Earnings release
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GRUPOTECHNOS 2Q2026 Earnings Release JAPANESE TECHNOS AUTOMATIC 50M MOVEMENT SABIT TECHNOS Condor Mormaii -EURC- FOSSIL MICHAEL KORS
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TECHNOS GROUP REPORTS 16.0% GROWTH IN ADJUSTED EBITDA AND RECORD NET INCOME IN THE SECOND QUARTER OF 2026. Rio de Janeiro, August 10, 2026 – Technos Group (B3: TECN3) announces its results for the second quarter of 2026 (2Q26). The following financial and operational information is presented on a consolidated basis, in compliance with Brazilian Corporate Law, unless otherwise indicated. Adjusted EBITDA - Represents CVM EBITDA (net income plus depreciation and amortization, financial expenses, financial income, current and deferred taxes), adjusted for the present value adjustment on sales and sales taxes, non-operational contingency provisions, nonrecurring, extraordinary results, and the stock option plan. R$ million 2Q25 2Q26 % 2025 2026 % Gross Revenue 143.0 151.6 6.1% 244.7 258.9 5.8% Net Revenue 121.9 129.0 5.8% 208.6 220.2 5.6% Gross Profit 67.9 73.7 8.4% 114.2 122.6 7.3% Gross Margin 55.7% 57.1% 1.4 p.p. 54.8% 55.7% 0.9 p.p. SG&A -39.5 -42.6 7.9% -76.5 -82.4 7.7% Net Income 19.1 67.5 253.7% 23.6 74.0 213.9% Net Margin 15.7% 52.4% 36.7 p.p. 11.3% 33.6% 22.3 p.p. Adjusted EBITDA 32.1 37.3 16.0% 44.2 51.3 16.1% Adjusted EBITDA Margin 26.3% 28.9% 2.5 p.p. 21.2% 23.3% 2.1 p.p. Number of Watches (000s) 610 679.0 11.4% 1,097 1,200 9.4% Average Price (R$/product) 235 223 -4.8% 223 216 -3.3% 2Q2026 Earnings Release HIGHLIGHTS FOR THE QUARTER • Net revenue at R$ 129.0 million, with 5.8% growth versus 2Q25. • R$ 73.7 million gross profit, with 8.4% growth versus 2Q25. • SG&A of R$ 42.6 million, 7.9% higher versus 2Q25. • Adjusted EBITDA of R$ 37.3 million, 16.0% higher versus 2Q25. • Net income of R$ 67.5 million, 253.7% higher versus 2Q25. DATE 08/10/2026 CLOSING PRICE R$ 9.35/share MARKET CAP R$ 562.6 million CONFERENCE CALL Webcast Link 08/11/2026 10:00 a.m. Brasília IR CONTACTS Daniela Pires - CFO and IR Officer Danielle Younes -- Financial Planning and IR Coordinator ri@grupotechnos.com.br www.grupotechnos.com.br/ri +55 (21) 2131-8672 1
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MANAGEMENT COMMENTS Technos Group’s performance in the second quarter of 2026 delivered the Company’s best quarterly result in its history for this period, despite an unstable and unpredictable macroeconomic environment. In the second quarter of 2026, Technos Group continued its positive performance trend, maintaining significant growth in revenue and net income and marking its 24th consecutive quarter of Adjusted EBITDA growth. In 2Q26, Technos Group’s Gross Revenue showed 6.1% growth, while Net Revenue grew 5.8% versus the same quarter of the previous year. This growth reflects the progress of virtually all the Company’s brands and distribution channels. Sales growth was mainly driven by the 11.4% increase in the volume of watches sold, given the 4.8% decline in the average price resulting from a change in the product mix. Gross Profit was 8.4% higher than in 2Q25. Gross margin for the quarter was up 1.4 p.p., mainly driven by the lower U.S. dollar exchange rate compared to the second quarter of 2025. Combined with disciplined product cost management , this dynamic contributed to the expansion of profitability, reinforcing the consistency of the Company’s execution . During the quarter, Selling and Administrative Expenses rose 7.9% compared with the same period in 2025, driven primarily by expenses directly related to sales, such as marketing investments and commercial travel. In line with its operational efficiency strategy, Technos Group remains committed to maintaining a lean and efficient cost structure . Adjusted EBITDA reached R$ 37.3 million in the quarter, representing 16.0% growth compared to 2Q25. The improvement in this indicator reflects sales growth and disciplined cost management, which has