Key Takes from Meetings + Model Update

Research evidence excerpt

Key Takes from Meetings + Model Update

cies, and clean-up within Linx *Adj EPS

Mgmt does not guide, but we sensed it believes it can maintain a mid-teens organic revenue•

growth rate subject to the ebb and flow of the Brazilian economy. The company's Cloud

Related Research offering remains an important driver, growing >30% y/y

Mgmt is looking for more complementary acquisitions, but is also happy repurchasing shares• 1Q26 First Take—A Solid Qtr All Around;

given valuation. Mgmt also expects to return to a net cash position within roughly 18 months Linx in Need of Significant Investment

as it de-levers post the Linx acquisition (5/7/2026)

Our thoughts... We remain positive on the company's core business. We believe the AI risk is most Fireside Takeways—A Compounder in the

likely being overstated, and expect the company to continue growing at its historical mid-teens Software Segment (1/13/2026)

pace given its strong competitive positioning within its marketplace. However, getting Linx to target

growth rates and margins will likely be a multi-year effort, even as mgmt expressed confidence that Initiate at Buy—Best in Class Growth

not a lot of incremental investment is required. At the same time, the broader AI overhang continues and Earnings About to Get Better

to pressure investor sentiment across the space, something that will take time to alleviate. (11/14/2025)

Model updated. PT to R$45 from R$56. Our model has been updated to incorporate the Linx

acquisition, with historicals restated to exclude the Dimensa divestiture and proforma to include

Linx. We estimate Linx is dilutive for at least the next couple of years. We are now modeling 2026

revenues of R$7,900M, adj EBITDA margins of 24.9%, and adj EPS of R$1.38. Our R$45 price target