Oncoclínicas do Brasil Serviços Médicos (ONCO3) investor relations material

Executive summary

• Q2 2025 marked a commercial and operational transition, with flat sequential revenue as contracts with high-risk or low-margin payors were discontinued, impacting results amid a high-cost capital environment.

• Adjusted EBITDA rebounded 38.3% quarter-over-quarter, with margin expansion despite lower net revenues.

• Net loss was R$136.8 million to R$142.3 million in Q2 2025, reversing net income from Q2 2024, mainly due to lower operational leverage and high interest expenses.

• Cash flow consumption increased, driven by client delinquency, higher interest expenses, and capex.

• Strategic initiatives included discontinuing low-margin contracts, headcount reduction (~400), vendor contract reviews, and a strategic review of non-core assets.

Financial highlights

• Gross revenue in Q2 2025 was R$1,657.6 million, stable sequentially but down 3.8% year-over-year; LTM gross revenue grew 4.9% to R$6.8 billion.

• Net revenue declined 1.9% sequentially and 6.6% year-over-year, impacted by higher provisions for doubtful accounts; LTM net revenue grew 5.1%.

• Adjusted EBITDA reached R$185.1 million (12.6% margin), up 38.3% sequentially but down 41.7% year-over-year.

• Cash flow from operations was negative BRL 196.1 million, mainly due to late payments from discontinued clients.

• Net debt increased to R$3,922 million, with leverage rising to 4.4x EBITDA.

Outlook and guidance

• Sequential revenue deceleration is expected in Q3 2025 due to major contract exits, but medium-term recovery is anticipated through new client growth and margin improvement.

• Capex and non-core hospital operations are under strategic review, with reprioritization planned for the next quarters.

• Margin recovery is expected as doubtful receivables normalize and efficiency measures take hold.