TOTS3 shares have not been delisted or pulled from the exchange: what happened is that Totvs submitted its third-quarter 2026 earnings report to CVM on November 4. The results showed strong revenue and higher margins, but a lower adjusted net profit than a year ago.
What Happened to TOTS3?
On the evening of November 4, 2026, at 6:07 PM, Totvs filed its Q3 2026 earnings release. According to the document, net revenue reached R$ 1,977.8 million, adjusted EBITDA stood at R$ 500.9 million, and adjusted net profit came in at R$ 237 million. The company scheduled a video conference with the market for November 5 at 11:00 AM.
Totvs highlights that this marked its 31st consecutive quarter of double-digit organic revenue growth, representing a 13.2% increase compared to Q3 2025. Over the first nine months of the year, revenue reached R$ 5,786.6 million, up 13.1% from the same period in 2025. The adjusted EBITDA margin closed at 25.3%, 80 basis points higher than in Q3 2025. In real terms, those 80 basis points account for roughly R$ 16 million in EBITDA based on the quarter's revenue (our calculation, derived from the release figures).
Profit moved in the opposite direction. The release describes the adjusted net profit as an "8.8% year-over-year reduction." This puts Q3 2025 profit near R$ 260 million, also based on our calculations. This discrepancy deserves attention because InfoMoney's headline reported an "8.8% increase," whereas the Totvs earnings release stated there was a drop. For unitholders, the company's official document is what matters: adjusted profit fell. Any company that increases sales and expands margins while posting lower profits requires an explanation.
Why Is Revenue Growing in Double Digits While Adjusted Profit Falls?
EBITDA measures operating earnings before interest, taxes, depreciation, and amortization. If it rises while net profit declines, the difference lies in the line items below EBITDA. Based on our reading of the release, the downward pressure came from financial results—specifically debt and debenture expenses—alongside higher provisions for expected credit losses due to the credit cycle. The excerpt of the document we analyzed does not disclose the exact figure for each of these line items, making it impossible to determine the precise impact of each one.
| R$ millions | Q3 26 | Q3 25 | YoY Change | Q2 26 | QoQ Change |
|---|---|---|---|---|---|
| Net revenue | 1,977.8 | 1,746.7 | 13.2% | 1,919.7 | 3.0% |
| ARR | 7,951.2 | 6,993.8 | 13.7% | 7,742.3 | 2.7% |
| Credit origination | 3,464.9 | 3,393.9 | 2.1% | 3,441.6 | 0.7% |
| Cash and cash equivalents | 1,508.8 | 1,594.6 | (5.4%) | 2,020.2 | (25.3%) |
The table shows that growth is uneven. Revenue and ARR—the recurring revenue metric tracked by Totvs—are growing at a similar pace of nearly 13% per year. Credit origination, tied to the Techfin division, advanced just 2.1%, lagging far behind. Meanwhile, cash reserves fell by about R$ 511 million compared to the previous quarter, and the excerpt of the release we analyzed does not explain why. This is a key figure investors should check once the complete document and video conference provide more details.
Were TOTS3 Shares Delisted or Removed from the Brokerage?
Nothing in our sources indicates that. The November 4 release identifies the company under the ticker "B3: TOTS3," and the last trading session in our data, October 27, recorded the stock at R$ 35.58, down 6.17% on the day and 16.10% over 12 months. These figures predate the earnings report and do not reflect how the market reacted to it. If the ticker symbol does not appear in your app, verify that it was entered correctly as TOTS3. If the issue persists, contact your brokerage, as the problem is not with the stock itself.
Regarding dividends, the analyzed excerpt of the release makes no mention of distributions. The last movement of this type we tracked was related to interest on equity (JCP), which we covered in our September note on Porto, Totvs, and Fleury. Official company data, including quotes and documents, can be found on the stock page.
What Did the Totvs CEO Say About AI—and What Does It Change for Investors?
The CEO's message in the release shows a shift in the company's narrative. In February, the Q4 guidance projected a 2026 marked by stronger growth and profitability, driven by the launch of LYNN, Totvs's proprietary AI model. The reality turned out differently:
“Instead, we had to address the birth of the late, unlamented SaaSpocalypse.”CEO Message, Totvs Q3 2026 Earnings Release
This is management speaking candidly about its own outlook. The CEO states that AI enablers have become the primary driver of revenue growth, while AI consumption for management software tasks remains "close to zero"—which, in his view, keeps the company's investment thesis valid. Fear that AI would erode this type of business model weighed on the stock, as we analyzed during September's sell-off. The ultimate test lies in the numbers, and ARR growing 13.7% annually is a point in the company's favor.
- Revenue and ARR are growing at nearly 13% per year, accompanied by a rising adjusted EBITDA margin.
- Management states that AI is already the main driver of revenue growth, which—if confirmed in upcoming earnings reports—addresses the market's biggest fear.
- Adjusted profit came in lower than the previous year, despite stronger operational performance.
- Cash reserves are 25.3% lower than in the previous quarter, with no explanation provided in the analyzed excerpt.
- Credit origination is growing well below revenue, at a time when provisions for credit losses emerge as an area to watch.
The earnings report does not signal problems with the stock or warrant selling based on fundamentals alone. It portrays a company that is selling more and expanding margins, but whose adjusted profit was pressured by debt and provisions. Investors who bought into the operational growth thesis see that premise sustained. Those who bought primarily for net profit will want to determine whether the profit decline was a one-off stumble or the start of a trend.
What to Monitor Moving Forward
Adjusted net profit — the benchmark is R$ 237 million. Another quarter below this level would indicate that the pressure below the EBITDA line is not a one-time event.
Adjusted EBITDA margin — closed at 25.3%. If it holds this level or rises further, operational performance remains the core strength of the investment thesis.
Cash and debt — cash dropped from R$ 2,020.2 million to R$ 1,508.8 million in a single quarter. It is worth looking for explanations in the video conference and the full document.
Techfin and credit loss provisions — credit origination of R$ 3,464.9 million grew by only 2.1% annually. Investors should monitor whether default rates will stabilize or erode this pace.
