Earnings 3Q Release 25
Highlights Videoconference with simultaneous translation into EnglishNovember 06, 2025 - 10 a.m. (BRT)
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Valid closed the quarter with a 30% YoY increase in New Businesses and its best recurring figures of the year, with Net Revenue of R$540M, EBITDA of R$115M, and Net Income of R$52M.
São Paulo, November 05, 2025 - Valid (B3: VLID3 - ON) presents today its results for the third quarter of 2025 (3Q25).
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 (+30%). Revenue from New Businesses accounted for 15% of total revenue for the quarter.
In 3Q25, Net Revenue reached R$540M, up by 10% QoQ.
Year-to-date, Valid reported Net Revenue of R$1.5B, in line with the previous year.
Revenue dynamics remained in line with the trends observed throughout the year, with stronger performance in ID & Digital Government and Connectivity Solutions, and a more challenging environment in Payment Methods.
Compared to the previous quarter, Revenue grew across all
segments.
EBITDA was R$115M in 3Q25, with a margin of 21%. The -13% decline compared to 3Q24 mainly reflects a high
EBITDAcomparison base in the previous period, especially in the Pay segment, which benefited from a very favorable scenario in Argentina.
Following recent adjustments to its commercial and operational structure, Pay returned to a positive margin for the quarter.
ID & Digital Gov. was the highest in the past five years.
▪ Year-to-date, EBITDA was R$311M, with a margin of 20%.
Valid closes 3Q25 with Net Income of R$52M and a net margin of 10%.
Net Income
As previously announced, this quarter included the payment to the Brazilian Antitrust Authority (CADE), a non-recurring expense of R$15M. On a recurring net income basis, 3Q25 was the best quarter so far in 2025, R$ 67M.
Year-to-date, Valid posted a Net Income of R$180M, with a
net margin of 12%.
We ended the quarter with Net Cash of R$48M, representing a leverage of -0.1x EBITDA LTM, the same level as the previous
Net Cash and Leveragequarter.
This quarter, Valid generated higher operating cash flow, driven by better quarterly results and lower working capital consumption, mainly due to reductions in inventory accounts.
For 9M25, the cash conversion rate stands at 89%, in line with our historical average of 91%, since 2023.
As previously announced, we completed the R$150M financing with FINEP, at a cost of TR + 3% and a 13-year term, with approximately 40% of the total amount disbursed to
date.
The Board of Directors' Meeting held on October 21 approved
the payment of additional Interest on Equity for 2025, of
Subsequent Events
R$1.00 per share - approximately R$78M, which will be included in the mandatory minimum dividends for the current year.
On October 30, we held our Extraordinary Shareholders' Meeting, approving amendments to the Company's Bylaws and the new executive long-term incentive plan.
Dear Shareholders and employees,
We are pleased to share with you this report on Valid's operational results for the third
quarter of 2025.
The third quarter reinforced Valid's consistent performance, with our ID and Mobile units maintaining strong growth momentum, and Pay showing signs of margin recovery, even in a more challenging environment compared to the previous year. We continue to execute our strategy with discipline and a long-term perspective, strengthening the Company's position as a leading provider of identification and data security solutions in Brazil.
We are aware that the market, by nature, tends to focus on the short term, and that immediate results have a strong influence on expectations. However, Valid is a company built to last. With nearly 70 years of history, we continue to expand our business responsibly, maintaining a balance between growth, profitability, and financial strength.
We have built long-term relationships with clients, governments, partners, and communities, based on trust, transparency, and security - values that are essential in sectors that handle sensitive data and the identities of millions of people.
Our track record shows that it is possible to combine innovation and cash generation, dividend distribution and reinvestment in new businesses, diversification and focus. We have a diversified revenue base across clients, with one-third of revenue in hard currency, long-term contracts, a balanced capital structure, and a constantly evolving portfolio.
We are therefore building Valid's future with the same solidity that has marked its past - preparing the company to continue growing and generating sustainable value for all stakeholders in the coming years.
Let's move forward, seeking constant and sustainable innovation for Valid!
