TOTVS (TOTS3) reported net revenue of R$ 1.978 bn in the third quarter of 2026 (3Q26), up 13% from 3Q25. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 501 mn, growth of 17% in one year and 2.9% from 2Q26. The company reported 31 consecutive quarters of double-digit net revenue growth.
The EBITDA margin was 25.3%, up 80 basis points (bps) from 3Q25 and down 10 bps from 2Q26. Adjusted net income was R$ 237 mn, down 8.8% from 3Q25 and 1.4% from 2Q26. The company attributes the decline to higher financial expenses resulting from the issuance of debentures to pay for the Linx acquisition, and to a smaller volume of invested cash because of share buyback programs. NOPLAT (net operating profit less adjusted taxes) totaled R$ 305 mn, up 16% in one year and down 3.5% in the quarter. Earnings per share (EPS) for the last 12 months grew 11% from the prior year.
Of 3Q26 net revenue, R$ 1.837 bn is recurring and R$ 141 mn is non-recurring. In 3Q25, the figures were R$ 1.595 bn and R$ 151 mn, respectively. Net ARR (annual recurring revenue) additions were R$ 209 mn, versus R$ 200 mn in 3Q25 and R$ 209 mn in 2Q26. Cloud revenue showed a sequential acceleration of 5 percentage points in the year-over-year comparison (3Q26 vs. 2Q26). Free cash flow was R$ 192.8 mn, down 24.9%, which TOTVS tied to upfront payments of R$ 92 mn on cloud contracts. The net debt/EBITDA ratio for the last 12 months is 1.6x, versus 1.5x in 2Q26.
At Techfin, the company's financial arm, Pix total payment volume (TPV) reached R$ 3 bn, up 28% in one year and 7.4% from the previous quarter. Net funding revenue was R$ 115 mn, down 3.9% from 3Q25 and up 11% from 2Q26. Credit origination was R$ 3.5 bn, with an average term of 65.1 days.
Delinquency over 90 days was 2.9%, 3.2 percentage points below the Brazilian average, according to Central Bank data cited by the company. The up-to-30-days past-due bucket fell 35% in the quarter. Techfin's EBITDA was R$ 1.4 mn, versus a loss of R$ 5.0 mn in 2Q26, and net result was -R$ 0.1 mn, versus -R$ 3.3 mn in 2Q26.
