Hapvida Participacoes e Investimentos (HAPV3) Q1 2026 earnings summary

Executive summary

• New CEO and Board of Directors in place, emphasizing governance, operational excellence, and a data-driven culture.

• Turnaround plan underway, focusing on decentralization, local market adaptation, talent density, customer experience, operational efficiency, and financial discipline.

• Emphasized rational growth, high performance, and technology-driven improvements.

• Net revenue reached R$7.9 billion, up 5.2% year-over-year and nearly flat sequentially, driven by health plan contract adjustments.

• Adjusted EBITDA was R$803 million (10.2% NOR), up 12.5% sequentially but down 20% year-over-year.

Financial highlights

• Net revenue reached R$7.9 billion, up 5.2% year-over-year but down slightly sequentially.

• Adjusted EBITDA was R$803 million, up 12.5% sequentially but down 20% year-over-year.

• Adjusted net income was R$244 million, up 208.9% from 4Q25 but down 41.4% year-over-year.

• Free cash flow conversion was 81.1% for the quarter, with net cash generation of R$478 million.

• CapEx reduced to R$190 million from R$419 million in Q4 2025; annual CapEx expected up to R$700 million.

• Net debt stood at R$5.17 billion, with leverage at 1.38x EBITDA.

Outlook and guidance

• Focus on margin protection, deleveraging, and selective growth by region and segment.

• Continued cautious stance on healthcare costs due to elevated utilization in March and April.

• No significant new unit openings planned for the year.

• Ongoing review of asset portfolio and potential divestments to optimize capital allocation.

• Management expects sufficient resources for ongoing operations and no significant doubts about future viability.