LPS Brasil - Consultoria de Imóveis S.A. (LPSB3) Earnings Call Transcript & Summary

Good afternoon, everyone, and thank you for waiting. Welcome to the earnings webinar of LPS Brasil to discuss the results for the second quarter of 2026. This event is being recorded [Operator Instructions] Before proceeding, we would like to clarify that any statements that may be made during this webinar regarding the business prospects of LPS, projections, operating and financial goals constitute the beliefs and assumptions of the company's management. Forward-looking statements are not a guarantee of performance and involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operating factors may affect the future results of the company and could lead to results that differ materially from those expressed in such forward-looking statements. I will now give the floor to our Investor Relations Officer, Mr. Cyro Naufel, who will start the webinar.

Good morning. Welcome to the earnings conference call of LPS Brasil. Today's presentation will have Francisco Lopes Neto, Vice President; and Robson Paim, Financial Officer. In order to start the conference, I would like to send the message by Marcos Lopes, our CEO.

Good afternoon, everyone. Thank you for your presence and yet another LPS conference call. The second quarter of 2026 was marked by increased caution, even so the real estate market maintained a consistent level of activity during the period. Although interest rates have remained at high levels and the monetary easing cycle continues gradually in a context still influenced by uncertainties in international scenario, the industry fundamentals have remained favorable. The expansion of housing credit, coupled with the maintenance of employment and income levels has helped sustain the demand for housing, even though consumer behaviors remains more selective, especially in the middle class. In this context, a more moderate dynamic was observed in this segment, while affordable and high-end segments continue to demonstrate greater resilience and maintain the relevant role in sustaining the activity and growth of the Brazilian residential market. In the second quarter of 2026, Lopes reinforced its relevance in the real estate market by participating in the launch of 31 projects equivalent to BRL 5.2 billion in PSV. The company brokered the sale of more than 3,600 properties through its network of 148 stores, generating BRL 2.6 billion in sales. Complementing its operations, CrediPronto originated BRL 1.6 billion in financing during the quarter. We remain committed to executing our strategy with discipline, continuously seeking operational efficiency and generating sustainable value, strengthening our position to capture opportunities in Brazil's real estate market. To detail the evolution of our business and the earnings for the period, I will leave the floor to Cyro Naufel, Director of Investor Relations; and Mr. Francisco Lopes Nesto, Vice President. Thank you.

Thank you, Marcos. We now start the presentation of the company. Starting with Slide 4. Regarding operational results, as mentioned by Marcos LopesLopes launches amounted to BRL 5.2 billion in the second quarter of '26, 7% higher than the same period in '25. Intermediations were BRL 2.6 billion in the period, 20% less than the second quarter of '25. CrediPronto originated BRL 1.6 billion in financed volume, increasing the portfolio with an average balance of BRL 20 billion. The net revenue of the company amounted to BRL 54 million with an EBITDA of the net income consolidated before IFRS amounted to BRL 8.4 million, 37% less than the previous quarter. Continuing to Slide #5, we have information of launches in the second quarter and first half of 2026. We participated in 31 launches totaling BRL 5.2 billion, as shown in the slide, a growth of 7% compared to the previous quarter in -- or to the same quarter of '25. On the slide, you see the states with launches in '26. Continuing to Slide #6, we see the results from intermediation. Lopes brokered BRL 2.6 billion, 20% than the second quarter of '25, and we are currently present in 19 states, 148 stores. On Slide #7, we see the intermediation of Lopes by geographic region in Brazil. State of Sao Paulo intermediated 47% of the quarterly volume, BRL 1.2 million, followed by Rio de Janeiro with BRL 586 million. The other regions together accounted for BRL 178 million. On the next slide, we see the division between primary and secondary markets for the second quarter. The primary market accounts for the main intermediations of the company, 69% of the PSV and 70% of units sold. Moving on to Slide 9, we see indicators related to Lopes portal. On the top chart, we see the organic sessions at the website, BRL 10.8 million in the LTM vision and an increase of 4% when compared to the same period of last year. Leads from organic searches generated by the portal amounted BRL 158,000 in LTM vision. And on Slide 10, we see the mortgage volume on the second quarter by CrediPronto, BRL 1.6 million, 93% higher than in the same period of last year. When in comparison purposes, the amount financed by private banks has grown by 21%. On the lower chart of the slide, we can see that the portfolio of CrediPronto amounted to BRL 20.2 million in the period, and Lopes has 50% of this portfolio. On the next slide, we see the main highlights for the second quarter '26. BRL 1.6 million of mortgage volume, the number of agreements increased and attained 3,000 contracts. The average term of contracts is 372 months. We see 367 months. We see BRL 9.9 million of profit sharing that added to origination revenue of BRL 14.9 million amounted to BRL 24.8 million in total revenue in the quarter. On Slide 12, we see CrediPronto profit sharing composition, BRL 9.9 million, which is the 50% attributed to the company. On the right, we see the development of the net result recognition of CrediPronto. On Slide 13, we see the composition of the company's revenue, and the net revenue amounted to BRL 54.6 million in the second quarter of '26, an increase of 7% compared to the same period of last year. Moving on to Slide 14. We see that operational expenses increased by 25%, reaching BRL 39.5 million in the period. And on the next slide, we see the EBITDA and EBITDA margin in the LTM vision. And they were 71.7% and 34.6%, keeping the company's focus on operational efficiency. On the next slide, we see the earnings for the second quarter by segment. Before IFRS, on the consolidated column, we see the EBITDA and the net income before IFRS of BRL 8.4 million, EBITDA, BRL 15 million. On the same -- on the next slide, now we see by segment and without IFRS, which totaled BRL 12.6 million and those attributed to controlling shareholders, BRL 10 million in the quarter in the semester. We -- in the next slide, we see the amortization of intangible assets and the put and call options of controlled companies. And the IFRS effects are noncash. And in order to understand the better performance of the company, we suggest that analysis are made without taking such effects into account. Finally, on Slide 19, we can see the development of the cash balance of the company and cash from operations. In the quarter ended in June, operating cash -- cash from operations amounted to BRL 4 million and the cash and cash equivalents ended at BRL 34.5 million, which added to financial investments amounts to BRL 56.6 million in balance. These were our comments, and we thank you all for attending, and we remain available for any questions you may have.