Odontoprev (ODPV3) Q1 2025 earnings summary

Executive summary

• Opened 2025 earnings season with strong cash generation, EBITDA margin expansion, and robust SME/individual segment growth, despite modest sector growth in Q1.

• Odontoprev is the leading dental benefits provider in Latin America, with nearly 9 million beneficiaries and a network of 27,000 dentists across 2,500 cities.

• The company operates an asset-light, high-margin, and cash-generative business model, maintaining zero debt since its foundation.

• Achieved unprecedented dividend payout and maintained high distribution of net profit, with a 90% payout ratio in 1Q25.

• Continued strategic focus on SME and individual plans, now representing the majority of contribution margin and driving double-digit growth.

Financial highlights

• Net income exceeded BRL 2 billion over the last 12 months, with SME/individual segments contributing almost BRL 1 billion and corporate about BRL 1.3 billion.

• Net revenue reached R$2,310 million for APR24–MAR25, up 6.5% year-over-year, with a 15% CAGR since IPO.

• Adjusted EBITDA for MAR25 was R$718 million, with margin expanding to 31.1% for the last twelve months and 38.3% in Q1 2025.

• Recurring net income for MAR25 was R$545 million, up 11% year-over-year, and recurring net income per share reached R$0.999.

• Dividend, IOC, and share buyback in 1Q25 totaled R$151 million, representing a 90% payout of net income.

Outlook and guidance

• Expectation of continued robust growth in SME and individual segments, leveraging bank channels and digital investments for distribution and efficiency.

• Margin expansion anticipated through efficiency gains, digital process investments, and favorable product mix.

• CapEx in technology peaked in 2023-2024 and is expected to decline in 2025 and beyond, with ongoing focus on digital initiatives.

• Share buyback program of up to 10 million shares through August 2025.