On Monday, August 10, 2026, Terra Santa Propriedades Agrícolas (LAND3) reported a net loss of R$ 12.6 million in the second quarter of 2026 (2Q26), compared to net income of R$ 5.0 million in 2Q25. Net operating revenue totaled R$ 23.5 million in the quarter, down 21.4% from R$ 29.9 million a year earlier.
In 2Q26, gross profit came to R$ 22.4 million, a decrease of 22.1% versus R$ 28.8 million in 2Q25, mainly influenced by lower lease revenue due to a calendar effect in the contractual renegotiation of the 2024/25 crop year. Operating expenses more than doubled, rising from R$ 19.6 million to R$ 39.7 million, with emphasis on other operating income (expenses), which went from an expense of R$ 13.9 million to R$ 32.1 million, reflecting mainly a non-recurring, non-cash impairment of R$ 31.0 million on farmland under judicial dispute over ownership.
Financial results also weighed on earnings, with a net loss of R$ 5.1 million in 2Q26, versus a negative result of R$ 3.4 million in 2Q25. Financial expenses increased from R$ 3.1 million to R$ 6.6 million, impacted by monetary restatement and interest on a higher balance of probable contingencies and on loans, while foreign exchange and derivatives line items were a negative R$ 1.6 million, compared to a negative R$ 2.0 million a year earlier. On the other hand, the change in deferred taxes (IRPJ/CSLL) contributed positively by R$ 10.5 million in the quarter.
EBITDA (earnings before interest, taxes, depreciation, and amortization) was negative R$ 16.4 million in 2Q26, versus positive EBITDA of R$ 9.9 million in 2Q25. Adjusted EBITDA, which excludes non-recurring provisions and asset impairment, totaled R$ 17.4 million in the quarter, compared to R$ 23.9 million in the same period of 2025. In the first half of 2026 (1H26), the cumulative net loss was R$ 4.3 million, versus net income of R$ 14.7 million in 1H25, with Adjusted EBITDA of R$ 34.1 million, compared to R$ 39.3 million a year earlier.
In terms of cash and debt, the Company ended June 2026 with cash and equivalents of R$ 94.7 million and gross debt of R$ 84.6 million, resulting in a net cash position of R$ 10.1 million, versus net debt of R$ 57.2 million in December 2025. Gross debt increased from R$ 68.8 million to R$ 84.6 million in the half-year, reflecting a R$ 40.0 million fundraising to strengthen liquidity, partially offset by amortizations of R$ 21.3 million and interest payments of R$ 7.5 million. Leverage, measured by the ratio of net debt to Adjusted EBITDA for the last 12 months, went from 0.86x in December 2025 to -0.17x in June 2026.
In 2Q26, net lease revenue totaled R$ 22.3 million, down 25.4% from R$ 29.8 million in 2Q25, an effect explained by the pro rata recognition of the 2025/26 crop year and the concentrated recognition of 2024/25 crop revenues in the second quarter of 2025. Rental revenue remained at R$ 87 thousand, and gains on derivatives designated under hedge accounting were a positive R$ 1.2 million in the quarter.
