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, outpacing industry peers in growth and diversification.

• 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 the last twelve months was BRL 569 million, up 18.1% YoY, with a 9.6% CAGR since IPO.

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

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

Financial highlights

• Adjusted EBITDA for the last twelve months was R$761 million, up 27% in the quarter, with margin rising to 34.1% in 2Q25 and 32.3% for the period.

• Revenue up 8% YoY in 2Q25, driven by a 5% increase in average ticket and favorable sales mix.

• Cost of services and average ticket outperformed inflation, supporting differentiated margins.

• Bad debt ratio dropped to 1.2% of NOR in 2Q25, attributed to increased bankarization and efficient credit filters.

• Net cash position at R$923 million as of June 2025, with zero debt and ROE of 43% in the last 12 months.

Outlook and guidance

• SME and Individual plans segment continues to drive growth, with revenue CAGR of 12% since 2014 and high growth potential in non-corporate segments.

• Corporate segment anticipated to rebound in the second half, with contracted wins expected to offset earlier losses.

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

• Dividend and IOC payments for 2025 projected to reach R$635 million.

• Focus on expanding distribution channels and leveraging digital initiatives for future growth.