CM Hospitalar (VVEO3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 1.7% year-over-year to R$2,831.9 million in 1Q26, led by a 4.7% increase in Hospitals and Clinics, despite declines in other segments.

• Gross profit rose 16.2% to R$446.5 million, with gross margin reaching 15.8%, the highest for a first quarter in company history.

• Adjusted EBITDA increased 30.4% to R$208.1 million, with margin expanding to 7.4%.

• Free cash flow turned positive at R$45.5 million, reversing a negative R$52.2 million in 1Q25.

• Operational recovery continued, supported by process simplification, integration, and working capital management.

Financial highlights

• Net revenue reached R$2,831.9 million (+1.7% YoY); gross profit was R$446.5 million (+16.2% YoY); gross margin expanded to 15.8% (+2.0 p.p. YoY).

• Adjusted EBITDA was R$208.1 million (+30.4% YoY), with margin up to 7.4% (+1.6 p.p. YoY).

• Adjusted net loss was R$35.3 million, impacted by higher financial expenses.

• Free cash flow was positive at R$45.5 million, with operating cash flow at R$82.1 million.

• Net debt stood at R$2,883.2 million, with leverage ratio at 3.88x, the lowest since 3Q24.

Outlook and guidance

• Management maintains focus on operational efficiency, cash generation, and financial deleveraging.

• Sector faces lowest price adjustment in 20 years, ongoing transformation in oncology, and double-digit growth in institutional distribution.

• Continued improvements in margins and capital structure expected, with discipline in portfolio and cost management.