Qualicorp Consulting and Insurance Brokerage (QUAL3) Q3 2025 earnings summary

Executive summary

• Achieved strong recurring free cash flow of R$101.8 million in 3Q25, with net revenue up 4.3% sequentially to R$372.6 million and adjusted net income rising 8.8% to R$19.7 million.

• Churn rate reached 10.3%, the lowest for a third quarter since 2020, and net portfolio loss was the lowest since 2021.

• 340 new products were launched in the first nine months of 2025, tripling the previous year's figure.

• Major portfolio changes included the divestment of Gama Saúde Ltda. and assignment of the corporate health insurance client portfolio.

• Emphasis on operational efficiency, cash generation, and a return to core business for sustainable growth.

Financial highlights

• Net revenue grew 4.3% quarter-on-quarter to R$372.6 million in 3Q25.

• Adjusted net income increased 8.8% quarter-on-quarter to R$19.7 million.

• Adjusted EBITDA margin was 38.7%, with EBITDA minus CAC at R$28.7 million.

• Recurring free cash flow was R$101.8 million, and net debt reduced to R$881.2 million.

• Cash and financial investments at quarter-end totaled R$488.7 million.

Outlook and guidance

• Management expects further stabilization and potential growth of the affinity portfolio, with ongoing focus on operational efficiency and sustainable pricing.

• Judicial claim expenses are expected to stabilize and decrease as new lawsuit volumes decline.

• Corporate and Gama portfolios will be excluded from results starting 2026.

• Continued automation and process improvements are expected to reduce G&A expenses and improve productivity.

• Cash generated from operations and debt rollover are expected to be sufficient for short-term obligations.