enabled the Company to capture significant gains in operating leverage. During the quarter, Technos Group reported Net Income of R$67.5 million. The result reflects the combination of sales growth, disciplined cost management, and two positive, non -recurring effects totaling R$38.9 million, arising from the write -off of previously provisioned inventories: (i) a non-cash net reversal of provisions for taxes and social contributions, amounting to R$32.4 million, associated with the inventories written off; and (ii) a R$6.5 million reversal of provisions for current IRPJ and CSLL, resulting from the tax loss generated by the write-off of these inventories. This quarter, the Company recorded a cash balance of R$ 27.2 million and gross debt of R$ 40.6 million with average maturity term of 17.6 months, resulting in a net debt of R$ 13.4 million. In the period, the Company repurchased shares totaling R$ 7.3 million, corresponding to 832 thousand shares. In the present date, the Company approved the cancellation of 730,000 treasury shares, with no capital reduction. After the cancellation of shares, the Company's capital stock is now divided into 60,176,215 common shares. Throughout 2026, Technos Group will remain committed to making progress its internal agenda of generating value to shareholders, supported by the consistent and sustainable expansion of its businesses and by disciplined capital allocation. This is a year o f significant events, such as the World Cup and the presidential elections, which historically influence seasonality and consumption trends in the country. Furthermore, we continue to witness an external environment marked by macroeconomic instability in B razil and geopolitical tensions on the international stage. In response to these challenges, Technos Group will continue to invest in strengthening its operations and culture to ensure even more positive results in the future. 2Q2026 Earnings Release 2
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1.097 1.200 223,0 215,7 0 200 400 600 800 1.000 1.200 1.400 2025 2026 Volume (Mil) Preço Médio (R$) GROSS REVENUE In the quarter, Gross Revenue showed 6.1% growth versus the same period of the previous year. The acceleration in sales is the result of growth across virtually all the company's brands and distribution channels . In the quarter, average price reached R$ 223, with a slight drop of 4.8% versus the same period in 2025. Total watch sales reached 679,000 units, with 11.4% growth compared to the same period in 2025 . 2Q2026 Earnings Release 3 143,0 151,6 2T25 2T26 Receita Bruta (R$ M) + 6.1% 244,7 258,9 2025 2026 Receita Bruta (R$ M) +5.8% 609,5 679,0 234,5 223,3 0,0 50,0 100,0 150,0 200,0 250,0 300,0 0,0 100,0 200,0 300,0 400,0 500,0 600,0 700,0 800,0 900,0 2T25 2T26 Volume (Mil) Preço Médio (R$) + 11.4% + 9.4%
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NET REVENUE Net Revenue reached R$ 129.0 million in the quarter, with 5.8% increase compared to the same period of the previous year. Sales taxes grew 8.1% in the year, both due to the increase in sales and to a change in legislation that, as of 2025, treats donations and subsidies (in Technos’ case, the stimulus credit – ICMS tax incentive for Zona Franca de Manaus) as a taxable calculation basis for PIS/COFINS. It is important to highlight that as of the first quarter of 2021, a tax benefit was approved which allowed the company to enjoy an increased use of ICMS tax benefit. This additional benefit, initially approved for 2021, has already been renewed twice an d currently has a term until December 2026. During the quarter, we recorded an impact of R$ 4.9 million, compared with R$ 5.5 million in the same period of 2025. R$ million 2Q25 2Q26 Chg % Chg R$ 2025 2026 Chg % Chg R$ Gross Revenue 143.0 151.6 6.1% 8.7 244.7 258.9 5.8% 14.3 Present Value Adjustment on Sales (6.1) (6.5) 6.5% (0.4) (10.2) (11.6) 13.0% (1.3) Sales Taxes (15.5) (16.8) 8.1% (1.3) (26.8) (28.2) 5.2% (1.4) Present Value Adjustment on Taxes 0.6 0.6 7.2% 0.0 1.0 1.1 12.4% 0.1 Net Revenue 121.9 129.0 5.8% 7.1 208.6 220.2 5.6% 11.7 2Q2026 Earnings Release 4
