CM Hospitalar (VVEO3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$2,815.5 million in 2Q25, up 2.5% year-over-year, driven by strong performance in Laboratories, Vaccines, and Retail, offsetting declines in Hospitals, Clinics, and Services.

• Gross profit increased 6.8% to R$422.5 million, with gross margin expanding to 15.0% in 2Q25.

• Operational efficiency and working capital discipline led to a 12-day reduction in the cash cycle year-over-year, with free cash flow at R$176.8 million.

• Strategic contract renegotiations prioritized margin improvement over volume, supporting profitability.

• Acquisition of DF Log in May 2025 is expected to enhance logistics efficiency and reduce operational expenses.

Financial highlights

• Net revenue: R$2,815.5 million in 2Q25 (+2.5% YoY); 1H25: R$5,600.4 million (-1.7% YoY).

• Gross profit: R$422.5 million in 2Q25 (+6.8% YoY); gross margin 15.0%.

• Adjusted EBITDA: R$177.9 million in 2Q25 (+0.2% YoY); margin 6.3%.

• Adjusted net loss: R$44.3 million in 2Q25 (vs. R$0.8 million loss in 2Q24); adjusted net margin: -1.6%.

• Free cash flow in 2Q25: R$176.8 million; cash cycle improved to 57 days from 69 days in 2Q24.

Outlook and guidance

• Management expects normalization of the cash cycle in 2H25 and resumption of growth in high-ROIC segments such as Materials, Insuma, and Retail.

• Synergies from DF Log acquisition anticipated to yield scale gains and further operational efficiencies in logistics.

• New hospital and clinic portfolio expected to strengthen profitability and value creation.

• Services segment focused on acquiring new customers and partnerships to resume growth.

• Normalization of inventory and supplier profile anticipated from 3Q25 onwards.