- Totvs SA (TTVSY) Q1 2026 Earnings Call Highlights: Record Revenue Growth and Strategic AI ...
May 11, 2026
This article first appeared on GuruFocus.
Release Date: May 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Totvs SA (TTVSY) reported a consolidated net revenue of BRL 1.6 billion, marking a 16% year-over-year growth and a 6% quarter-over-quarter increase. The company's SaaS revenue accelerated, showing a 24% growth compared to the previous quarter's 23%, indicating strong demand and execution excellence. Adjusted EBITDA grew by 24% year-over-year and 11% quarter-over-quarter, reaching BRL 455 million, with an EBITDA margin of 28.5%, a record high. The integration of Linx is progressing well, with Linx contributing BRL 1.2 billion in revenue and BRL 200 million in EBITDA, enhancing Totvs SA's leadership in Brazilian retail. Totvs SA's AI initiatives are contributing to both revenue growth and cost efficiency, with AI being integrated into various operations such as customer support and sales processes.
Negative Points
The integration of Linx has required significant accounting adjustments, including reductions in intangible assets and increased provisions for expected losses. Despite the positive performance, the credit market remains challenging, impacting the Techfin segment's growth potential. The retention rate for RD Station slightly decreased to 94.6%, indicating potential challenges in maintaining customer loyalty. The fiscal benefits from the Linx acquisition are not expected to materialize in 2026, delaying potential financial advantages. The company's expansion into Infrastructure as a Service (IaaS) is still in its early stages, with no significant market size estimates yet available.
Q & A Highlights
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Q: Can you elaborate on the sustainability of the software management margin expansion and the role of AI in this growth? A: Dennis Herszkowicz, CEO: The margin expansion is driven by strong revenue growth, particularly in recurring revenue, which creates operational leverage. AI contributes to both revenue growth and cost efficiency, enhancing margins. We expect this dynamic to continue, with AI playing an increasing role in our operations.
Q: Could you provide more details on the launch of the Infrastructure as a Service (IaaS) and its market potential? A: Dennis Herszkowicz, CEO: The IaaS launch addresses customer demand for additional cloud capabilities beyond our existing Platform as a Service (PaaS). While we don't have specific TAM figures, we believe the opportunity is significant, especially for larger customers who require comprehensive cloud solutions.
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Q: What are the key drivers behind the strong management growth in the first quarter, and how do new customer acquisitions contribute? A: Dennis Herszkowicz, CEO: The growth is driven by robust market demand, competitive differentials, and an expanding portfolio. New customer acquisitions are becoming more relevant due to our efforts to reduce the total cost of ownership, making us more competitive in attracting new brands.
Q: How is the integration of Linx progressing, and what are the expectations for its performance? A: Gilsomar Maia Sebastiao, CFO: The integration is progressing well, with March showing stronger performance than previous months. We expect Linx to converge with TOTVS's management segment over time, leveraging synergies and operational efficiencies to improve margins and growth.
Q: What is the outlook for RD Station's growth and retention rates? A: Dennis Herszkowicz, CEO: RD Station is showing signs of recovery, with a positive growth trajectory expected to continue. The recent slight decrease in retention rate is seasonal and not indicative of any underlying issues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- How The TOTVS (BOVESPA:TOTS3) Story Is Shifting With Recalibrated Targets And Cautious Optimism
Apr 30, 2026
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The updated analyst view on TOTVS centers on a consolidated fair value move from R$51.75 to R$50.45 and a specific price target of R$47. Analysts link this recalibration to a more cautious but still constructive stance, with the R$47 level described as consistent with fair value work while allowing for differing opinions. Read on to see how this evolving price target narrative might influence the way you track TOTVS from here.
Stay updated as the Fair Value for TOTVS shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on TOTVS.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
Bradesco BBI upgraded TOTVS to Outperform from Neutral, signaling a more constructive stance on how the company is executing against its current opportunities. The R$47 price target from Bradesco BBI lines up with the latest fair value work near R$50.45. This keeps the stock within a range that some analysts see as reasonable relative to current expectations. Supportive commentary around the upgrade suggests confidence in TOTVS maintaining its position in its core markets. Execution is viewed as a key positive driver behind the Outperform rating.