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67,9 73,7 55,7% 57,1% 2T25 2T26 Lucro Bruto (R$ M) Margem Bruta (%) + 8,4% 114,2 122,6 54,8% 55,7% 2025 2026 Lucro Bruto (R$ M) Margem Bruta (%) + 7,3% GROSS PROFIT AND GROSS MARGIN In 2Q26, Gross Profit amounted to R$ 73.7 million and Gross Margin was 57.1%, representing an 8.4% increase in Gross Profit and a 2.5 p.p. expansion in Gross Margin It is important to note that the company remains committed to maintaining a healthy margin for our products through rationalization of the cost of goods, selective price transfers, and currency hedging policies. SELLING AND ADMINISTRATIVE EXPENSES In the quarter, the Company’s selling and administrative expenses amounted to R$ 42.6 million, with 7.9% increase versus the same quarter of the previous year. Selling and administrative expenses represented 33.0% of net revenue in the quarter versus 32.4% in 2Q25. Selling expenses increased 7.7%, or R$ 2.3 million in 2Q26, compared to the same period in 2025. This increase was due to higher investment to foster sales, such as higher expenses with media, commercial travel, as well as the impact of inflation. General and administrative expenses increased R$ 0.8 million or 8.4% compared to the same quarter in 2025 . 2Q2026 Earnings Release 5
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OTHER OPERATING RESULTS, NET Other operating results, net, totaled an income of R$ 24.6 million in the quarter, versus an expense of R$ 5.1 million in the same period of the previous year. This line item primarily reflects, on a recurring basis, the effects of share-based compensation plans, profit -sharing programs (PLR), and provisions/reversals of provisions for contingencies. During the quarter, the result was positively impacted by the n et reversal of a provision for taxes and social contributions amounting to R$32.4 million, related to the write -off of previously provisioned inventories. This effect made a significant contribution to the Company’s net income performance. Of this total, t he R$27.7 million reversal of provisions related to customs duties and federal contributions levied on the import process was adjusted in the calculation of Adjusted EBITDA, in line with the Company’s historical practice and methodology already adopted in its quarterly reporting. It is important to highlight that these impacts did not represent any cash inflow for the Company, as they were exclusively accounting effects recognized in the period’s results. 2Q2026 Earnings Release 6
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80,5 94,6 101,6 84,1 46,3 22,0 8,0 15,2 6,0 63,2 82,4 86,7 93,2 111,7 118,8 25,8% 21,8% 24,6% 21,2% 12,8% 6,5% 2,6% 4,8% 2,5% 20,1% 23,5% 25,3% 23,3% 23,4% 24,3% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM Adjusted EBITDA and EBITDA Margin EBITDA AND ADJUSTED EBITDA In 2Q26, Adjusted EBITDA increased from R$ 32.1 million in the same period in 2025 to R$ 37.3 million in 2026, representing 16.0% growth, mainly due to the growth in sales and gross profit and cost management. EBITDA margin reached 28.9% in the quarter, up 2.5 p.p. versus the same period in 2025. As detailed above, during the quarter, EBITDA (CVM Resolution 527/12) was positively impacted by the reversal of a provision amounting to R$27.7 million, related to customs duties and federal contributions levied on the import process and associated with the write-off of previously provisioned inventories. This effect was excluded from the calculation of Adjusted EBITDA, in line with the Company’s historical practice and the methodology adopted in its quarterly reporting . R$ million 2Q25 2Q26 2025 2026 (=) Net income 19.1 67.5 23.6 74.0 (+) Amortization and Depreciation (2.8) (3.4) (5.5) (6.5) (+/-) Financial Result 0.0 4.0 0.2 5.1 (+) Current Taxes (6.1) 3.5 (12.1) (0.0) (+/-) Deferred Taxes 1.9 4.4 7.2 7.4 (=) EBITDA (CVM 