Totvs (), the largest Brazilian software company, foresees the maintenance of “a positive path” in the second half of 2025, after a 51% growth in the second quarter adjusted net profit, in comparison year against year, told the year Reuters Company President Dennis Herszkowicz.
In the quarter ,. The value slightly exceeded market expectations, which, according to LSEg data, provided for an average of R $ 209.5 million.
Although it does not provide projections, Herszkowicz highlighted the recurring revenue of the company, which represented more than 91% of the consolidated revenue in the period. This index reflects the presence of long -term contracts that are constantly renewed, raising Totvs’s financial predictability.
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The expansion of the portfolio in the quarter was also an engine for Totvs sales, driven among others for the launch of a new tax management solution, developed in anticipation of the effects of tax reform, the executive said.
“In January next year you start having the new tax model and for a few years it will live with the current model, which effectively brings, from a practical point of view, an additional complexity for all companies,” said Herszkowicz. “This is already requiring more investments in digitization and technology, management software.”
Regarding the entry into force of new import tariffs in the United States, the executive said there will be no direct impact on Totvs. In addition, he predicts that most company customers will be less affected than the rest of the economy.
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Herszkowicz also reported that Totvs awaits the approval of the Administrative Council for Economic Defense (Cade) for the acquisition of Linx, announced in July. The transaction will be funded with its own resources and debt, which will only be reflected in the company’s balance in a future time.