🐻 Bearish Takeaways
The move in consolidated fair value from R$51.75 to R$50.45 highlights a more cautious tone, with some analysts building in a wider margin for potential execution risks. The R$47 price target also reflects an acknowledgment that, while the outlook is constructive, there is limited room for error if expectations around growth and profitability shift.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!BOVESPA:TOTS3 1-Year Stock Price Chart
See how TOTVS' fair value stacks up across multiple valuation models — not just analyst targets.
What's in the News
TOTVS has scheduled a board meeting for Feb 02, 2026 to consider and approve the acquisition of shares representing 37.5% of the total and voting capital of Dimensa S.A. A board meeting is set for Feb 10, 2026 to review the individual and consolidated financial statements for the year ended Dec 31, 2025. On Feb 11, 2026 the board plans to meet to consider the creation of a 2026 Share Buyback Program and authorize the executive team to carry out related actions. A board meeting is scheduled for Mar 20, 2026 to review a proposal for the declaration and payment of Interest on Equity for the 1st quarter of 2026, and TOTVS also announced an Analyst/Investor Day focused on management presentations and updates.
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How This Changes the Fair Value For TOTVS
Fair value adjusted from R$51.75 to R$50.45, resulting in a slightly lower central valuation reference. Revenue growth assumption moved from 23.38% to 23.26%, representing a small trim to top line expectations. Net profit margin refined from 15.36% to 15.33%, indicating a very small reduction in profitability assumptions. Future P/E updated from 32.49x to 31.86x, showing a slight move lower in the earnings multiple. Discount rate shifted from 20.87% to 20.91%, reflecting a marginally higher required return in the models.
Never Miss an Update: Follow The Narrative
Narratives link TOTVS's business story to the earnings forecasts and fair value estimates analysts are using. They refresh as new research, deals, and board decisions come through so you can see how the thesis is evolving.
Head over to the Simply Wall St Community and follow the Narrative on TOTVS to stay up to date on:
How acquisitions like Linx, sector specific software, and multiproduct offerings are used to deepen vertical expertise and expand cross sell across TOTVS's customer base. What analysts are watching in cloud migration, Techfin launches, and AI or Tax Intelligence products as they look to recurring revenue and margin stability. The key risks analysts flag around competition from global and regional software players, integration execution across multiple deals, and regulatory complexity in Brazil and Techfin.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TOTS3.bovespa.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- How The TOTVS (BOVESPA:TOTS3) Story Is Shifting With New Targets And Fair Value Assumptions
Apr 3, 2026
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The latest update on TOTVS centres on a refreshed R$47 price target, set against an updated fair value estimate of R$51.75 compared with the previous R$51.28. Analysts linking this target to an Outperform rating describe a setup in which current pricing is viewed as attractive relative to their fair value work, while still acknowledging execution risk. Read on to see how this evolving narrative could matter for your own view on the stock over time.
Stay updated as the Fair Value for TOTVS shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on TOTVS.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
Bradesco BBI recently upgraded TOTVS to Outperform from Neutral, indicating that its analyst team, led by Daniel Federle, now views the current share price as attractive relative to their R$47 target and fair value work. The new R$47 target from Bradesco BBI is below the updated fair value estimate of R$51.75, which can appeal to investors who are looking for a perceived margin between where the stock trades, the published target, and the stated fair value anchor.
🐻 Bearish Takeaways
Even with the Outperform rating from Bradesco BBI, the firm emphasizes that execution risk remains, which means any difficulty in delivering on operational plans could challenge the thesis tied to the R$47 target. The gap between the R$47 target and the higher fair value estimate of R$51.75 also underscores that different valuation frameworks can lead to different outcomes. Relying on a single target without stress testing your own assumptions may leave limited room for error.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!BOVESPA:TOTS3 1-Year Stock Price Chart
See how TOTVS' fair value stacks up across multiple valuation models — not just analyst targets.
What's in the News
A board meeting is scheduled for Mar 20, 2026, to review a proposal for the declaration and payment of Interest on Equity for the 1st quarter of 2026. The outcome may affect how investors view potential cash returns from TOTVS shares. On Feb 11, 2026, the board will consider creating a new 2026 Share Buyback Program and may authorize the executive team to carry out related actions. This decision may influence future share count and trading liquidity. A board meeting on Feb 10, 2026, will focus on the approval of individual and consolidated financial statements for the year ended Dec 31, 2025. This will provide the next detailed look at the company’s reported financials. On Feb 02, 2026, the board will assess and potentially approve the acquisition of 37.5% of the total and voting capital of Dimensa S.A. If completed, this transaction may change TOTVS S.A.'s business mix.
