By Brazil Stock Guide – The retailer posted a net loss of R$496 million (approx. US$92 million) in 3Q25, an improvement from the R$555 million loss in the previous quarter but deeper than the R$369 million loss recorded in 3Q24. The company’s adjusted EBITDA margin reached 8.5%, up 80 basis points year-over-year, while net revenue grew 7.3% to R$6.87 billion (approx. US$1.27 billion). Total Gross Merchandise Volume (GMV) rose 8.5% to R$10.5 billion, driven by a 12.7% surge in e-commerce.
“The company maintained operational discipline despite a volatile macroeconomic environment,” said CFO & IRO Eldo Ito, highlighting the eighth straight quarter of EBITDA margin growth and positive free cash flow generation of R$488 million. The improvement was supported by cost control, with SG&A expenses falling 3.2% despite revenue growth.
The results come amid a challenging competitive landscape for Brazilian retailers, with high interest rates pressuring financing costs. Casas Bahia’s financial expenses jumped 43.8% to R$1.06 billion, reflecting the impact of a higher average CDI rate. The performance underscores the company’s ongoing transformation efforts to optimize its store footprint, grow its online marketplace (3P GMV +17.7%), and leverage its core credit portfolio, which reached R$6.2 billion.
Shares of BHIA3 are down approximately 15% year-to-date. They closed the last trading session at R$5.20. Investors will monitor the company’s ability to sustain its operational improvements and manage its leverage, with the net debt/adjusted EBITDA ratio standing at 1.9x.
Looking ahead, management is expected to provide further details on its guidance and cost structure during its earnings conference call scheduled for November 13. Analysts will focus on the company’s strategy to navigate the high-interest rate environment and its progress in monetizing its credit and services offerings.
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