Qualicorp Consulting and Insurance Brokerage (QUAL3) Q4 2025 earnings summary

Executive summary

• Maintained strong cash generation and financial discipline, with recurring free cash flow of R$51.7 million in Q4 2025 and R$298.2 million for the year, despite a 7.7% net revenue decline and operational challenges.

• Adjusted EBITDA for Q4 2025 was R$149.8 million (margin 41.9%), up sequentially, but full-year EBITDA fell 13.5% to R$588.6 million.

• Net debt decreased 12% year-over-year to R$853.6 million, with leverage at 1.45x adjusted EBITDA.

• Strategic divestments in the Gama and Corporate segments simplified operations and generated one-off positive cash impacts.

• Transformation and turnaround strategies focused on core business, product innovation, and operational efficiency.

Financial highlights

• Net revenue for 2025 was R$1,458.6 million, down 7.7% year-over-year, with core gross revenue for Q4 2025 at R$373.8 million.

• Adjusted EBITDA margin reached 41.9% in Q4 2025, while full-year margin was 40.4%.

• Free cash flow for 2025 was R$298.2 million, down 32% year-over-year.

• Fixed expenses decreased 6.8% and variable expenses dropped 22.9% in Q4 2025 compared to Q4 2024.

• Adjusted net income was R$41.8 million in 2025, down 50.5% year-over-year.

Outlook and guidance

• Continued focus on efficiency gains through automation, AI, and operational improvements to drive margin and retention.

• Strong pace of new product launches (511 in 2025), with ongoing investment in exclusivities and commercial competitiveness.

• Expect stable or improving churn rates and a more balanced competitive landscape between Affinity and SME segments.