Bradsaúde (SAUD3) Q1 2025 earnings summary

Executive summary

• Net operating revenue rose 7.2% year-over-year in 1Q25 to R$590.5 million, with a stable member base of 8.9 million and a 5% increase in average ticket across all segments.

• Adjusted EBITDA grew 11.7% year-over-year to R$226.1 million, with margin expanding to 38.3% from 36.8%.

• Recurring net income increased 10.5% year-over-year to R$166.6 million, with EPS up 11.5%.

• SME and Individual plans continue to drive growth, now representing 43% of consolidated revenue and 60% of contribution margin.

• The company maintains a zero-debt, asset-light, high-margin business model, with strong ESG credentials and inclusion in major B3 indexes.

Financial highlights

• Consolidated net revenue for the last twelve months reached R$2,310 million, up 6.5% year-over-year, with a 15% CAGR since IPO.

• Adjusted EBITDA for the last twelve months was R$718 million, with margin up from 29.9% to 31.1%.

• Recurring net income for the last twelve months was R$544.8 million, up 14.4%, and recurring net income per share reached R$0.999.

• Dividend, IOC, and share buyback in 1Q25 totaled R$151 million, representing a 90% payout of net income.

• Net cash position at R$1.04 billion at March 31, 2025.

Outlook and guidance

• SME and Individual plans are expected to continue driving revenue growth, leveraging bancassurance and digital channels.

• Margin expansion anticipated through efficiency gains, digital investments, and favorable product mix.

• Technology CAPEX peaked in 2023–2024 and is expected to decline, with ongoing focus on digital initiatives.

• Share buyback program of up to 10 million shares through August 2025.