In the release of its second quarter 2026 (2Q26) results on Wednesday, August 5, 2026, TOTVS (TOTS3) reported net income of R$ 241 million. NOPLAT reached R$ 317 million, an increase of 31% compared to 2Q25, and earnings per share came to R$ 1.83, up 16% in the same comparison.
The company highlighted that, in 2Q26, NOPLAT grew more than EBITDA (earnings before interest, taxes, depreciation and amortization), underscoring gains in operating efficiency. Net margin was mainly pressured by the 6th debenture issuance.
TOTVS's net revenue totaled R$ 487 million in 2Q26, after R$ 498 million in 1Q26 and R$ 398 million in 2Q25, marking the 30th consecutive quarter of double-digit organic growth in recurring revenue. In the period, adjusted EBITDA margin reached 25.4%, a 190 basis-point increase year over year, and net operating revenue per employee grew 11% year over year.
In the financial technology (Techfin) area, net funding revenue reached R$ 103 million in 2Q26, a 24% increase compared to 2Q25, driven by the launch of Conta+ and greater efficiency in funding costs. Credit origination reached R$ 3.4 billion, with an average term of 61.9 days, while the volume transacted via Pix (TPV) totaled R$ 2.8 billion. Delinquency over 90 days stood at 2.5%, which is 3.2 percentage points below the Brazilian average, according to data from the Central Bank.
Cash generation also advanced: free cash flow reached R$ 295 million in 2Q26, growth of 50% both compared to the previous quarter and to the same period in 2025, and operating cash generation corresponded to 104% of adjusted EBITDA. In the management software segment, gross addition of annual recurring revenue (ARR) exceeded R$ 400 million, up 28% over 2Q25, and one-third of the increase in management recurring revenue in the first half of 2026 came directly from artificial intelligence enablers.
As a final message to investors, TOTVS announced that it is repurchasing 70 million shares, with the aim of maximizing value creation for shareholders who continue to believe in the company's future. The company also noted that the sector index IGV is approximately 40% above its recent low, while TOTVS shares are up around 20% in the same period.
