# CVC Net Loss Widens 56% as Receivables Financing Costs Rise

*Bookings reach R$ 4.1 billion and Brazilian margins improve, but a lower take rate and weakness in Argentina weigh on results; company targets more than R$ 80 million in cost savings in 2026.*

- Published: 2026-08-12
- Section: Insights
- Tags: CVC Corp, cvcb3, Earnings, tourism, travel
- URL: https://brazilstockguide.com/insights/cvc-net-loss-widens-56-as-receivables-financing-costs-rise/

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**By Brazil Stock Guide –** CVC Corp (B3: CVCB3) posted a net loss of R$ 72.5 million in the second quarter, widening 56.2% from R$ 46.4 million a year earlier. A lower revenue capture on bookings, a sharp deterioration in Argentina and higher credit-card receivables financing costs outweighed the initial benefits of the company’s cost-cutting program in Brazil.

The adjusted net loss more than tripled to R$ 51.3 million from R$ 15.9 million. CVC’s adjusted metric adds depreciation and amortization back to net income and deducts cash additions to property, equipment and intangible assets.

For the first half, the accounting net loss reached R$ 144.9 million, compared with R$ 53.9 million in the same period of 2025. On an adjusted basis, CVC swung from a profit of R$ 8.1 million to a loss of R$ 114.4 million.

#### Bookings Grow, but Revenue Capture Weakens

Confirmed bookings totaled R$ 4.092 billion in the quarter, virtually unchanged from a year earlier, with reported growth of just 0.2%. On a comparable basis—excluding destinations affected by conflicts in the Middle East and currency effects in Argentina—bookings rose 4.1%.

Brazil drove the performance, with confirmed bookings increasing 4.1% to R$ 3.287 billion, or 5% on a comparable basis. B2B bookings rose 5% as reported and 6.3% on a comparable basis, supported by market-share gains at airline ticket consolidator Rextur Advance. B2C bookings increased 2.9%, or 3.4% on a comparable basis.

In Argentina, reported bookings fell 13% to R$ 804.6 million. At constant currency and excluding conflict-related effects, however, they edged up 0.3%, indicating that most of the reported decline reflected the depreciation of the Argentine peso.

Consumed bookings—bookings recognized when customers travel or, for certain products, when the sale is completed—rose 2.3% to R$ 3.918 billion. They increased 7.2% in Brazil but fell 13.2% in Argentina.

The higher volume did not translate into revenue growth. Under the accounting statements, net sales fell 4.5% to R$ 332.7 million. In its managerial presentation, which deducts service costs and reclassifies certain foreign-exchange effects, CVC reported net revenue of R$ 319.5 million, down 6.5%.

The take rate—the share of consumed bookings retained by CVC as revenue—fell to 8.2% from 8.9%. The decline reflected a greater contribution from B2B operations and lower-margin products such as airline tickets and cruises.

In Brazil, B2C net revenue fell 8.9%, while B2B revenue rose 2.5%. CVC said airfares climbed 52.4% in the 12 months through June, according to Brazil’s IPCA inflation index, weighing on leisure travel demand. The company also cited aviation regulator Anac data showing the first year-on-year decline in domestic passenger traffic since 2024.

#### Brazil Improves, but Argentina Drags Down EBITDA

Consolidated adjusted EBITDA fell 8.1% to R$ 84.9 million, while the margin slipped 0.4 percentage point to 26.6%.

Brazil delivered a stronger performance. Adjusted EBITDA rose 4.7% to R$ 82.6 million, with the margin expanding 2.6 percentage points to 30.6%. The Brazilian operation accounted for roughly 97% of consolidated adjusted EBITDA in the quarter.

In Argentina, adjusted EBITDA plunged 82.8% to R$ 2.3 million from R$ 13.4 million. The margin fell to 4.6% from 22.2%, reflecting weaker cost absorption amid lower revenue and the impact of the peso’s depreciation on consumer purchasing power.

Before adjustments, consolidated EBITDA fell 30.2% to R$ 60.8 million. Items classified as non-recurring totaled R$ 24.1 million, up from R$ 5.3 million a year earlier. The figure included R$ 19 million in restructuring-related severance costs and R$ 5 million in civil and tax contingencies.

The year-earlier comparison was also demanding. In the second quarter of 2025, CVC recognized R$ 18.4 million in credits from contract renegotiations with suppliers. That line contributed just R$ 400,000 in the latest quarter.

#### Cost Savings Could Exceed R$ 80 Million

General and administrative expenses in Brazil fell 10.1% to R$ 133.4 million. Excluding non-recurring restructuring costs, the decline would have reached 21%, according to the company.

The restructuring included the elimination of three vice-president positions, fewer management layers and a review of technology, marketing and administrative supplier contracts. CVC estimates that the measures could generate more than R$ 80 million in cost reductions during 2026, excluding severance expenses. The full benefit is expected to begin in the third quarter.

Consolidated recurring expenses fell 6% to R$ 234.6 million. Selling expenses were broadly unchanged at R$ 80.5 million. Marketing expenses rose 1.9%, while credit-card and payment-slip costs declined 5.3% following the renegotiation of merchant-acquiring terms.

#### Receivables Financing Weighs on Financial Result

Net financial expense under the accounting statements widened 17% to R$ 87.8 million. In its managerial presentation, after reclassifying R$ 6.2 million in foreign-exchange effects to operating lines, CVC reported a financial expense of R$ 81.6 million.

The largest pressure came from credit-card receivables financing. Interest costs rose 30.8% to R$ 49.7 million, accounting for more than half of total financial expenses. Discounted receivables reached R$ 1.358 billion, compared with R$ 1.052 billion a year earlier.

The net foreign-exchange loss under the accounting basis increased to R$ 13.7 million from just R$ 500,000 in the second quarter of 2025. Interest on IFRS 16 lease liabilities more than doubled to R$ 3.7 million.

These pressures were partly offset by a 15.7% decline in interest charges on debentures following a R$ 150 million extraordinary principal repayment made in 2025.

#### Conventional Debt Falls, but Reliance on Receivables Financing Grows

CVC generated R$ 60.2 million in operating cash flow during the quarter, down from R$ 131 million a year earlier. Free cash flow to the firm was positive at R$ 30.3 million, compared with R$ 105.7 million in the second quarter of 2025.

For the first half, however, free cash flow was negative by R$ 137.5 million, compared with positive R$ 32.1 million a year earlier. Cash ended June at R$ 175.8 million, up R$ 8.4 million from March but down from R$ 251.1 million in June 2025.

Gross debt fell to R$ 400.5 million from R$ 650.8 million, while net debt declined to R$ 215 million from R$ 396.2 million. Net leverage fell to 0.5 times last-12-month adjusted EBITDA from 0.9 times a year earlier.

That improvement, however, coincided with heavier use of receivables financing. On a broader debt-like measure that includes discounted receivables, net debt reached R$ 1.573 billion, above R$ 1.448 billion a year earlier. The increase helps explain why financial costs rose even as conventional gross debt declined.

“We enter the second half, the seasonally stronger period for leisure travel, with a streamlined structure and continued discipline in working-capital management,” the company said.

CVC also disclosed that Fernando Cinelli – APEX Partenrs – resigned from its board of directors on August 6. The seat will remain vacant until a replacement is appointed.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/cvc-net-loss-widens-56-as-receivables-financing-costs-rise/