The strategic importance of IR and lessons learned from the 1Q25 X-Ray

The Brazilian stock market has had its ups and downs over the last few years, but it is undeniable that Investor Relations has become increasingly central to corporate strategy, particularly in a market that demands increasing higher levels of transparency, governance and effective communication. 

We cannot discuss IR without mentioning the periods of Earnings Disclosures, which take place four times a year. This is one of the most important interaction periods between companies and their many audiences: investors, analysts, regulators and society. It is during this context that IR professionals take on a protagonist role, articulating internal processes, producing precise and market-oriented materials, and leading strategic events, such as earnings conferences.

Considering this,  MZ, who is constantly seeking to empower IR professionals by offering cutting-edge technology, exceptional customer service, and disseminating relevant content, released its X-ray Study for the 1Q25 Earnings Disclosure and Conference Processes. The Study provides an in-depth view by analyzing the earnings disclosure processes of 350 Brazilian companies, publicly listed or private, that disclosed their earnings results by May 15, 2025, the deadline according to the calendar of the Brazilian Securities and Exchange Commission, the agency that regulates the financial reporting of publicly listed companies. 

The Study not only brings information on these processes but also highlights how the quality of financial communication is essential not just in terms of regulatory compliance but, above all, as an instrument for generating value, strengthening trust and, consequently, reducing the company’s cost of capital.

The sophistication of the earnings disclosure processes

The Study shows that 89.1% of companies disclose their earnings results after market hours, respecting their commitment to the quality and stability of the information. Approximately 55% of companies send mailing invitations to announce the disclosure and conference dates in advance, primarily with 11 to 20 days prior to the event — considered the ideal period for maximizing stakeholder engagement.

This data reveals the maturity level of corporate communication practices, resulting from strategic actions taken by IR teams.  These actions are not just to comply with regulatory obligations but aim at structuring a narrative that enhances the company’s visibility and reinforces its market credibility. Having precise and predictable interactions help to reduce information asymmetry, which is a determining factor for reducing cost of capital, , as highlighted by scholars such as Aswath Damodaran in “Narrative and Numbers”.

The pivotal importance of earnings conferences

Another relevant aspect demonstrated by the Study is that earnings conferences are concentrated during the second week of May, when over 53% of these events took place. The most widely used format, by 98% of companies, was videoconferencing platforms, and 86.9% of companies had simultaneous translation into English, highlighting their concern with the international audience.

This movement reflects the growing awareness of IR professionals in recognizing the need to broaden information reach and ensure they are accessible by different investor profiles, both domestic and internationally. By strengthening communication in two languages​and investing in the quality of the presentations, companies become more appealing and increase their liquidity in the market, which can positively impact their asset prices and reduce investors’ risk perception.

Furthermore, the study showed that translation into Libras (Brazilian Sign Language) was announced by 6.5% of companies, representing advancement in terms of accessibility and inclusion, values​that are increasingly recognized by institutional investors and ESG funds when assessing risks and opportunities.

Financial results and communication: an inseparable relationship

The positive impact brought by good financial communication is reinforced in the operating results of the companies analyzed: 77.7% reported an increase in net revenue over 1Q24, and 54.2% had growth in EBITDA margin. In addition, 70.7% declared a profit during the period, with more than half of them increasing their profitability.

These data, when well communicated, are catalysts for creating positive market perception, contributing to better ratings, attracting institutional investors and reducing spreads levels of debt instruments. It is no surprise that companies comprising the IBOVESPA index, which have more mature communication practices, recorded even stronger results: 88.6% of them had higher revenues and 83.8% reported a profit in the quarter.

Therefore, the role of an IR professional goes beyond disclosing numbers: they can shape the narrative that connects operational results with the company’s long-term strategy, directly influencing risk perception and valuation.

IR professionals as transformation agents

The Study analyzed and highlighted the wide set of skills required for contemporary IR professionals: technical-financial mastery, communication skills, cultural sensitivity and digital fluency. Hosting bilingual conferences, managing digital platforms, building relationships with investors and analysts, and conducting strategic events are some of the activities that place these professionals as essential agents in building value for companies.

Furthermore, initiatives such as sending agendas in advance, hosting hybrid events and using technologies for broadcasting and recording conferences are trends that came to stay, thus expanding the IR professional’s role as a transparency facilitator and protagonist in the ESG journey.

By combining these skills, IR professionals not only carry out an operational role, but also become a key element in the company’s strategy to reduce its cost of capital. Through better communication quality and frequency, the IR professional contributes to reducing share volatility, attracts a more qualified investor base and reduces the company’s risk perception.

Conclusion

MZ’s X-ray Study for the 1Q25 Earnings Disclosure and Conference Processes offers a valuable snapshot on how financial communication practices have evolved in Brazil and highlights the growing role of the Investor Relations area in corporate strategy.

By ensuring transparency, predictability and quality when disclosing information, IR professionals not only comply with regulatory obligations, but also act as catalysts for increasing trust with the capital markets. This trust translates into concrete benefits, such as higher share liquidity, attracting institutional investors, accessing more competitive financing lines and, above all, effectively reducing the cost of capital for companies.

In an increasingly dynamic and globalized business environment, strengthening IR practices is proven as not just a competitive advantage, but also a strategic need for companies seeking to stand out and create sustainable long-term value.

We hope to have assisted by bringing information on this Study, which we consider as a mandatory benchmark for companies and the IR ecosystem. To learn more, click here and access the Study page. If you have any questions, we are always here at your service!

External Communications and MZ Research Team

Cássio Rufino
CFO & COO

Media Relations
imprensa@mzgroup.com | (11) 94242-5988

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About MZ (www.mzgroup.com.br) is the largest and leading independent global player in investor relations (IR) solutions.

Founded in 1999, the Company has surpassed the mark of 2,000 websites published, currently serving over 800 companies and investment management firms listed on 12 stock exchanges.

To empower IR strategies, MZ delivers innovative technologies and exceptional customer service, ensuring long-term partnerships.