3Q24 | 3Q25 | Var. % | 9M24 | 9M25 | Var. % | ||
Net Operating Income | 579.7 | 540.4 | -6.8% | 1,582.2 | 1,531.2 | -3.2% | |
Costs | -369.3 | -360.3 | -2.4% | -1,003.2 | -1,024.5 | 2.1% | |
Gross Result | 210.4 | 180.1 | -14.4% | 579.0 | 506.7 | -12.5% | |
Gross Margin Operating Income (Expenses) Selling expenses | 36.3% -58.8 | 33.3% -58.5 | -0.4% | 36.6% -153.0 | 33.1% -156.1 | 2.0% | |
General and administrative expenses | -42.8 | -34.1 | -20.4% | -118.0 | -118.3 | n.m | |
Other non-operating income (expenses)* | -1.7 | -21.7 | n.m. | 105.1 | -3.3 | n.m | |
Equity pick-up | -0.3 | 0.1 | n.m. | -1.9 | 0.8 | n.m | |
Profit Before Interest and Taxes | 106.8 | 65.9 | -38.3% | 411.2 | 229.8 | -44.1% | |
Profit margin before interest and taxes Financial Result Financial revenue | 18.4% 42.1 | 12.2% 48.9 | 16.2% | 26.0% 143.5 | 15.0% 135.6 | -5.5% | |
Financial expenses | -38.0 | -56.5 | 48.8% | -185.4 | -188.2 | 1.5% | |
Profit (loss) for the period before Income Tax and Social Contribution | 110.9 | 58.3 | -47.4% | 369.2 | 177.2 | -52% | |
Income tax and social contribution | -19.5 | -6.5 | -66.7% | -51.6 | 3.1 | n.m. | |
Profit (loss) for the period | 91.4 | 51.8 | -43.3% | 317.6 | 180.3 | -43% | |
Net Margin | 15.8% | 9.6% | 20.1% | 11.8% | |||
Profit attributable to: Controlling shareholders | 90.3 | 49.0 | -45.8% | 317.8 | 176.4 | -44.5% | |
Non-controlling shareholders | 1.1 | 2.8 | n.m. | -0.1 | 3.8 | n.m. | |
3Q24 | 3Q25 | Var. % | 9M24 | 9M25 | Var. % | ||
Net Income for the period | 90.3 | 49.0 | -45.8% | 317.8 | 176.4 | -44.5% | |
(+) Non-controlling interest | 1.1 | 2.8 | n.m. | -0.1 | 3.8 | n.m. | |
(+) Income tax and social contribution | 19.5 | 6.5 | -66.7% | 51.6 | -3.1 | -106.0%. | |
(+) Financial expenses / (income) | -4.1 | 7.6 | n.m. | 41.9 | 52.6 | 25.5% | |
(+) Depreciation and amortization | 23.4 | 27.7 | 18.3% | 69.7 | 79.0 | 13.3% | |
(+) Other non-operating (income) expenses* | 1.7 | 21.7 | n.m. | -105.1 | 3.3 | n.m. | |
(+/-) Equity pick-up | 0.3 | -0.1 | n.m. | 1.9 | -0.7 | n.m. | |
(+/-) Results from discontinued operations | 0 | 0 | n.m. | 0 | 0 | n.m.. | |
EBITDA | 132.3 | 115.2 | -13% | 377.7 | 311.3 | -18% | |
EBITDA Margin | 22.81% | 21.32% | 23.87% | 20.33% | |||
*Breakdown of Other Non-Operating Income/Expenses
Other Non-Operating Income/Expenses (R$M)3Q24 | 3Q25 | Var. % | 9M24 | 9M25 | Var. % | |
Brazil | 0.5 | -20.6 | n.m. | -0.3 | -26.8 | n.m. |
Foreign | -2.2 | -1.1 | 49,4% | 105.4 | 23.6 | -77.6% |
Total | -1.7 | -21.7 | n.m. | 105.1 | -3.3 | n.m. |
Financial Result | ||||||
Financial Result | 3Q24 | 3Q25 | Var. % | 9M24 | 9M25 | Var. % |
Cash Effect1 | -2.7 | 2.0 | n.m. | -21.0 | -7.4 | 64.5% |
Non-Cash Effect2 | 6.7 | -9.6 | n.m. | -21.0 | -45.2 | n.m. |
Total | 4.1 | -7.6 | n.m. | -41.9 | -52.6 | -25.5% |
includes cash charges, such as investments, loans, banking fees, interest, and IOF (financial transaction tax)
includes accounting variations that do not involve cash movements, such as foreign exchange differences, interest on intercompany loans, monetary adjustments, present value adjustments, and gains or losses from hedging