NATU3 shares are down 28.3% for the month, trading at R$ 5.34, as the market recognized that the company's R$ 49 million net profit in the third quarter of 2026 relied on favorable accounting comparisons, while net revenue shrank 3% to R$ 5.0 billion. Although Natura reversed the billion-reais loss from the previous year, sluggish sales growth in Brazil and pressure on operating margins have left investors highly skeptical.
Why Is NATU3 Falling If Natura Reversed Its Loss?
The primary reason for market frustration is the disconnect between the bottom line and the health of the company's day-to-day operations. According to financial portals InfoMoney and Money Times, citing financial statements released by the company, Natura posted a net profit of R$ 49 million between July and September 2026. At first glance, the figure looks impressive compared to the third quarter of 2025, when the group posted a heavy loss of R$ 1.926 billion due to restructurings and international asset impairments.
However, market analysts point out that this bottom-line turnaround did not stem from accelerated market expansion. On the contrary, consolidated net revenue dropped to R$ 5.0 billion for the quarter, marking a 3% year-over-year contraction. When top-line sales decline, profit on the bottom line tends to be viewed as a one-off accounting and cost-cutting effect rather than a sustained recovery in consumer demand for its cosmetic products. A similar phenomenon recently occurred with other B3 names, as detailed in our analysis of how Cosan reversed a loss into a profit in Q3 2026 without completely dispelling the group's operational uncertainties.
What Did the Q3 2026 Earnings Reveal About Natura's Current Standing?
A deeper look into the financial data released by Natura's management reveals mixed signals. On one hand, the company made progress on its deleveraging agenda and capital discipline. The ratio of net debt to adjusted EBITDA fell to 1.83x at the end of September, an improvement from 2.08x in previous quarters. Free cash flow generation also showed positive trends, allowing the group to continue reducing its financial liabilities sequentially.
On the other hand, the Q3 2026 management report confirmed persistent operational bottlenecks in the Brazilian market. Channel integration and the rollout of the new direct-sales operational model continue to cause distribution friction and a decline in sales volume. In addition, the executive leadership transition—with João Paulo Ferreira stepping down and Alessandro Carlucci returning as CEO on October 1, 2026—adds a layer of strategic shift at a time when the brand needs to regain commercial traction. Abrupt changes in management direction often bring stock price volatility, much like we saw when Americanas shares took a hit following earnings revisions after turbulent quarters.
Is the Earnings Turnaround Sustainable or Just an Accounting Effect?
To determine whether the return to profit marks the end of the crisis or merely a pause, we must examine the trailing 12-month figures. Over that expanded period, Natura still carries an accumulated net revenue of R$ 21.3 billion, but its bottom-line net profit remains negative at R$ 2.7 billion due to heavy losses in late 2025 and early 2026. Return on equity (ROE) remains depressed at -24.1%, which explains why the company's valuation multiples have dropped to a price-to-book (P/B) ratio of 0.58x.
- Debt reduction: Net debt-to-EBITDA fell to 1.83x, easing financial expenses in a high-interest-rate cycle.
- Free cash flow generation: Operations returned to producing enough operating cash to support essential investments.
- Declining gross revenue: Consolidated sales dropped 3%, signaling demand contraction or market share loss.
- No dividends on the horizon: With no dividends paid since mid-2021, returns depend entirely on capital appreciation.
Reversing accounting losses without a corresponding rise in revenue is a common challenge for restructuring companies. As we noted when Braskem oscillated between profit and a billion-reais loss in consecutive quarters, cost cuts and non-recurring gains can stop the financial bleeding, but only organic revenue growth guarantees long-term stock appreciation.
What Changes for Retail Investors Holding NATU3?
For individual investors, the third-quarter 2026 results offer technical relief but demand heightened caution regarding short-term return expectations. Because the company has not distributed dividends since June 2021—when it paid R$ 0.8653 in dividends and R$ 0.1585 in interest on equity (JCP)—the investment thesis remains focused purely on operational turnaround.
The return to a R$ 49 million profit removes the immediate risk of insolvency or the need for dilutive capital calls, but the drop in sales does not support a rapid growth thesis. Trading at 0.58x book value reflects the discount demanded by the market given the 12-month accumulated loss of R$ 2.7 billion. If you are already a shareholder, the thesis now depends on new management's ability to restore growth in Brazil without sacrificing margins.
Furthermore, investors looking at deep-restructuring plays should monitor whether the Q3 profit repeats in the fourth quarter, which is traditionally strong for cosmetics retail due to the year-end holidays. In situations involving accounting turnarounds, it is essential not to confuse temporary relief with a definitive recovery—a lesson also highlighted when IRB Brasil experienced volatile quarterly results before stabilizing its recovery.
What Is the Verdict and What Should Investors Monitor in the Coming Months?
Natura has taken a meaningful step by halting billion-reais losses and bringing financial leverage down to safer levels at 1.83x net debt-to-EBITDA. However, NATU3 shares remain under heavy selling pressure—down 32.0% over 12 months—because the market demands concrete proof that revenue will return to growth in Brazil under newly appointed CEO Alessandro Carlucci.
Site Verdict: Watch and Wait
The reversal from a loss to a R$ 49 million net profit in Q3 2026 is positive news for Natura's capital structure, but the 3% contraction in revenue shows that the operational recovery is still in its early stages. With the stock trading at R$ 5.34 and no dividends on the near-term horizon, a cautious, wait-and-see approach is recommended. Key factors to monitor in Q4 2026 include the recovery of sales volumes in the domestic market, the stabilization of the new consultant sales model, and the sustainability of net profit without reliance on non-recurring items.