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How This Changes the Fair Value For TOTVS
The fair value estimate moves from R$51.28 to R$51.75. Modelled revenue growth shifts from 15.57% to 23.38%. The assumed net profit margin adjusts from 16.50% to 15.36%. The future P/E multiple is set from 35.64x to 32.52x. The discount rate changes from 20.95% to 20.91%.
Never Miss an Update: Follow The Narrative
Narratives connect TOTVS's business story to analyst forecasts and a fair value framework as new information comes through. They help you see how product launches, acquisitions, and risks are being translated into numbers.
Head over to the Simply Wall St Community and follow the Narrative on TOTVS to stay up to date on:
How the Linx acquisition, vertical retail solutions, and sector specific products are being used to widen TOTVS's reach and cross sell potential. The role of cloud, Techfin, AI, and multiproduct offerings like RD Station in shaping recurring revenue mix and earnings stability. Key risks around competition from global and regional software peers, heavy exposure to Brazilian SMBs, and ongoing M&A and regulatory complexity that could challenge execution.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TOTS3.bovespa.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Atento Appoints Alexandre Mafra as New Chief Financial Officer
Nov 10, 2025
With more than 30 years of experience in finance and business transformation, Alexandre Mafra joins Atento to drive the company's roadmap for innovation, efficiency, and sustainable growth.
MADRID, Nov. 10, 2025 /PRNewswire/ -- Atento Luxco 1 ("Atento" or the "Company"), one of the leading global providers of customer experience management and business transformation outsourcing services (CXM/BTO), announces the appointment of Alexandre Mafra as the company's new Chief Financial Officer (CFO). Alexandre will report directly to Dimitrius Oliveira, CEO of Atento, marking a new step in the company's ongoing financial and organizational transformation.Atento Logo
With more than 30 years of experience in finance and over nine years serving on advisory and management boards, Alexandre brings a proven track record that positions him as a key leader in advancing Atento's strategy of innovation, efficiency, and sustainable growth.
Throughout his career, Alexandre has held senior management positions at leading companies, including Ambev, Totvs, and Patria Investments. He also served as CFO at ClearSale and Focus Energia, where he led financial and organizational transformations that strengthened both companies' growth and efficiency, and made fundamental contributions to the sale process of both companies to major strategic players. Since 2016, he has contributed as an Advisory Board Member for companies such as Blanver, 3 Corações, Pixeon, Lavoro, Brasal, among others.
He holds a degree in Electrical Engineering from UFMG and a postgraduate degree in Corporate Finance from FGV, and has completed executive programs at INSEAD and Harvard Business School. This strong academic foundation supports his strategic mindset and leadership skills in highly competitive business environments.
"After consolidating a more robust and flexible financial structure, Alexandre will play a key role in executing our roadmap focused on innovation, efficiency, and sustainable growth," said Dimitrius Oliveira, CEO of Atento. "His appointment reinforces our commitment to creating long-term value for our customers, investors, and employees."
"I'm thrilled to join Atento during this pivotal moment of transformation," said Alexandre Mafra. "The company has built a solid and flexible financial foundation that reflects its capacity to respond effectively to market challenges. My priority will be to further strengthen this foundation, accelerating our Business Transformation Outsourcing strategy, fostering innovation, and demonstrating measurable returns in transformation value for our clients. I recognize an exceptional opportunity to drive value creation through strategic financial stewardship."
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Atento would also like to express its sincere gratitude to Álvaro Badiola for his invaluable contribution during his time with the company. His leadership was instrumental in achieving key financial milestones and completing debt restructuring initiatives, leaving a lasting legacy within the organization. We wish him continued success in his future professional endeavors.
About Atento
Atento is the largest provider of customer experience management and business process outsourcing services ("CXM/BTO") in Latin America and one of the leading providers worldwide. Atento is also one of the leading providers of nearshoring CXM BTO services for companies operating in the United States. For more information, visit www.atento.com.
