CI&T Inc. 1Q26 Financial Summary
Business Context and Reporting Period
CI&T Inc. (NYSE: CINT), a global provider of tech-integrated business solutions, reported its unaudited financial results for the first quarter ended March 31, 2026 (1Q26). The company operates primarily in Brazil with significant presence in North America and other global markets, focusing on AI deployment and monetization strategies.
Key Financial Metrics
| Metric | 1Q26 (USD) | 1Q25 (USD) | Change |
|---|---|---|---|
| Revenue | $136.6 million | $110.9 million | +23.2% |
| Profit (Net Income) | $7.6 million | $7.4 million | +1.6% |
| Adjusted EBITDA | $20.8 million | $19.6 million | +6.3% |
| Adjusted Profit | $10.2 million | $9.6 million | +6.2% |
| Diluted EPS | $0.06 | $0.05 | +6.9% |
| Adjusted Diluted EPS | $0.08 | $0.07 | +11.8% |
| Cash and Equivalents | $48.1 million | $62.8 million (1Q25) | -23.4% |
| Loans and Borrowings | $120.9 million | $122.6 million (Dec 2025) | -1.4% |
Margins: Adjusted EBITDA margin was 15.2% (down from 17.6% in 1Q25). Adjusted Profit margin was 7.5% (down from 8.7% in 1Q25). Adjusted Gross Profit margin was 30.6%.
Material Changes vs. Prior Period
- Revenue Growth: Driven by an 18.9% expansion in top 10 accounts and double-digit growth across most verticals. Latin America led geographic growth at 33%, followed by North America (16%) and New Markets (11%).
- Cost Pressures: Cost of services increased 26.7% due to unfavorable foreign exchange variations and higher Brazilian payroll taxes. SG&A expenses rose 26.2%, driven by sales initiatives and amortization of the CI&T Flow AI management system.
- Employee Base: Total employees increased to 8,015 (up 8.3%), with AI-builders professionals averaging 6,600 (up 13.3%).
- Cash Flow: Net cash from operating activities was $11.1 million, a decrease from $17.6 million in 1Q25, primarily due to changes in working capital (specifically accounts receivable and contract assets).
Guidance, Outlook, and Risks
- 2Q26 Guidance: Revenue expected to be at least $140.0 million (19.5% YoY growth).
- Full Year 2026 Guidance: Revenue range increased to $555.8 million – $575.3 million, implying 13.5% to 17.5% organic growth. Adjusted EBITDA margin expected between 17.0% and 19.0%.
- Strategic Focus: Management highlighted two growth vectors: AI deployment (revenue expansion) and AI monetization (margin expansion via new pricing models). In 1Q26, 20% of new sales utilized these new pricing models.
- Risks: Forward-looking statements are subject to risks including global economic conditions, client demand, and execution of growth strategies. The filing notes that actual results may differ materially due to FX volatility and other uncertainties.
Investor Verification Checklist
- FX Impact: Verify the sensitivity of future margins to the assumed average FX rates (5.11 BRL/USD for 2Q26 and 5.17 BRL/USD for full year 2026).
- AI Monetization: Monitor the adoption rate of new pricing models to confirm the projected gross margin expansion.
- Working Capital: Review the trend in accounts receivable and contract assets, which contributed to a reduction in operating cash flow despite revenue growth.
- Debt Covenants: Confirm continued compliance with net debt/EBITDA covenants (required <= 3.0x), which were met as of December 31, 2025.
- Share Repurchases: Note the ongoing treasury share repurchase program, with $3.3 million spent in 1Q26.