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Introduction & Market Context
Brazilian telecommunications company Oi SA (B3:OIBR4) presented its second quarter 2025 earnings on September 5, detailing a proposed amendment to its Judicial Reorganization Plan (JRP) and showcasing improved quarterly EBITDA margins despite significant year-over-year revenue declines.
The company, which continues to navigate through bankruptcy protection, is shifting its business model toward digital solutions while managing the controlled demobilization of legacy networks. The presentation highlighted Oi’s efforts to ensure financial sustainability through debt restructuring and operational efficiency.
As shown in the following slide outlining the objectives of the JRP amendment, Oi aims to ensure the continuity of its reorganization plan while enhancing sustainability and value creation:
Quarterly Performance Highlights
Oi reported consolidated net revenue of R$684 million in Q2 2025, representing a substantial 66.5% year-over-year decline. This sharp decrease reflects the company’s ongoing transformation and divestment of non-core assets. The revenue mix has shifted significantly, with Oi Soluções now contributing 50% of total revenue, subsidiaries accounting for 39%, and legacy operations representing just 11%.
The following slide details the revenue breakdown and year-over-year changes:
Despite the revenue decline, Oi showed improvement in its EBITDA performance. Routine EBITDA for Q2 2025 was negative R$98 million, a substantial improvement from the negative R$445 million reported in Q1 2025. This resulted in an EBITDA margin of -14.3% in Q2, compared to -31.1% in the previous quarter.
The company’s CAPEX decreased to R$41 million in Q2 2025, representing 6.0% of revenue, as shown in the following chart:
Strategic Initiatives
Oi’s presentation emphasized its strategic pivot toward digital solutions, particularly through its Oi Soluções division, which generated R$342 million in revenue during the quarter. The company is focusing on higher-value ICT (Information Technology and Communication) solutions, which now account for 34% of Oi Soluções revenue.
Cloud revenue grew 11% year-over-year, while UC&C (Unified Communications & Collaboration) and IoT (Internet of Things) revenues increased by 22% and 6%, respectively. These growth areas partially offset the 22% decline in traditional telecom services.
The following slide provides a comprehensive view of revenue performance and efficiency initiatives:
Cost reduction remains a key focus for Oi, with operating expenses decreasing by 58.4% year-over-year. The company has achieved significant savings across multiple categories, including a 24.8% reduction in network maintenance costs and a 19.0% decrease in personnel expenses, supported by a 16.5% reduction in headcount compared to the previous year.
As illustrated in the following detailed cost analysis:
The demobilization of legacy networks continues to generate substantial cost savings, with accumulated savings of R$1.4 billion from January 2024 to June 2025. Oi projects potential savings of approximately R$2.5 billion by the end of 2025.
Forward-Looking Statements
A central component of Oi’s presentation was the proposed amendment to its Judicial Reorganization Plan. The amendment aims to renegotiate terms with creditors, potentially generating a cash reinforcement of R$2.6 billion. Key elements include new payment methodologies for Class I (Labor) and Class III (Supplier) creditors, and provisions for post-petition creditors to receive payments from real estate sales proceeds.
The company’s cash position stood at R$1,155 million at the end of Q2 2025, down from R$1,454 million in the previous quarter. Net debt increased slightly to R$10,034 million from R$9,837 million in Q1 2025, as shown in this cash flow and debt analysis:
Oi highlighted several key milestones achieved in 2024 and 2025, including the approval of its reorganization plan, regulatory advances, completion of a capital increase, implementation of new governance structures, and the sale of UPIs ClientCo and TVCo. Looking ahead, the company is focusing on consolidating Oi Soluções as a digital solutions player while maintaining its cost reduction efforts.
The company’s presentation included financial projections through 2030, suggesting a path toward improved financial performance as its transformation strategy takes hold. However, these projections will depend heavily on the successful implementation of the JRP amendment and continued execution of the company’s strategic initiatives.
Oi’s stock closed at R$7.25 on September 4, 2025, up 0.97% for the day. The shares have traded between R$5.65 and R$14.95 over the past 52 weeks, reflecting the ongoing volatility as the company navigates its restructuring process.
Full presentation:
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