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 launched in the first nine months of 2025, tripling the previous year's figure.

• Completed divestment of Gama and assignment of the corporate portfolio, reinforcing focus on Affinity and SME segments.

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

Financial highlights

• Net revenue: R$372.6 million (+4.3% vs. 2Q25), adjusted net income: R$19.7 million (+8.8% vs. 2Q25), recurring free cash flow: R$101.8 million.

• Adjusted EBITDA: R$144.2 million (-2.6% vs. 2Q25), margin 38.7%.

• EBITDA minus CAC was R$28.7 million, with CAC at 10% of revenue.

• Net debt reduced to R$881.2 million, leverage at 1.53x LTM Adjusted EBITDA.

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

Outlook and guidance

• Management remains focused on operational efficiency, commercial realignment, and strategic capital allocation.

• Ongoing product launches and price adjustments are expected to support portfolio stabilization and future growth.

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

• Expectation that judicial claim expenses will stabilize and decrease as new lawsuit volumes decline.

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