Hapvida Participacoes e Investimentos (HAPV3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$7.8 billion in Q3 2025, up 6.0% year-over-year and 1.3% sequentially, driven by health plan price adjustments and beneficiary growth.

• Adjusted EBITDA was R$746.4 million (9.6% margin), down 2.1% year-over-year; adjusted net income was R$338 million, up 4.1% year-over-year.

• Health beneficiaries increased by 12.6k sequentially, totaling 8,868.9k, with strong corporate and dental segment growth but net reductions in São Paulo and Rio de Janeiro due to competition.

• Customer satisfaction and quality of care metrics improved, including ANS ranking, IGR, and lower complaint rates.

• Expanded own network with seven new hospitals and 25 outpatient clinics in 2025, adding nearly 1,000 new beds, with 500 operational.

Financial highlights

• Net revenue was R$7,775 million, up 6.0% year-over-year; average monthly health ticket rose 6.1% to R$292.7.

• Adjusted EBITDA margin declined to 9.6%, with adjusted net income margin at 4.6%; cash MLR increased to 75.2%, up 130–144 bps year-over-year.

• Net debt increased to R$4.25 billion, with leverage at 1.00x EBITDA LTM.

• CapEx was R$225 million in Q3 2025, focused on IT and infrastructure.

• Free cash flow was negative R$52 million, impacted by provision payments and higher disbursements.

Outlook and guidance

• Margin recovery and cost dilution are expected as new units mature, occupancy increases, and pricing adjustments averaging 10% take effect.

• Expansion of the own network and ongoing investments in preventive medicine and geographic diversification are expected to support sustainable organic growth.

• Management expects MLR pressure to be transitory as occupancy rates in new units increase.

• Financials are based on IFRS 4 for comparability; future periods may differ under IFRS 17.

• No material impacts from climate change or tax reform identified as of the reporting date.