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

Executive summary

• Achieved recurring free cash flow of R$51.7 million in 4Q25 and R$298.2 million in 2025, reflecting strong cash generation and financial discipline amid operational challenges.

• Adjusted EBITDA for 4Q25 was R$149.8 million, with a margin of 41.9%, up 3.2 p.p. sequentially and 5.8 p.p. year-over-year.

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

• Transformation strategy advanced through product launches, exclusivity agreements, and divestments in the corporate segment and Gama.

• Focused on customer retention, product quality, and operational efficiency, leveraging technology and AI.

Financial highlights

• Core gross revenue for 4Q25 was R$373.8 million, down 1.8% year-over-year; full-year gross revenue was R$1,578.5 million, down 7.6% year-over-year.

• Fixed and variable expenses decreased, supporting margin stability; fixed expenses down 6.8% and variable expenses down 22.9% year-over-year in 4Q25.

• Adjusted EBITDA - CAC margin expanded to 33.5% in 4Q25.

• Adjusted net income was -R$10.5 million in 4Q25, with full-year adjusted net income at R$41.8 million, down 50.5% year-over-year.

• Cash and financial investments at year-end were R$889.6 million.

Outlook and guidance

• Strong pace of new product launches, with 511 new products in 2025 versus 138 in 2024, and several exclusivity agreements to enhance competitiveness.

• Management expects continued efficiency gains through automation and AI, with further reductions in churn and expenses.

• Entering 2026 with a more competitive stance and robust product pipeline.