Bradsaúde (SAUD3) Q2 2025 earnings summary

Executive summary

• Net revenues reached BRL 2.4 billion (R$2,353 million) for JUL24–JUN25, with nearly 9 million beneficiaries and a network of 27,000 dentists across 2,500 cities.

• Record SME client growth: 170,000 new in 12 months, 90,000 in half-year, and 54,000 in the quarter, with higher average ticket and competitive DLR.

• Net income for JUL24–JUN25 was BRL 569 million, up 18.1% YoY, with a 19.5% YoY increase in 2Q25 to R$146 million.

• Asset-light, pre-paid, recurring revenue model with zero debt since foundation and strong ESG credentials.

• Professional management, high corporate governance standards, and a 95%+ payout ratio over the last decade.

Financial highlights

• Adjusted EBITDA for JUL24–JUN25 was R$761 million, with margin expanding to 34.1% in 2Q25 (+5.1 p.p. YoY).

• Net income margin supported by high payout (97% LTM, 100% in 2Q25) via dividends, IOC, and share buybacks.

• Dental care ratio improved to 36.7% in 2Q25, with allowance for doubtful receivables at 1.2% of NOR.

• ROE reached 43% in the last twelve months.

• Cash flow from operations in 6M25 was R$184.1 million; net cash position at R$923 million as of June 2025.

Outlook and guidance

• SME and Individual plans segment continues to drive growth, with revenue CAGR of 12% since 2014 and higher average ticket than corporate.

• Focus on expanding distribution channels, leveraging digital initiatives, and maintaining robust SME growth.

• Dividend and IOC payments for 2025 projected to reach R$635 million, with high payout ratios expected to continue.

• G&A efficiency expected to improve over the next 1-2 years due to digitalization and automation investments.

• Regulatory capital sufficiency remains robust, with required sufficiency at R$49.9 million as of June 2025.