B3 S.A. Got An Antitrust Warning Because Of The Strength Of Its Moat (Rating Downgrade)

Quipus Capital 1.78K Followers Follow Summary B3 S.A. delivered strong YoY growth in 2Q26, with revenues up 12% and recurring EBITDA up 13%, but faced sequential normalization and higher one-time expenses. BOLSY's dominant market position is under scrutiny as new competitors target derivatives and antitrust actions mandate infrastructure changes, presenting long-term margin risks. Despite competition and regulatory risks, BOLSY's robust moat, high margins, and capital efficiency justify its 15x normalized earnings valuation. I maintain a Buy rating on BOLSY, citing high earnings distribution, cycle leverage, and attractive risk/reward, though currency depreciation remains a key risk. Alfribeiro/iStock Editorial via Getty Images B3 S.A.—Brasil, Bolsa, Balcão ( BOLSY ), the Brazilian exchange, reported 2Q26 results earlier this month. The results were good on a YoY and adjusted basis, with revenues growing across most businesses and recurring EBITDA up double This article was written by Quipus Capital 1.78K Followers Follow Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very small fraction of companies should be a buy at any point in time. However, hold articles provide important information for future investors and a healthy dose of skepticism to a relatively bullish-biased market.Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published. Analyst’s Disclosure: I/we have a beneficial long position in the shares of BOLSY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.