Lavvi (LAVV3) reported net income attributable to controlling shareholders of R$ 90.7 mn in 3Q26, down 13% from 3Q25 and up 10% from 2Q26. Net revenue totaled R$ 531.9 mn, up 28% year over year and 7% quarter over quarter. The net margin was 17.0%, versus 25.1% in 3Q25. The year-over-year decline in net income stems mainly from lower equity income (share of results from projects developed in partnership), higher interest on loans and CRIs (Certificados de Recebíveis Imobiliários, or Real Estate Receivables Certificates), and a larger share attributed to minority shareholders.
In the first nine months of 2026, net revenue totaled R$ 1.4 bn, up 14% from the same period of 2025, and net income was R$ 243 mn, down 21%, with a net margin of 17.4%.
Adjusted gross profit was R$ 203.1 mn, up 30% from 3Q25, with an adjusted gross margin of 38.2%, an increase of 0.6 percentage point (p.p.) both year over year and quarter over quarter. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came in at R$ 143.3 mn, up 15% from 3Q25, with a margin of 26.9%, down 3.1 p.p. for the year. The adjustments relate only to production financing interest (SFH).
Equity income totaled R$ 4.5 mn in the quarter, down 83% from 3Q25. Eden, a project in partnership with Cyrela, recorded a provision of about R$ 22 mn in Lavvi's share, relating to the expected payment of part of the performance fee, due to returns above the target on the project. The expense affected the net margin by approximately 4 p.p. Annualized ROE (return on equity) was 23%.
In operations, the company launched the Well Perdizes and Zen Apartments projects, which totaled R$ 538 mn in total PSV (Potential Sales Value). Net sales were R$ 420 mn, down 20% from 3Q25 and 52% from 2Q26, with a VSO (sales over supply) of 11% in the quarter and 48% over the last 12 months. Revenue to be recognized from sales (backlog) reached R$ 2.9 bn, up 23% for the year, with a margin of 39.1%. The landbank (land inventory) totals R$ 9.1 bn in potential PSV on a 100% basis.
Net debt ended September at R$ 583 mn, equivalent to 32.3% of shareholders' equity, versus 30.6% in the prior quarter. Adjusted cash generation was R$ 14 mn in 3Q26, or R$ 91 mn excluding land purchases. In the nine months, cash burn was R$ 57 mn, or generation of R$ 192 mn excluding land. The company paid R$ 70 mn in dividends on August 14, and the fourth and final installment, of R$ 70 mn (R$ 0.35817654002 per share), will be paid on November 13, 2026. In August, Lavvi bought back 250,000 shares for R$ 2.4 mn, at an average price of R$ 9.47, under a new buyback program of up to 7,446,082 shares.
