Brazil’s Desktop Adjusted Profit Rises 62%

BRAZIL · COMPANIES

Desktop, a Brazilian broadband provider in the state of São Paulo, said on Wednesday 11 November 2026 that its adjusted profit rose 62% in the third quarter to R$57.2 million (about US$10.1 million). Net revenue grew 6% to R$329.3 million (about US$58.4 million), the company said in its results release.

Desktop is an internet service provider, or ISP, whose shares trade on Brazil’s B3 exchange under the ticker DESK3. Control passed on 1 October to Claro NXT Telecomunicações, a telecom company, which now holds about 72.83% of the capital.

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What Desktop Reported

Net revenue was R$329.3 million, against R$310.6 million a year earlier. Adjusted EBITDA, a measure of operating profit before interest, tax and depreciation that strips out one-off items, rose 11% to R$181.3 million with a margin of 55%, up from 53%.

Reported net income, which keeps the one-off items, more than doubled to R$38.5 million (about US$6.8 million) from R$17.3 million (about US$3.1 million). The adjusted figure was R$57.2 million, against R$35.3 million in the third quarter of 2025.

All US dollar figures in this article use 5.64 reais per US dollar, the rate of RT, a financial data provider, on 13 November 2026. The company reports in reais.

Why Profit Grew Faster Than Revenue

The company says the main driver was a leaner payroll and lower advertising spending, which lifted margins. It also booked a R$7.0 million (about US$1.2 million) indemnity for a network project that was dropped.

Financial costs fell 51% to R$34.6 million (about US$6.1 million), from R$70.9 million a year earlier. Desktop credits a gain from settling an acquisition debt after arbitration, lower balances owed for past purchases and lower interest on debt linked to IPCA, Brazil’s official inflation index, which slowed.

Customers and Prices

The number of connected homes fell to 1.196 million at the end of September, down 0.2% from a year earlier and 0.3% from June. Net customer additions were negative by 4,000 in the quarter.

Average revenue per customer rose 6.6% from a year earlier to R$106 (about US$18.80). Desktop says it is prioritising profit and cash over growth, and 71% of its sales now come through digital channels.

Cash, Debt and Control

Capital spending was R$70 million (about US$12.4 million), or 21% of revenue, which the company calls its lowest share since its stock market listing. Adjusted operating cash flow after capital spending was R$131 million (about US$23.2 million), 67% above a year earlier.

Net debt was R$1.53 billion (about US$272 million), flat from a year ago, and leverage fell to 2.12 times annualised EBITDA from 2.35 times. During the quarter Desktop paid R$98 million (about US$17.4 million) for the remaining 30% of the internet provider Fasternet, also known as Cilnet.

What It Means for You

If you follow Brazilian small and mid-sized stocks, the quarter shows a company that is cutting costs and debt while its customer base shrinks slightly. Profit growth that rests on lower financial costs and cost cuts is harder to repeat than growth that comes from more customers.

Customers in the interior of São Paulo state will mostly feel the results through prices, since average revenue per customer rose 6.6% in a year. The company credits actions to raise revenue from its existing base and growth in business customers.

What to Watch Next

Desktop held an earnings call on Thursday 12 November 2026 at 11:00 Brasília time. Investors can find the full release on the company’s investor page.

The strongest question for the new owner is whether Desktop can add customers again without giving up its higher margins. Our guide to how Brazil’s economy works and our report on Brazil’s September inflation show the backdrop of prices and interest rates.

What Is Not Known

It is not known how Claro NXT will run Desktop or whether the customer base will grow again. Desktop says it is putting profit and cash ahead of growth for now.

The gap between reported profit of R$38.5 million and adjusted profit of R$57.2 million comes from one-off items that the release lists. Adjusted figures are the company’s own measure, not an accounting standard.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

What Did Desktop Report for the Third Quarter of 2026?

Net revenue was R$329.3 million (about US$58.4 million), up 6%, and adjusted profit was R$57.2 million (about US$10.1 million), up 62%. Reported net income was R$38.5 million (about US$6.8 million).

Who Owns Desktop Now?

Claro NXT Telecomunicações completed its purchase of control on 1 October 2026 and holds about 72.83% of the capital. It completed the deal after the quarter ended.

What Is Adjusted EBITDA?

It is operating profit before interest, tax, depreciation and amortisation, with one-off items removed. Desktop’s was R$181.3 million (about US$32.1 million), a margin of 55%.

How Many Customers Does Desktop Have?

It had 1.196 million connected homes at the end of September 2026, down 0.2% from a year earlier. It covers 4.9 million homes in 200 towns.

Sources: Desktop S.A., third-quarter 2026 results release (Release de Resultados 3T26), 11 November 2026; Desktop S.A., investor relations page, accessed 13 November 2026; RT, USD/BRL exchange rate, 13 November 2026.

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error

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