LWSA Q2 Profit Leaps 117% to US$6.6 Million as Commerce Drives Growth
LWSA, Brazil's Locaweb, lifted Q2 2026 net profit 117% to R$34.3 million, though the jump rests on a small year-ago base as margins hit a record. The post LWSA Q2 Profit Leaps 117% to US$6.6 Million as Commerce Drives Growth appeared first on The Rio Times .
LWSA, also known as Locaweb, reported a remarkable 117.1% increase in net profit for the second quarter of 2026, reaching R$34.3 million, or approximately US$6.6 million. This significant jump, while impressive on paper, was fueled by a small year-ago base, with profit from the same period in 2025 amounting to merely R$15.8 million.
In everyday terms, the Brazilian cloud and e-commerce group managed to retain a larger portion of its sales as profit compared to the prior year. The Commerce division led the revenue growth, increasing by 12.4% to R$276 million, while subscription sales rose by about 14%. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 35.1% to R$102.5 million, with the adjusted margin reaching 27.3%, the highest in the past 24 quarters.
Despite the large percentage increase, the profit growth in absolute reais was comparatively modest, with a year-on-year gain of under R$20 million. The company's earnings quality improved, as evidenced by the 48.7% rise in adjusted profit, which excludes one-off and non-cash items. LWSA's focus has shifted towards profit and cash generation, moving away from rapid expansion.
The firm trades in São Paulo under the ticker LWSA3, offering web hosting, online-store tools, and payment services to small Brazilian businesses. The steady growth and improved margins suggest a healthier state for the corner of the Brazilian economy reliant on small online businesses.
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