Qualicorp Consulting and Insurance Brokerage (QUAL3) Q1 2026 earnings summary

Executive summary

• Focused on building a consistent operational flywheel through product design, pricing, and underwriting, resulting in lower churn and higher customer satisfaction.

• Churn rate improved to 9.4% for the quarter and 39.2% LTM, reflecting better retention and operational consistency.

• Managed portfolio ended at 519,200 lives, down 2.6% quarter-on-quarter but up 10% year-over-year, with gross additions of 36,000 members.

• Net operating revenue for Q1 2026 was R$333.0 million, down 6.6% year-over-year, reflecting operational challenges and portfolio adjustments.

• Consolidated net profit for Q1 2026 was R$21.1 million, up from R$15.8 million in Q1 2025, driven by lower costs and improved efficiency.

Financial highlights

• Adjusted EBITDA margin expanded to 41.1%, with Adjusted EBITDA at R$136.7 million, up 1.7 p.p. year-over-year.

• Net revenue for 1Q26 was R$333.0 million, with net cash from operating activities at R$145.9 million.

• Fixed and variable expenses reduced by over 9% year-over-year, with fixed expenses at 26.9% of net revenue.

• Adjusted EBITDA minus CAC margin stood at 32.2%, with CAC at 8.9% of net revenue.

• Net debt decreased 8.9% sequentially to R$777.9 million, with leverage at 1.34x LTM Adjusted EBITDA.

Outlook and guidance

• Management expects continued portfolio stabilization and eventual expansion, with an inflection point anticipated soon.

• Focus remains on operational improvements, automation, and commercial alignment to support retention and sales.

• Management is monitoring regulatory changes, including Brazilian tax reform and new IFRS standards.