By Brazil Stock Guide – Casas Bahia (B3: BHIA3), one of Brazil’s largest consumer electronics and household goods retailers, reported a net loss of R$1.53 billion in the fourth quarter of 2025, reversing a profit in the previous quarter and widening the loss from the same period a year earlier after a large accounting adjustment related to deferred tax assets.
Net revenue reached R$8.47 billion (about $1.7 billion), up roughly 6% from the same quarter of 2024, while adjusted EBITDA rose 29% to R$826 million (about $165 million). The EBITDA margin expanded to 9.8%, marking continued operational improvement. Consolidated gross merchandise volume totaled R$13.1 billion, an increase of nearly 9% year on year.
The balance sheet showed one of the most significant changes in the quarter. Adjusted net debt fell to R$1.13 billion, down from R$4.48 billion in the previous quarter, reflecting debt renegotiations, a R$2 billion debt-to-equity conversion, and stronger operational cash generation.
Despite the reported loss, the company delivered robust liquidity. Free cash flow reached R$1.81 billion in the quarter, supported by operating improvements and the monetization of tax credits. The company also reported a sharp decline in labor litigation and continued expansion of its consumer credit portfolio.
E-commerce remained the main growth driver. Total online GMV rose 21.7%, with first-party online sales increasing 25.6% and marketplace sales growing 16.1%, while physical store sales remained broadly stable.
Financial expenses still reflect Brazil’s high-interest-rate environment. The company reported net financial expenses of R$557 million, although the figure improved nearly 40% from the same period last year. Brazil’s benchmark CDI rate averaged about 14.9% during the quarter, up from roughly 11.1% a year earlier, increasing funding costs across the retail sector.
The headline loss was largely driven by an accounting revision of approximately R$1.45 billion in deferred tax assets, a non-cash adjustment linked to the company’s balance-sheet restructuring. Excluding this effect, the adjusted net loss would have been around R$79 million, a significant improvement from the R$452 million adjusted loss recorded a year earlier.
The results indicate that Casas Bahia is advancing in its effort to rebuild financial stability through debt reduction and stronger cash generation. The next phase of the recovery will likely depend on credit conditions and the trajectory of interest rates in Brazil, factors that continue to shape consumer demand and financing costs in the country’s durable-goods retail sector.
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