenue streams in strong currencies, and a balanced portfolio between mature businesses and new growth fronts. This combination gives us the confidence to navigate through uncertain times while continuing to deliver consistent value to our shareholders.
We also believe that at current price levels, our shares have significant upside potential, and investing in the Company through share buybacks will remain part of our capital allocation strategy.
Moving on to financial highlights, 2Q25 started featuring the following items:
Net Revenue of R$490M, EBITDA of R$92M, and Net Income of R$55M;
Maintenance of Net Cash position of R$ 49M;
Second round of Interest on Equity (IoE) payments, as announced in February. We have already paid R$75M in shareholder distributions this year;
VLID3's liquidity ended 2Q25 with an average daily trading volume of R$9M,
representing a 38% increase compared to 2Q24.
The highlights by business unit are as follows:
Valid ID:
Second-quarter volume totaled 6.8M documents, below the 7.5M issued in 2Q24. The decline was a result of renewals from the period when document issues dropped due to the COVID-19 pandemic (2020).
Revenue for the segment reached R$226M in the quarter, up by 12% YoY, while o EBITDA was R$63M, down by 10% from 2Q24, with a margin of 28%.
New Businesses in ID reached revenue of R$61M, accounting for 27% of the unit in 2Q25, and reflecting strong business momentum with a 39% YoY increase.
Valid Mobile:
The Mobile unit maintained its positive trajectory in 2Q25, consolidating the recovery that began earlier in the year, driven by higher volumes, especially in SIM Cards, with revenue of R$153M, up by 37% over 2Q24.
EBITDA also saw significant improvement, rising by 52% over 2Q24 to R$31M, with a margin of 20%.
This performance underscores the strategic importance of legacy businesses, which remain relevant, profitable, and strong cash generators - crucial for supporting investments in New Businesses.