527/12) 26.1 59.1 33.8 68.1 (+/-) Provision for Non-recurring Contingencies (0.5) 27.7 (1.1) 27.2 (+) Other Non-Cash Expenses² 0.0 0.0 0.0 0.0 (+) Impact of Present Value Adjustment on Operational Result3 (5.5) (5.9) (9.2) (10.4) (=) Adjusted EBITDA 32.1 37.3 44.2 51.3 Adjustment of tax on provision for obsolete inventory ² Non-recurring or non-operational expenses 3 Present value adjustment that results in a decrease in the Company’s gross revenue (affecting CVM EBITDA) and an increase in the Company’s financial income (not affecting CVM EBITDA), leading to a mismatch in connection with the CVM EBITDA view Adjusted EBITDA for the last twelve months reached R$ 118.8 million representing the highest level of Adjusted EBITDA in the company’s history. EBITDA margin was 24.3%. 2Q2026 Earnings Release 7
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FINANCIAL RESULT, NET In the second quarter of 2026, the net financial result was R$ 4.0 million versus R$ 0.0 million in the same quarter of 2025, mainly due to the increase in Selic rate when comparing the periods and the increase in accounts receivable due to the acceleration of sales in the last twelve months, in addition to the change in the US dollar. The Company follows a consistent hedging policy designed to mitigate risks arising from foreign exchange exposure and cushion the cash impact of short -term fluctuations in the US dollar, entering into derivative transactions covering between 50% and 80% of its procurement needs over a six -month period. Currently, this figure is close to 80%. In addition, the Company’s current foreign exchange exposure consists in part of bank loans denominated in foreign currency, with exchange rate fluctuations hedged through swap agreements. R$ Million 2Q25 2Q26 Chg % Chg R$ 2025 2026 Chg % Chg R$ Expenses -3.6 -1.9 -45.4% 1.6 -7.2 -3.4 -52.7% 3.8 Revenues 3.6 2.1 -41.9% -1.5 7.9 3.7 -53.5% -4.2 Revenues - PVA Reversal 4.6 6.0 30.6% 1.4 8.4 11.8 41.5% 3.5 Exchange rate impact -4.6 -2.1 -53.9% 2.5 -8.9 -7.0 -21.0% 1.9 Net Financial Revenues/(Expenses) 0.0 4.0 - 4.0 0.2 5.1 2761.5% 4.9 8
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NET INCOME In 2Q26, Technos Group recorded a net income of R$ 67.5 million, 253.7% higher than the same period of the previous year. In addition to the operating and financial results, it should be noted that, when comparing the 2Q26 with 2Q25, the positive impacts of R$ 30.0 million in tax reversals related to the write-off of inventory provisions should also be considered. It is important to highlight that the quarter’s Net Income was impacted by two non -recurring effects arising from the write - off of inventories, totaling R$38.9 million: (i ) a net reversal of provisions for taxes and social contributions amounting to R$32.4 million, associated with the inventories written off; and (ii) a R$6.5 million reversal of provisions for current IRPJ and CSLL, resulting from the tax loss generated by the write-off of these inventories. It is important to highlight that these effects did not have any cash impact on the Company, representing exclusively accounting effects recognized in the period’s results . WORKING CAPITAL R$ million 2Q25 Days 2Q26 Days (+) Accounts Receivable 193.9 158 212.4 156 (+) Inventories 164.5 298 177.1 290 (-) Accounts Payable 52.7 96 50.2 82 (=) Working Capital 305.7 361 339.4 364 The Company’s working capital totaled R$ 339.4 million in 2Q26, representing an increase of R$ 33.7 million or 11.0% compared to the same period of the previous year. In terms of days, working capital totaled 364 days in the last 12 months ended this quarter, an increase of 3 days compared to the fourth quarter of 2025. The Company reported an Accounts Receivable balance of R$ 212.4 million versus R$ 193.9 million in the previous year, up 9.5%, mainly due to the increase in sales in the last twelve months. The average sales cycle for the quarter remained the same as the previous year, and our delinquency rate was flat compared