Hapvida Participacoes e Investimentos (HAPV3) investor relations material

Executive summary

• New CEO and Board of Directors in place, emphasizing governance, operational excellence, and a data-driven culture.

• Turnaround plan underway, focusing on decentralization, local market adaptation, talent density, customer experience, operational efficiency, and financial discipline.

• Strategic initiatives include product simplification, commercial model revision, operational optimization, and technology-driven improvements.

• Emphasis on restoring credibility, improving customer experience, leveraging technology and AI, and rational growth.

• Net revenue reached R$7.9 billion, up 5.2% year-over-year and nearly flat sequentially, driven by health plan contract adjustments.

Financial highlights

• Net revenue reached R$7.9 billion, up 5.2% year-over-year but down 0.3% sequentially, mainly due to prior quarter member losses.

• Adjusted EBITDA was R$803 million, up 12.5% sequentially but down 20% year-over-year.

• Adjusted net income was R$244 million, up 208.9% sequentially but down 41.4% year-over-year.

• Free cash flow conversion was 81.1% for the quarter; net cash generation of R$478 million.

• CapEx reduced to R$190–191 million from R$419 million in Q4 2025; annual CapEx expected up to R$700 million.

• Net debt stood at R$5.165 billion, with leverage at 1.38x EBITDA.

Outlook and guidance

• Focus on margin protection, cost efficiency, deleveraging, operational intelligence, and capital discipline.

• Continued cautious stance on healthcare costs due to elevated utilization in March and April.

• No significant new unit openings planned; ongoing review of asset portfolio and possible divestments.

• CapEx guidance reaffirmed at up to R$700 million for 2026.