AUAU3 shares opened trading on November 13, 2026, in negative territory before rallying to close up 5.13%. The Q3 earnings release, published the previous day, drove the turnaround: adjusted net income topped analyst estimates by 23%, the EBITDA margin hit the highest level yet recorded by Petz and Cobasi's combined operations, and net cash grew by R$ 129 million during the quarter. However, revenue fell R$ 150 million short of consensus, and the stock remains down 19.3% for November. The results were solid. Whether they were solid enough to reverse the month's downward trend is still being weighed by the market.
AUAU3: What Did the Q3 Results Reveal?
Grupo Petz Cobasi—whose AUAU3 ticker combines the operations of Petz and Cobasi under União Pet Participações S.A.—released its third-quarter earnings report on November 12, 2026. Adjusted net income totaled R$ 96.1 million, up 31.1% from R$ 73.3 million in Q3 2025. Adjusted EBITDA reached R$ 209.1 million (+31.5%), and the adjusted EBITDA margin hit 9.9% of gross revenue, marking a 1.9 percentage point increase year-over-year. These figures represent the highest levels for the combined operations since the Petz–Cobasi merger.
Consolidated gross revenue totaled R$ 2.12 billion (+6.6%), with Petz accounting for R$ 1.16 billion (+6.7%) and Cobasi contributing R$ 956.6 million (+6.4%). Net revenue, after deducting sales taxes, reached R$ 1.7 billion (+2.2%). By sales channel, digital grew 8.4% to R$ 895.6 million, accounting for 42.3% of total sales, while brick-and-mortar advanced 5.9%.
Same-store sales (SSS) growth stood at a solid +6.4% on a consolidated basis, achieved without aggressive store openings. The company recorded 3 openings and 4 closures during the quarter, ending the period with 519 stores (266 Petz and 253 Cobasi). Growth is driven not by expanding the store footprint, but by extracting more revenue from existing locations.
For the first nine months of the year, adjusted net income totaled R$ 220.3 million (+25.7%), adjusted EBITDA reached R$ 562.4 million (+25.5%), and total revenue hit R$ 6.25 billion (+8%). The operational pace is consistent, but the challenge lies in comparisons with market expectations. Analysts projected net revenue of R$ 1.85 billion and EBITDA of R$ 221.4 million. Both figures missed expectations, highlighting how high the bar had been set ahead of the release.
Profit Beat Estimates—But Adjusted Figures Do Not Tell the Whole Story
Adjusted net income of R$ 96.1 million came in R$ 18 million above analyst expectations of R$ 78 million. The positive surprise appears straightforward until compared with statutory net income of R$ 71.4 million, which fell 1.3% compared to pro forma Q3 2025 results. The difference between the two figures represents R$ 24.7 million in non-recurring expenses.
The most notable item is CAT Ordinance 42, a tax effect of R$ 20.9 million related to the termination of ICMS tax substitution on pet food in São Paulo state. This is a one-off expense unrelated to recurring operational performance. The market chose to focus on the adjusted figures, lifting the stock. However, statutory income, which includes this cost, fell year-over-year. Both numbers are correct; the difference lies in the analytical lens applied.
Record high for the combined operations; compared to 8.0% in Q3 2025
Up R$ 129 million compared to the close of June 2026
Consolidated sales growth across existing stores
Why Did Margins Hit a Record High?
The 9.9% EBITDA margin is clear evidence of successful integration. The adjusted gross margin rose from 39.6% to 40.3%, representing an additional 0.7 percentage points per real sold, driven by expense dilution through operational leverage. The company absorbed growth without expanding its cost structure at the same pace.
Two main drivers explain this performance. The digital channel grew 8.4%—accounting for 42.3% of total sales—and typically carries lower operating costs per transaction than physical stores. Meanwhile, Cobasi's private-label products grew 56.8% in the quarter, a segment with higher gross margins than third-party brands. Together, these factors push margins higher regardless of overall revenue growth. Margin expansion as a core deliverable of a post-merger cycle is not uncommon this earnings season, but the intensity here is supported by operational synergies between the two networks.
The company has mapped out R$ 200 million to R$ 260 million in annual EBITDA additions over the next five years. With adjusted EBITDA for the first nine months of 2026 reaching R$ 562.4 million, the company is on track to surpass R$ 750 million this year, effectively realizing a substantial portion of these synergies ahead of schedule. In September, Petz redeemed R$ 133.3 million in debentures ahead of maturity, lifting net cash to R$ 415.1 million. On the same trading day AUAU3 rose 5%, another company reporting record revenue saw its shares surge 9.3%, illustrating how heavily top-line growth still weighs on consumer stock valuations.
Is the 19% November Decline About Earnings?
Probably not, or at least not entirely. Results were published on November 12, but the 19.3% monthly drop began earlier. The stock did react positively the following trading session, climbing 5.13%. October and November price action in AUAU3 points to capital outflows—pressure that frequently hits retail assets when the market reprices growth or rotates sectors. Stocks posting monthly declines despite growing profits are not unique to AUAU3 in this cycle.
What the results change for the investment thesis: margins reached record highs, but revenue grew just 2.2%—a modest pace for a company whose valuation embedded expectations of acceleration. With shares trading at R$ 4.01 on November 12, the stock trades at a 33.6% discount to its fair value of R$ 6.04 calculated by the site (based on fundamentals as of November 13). The current verdict is "hold" or "observe"—awaiting further evidence before increasing positions. Results like these, if sustained alongside revenue acceleration, would build the case for a revision, but that confirmation has not yet arrived.
- Adjusted net income topped analyst estimates by R$ 18 million (+23%)
- EBITDA margin reached a record high for the combined operations
- Operational cash generation of R$ 187.4 million—representing 90% EBITDA conversion
- Net cash grew R$ 129 million in the quarter; debentures redeemed in September
- Net revenue missed consensus by R$ 150 million (R$ 1.7 billion vs. R$ 1.85 billion expected)
- EBITDA fell below analyst estimates (R$ 209.1 million vs. R$ 221.4 million projected)
- Statutory net income fell 1.3% year-over-year (R$ 71.4 million), impacted by CAT 42 effects
The results confirm that Petz and Cobasi's merger synergies are working: record margins, growing cash flow, and an active share buyback program. The issue lies in modest revenue growth (2.2%), which left EBITDA below expectations and failed to deliver the top-line acceleration required by the bull case. Investors who bought for margin improvement and capital discipline received confirmation; those betting on accelerated revenue growth are still waiting. With the stock at R$ 4.01, trading 33.6% below fair value, the current verdict is to observe: potential exists, but Q3 alone does not justify increasing exposure.
Monthly SSS above 6%—if existing stores maintain this growth pace, revenue expansion should approach consensus levels in coming quarters. Readings below 5% would revive top-line pressure.
Q4 2026 adjusted EBITDA—year-end seasonality favors the pet sector. If full-year accumulated EBITDA surpasses R$ 800 million, the company will have realized promised synergies well ahead of its five-year horizon.
Buyback execution—the share repurchase program approved in October runs through April 23, 2028, covering up to 17.6 million shares. Quarterly execution rates in upcoming reports will show management's conviction at current prices.
