Hapvida Participacoes e Investimentos (HAPV3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$7.67 billion in Q2 2025, up 7.3% year-over-year, driven by health plan price adjustments and beneficiary growth.

• Adjusted EBITDA, excluding a R$202 million non-recurring SUS/ReSUS provision, was R$905 million (11.8% margin); reported EBITDA was R$703 million (9.2% margin).

• Adjusted net income was R$299 million, while reported net income was R$149 million, both impacted by extraordinary SUS provisions.

• Beneficiary base grew by 57.7k in health plans and 91.5k in dental plans during the quarter, with growth led by corporate plans.

• Integration process completed, with focus shifting to long-term strategy, technology, and investments in healthcare delivery and network expansion.

Financial highlights

• Net revenue for H1 2025 totaled R$15.17 billion, a 7.3% increase over H1 2024.

• Health plan revenue rose 7.7% year-over-year to R$7,524 million; dental plan revenue increased 7.0% to R$230 million.

• Cash Medical Loss Ratio (MLR) was 73.9% in Q2 2025, up 2.1 p.p. sequentially, but improved year-over-year when adjusted.

• Free cash flow conversion was 72% of EBITDA, with R$507 million in operating cash generated; free cash flow for Q2 2025 was R$570 million.

• Net debt reduced to R$4,017 million (1.00x adjusted EBITDA), with leverage ratio stable and strong regulatory capital surplus.

Outlook and guidance

• Management expects continued organic and beneficiary growth, cost control, and operational efficiency through vertical integration and network expansion.

• Anticipate more moderate average price readjustments in 2025, up to two percentage points lower than 2024.

• Margin recovery strategies and new product launches to support growth amid medical inflation and competitive pressures.

• Sufficient resources expected to continue operations, with no material uncertainties affecting going concern.