Viveo (VVEO3) faced a challenging start to 2026, reporting a net loss of 35 million BRL and an earnings per share (EPS) of -0.2098, significantly missing the forecast of -0.1207 by 73.82%. Revenue fell short at 2.83 billion BRL, below the expected 2.92 billion BRL. However, the company achieved a gross margin improvement to 15.8%, a two-percentage point increase, driven by a strategic focus on higher-margin products and operational efficiencies. Adjusted EBITDA rose over 30% to 208 million BRL, indicating strong operational performance despite financial pressures. Following the earnings report, Viveo's stock initially rose by 3.97% in after-hours trading but later declined by 2.52%, reflecting mixed investor sentiment. The company's market capitalization is approximately $75 million, and it trades at a low Price/Book multiple of 0.2, suggesting potential undervaluation. CEO Clarissa Rebello emphasized the importance of maintaining financial discipline amidst high interest rates and inflation pressures. Analysts raised concerns about the sustainability of margin improvements in light of macroeconomic challenges.