to historical trends. Inventory ended the period with a R$ 177.1 million balance, R$ 12.6 million higher than in the second quarter of 2025. The increase mainly reflects the strengthening of the supply chain as a response to market demand. The current inventory level is deemed healthy. The Company’s balance of Accounts Payable totaled R$ 50.2 million, R$ 2.6 million lower than the same period in 2025 . CASH BALANCE Technos Group ended the second quarter of 2026 with net debt of R$ 13.4 million, down R$ 3.7 million versus the 1Q26. During the quarter, share buybacks totaled R$ 12.0 million. R$ million 2Q25 1Q26 2Q26 Gross Debt (97.2) (42.7) (40.6) (-) Cash 66.6 25.6 27.2 (=) (Debt)/Net Cash (30.6) (17.1) (13.4) 2Q2026 Earnings Release 9
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INCOME STATEMENTS R$ Thousand QUARTER Consolidated 2Q25 2Q26 Net Revenue 121,913 128,998 Cost of goods sold -53,985 -55,347 Gross Profit 67,928 73,651 Sales expenses -29,347 -31,606 Administrative expenses -10,156 -11,005 Others, net -5,146 24,606 Operating profit 23,280 55,646 Financial result, net 13 3,990 Financial income 11,062 12,754 Financial expenses -11,049 -8,764 Income before income tax and social contribution 23,293 59,636 Income tax and social contribution -4,197 7,908 Current -6,054 3,478 Deferred 1,857 4,430 Net income 19,096 67,544 ACCUMULATED Consolidated 2025 2026 Net Revenue 208,594 220,247 Cost of goods sold -94,368 -97,661 Gross Profit 114,226 122,585 Sales expenses -56,182 -60,240 Administrative expenses -20,268 -22,116 Others, net -9,456 21,355 Operating profit 28,320 61,584 Financial result, net 178 5,059 Financial income 18,863 24,417 Financial expenses -18,685 -19,358 Income before income tax and social contribution 28,498 66,643 Income tax and social contribution -4,916 7,388 Current -12,133 -1 Deferred 7,218 7,388 Net income 23,583 74,031 10 2Q2026 Earnings Release
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BALANCE SHEET R$ Thousand Consolidated June 30, 2025 June 30, 2026 Current Assets Cash and cash equivalents 66,138 27,076 Restricted cash 440 88 Accounts receivable 193,932 212,407 Inventories 164,493 177,138 Income tax and social contribution recoverable 2,308 0 Taxes recoverable 12,305 26,130 Derivative financial instruments 215 662 Other assets 16,732 16,514 456,563 460,015 Non-current Advances to suppliers 0 0 Taxes recoverable 3,318 3,369 Judicial deposits 9,475 12,016 12,793 15,385 Investments Intangible assets 192,209 191,876 Property and Equipment 26,689 30,794 218,898 222,670 Total assets 688,254 698,070 2Q2026 Earnings Release 11
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BALANCE SHEET Consolidated June 30, 2025 June 30, 2026 Current Liabilities Borrowings 53,179 14,022 Accounts payable 52,734 50,172 Taxes and fees payable 5,063 6,609 Withholding income tax and contributions 568 574 Salaries and social charges payable 8,633 10,648 Dividends payable 12,811 15,702 Derivative financial instruments 140 10,154 Lease payable 5,856 8,233 Other payables 1,661 1,607 144,088 117,120 Non-current Borrowings 44,009 26,543 Income tax and social contributions payable (Note 14) 1,132 970 Deferred income tax and social contribution 28,343 26,932 Provision for contingencies 49,582 19,712 Derivative financial instruments 0 0 Lease payable 1,536 2,719 Provision for success fees 1,709 1,710 126,311 78,586 Total liabilities 270,399 195,706 Equity Capital stock 130,583 130,583 Treasury shares -4,929 -10,065 Share issuance expenses -10,870 -10,870 Capital reserves 122,236 114,573 Profit reserves 59,482 50,570 Carrying value adjustment -14,409 -14,025 Additional proposed dividend 0 0 Profit/Loss for the period 23,582 74,031 Profit reserve for reflex tax incentive 112,180 167,567 Total equity 417,855 502,364 Total liabilities and equity 688,254 698,070 2Q2026 Earnings Release 12
