Qualicorp Consulting and Insurance Brokerage (QUAL3) Q2 2025 earnings summary

Executive summary

• Churn rate dropped to 8.3%, the lowest since 4Q20, reflecting improved retention and operational turnaround progress.

• Adjusted EBITDA-CAC reached R$118.2 million in 2Q25, with a 33.1% margin, up 1.2 p.p. from 1Q25; adjusted EBITDA margin overall was 41.5%.

• Adjusted Net Income was R$18.1 million, a 25.1% increase compared to 1Q25, though down 33.6% year-over-year for 1H25.

• Corporate portfolio transfer and Gama sale contributed R$71.3 million and R$164.0 million, respectively, reducing complexity and fixed costs.

• Customer-centric product development and enhanced service processes, including 84 new products launched in 1H25, are driving better retention and profitability.

Financial highlights

• Net revenue for 2Q25 was R$357.2 million, down 3.7% sequentially, mainly due to portfolio divestments.

• Managed portfolio reached 5,086,500 lives, with 43,500 additions, a 33% increase over the previous quarter.

• Recurring free cash flow before debt and dividends was R$2.3 million, impacted by one-off items and portfolio transfer.

• CAC rose to 8.4% of revenue, reflecting higher sales volume.

• Fixed expenses decreased by BRL 18 million year-over-year, and by BRL 2.5–2.7 million sequentially.

Outlook and guidance

• Expectation for continued portfolio stabilization and potential growth in the second half, supported by improved churn and operational focus.

• Ongoing product launches and process enhancements, including the Klini line and regional expansions, are anticipated to further improve customer retention and profitability.

• Management remains focused on operational efficiency, commercial realignment, and prudent capital allocation to support sustainable growth.

• Plans to increase investments in customer acquisition to stabilize and resume portfolio growth.

• No major new divestments planned after recent asset sales; focus remains on core business.