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- Totvs SA (TTVSY) Q3 2025 Earnings Call Highlights: Strong ARR Growth and EBITDA Milestone
Nov 6, 2025
This article first appeared on GuruFocus.
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Totvs SA (TTVSY) reported a robust consolidated ARR addition of BRL220 million, marking a 27% year-over-year increase. EBITDA grew by 23% year over year, surpassing BRL400 million for the first time in a single quarter, with a 100 basis point margin expansion to 26%. The management unit achieved an ARR of BRL5.7 billion in Q3 2025, with net additions of BRL197 million, up 25%. Techfin's funding net revenue grew 30% year over year, reaching BRL102 million, supported by positive seasonality in agribusiness. The RD station business unit saw a 47% year-over-year growth in net additions, indicating strong performance despite a new pricing model launch.
Negative Points
Despite strong revenue growth, there has been a lack of sequential improvement in the management division's margin over several quarters. The agribusiness market is facing challenges due to high interest rates and difficult market conditions, impacting transactions. There is uncertainty regarding the impact of potential changes to the IOF tax, which could affect operations and make them more expensive. Some operations within the management unit are not yet achieving the same margins as more mature operations, indicating room for improvement. The techfin unit, while showing growth, is still far from reaching its full potential, with a need for further product launches and market expansion.
Q & A Highlights
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Q: Can you provide more details on the operating leverage improvement in the management division and the differences between mature and non-mature operations? A: Dennis Herszkowicz, CEO, explained that the improvement is driven by the increasing relevance of recurring revenue, which has a high gross margin of approximately 80%. This naturally leads to operating leverage. There are no structural elements preventing non-mature operations from achieving similar margins to mature ones. As time progresses and synergies are extracted, margins should align with those of more mature operations.
Q: How do you view the seasonality of agribusiness in the techfin segment compared to last year, and what impact might changes in the IOF tax have? A: Maya Cintra, CFO, noted that while the market is more challenging due to high interest rates, techfin has diversified its operations to offset difficulties in agribusiness. The seasonality is expected to continue, and the IOF tax discussions have not led to significant changes in operations.
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Q: Can you elaborate on the growth and channel mix in the management division, particularly regarding franchises? A: Dennis Herszkowicz highlighted the diversification of the portfolio, with no single solution acting as a pillar. The cloud and AI remain significant growth areas. Franchises have shown positive performance, and there have been no structural changes in incentives or payments to franchises.
Q: What is the roadmap for techfin in the short and long term, and how is RD Station performing? A: Dennis Herszkowicz stated that techfin is still far from its potential, but growth is evident. The focus is on launching more credit products and expanding existing ones. RD Station is performing well, with a 47% growth in net additions year-over-year, and changes made are expected to yield positive results.
Q: When can we expect a positive contribution to margins from Dementia, considering recent acquisitions? A: Maya Cintra explained that Dementia has been improving its margins continuously since a comprehensive change in its operations. While it's difficult to provide a precise timeline, it's expected that Dementia will eventually reach the margin levels of other management operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- StoneCo Ltd (STNE) Announced Divestment of its Software Segment
Jul 31, 2025
StoneCo Ltd. (NASDAQ:STNE) is one of the Best Performing Tech Stocks According to Hedge Funds. On July 22, StoneCo Ltd. (NASDAQ:STNE) announced its divestment plan through which it will sell most of its software segment, including Linx and other related assets, to TOTVS for R$3.41 billion.
The assets included in the announcement account for almost 79% of the segment’s 2024 revenue. While this deal is subject to regulatory approvals, the company has completed the sale of its veterinary software SimplesVet to PetLove for R$140 million. After the sales of these assets, the company will retain a few software businesses which it plans to sell in the future. Management noted that this is a strategic move to focus more on its core business. The company noted that the utilization plan for the proceeds would be announced after the deals close.StoneCo Ltd (STNE) Announced Divestment of its Software Segment
A team of software engineers in a digital workspace collaborating on a financial technology software solution.
StoneCo Ltd. (NASDAQ:STNE) is a financial technology company that provides cloud-based payment and software solutions.
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Disclosure: None. This article is originally published at Insider Monkey.
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- Can StoneCo's Software Divestment Unlock MSMB-Focused Growth?