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CASH FLOW R$ thousand QUARTER Consolidated 2Q25 2Q26 Income before income tax and social contribution 23,293 59,636 Adjustments for non-cash items Amortization and Depreciation 2,843 3,241 Allowance for recoverable value of inventory 707 -59,528 Allowance for recoverable value of accounts receivable 763 1,588 Provision for contingencies (reversal) 256 -31,950 Results from disposal of permanent assets 224 140 Interest on loans 3,258 880 Other interest expenses and foreign exchange variation -230 -439 Derivative financial instruments 3,380 -1,046 Stock option premium 1,732 1,048 Other 483 158 Changes in assets and liabilities Decrease (increase) in accounts receivable -18,339 -11,376 Decrease (increase) in inventories -4,047 63,347 Decrease (increase) in taxes recoverable 5,490 -3,903 Decrease (increase) in other assets -1,864 -1,383 Increase (decrease) in suppliers and accounts payable -7,356 -10,736 Increase (decrease) in salaries and social charges payable 4,178 5,396 Increase (decrease) in taxes, rates and social contributions payable -7,341 -3,109 Interest paid -2,789 -642 Income tax and social contribution paid -6,908 72 Net cash (used in) generated by operating activities -2,267 11,394 Cash flow from investing activities Purchases of property and equipment -2,041 -2,423 Amount received from the sale of property and equipment 553 366 Purchases of intangible assets -2,255 -1,296 Net cash (used in) generated by investing activities -3,743 -3,353 Cash flow from financing activities Deposits as collaterals - restricted cash -67 14 Borrowings 0 0 Payment of borrowings -4,356 -1,899 Lease paid -374 -312 Acquisition of own shares held in treasury -12,877 -7,585 Stock Option exercise 1,184 3,363 Net cash used in financing activities -16,490 -6,419 Increase (decrease) in cash and cash equivalents -22,500 1,622 Cash and cash equivalents at the beginning of period 88,638 25,454 Cash and cash equivalents at the end of period 66,138 27,076 2Q2026 Earnings Release 13
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CASH FLOW R$ thousand YEAR-TO-DATE Consolidated 2025 2026 Income before income tax and social contribution 28,498 66,643 Adjustments for non-cash items Amortization and Depreciation 5,534 6,485 Allowance for recoverable value of inventory 1,756 -57,892 Allowance for recoverable value of accounts receivable 1,295 3,747 Provision for contingencies (reversal) 848 -31,519 Results from disposal of permanent assets 109 -42 Interest on loans 6,511 1,802 Other interest expenses and foreign exchange variation -2,919 -3,089 Derivative financial instruments 13,224 5,099 Stock option premium 2,887 2,180 Other 636 450 Changes in assets and liabilities Decrease (increase) in accounts receivable -5,041 13,567 Decrease (increase) in inventories -23,313 34,848 Decrease (increase) in taxes recoverable 13,327 -5,435 Decrease (increase) in other assets -2,264 -1,481 Increase (decrease) in suppliers and accounts payable -19,351 -7,054 Increase (decrease) in salaries and social charges payable -304 481 Increase (decrease) in taxes, rates and social contributions payable -13,591 663 Interest paid -5,742 -1,246 Income tax and social contribution paid -9,726 0 Net cash (used in) generated by operating activities -7,626 28,207 Cash flow from investing activities Purchases of property and equipment -3,847 -6,524 Amount received from the sale of property and equipment 846 953 Purchases of intangible assets -3,027 -2,188 Net cash (used in) generated by investing activities -6,028 -7,759 Cash flow from financing activities Deposits as collaterals - restricted cash -74 1,034 Borrowings 0 0 Payment of borrowings -8,424 -3,965 Lease paid -718 -630 Acquisition of own shares held in treasury -17,102 -15,452 Dividends paid to Company’s shareholders -14,987 -14,986 Stock Option exercise 1,184 3,363 Net cash used in financing activities -40,121 -30,636 Increase (decrease) in cash and cash equivalents -53,775 -10,188 Cash and cash equivalents at the beginning of period 119,913 37,264 Cash and cash equivalents at the end of period 66,138 27,076 2Q2026 Earnings Release 14