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

Executive summary

• Achieved the lowest churn rate since 4Q20 at 8.3%, signaling improved retention and operational turnaround progress, with net portfolio loss at 0.9%, the lowest since 4Q21.

• Adjusted EBITDA-CAC reached R$118.2 million in 2Q25, with a 33.1% margin, up 1.2 p.p. from 1Q25; adjusted net income was R$18.1 million, a 25.1% increase sequentially.

• Net operating revenue for the consolidated group was R$728.2 million for the six months ended June 30, 2025, down from R$802.4 million year-over-year.

• Major post-period events include the sale of Gama Saúde Ltda. for R$163.9–164.0 million and assignment of a corporate client portfolio for R$71.3–71.4 million.

• Customer-centric product development and enhanced service processes, including 84 new products launched in H1 2025, are driving better retention and profitability.

Financial highlights

• Net revenue for 2Q25 was R$357.2 million, down 3.7% sequentially and 10.4% year-over-year; consolidated net operating revenue for 1H25 was R$728.2 million, down 9.2% year-over-year.

• Adjusted EBITDA margin improved to 41.5% in 2Q25, up 2.0 p.p. sequentially, but dropped 5.6 p.p. year-over-year for 1H25.

• Recurring free cash flow before debt and dividends was R$2.3 million in 2Q25.

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

• Net debt increased 8.9% sequentially to R$928.2 million; cash position at quarter-end was R$435.5 million.

Outlook and guidance

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

• Ongoing product launches and process enhancements are anticipated to further improve customer retention and profitability.

• The company is compliant with all debt covenants and regulatory capital requirements, with sufficient cash generation to cover short-term liabilities.