Jul 24, 2025
StoneCo Ltd.’s STNE recent announcement for a strategic divestiture of a significant part of its software segment, representing 79% of its software segment revenues in 2024, signals a sharpened focus on its core financial services and micro, small and medium business (MSMB).
It involves the proposed sale of Linx and related software assets to TOTVS for R$3.41 billion, for which it has entered into an agreement, as well as the already sold SimplesVet, a veterinary-focused software solution, to PetLove for R$140 million.
The move is expected to enhance operating efficiency and profit margins as StoneCo doubles down on becoming Brazil’s go-to platform for MSMBs. In the first quarter of 2025, StoneCo’s MSMB total payment volume (TPV) rose 17% year over year to R$119.5 billion amid effective repricing efforts and expanding product adoption. Its client base also expanded by 17% to 4.3 million active MSMBs.
Key to this momentum is the company’s bundling strategy, where clients using three or more products increased to 38%, up sharply from 26% a year ago. This indicates success in cross-selling integrated payments, credit and banking services. The company’s banking arm is also growing rapidly, with total retail deposits surging 38% to R$8.3 billion. StoneCo’s credit portfolio hit R$1.4 billion, underpinned by prudent risk management.
The PIX instant payment system has emerged as a major monetization lever, with transaction volumes up 95% year over year. As PIX displaces traditional debit usage, it is increasing client deposits and engagement. Meanwhile, StoneCo projects MSMB TPV to exceed R$670 billion by 2027 — a 14% CAGR from the 2024 levels.
How Are PagSeguro and MercadoLibre Performing?
Among competitors, PagSeguro Digital Ltd. PAGS is intensifying its emphasis on the MSMB segment, which made up 74% of its TPV in the first quarter of 2025. MSMB TPV grew 11.2% year over year to R$95.2 billion, fueled by stronger point-of-sale (POS) usage. The company saw growth in its active SMB client base and performance, benefiting from its strategic pivot away from lower-value nano-merchants to more lucrative MSMBs.
MercadoLibre, Inc. MELI also continues its robust fintech push through Mercado Pago, with TPV rising 43% year over year to $58.3 billion in the first quarter of 2025. MercadoLibre’s monthly fintech users are up 30%+ year over year to 64 million. Its deep regional presence, especially in Argentina and Brazil, and investments in UX, logistics and credit continue to expand its flywheel advantage across Latin America.
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STNE’s Price Performance, Valuation and Estimates
Shares of StoneCo have surged 76.5% year to date, outperforming both the broader industry and the S&P 500 Index.Zacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, StoneCo shares are cheap, as suggested by the Value Score of B. In terms of forward 12-month P/E, STNE is currently trading at 8.66X, which is below the industry average of 40.07X.Zacks Investment Research
Image Source: Zacks Investment Research
StoneCo’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for 2025 and 2026 EPS has been revised upward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 10.4% growth year over year, while the same for 2026 calls for a 16.1% increase year over year.Zacks Investment Research
Image Source: Zacks Investment Research
Currently, StoneCo carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- StoneCo Divesting Linx, SimplesVet
Jul 22, 2025
StoneCo (STNE) said Tuesday it is divesting assets within its software segment after evaluating stra
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- Brazil's Totvs agrees to buy StoneCo's Linx unit
Jul 22, 2025
SAO PAULO (Reuters) -Brazilian software company Totvs has agreed to buy StoneCo's Linx unit in a deal worth 3.05 billion reais ($547.90 million), it said on Tuesday, adding that it expects the move to strengthen its position in the retail segment.
Totvs has shown interest in Linx since 2020, when StoneCo won a bidding war by paying 6.7 billion reais for the retail software developer. In April, Totvs entered exclusive talks with StoneCo to acquire the unit.
Sao Paulo-traded shares of Totvs seesawed after the announcement, climbing 3.1% early in the session before erasing gains and falling as much as 1%. In the afternoon, the company's shares were down 0.5%, while benchmark stock index Bovespa was up 0.4%.
Totvs said in a securities filing that the transaction will be financed through its cash reserves and debt instruments yet to be arranged "under favorable market conditions." The deal requires approval from Brazil's antitrust watchdog.
Totvs' chief executive, Dennis Herszkowicz, told Reuters in an interview on Tuesday afternoon that Linx is the company's biggest-ever acquisition in terms of investment value.
Herszkowicz also noted that it is not yet clear how much of the deal will be financed through the company's own capital versus debt, although the majority is expected to be funded by debt.
The executive said the deal will strengthen Totvs' position in the retail sector as the company will gain a foothold in segments where it does not currently operate.
"A good part of what Linx does in retail, Totvs does not do - software for pharmacy chains, gas stations, fast-food chains, car dealerships, and so on," Herszkowicz said.
He reaffirmed that Totvs is considering other acquisitions in addition to Linx, adding that none of these potential deals would require capital from divestitures.
"While the landscape is challenging for everyone due to politics, geopolitics, and interest rates, technology stands out as an island of prosperity, and management software especially," he said.
($1 = 5.5667 reais)
(Reporting by Gabriel Araujo and Luciana Magalhaes in Sao Paulo; Editing by Chizu Nomiyama and Matthew Lewis)
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- StoneCo Announces Divestment of Software Assets
Jul 22, 2025
Georgetown, Cayman Islands--(Newsfile Corp. - July 22, 2025) - StoneCo Ltd. (NASDAQ: STNE) ("Stone" or the "Company") today announced significant divestments within its software segment after evaluating several strategic alternatives over the past year.
The assets included in today's announcement represented in 2024 approximately 79% of the software segment's revenue and 71% of its profitability, and 9% of StoneCo's revenues and 6% of its profitability.
These transactions aim to unlock shareholder value, streamline operations, and allow management to concentrate on StoneCo's core growth strategy.
The main developments from this review are outlined below:
1. Sale of Linx and Related Software Assets to TOTVS
StoneCo has entered into a definitive agreement to sell Linx and certain other software assets to TOTVS for an enterprise value of R$3.05 billion, plus the net cash position of these assets currently estimated at R$360 million, resulting in a total amount of R$3.41 billion. Additionally, all cash generated between signing and closing will be retained by StoneCo.
The scope of assets sold includes most of Linx's software, covering the verticals of education, retail, gas stations, automotive, drugstores, healthcare, home centers, food, people, and Napse.
The transaction is subject to customary closing conditions and regulatory approvals, including clearance by CADE, the Brazilian antitrust authority. The closing of the transaction and subsequent cash payment will occur following regulatory clearance.
The final purchase price may be subject to customary adjustments based on the duration between announcement and completion.
Importantly, the fiscal goodwill of approximately R$3.8 billion associated with StoneCo's original acquisition of Linx will remain within StoneCo and will be amortized within the group over the next 8 years.
No exclusive commercial agreement accompanies this transaction and the companies may explore potential future commercial partnerships.
2. Sale of SimplesVet to PetLove
StoneCo has sold SimplesVet, a veterinary-focused software solution, to PetLove for an enterprise value of R$140 million, representing approximately 4x revenue. This transaction has already received CADE approval. The consideration will be paid in cash, with a portion upfront and the remainder in fixed installments over three-years, adjusted by CDI, with no performance-based contingencies.
3. Remaining Software Businesses
The software businesses not included in the aforementioned transactions represent in 2024 R$ 326 million in revenues and R$32 million in Adjusted EBITDA. These businesses will either be integrated into StoneCo's core offerings or operated independently while StoneCo evaluates their strategic fit and long-term value creation potential.
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Use of Proceeds
StoneCo intends to disclose detailed plans for the use of proceeds upon transaction closing. Consistent with the Company's capital allocation framework articulated during the 4Q24 earnings call, StoneCo expects to return excess capital to shareholders when immediate value-accretive growth opportunities are not available.
About StoneCo
StoneCo is a leading provider of financial technology and software solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. These statements identify prospective information and may include words such as "believe," "may," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "forecast," "plan," "predict," "project," "potential," "aspiration," "objectives," "should," "purpose," "belief," and similar, or variations of, or the negative of such words and expressions, although not all forward-looking statements contain these identifying words.
Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Stone's control.
Stone's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: more intense competition than expected, lower addition of new clients, regulatory measures, more investments in our business than expected, and our inability to execute successfully upon our strategic initiatives, among other factors.
Contact:
Investor Relations
investors@stone.co
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259608
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